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Vientiane records 12 percent economic growth
The Gross Domestic Product (GDP) of Vientiane grew by 12 percent in the first three quarters of the current fiscal year.
According to a report from the Vientiane Planning and Investment Department, the value of Vientiane's GDP from October to June reached 21,437 billion kip, about a 12 percent increase compared to the same period of the previous year.
The economic growth was based on agriculture, the processing industry, construction sector and services such as banking and tourism. The capital produced 345,000 tonnes of rice, 105,000 tonnes of fruit, and 150,000 tonnes of industrial crops, including 29,000 tonnes of sweet corn and 65,000 tonnes of cassava, in the period.
The city welcomed 948,000 tourists in the nine month period, most of them from Thailand, generating revenues of about 700 billion kip (US$85 million).
Vientiane authorities approved about 7,300 billion kip worth of investment projects, an 84 percent increase compared to the same period the previous year. Authorities also mobilised official development assistance worth about 459 billion kip.
Capital authorities collected revenue of around 412 billion kip, the majority of which came from taxes. Royalties, land taxes, transaction fees and state enterprise profits also contributed large amounts to the city's coffers.
The double digit economic growth will boost the purchasing power of the city's 800,000 residents, creating more opportunities for domestic and international enterprises to expand their businesses in the growing market.
One of the top investment sectors in Vientiane is the agriculture-based processing industry, as the city has good infrastructure, a stable water and electricity supply and there is strong market demand for agriculture produce, the main raw material for the industry.
Vientiane is also an attractive destination for investors in the garment industry due to the cheap labour force provided by migrants to the city. The tourism, banking, insurance and consultancy sectors are other thriving investment areas in the capital.
Big C, a large supermarket chain in Thailand, has realised the potential of Vientiane and plans to establish an outlet at the Talat Sao shopping mall. A Japanese shoemaker recently expanded its production capacity in Vientiane, attracted by the nation's political stability, cheap labour force and favourable investment incentives.
The capital city is offering investment incentives including tax breaks and reductions for local investors wishing to invest in the education and health sectors in a bid to improve services in these areas.
According to the Vientiane Planning and Investment Department, Vientiane authorities approved 1,052 investment projects between 2005 and 2010, with a total investment value of about US$3.3 billion, of which US$2.9 billion came from other countries. The biggest foreign investor in the capital was Vietnam, followed by China, Thailand, South Korean and France.
vientiane times
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