Laos aims to turn challenges into "opportunities"

in the quarter 3 In 2566, FDI figures in Lao PDR increased to approximately 779.99 million US dollars. The average FDI in Lao PDR from 2534-2566 is approximately 218.78 million US dollars. It reached a high of US$779.99 million in the third quarter of 3 and a low of US$2566 million in the fourth quarter of 8.

in 2566 Economy of Lao PDR Still undergoing recovery, the economy is expected to grow at 3.7%, increasing from 2.7% in 2565 due to support from various areas. that perform better, such as tourism Transportation and logistics services and foreign investment But economic growth is still lower than expected.

โดยMain causeคือ Lao PDR's kip currency has depreciated due to inflation, labor shortages and adverse weather conditions. Inflation causes consumption expenses to increase. Household spending on food Education and health decline Including savings also decreased. As a result, many households are at risk of poverty.

For this year's economic growth forecast

At the 6th Ordinary Session of Parliament, parliamentarians approved an economic growth target of 4.5% in 2567, up from the expected growth of 4.2% in 2566, which the government of Lao PDR is well aware that It's an extremely ambitious goal. amid various challenges both internal and external factors that the Lao PDR is facing

Especially the economic and financial difficulties that Lao PDR has been worried for many years. This will definitely make achieving the goals set for 2567 not easy. For example, bringing the inflation rate down to 9% in 2567 from the current level of nearly 30% can be said to be a very challenging task. And maintaining the exchange rate at a satisfactory level is also a rather ambitious goal.

while Asian Development Bank (ADB) It is estimated that the inflation rate of Lao PDR will remain at a high level of approximately 28% in 2567 and International Monetary Fund (IMF) It is expected that income from tourism Foreign investment and various exports It will help the economy of Lao PDR grow at 4% in 2567.

partResearch institute Economist Intelligence Unit (EIU) It is expected that the economy of Lao PDR will expand at 4.7% in 2567, affected by inflation and rising domestic energy prices. that affect economic growth will be alleviated and help various economic activities recovering better this year

in terms of Income that will support economic growth When considering official information from Lao PDR, tourism sector Lao PDR is likely to have a bright year in 2567 because in 2566, Lao PDR officials aim to attract only 1.4 million foreign tourists.

But it turns out that figures for the first nine months show more than 9 million international tourist arrivals, with the top five countries making the most visits: Thailand, Vietnam, China, South Korea and the United States.

Factors that promote the growth of the tourism sector Consisting of organizing cultural festivals Laos-China medium speed rail connection Tourism in Luang Prabang is booming. Other tourist attractions Starting to become popular, such as Vang Vieng and Muang Phueng, etc.

With success exceeding expectations in 2566, Lao PDR aims to attract 4.6 million foreign tourists and has a revenue target of 712 million US dollars in 2567.

Foreign investment According to the ASEAN Investment Report 2566, foreign direct investment (FDI) flows into Southeast Asia in 2565 increased 5.5% from US$213,000 billion in 2564 to US$224,000 billion. And the region's share in global FDI increased from less than 15% to more than 17%.

Although FDI into Lao PDR in 2565 decreased by approximately 51% to a value of USD 500 million. This is due to a slowdown in investment in hydroelectric power. But in the third quarter of 3, FDI numbers in Lao PDR increased to approximately 2566 million US dollars.

The average FDI in Lao PDR from 2534-2566 is approximately 218.78 million US dollars. It reached a high of US$779.99 million in the third quarter of 3 and a low of US$2566 million in the fourth quarter of 8.

Noteworthy things is the utilization of natural resources and the development of hydroelectric power to drive the economy of Lao PDR has grown rapidly over the past 10 years, with both industries mostly having foreigners as industry leaders.

This Government information Lao PDR regarding foreign and domestic investment projects that have been approved in 2564 It said the industrial sector attracting the most investment is mining, followed by agriculture, services, hotels and restaurants.

Of this investment amount, the majority is 100% foreign investment at approximately 1,142 million USD from a total of 2,415 million USD. And the country that invests the most is China.

Although FDI increased, Lao PDR found that foreign investment recorded in the banking system was significantly lower than the agreed investment value. and to guarantee that more foreign currency will enter the banking system in order to maintain the stability of the Kip currency.

Recently, the National Bank of Lao PDR issued foreign currency regulations for foreign investors to open bank accounts in kip and foreign currencies with commercial banks in Lao PDR within 15 business days after receiving an operating license. business or when an investment proposal has been approved

Another important source of incomeคือ Exports: The Lao PDR government expects to take advantage of its borders with Myanmar, Cambodia, China and Vietnam. to change from being “land-locked” to “land-linked” and aiming to increase exports of agricultural products Products produced by machinery and electricity for neighboring countries

and saw a great opportunity for growth from the Lao-Chinese railway which opened in December 2564, connecting the Chinese city of Kunming with the capital Vientiane of the Lao PDR.

In addition Businesses and foreign investors are also starting to use Lao PDR as a low-cost export base. To sell products within the region and export to the United States and Europe.

whileLight industry has begun to help. Lao PDR is integrated into the regional supply chain. which improving the infrastructure will help Lao PDR has become an alternative production base for regional manufacturers looking to diversify from existing production bases in Thailand, Vietnam and China.

This Central Bank of Lao PDR It said Lao PDR's exports dropped to 1,994.15 million USD in the third quarter of 3 from 2566 million USD in the 2,037.60nd quarter of the same year.

The average export value in Lao PDR from 2547 until 2566 is 869.16 million US dollars. and reached the highest level in the first quarter of 2565 at 2,178.96 million US dollars.

however Another important point that may cause Lao PDR can turn challenges into opportunities. is the chairmanship of ASEAN in 2567. At the same time, Lao PDR is also promoting the tourism campaign "Visit Laos Year 2024" within the same year.

It is considered an important opportunity. Lao PDR will shine a spotlight on the tourism sector. Way of life and various cultural tourist attractions of the country in order to attract tourists and achieve the goals set.

Follow and read other columns. Available in the February 2567 issue of Finance and Banking Journal. Issue 502 In digital format: https://goo.gl/U6OnIi

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