Socio-economic development yields some major successes

The implementation of the socio-economic plan and state budgetary plan for 2006-2007 has resulted in achieving some major successes, Mr Bouasone Bouphavanh, Prime Minister of the Lao PDR disclosed at the fist day of third ordinary session of the National Assembly (sixth legislature).

            The political stability, social peace and security and social order have been strongly ensured for the whole country. GDP for the first six months of the fiscal year increases by 7.6% (the annual plan target is not less than 7.5%; the GDP per capita has attained USD 665 (the plan target is USD 591); the market price, foreign exchange rate and the value of Kip (Lao currency) remained stable; the average rate of inflation during the first seven months of the fiscal year is 4.4%, which is the lowest level compared to the rate of previous years. The remarkable thing is the performance in the foreign trade, which allows the country to have a trade surplus of over USD 96 million, improving the balance in foreign exchange in the country. The total amount investment projects approved during the first six months of the fiscal year has reached 88.2% of the annual plan target, of this: foreign investment covers 87.3% of the total investment amount.

            Improvement of the curriculum of the general education has been made through increasing the number of academic years from 11 years to 12 years for high school education. At the same time, professional education and vocational training have also been developed. Regarding the health sector, the Government has given the emphasis on the expansion of the health service network, which has currently achieved coverage of 100% for the urban area and 97% for the rural area.  

            In 2006, the number of tourists visiting Laos was 1.2 million and during the first six months of this year, the number of tourists has reached 428,000, an 30-percent increase compared to the same period of the previous year, of these, the number of Japanese tourists has been remarkably increased and the main reason is the approval of exemption of visa for the Japanese people.

            Actually speaking, the Government has achieved better performance in many areas during 2006-2007. However, taking into account of the potential and the enabling opportunity, these achievements are still low, said Prime Minister.

            Concerning the main plan target for 2007-2008, Prime Minister says: “the Government has undertaken the study and I would like to make the proposal as follows: GDP shall grow by 8% compared to 2006-2007 and GDP per capita shall be USD 728 (an increase by USD 63). In order to achieve this growth rate, effort shall be made to mobilise a global investment amounted to 32% of GDP, of these: public investment consists of 3,897 projects amounted to 4,664 billion kip, of this domestic founding consists 2,065.5 billion Kip and external founding is 2,598.8 billion kip; to maintain the average inflation rate at less than 6%, trade deficit at 5% and deficit financing at 5.4% of GDP through the collection of revenue totaling at 15.22% of GDP and containing the budget expenditure at 20.68% of GDP, limiting the expansion of M2 at 18%. The production of rice shall be 2.87 million tons (an increase of 0.21 million tons). The number of poor family shall reduce by 3% and the area of slash and burn cultivation shall decrease from 14,400 hectares to 10,000 hectares or less.”