Despite challenges, Laos’s economy is projected to grow by 4.8% in the first six months of 2023, Lao Prime Minister Sonexay Siphandone has said.

Lao Prime Minister Sonexay Siphandone speaks at the 5th session of the 9th National Assembly.  (Photo: https://vientianetimes.org.la/)

Addressing the 5th session of the 9th National Assembly which opened on June 26, Sonexay highlighted the economic and financial challenges facing Laos and outlined the key measures put in place to tackle them.

Sonexay said the nation’s economy grew at 4.8% in the first quarter of this year and is expected to gain growth of 4.9% in the second quarter, with the GDP projected to value at 118,467 billion kip, (6.2 billion USD). However, he noted that the Lao economy remains vulnerable to internal and external impacts.

The government will continue measures to stabilise the macroeconomy and prevent it from falling into a crisis, focusing on addressing sensitive and volatile issues such as exchange rates, inflation, commodity prices, and budget collection.

Over the rest of the year, the government will modernise the revenue collection system and create new revenue streams so that more income is amassed for the payment of debts, he noted.

The Lao government is also committed to repaying 8 trillion kip of its debts to private enterprises over the rest of this year by shifting the debts owed to private companies to commercial banks. This will enable private enterprises to maintain their financial liquidity and help them overcome economic hurdles.

Attention will be paid to improving the investment environment by reducing bureaucratic procedures and streamlining processes, and ensuring faster approval of proposed development projects while pushing for continued progress in ongoing mega projects to boost growth.

The government also pledged to carry out more reforms among state-owned enterprises and promote the production of goods and agricultural development for domestic consumption and export./.

VNA