Dr Xaysomphone Phomvihane delivering the opening remarks. - VT
VIENTIANE: The 8th Ordinary Session of the National Assembly (NA) kicked off on Monday (Nov 8), with members set to discuss measures to address the country’s ongoing economic hardship.
NA President Dr Xaysomphone Phomvihane delivered the opening remarks and then gave the floor to the government to outline implementation of this year’s socio-economic development, fiscal and monetary plans and the plans for next year.
Also addressing the session, Prime Minister Sonexay Siphandone said the global and regional environment is likely to experience further turbulence next year, which will affect the Lao economy.
The economy and financial situation will continue to face risks and remain fragile, despite improvements since intervention measures were introduced, the PM told the biannual session.
Hardship has been caused by high inflation, fluctuating currency exchange rates, depreciation of the kip, high-level debt, and the severe impacts of monsoon floods.
Although inflation fell from the 2023 average of 31.23 per cent to a monthly average of 24.4 per cent in the first 10 months of 2023, it remains high.
It is projected to drop further to no more than 20 per cent by the end of 2024, but this is still much higher than the government’s target of single-digit inflation.
“Exchange rates have been better managed and have stabilised,” PM Sonexay told Assembly members.
President Thongloun Sisoulith and other Party and state leaders attended the opening ceremony.
The PM said money supply (M2) had also been well managed and its growth had declined to just 22.13 per cent in October. Growth is projected to not exceed 25 per cent by the end of this year.
Thanks to improvements in various fields, domestic product growth (GDP) for 2024 is projected to reach the target figure of 4.5 per cent endorsed by the NA. GDP growth in the first nine months of this year averaged 4.6 per cent.
The key economic drivers this year have been services, transport, and the wholesale and retail sectors, boosted by two major events, namely Laos’ hosting of the Asean Summits and related summits, its chairman of Asean, and the Visit Laos Year tourism promotion programme.
More than 5 million Lao and foreign tourists took trips in Laos in the first nine months of this year, injecting more than US$1 billion into the economy.
Private investment has also gained momentum, with investment by Lao and foreign enterprises fulfilling 173 per cent of the plan for 2024, amounting to US$2.61 billion.
Agriculture, the processing industry and construction have also grown in strength. The value of mineral production fulfilled 127.52 of the plan set for 2024, amounting to more than 34 trillion kip.
Improved revenue collection is set to ease fiscal tensions, thanks to efforts to modernise the system and plug loopholes that have led to loss of revenue in past years.
PM Sonexay highlighted the government’s efforts to continue the reform of state enterprises so they are more effective drivers of the economy.
Other key figures recorded over the first nine months of 2024 are as follows:
- The value of exports exceeded US$7.3 billion (comprising 83.84 per cent of the 2024 target figure),
- Imports rose to over US$6.48 billion (88.99 per cent of the plan),
- State investment exceeded 4,013 billion kip (80 per cent of the plan),
- Revenue exceeded 46,174 billion kip (92 per cent of the plan).
PM Sonexay pledged to intensify action to address the key issues of inflation, exchange rates, and debt by executing available measures and pursuing a GDP growth target of 4.8 per cent next year.
During the parliamentary sitting, which continues until Dec 11, NA and Cabinet members will discuss measures to overcome financial and economic difficulties.
There will also be reports on the progress of the strategy to reform education, and the work of the State Audit Organisation, State Inspection Authorities, People’s Supreme Court and People’s Supreme Prosecutor, with their performance to be evaluated by NA members.
The session will also debate drafted amendments to laws and the drafts of new laws to enhance various fields of government. - Vientiane Times/ANN
