Vientiane Capital expects its economy to grow by 7.6 percent this year, falling short of its 8 percent target as handicraft production, mining, and tourism-related businesses face slower growth.
The report, presented on 10 November, showed that Vientiane’s economy grew by 6.2 percent in the first nine months, above the national rate of 4.8 percent.
Agriculture, industry, and services all expanded, but some businesses and farmers faced challenges that could leave production below target.
Capital Grows Faster Than National Economy
The capital’s growth was higher than the national figure of 4.8 percent for the same period. Across Laos, manufacturing, investment, electricity, trade, and tourism-related services supported economic activity, according to an October report.
Still, inflation averaged 7.9 percent, leaving households under pressure from rising prices.
In Vientiane, industry remained the largest part of the economy, accounting for almost half of total output. Services made up just over a third, while agriculture contributed the rest.
The report put industrial growth at 8.3 percent. Although the number of factories and handicraft businesses met the planned target, the value of handicraft production and mineral extraction was expected to fall short.
Services also recorded mixed results, which grew by 6.9 percent. Shops, wholesale businesses, and transport services performed well, but growth was slower for hotels and restaurants linked to tourism.
Slow Growth for Tourism
Tourism also faced challenges nationally. Laos received about 3.28 million international visitors in the first nine months, with the government forecasting roughly 3.66 million by year-end, below its annual ambition of five to six million visitors.
Meanwhile, agriculture in the capital grew by 7 percent. Crop farming showed encouraging signs, although limited access to water affected rice production.
Rice output was estimated at 242,497 tonnes, below the annual target of 245,226 tonnes. The report said farmers did not have enough irrigation water during the growing season, and some farming areas could not receive the water they needed.
Food supply showed stronger results overall. The combined supply of meat, fish, and eggs reached about 87,065 tonnes, exceeding the annual target by approximately 1.5 percent.
Pork production was particularly strong, coming in 17.3 percent above target. However, production of poultry meat, beef, buffalo meat, and goat meat remained below planned levels.
The latest results follow several years of economic expansion in the capital. In December 2025, city authorities reported average annual growth of 5.34 percent over 2021–2025 and said revenue collection had exceeded its target for five consecutive years. Industry was also the main contributor to growth during that period.
