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Lao stock market expected to push for annual 8-8.5% of GDP growth
The gross domestic product (GDP) in Laos is expected to increase by 8 or 8.5 percent per year following the operation of the Lao stock market, according to the President of the Lao Stock Market.
Stock Market General Director Dejpouwang Murarat disclosed last week that Laos had well prepared for opening its first exchange market in upcoming October while the buying and selling is expected to start early next year.
He said that there is no concern about our personnel building in administration work because the Lao Central Bank has given assistance in upgrading skills and knowledge for our personnel overseas for two years.
Our personnel are ready for serving once the market operates, Mr Dethphouvang said. The technical cooperation to administer the exchange market is assisted by the Republic of Korea and the stock exchange of Thailand, he added. So buying and selling shares would go smoothly.
However, he said, the first day of share selling and buying would be operated on 11 January next year.
As many local companies are not ready to register with the stock market.The Lao kip will be used for buying and selling shares at the stock market to promote the use of Lao kip and domestic investment.
By the regulation, it is stipulated that a foreign investor can hold at maximum 10 percent of assets of a registered local enterprise or 49 percent at maximum of all shares in the Lao stock market, he said.
He said that after opening, the market will help increase more domestic fund and economic growth and many companies have shown strong interest in the investment in Laos.
This market will also help improving the quality of products and increasing competition with overseas, he said. If companies get profits, the state revenue will also increase, he added. At present, two of the 25 target companies are ready to register in the new stock market including the Banque pour le Commerce Exterieur du Laos and Electricite du Laos.
Laos New Agency
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