Laos records trade surplus of US$943 mn in 9 months

Laos registered a trade surplus of more than US$943 million over the past nine months of this year, according to a senior government official.
The Minister of Planning and Investment, Mr Khamjane Vongphosy, told the National Assembly recently that exports during this period were worth more than US$5.95 billion, equal to 72.94 percent of the annual plan.

The government frames a number of policies to promote domestic productivity to boost exports.

“We are expecting that the value of the exports for the whole of 2023 will touch US$8.03 billion, equal to 97.71 percent of the yearly plan,” the minister said.
The value of imports over the past nine months of 2023 stood at US$5.01 billion, equal to 70.58 percent of the annual plan.
The minister said the value of imports for the whole year will be around US$6.93 billion, equal to 97.71 percent of the annual target.
The trade surplus for the whole of 2023 is expected to be around US$1.12 billion. However, as of September, only 41.32 percent of export payments were made through the banking system of Laos.
The government has vowed to ensure that at least 50 percent of export payments are made through the banking system by the end of 2023, in line with a resolution passed by the National Assembly in the middle of this year.
The two-way trade between Laos and other countries reported by the Lao Trade Portal (LTP) every month does not include the value of electricity imports and exports. Conversely the report made by the Ministry of Planning and Investment includes the value of all products including electricity import and export which reflect the overall trade between Laos and other countries.
The main exports by value are mining and agricultural products, and many of them were sent to China through the Laos-China Railway.
The country’s main imports are usually fuel, mechanical equipment, land vehicles, wood pulp and paper scraps, beverages, plastic utensils, food products, steel and iron, and steel products.
Recently, the Lao Prime Minister, Dr Sonexay Siphandone, issued an order directing the concerned sectors to restrict the import of luxury items and to limit the import of products that can be produced in Laos.
The government also framed a number of policies to promote domestic productivity to boost exports and bring more foreign currency into Laos.
The move is part of the government’s efforts to tackle inflation, currency exchange rates, the soaring price of goods, and minimise the pressure of sourcing foreign currency to import goods.
In recent months, the government has allocated 4,500 billion kip to boost domestic production and stimulate economic growth under a new credit policy to distribute more funds to local areas.

By Somsack Pongkhao
 (Latest Update November 22, 2023)