Vientiane expects stable economic growth in 2020
VIENTIANE (Vientiane Times/ANN) - Vientiane authorities will attempt to source funding for investment in various areas, aiming for a target of 16,700 billion kip in order to drive economic growth.
Investment by the government should be 75 billion kip, while 12,975 billion kip should come from private domestic investment and Foreign Direct Investment (FDI), along with 650 billion kip from grants and low interest loans, and 3,000 billion kip from banks, Vientiane’s Mayor, Dr Sinlavong Khoutphaythoune, stated at a meeting of the Vientiane’s People Council last week.
The city’s economic growth is expected to remain stable in 2020, supported by growth in the agriculture, energy, industry and service sectors.
Gross Domestic Product (GDP) growth is expect to remain at 9.5 percent with a value of 54,080 billion kip while average per capita income should reach US$6,120, Dr Sinlavong said.
Industrial growth is forecast to edge up to 12.5 percent in 2020, accounting for 49 percent of GDP. The agriculture and forestry sector is expected to grow by 4.5 percent or 14 percent of GDP and the service sector is expected to grow by 10 percent, accounting for 37 percent of GDP.
The city will also aim to collect about 1,511 billion kip in revenue, plan for expenditure of 600 billion kip, and set a target of 2 million visitors.
Economic growth is expected to remain steady because of the recovery in agricultural production and strong growth in construction and tourism-related services.
In the agriculture sector, authorities have set a rice production target of at least 300,000 tonnes, and will aim for 110,271 tonnes of other crops and commercial crops, with the target for sweetcorn set at 5,000 tonnes.
Farmers will be encouraged to raise more livestock to meet the growing market demand for meat, and to make more progress in developing the processing industry and boosting handicraft production.
Vientiane attracts an increasing number of domestic and foreign investors. The value of investments last year hit 18,253 billion kip, exceeding the target by 20.7 percent.
GDP growth stood at 9.58 percent with a value of 48,895 billion kip and average per capita income was US$5,699.
A total of 1,399 billion kip in revenue was collected, which was 23 billion kip more than planned.
The value of exports reached almost US$700 million compared to 2018 - an increase of 14.55 percent.