Roundup: Experts optimistic about strong Lao economy in 2017

Lao economists and the private sector are confident that the country's economy has a good chance to achieve the targets set for 2017 despite global uncertainties.

This year, the government has set the growth target at 7 percent, only 0.1 percent higher than the 6.9 percent achieved in 2016.

Last year's growth rate fell short of the targeted figure of 7.5 percent.

Chairman of the Lao National Chamber for Commerce and Industry Oudeth Souvannavong told Vientiane Times on Tuesday the government's Gross Domestic Product (GDP) projection was appropriate and the percentage increase was not high compared to the previous figure.

Commodity prices in the resource sector are currently trending upward on the global market, and if this continues, it bodes well for the economy as Laos exports minerals such as copper.

In addition, some hydropower projects are expected to be completed this year and they will help to stimulate the growth of other sectors, Oudeth said.

The railway that is under construction to link Laos and China will be crucial in boosting development and bringing in more supplies. In addition, the railway will generate jobs and income for local people, he said.

Meanwhile, the private sector is hoping for a better business climate in 2017 and will continue to work with state organizations to address various obstacles.

The official said some issues will take a long time to resolve, especially those related to the improvement of regulations and the amendment of laws.

At the end of January, the private and public sectors will hold a meeting about ways to facilitate business operations.

Easier registration for companies, facilitation of tax payments and eradication of unnecessary trade barriers, as well as lowering the price of goods, will be discussed.

Leeber Leebouapao, Director General of the National Economic Research Institute under the Ministry of Planning and Investment, said on Wednesday that economic expectations are based on existing projects such as those in agriculture, industry and other investments, including new investment projects.

"It may be possible for expectations to be exceeded, but not by much," he said, adding that the most important thing now was judicious management of the macro-economy, domestic goods prices, and currency exchange rates.

In addition, the investment climate and natural disasters were issues that needed special attention, in terms of improvement and monitoring respectively.

Sharing the same view, Vice Dean of the Faculty of Economics and Business Management at the National University of Laos, Phouphet Kyophilavong, said Laos' GDP was continuing to increase and the country had one of the fastest growing economies in the Association of Southeast Asian Nations (AEAN). Inflation remained low and the kip exchange rate was stable against the U.S. dollar.

Phouphet suggested that macro-economic stability should be a priority for the Lao government this year. Strengthening fiscal discipline is also a priority, and it is important to reduce the accumulation of public debt.

In addition, it is vital to strengthen financial stability, he said.

Other essential steps are to improve the performance of state-owned commercial banks and strengthen the capacity for oversight, diversify the economy and improve the business climate in order to reduce costs, as well as remove non-tariff barriers and the liberalization of trade, he added. Endit