According to a report by the Ministry of Planning and Investment, previously, Lao PDR had advanced significantly in terms of trade, in particular with industrial processing and handicrafts continuing to grow with a total value 5.031 billion LAK, 14.14% above plan and an increase of 29.12% compared with the previous year. Industrial processing reached 3,379.20 billion accounting for 96% and handicraft 140.80 billion LAK accounting for 4% of the trade value of industrial processing and handicraft. Currently, there are a total of 60 industrial zones with a total area of 18.927,14 hectare and a total of 196 manufacturers.
Currently investing in the Vientiane-Nonhthong economy zone, there are reserved foreign investors and a total of 17 registered companies, mostly from China, Japan and Thailand with a capital investment of more than 30.06 million US$. The capital will go to the development of manufacturing to produce electronic instruments, electric tools, industrial products and services. Furthermore, in the Km 21 Vientiane Economy zone, there are foreign investors currently reserved and registered to build the plant production started in a total of 31 factories.
Presently, there are a total of 38,126 industrial processing and handicraft enterprises. The industrial processing that has the largest economic potential is in Lao brewery, cassava, tobacco, rubber and some manufacturing of plants for industrial processing.
Specifically in year 2012-2013, industrial processing increased by 1,263 units, which included small scale manufacturing and family plantations, in particular manufacturing to produce rice-millers, noodle bricks, etc.
Meanwhile the main handicrafts - weaving, natural colouring and wood turning - are constantly growing with a positive impact on employment and income earning for households, with a steady reduction of poverty. Another significantly advance last year was the addition of 6 small and medium industrial manufacturers including instant coffee by Daoheang group, sugar, heater power plant, rubber processing, Nikon camera, Hyundai.
However, the trade value did not meet with expectation, especially the export value reached 1,898.38 million US$ a deficit of 7.84% against plan and an increase of 18.49% compared with the same period last year, while imports were reported at 2,813.93 million US$ 21,85% above plan and an increase of 3.45% compared with the same period last year resulting in a trade deficit of US$900 million.
The construction of processing plants and large-scale real estate projects will result in increased demand for import of construction materials, machinery and technology.
Information Source:
Social-Economy Newspaper
Please share your feedback below and help us improve our content.