President: Laos to create independent ownership of economy, finance

Secretary General of the Lao People’s Revolutionary Party Central Committee and President, Thongloun Sisoulith, has vowed to transform the economy by guiding it towards independence and Lao ownership, so that the economy becomes more resilient. 
The move comes as the economy is heavily dependent on external factors, such as heavy reliance on imports for domestic consumption, which causes economic fragility and exposes the country to external shocks and disruption. 
Addressing a nationwide meeting of the finance sector in Vientiane, the President said “From now on, the Party Central Committee and the Politburo will quickly devise policies to transform our country, in particular the economic system, from the current overwhelmingly dependent situation to a system based on independence and Lao ownership of the economy.”
President Thongloun laid down the concept of an independent and Lao-owned economy for economists, researchers, scholars and various institutions to consider, analyse, and shape this economic model that better suit Laos’ circumstances.
Giving guidance on the proposed economic model, the President said “An independent and Lao-owned economy” does not mean that Laos has to produce and manufacture everything. Rather, the concept aims to reduce Laos’ heavy dependence by making the most effective use of the country’s natural resources and other areas of potential, so that more Lao people are involved in the process.
He stressed the need to commercialise and capitalise on natural resources in a sustainable manner and to export products to a broader global market. Foreign capital, know-how and technology should also be encouraged to commercialise natural resources, while value must be added to these products to maximise the benefits.
“We should know how to make money by making use of these resources in worthwhile ways, while protecting our resources sustainably,” President Thongloun said.
He added that Laos should also decisively integrate its economy with economic globalisation.
Regarding finance, the leader described finance as being the heart of the economic system.
He instructed meeting participants to do their best to ensure effective revenue collection and spending to strengthen the budget, while spreading the risks regarding foreign currencies and preventing a single foreign currency monopoly.
The main focus for finance sector of this economic model should be on preventing the accumulation of debt to a level that is unmanageable, he added.
“It is inappropriate to just borrow or sell bonds to service debts, as this will merely result in the accumulation of more debt that could lead to disaster,” President Thongloun said.

By Times Reporters
 (Latest Update January 8, 2024)