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Six major socio-economic development targets discussed at XI Party Congress
 
Prime Minister Thongloun Sisoulith outlined six targets under the 9th Socio-economic Development Plan for 2021-2025 when speaking at the 11th Party Congress in Vientiane yesterday.
The first goal is for Laos to maintain steady economic growth with quality, stability and sustainability.
Secondly, training will be stepped up to ensure people are better qualified to meet the demands of development, are able to conduct research, and know how to use science and technology to add value to goods and services.

Third, it is essential to improve people’s living conditions. Balancing environmental needs with a reduced risk of natural disasters is the fourth goal.
Fifth, the government will work to strengthen infrastructure and effectively utilise potential, opportunities, locations and participating regional and international cooperation and integration.
The sixth goal is to enhance the efficiency of state management and administration so that equality, justice and order prevail in society and people receive protection through the enforcement of laws.
Mr Thongloun detailed each of the targets, especially the goal of quality, stable and sustainable economic growth.
His report outlined various plans such as revenue collection and expenditure, and improvement of the business and investment environments and state-owned enterprises, SME promotion, management of foreign currencies, and money flow and exchange rates, including sourcing domestic and foreign investment. 
Under the plan, in the next five years economic growth is projected to grow at 4 percent annually. The value of Gross Domestic Product is targeted at 1,057,689 billion kip within five years and the goal for annual average per capita income is US$2,887 in 2025.
Average annual growth in the agriculture sector is expected to account for 2.5 percent of GDP, with the industrial sector to contribute 4.1 percent and the service sector 6 percent.
Up until 2025, agriculture and forestry are projected to contribute 15.3 percent of GPD, with industry comprising 33.3 percent and the service sector 41.3 percent. The target for revenue collection is at least 169,000 billion kip, accounting for 15.3 percent of GDP, with expenditure capped at 109,000 billion kip equal to 17.2 percent, including normal administration costs of 130,000 billion kip and 60,000 billion kip for joint-venture investments.
 The prime minister said the government also plans to encourage domestic and foreign investors to carry out large-scale projects.
The deficit between income and expenditure is expected to be 21,000 billion kip or 2 percent of GDP.  
The government will place importance on stabilising foreign currency exchange rates and the management of inflation. The inflation rate will be kept at a maximum of 6 percent while fluctuations in currency exchange rates should not be more or less than 5 percent.
The government will ensure that foreign currency reserves are sufficient to buy imports for a period of not less than 3 months and will do its best to maintain money flow at a rate not exceeding 20 percent per year. Investment will be obtained from various sources to support all forms of development and account for 19.6 percent of GDP.
Of this, investment from budgetary sources will account for 10-11 percent, 11.7 percent will come from Official Development Assistance, at least 48 percent will come from Foreign Direct Investment, and about 24 percent will come from other funding sources.


By Manichanh Pansivongxay
(Latest Update
January 14,
2021)


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