|
Lao GDP growth faces developmental issues
The Greater Mekong Subregion (GMS) is one of the fastest growing regions in the world, with Laos among the frontrunners, according to ADB Principle Economist Dr Jayant Menon.
Dr Jayant Menon made the comment while speaking at a seminar on post-Asean Economic Community (AEC) prospects for Cambodia, Laos, Myanmar and Vietnam in Vientiane on Friday.
“You can see from Laos's real GDP growth rate of 8.4 percent that in 2010 Laos was one of fastest growing countries,” Dr Menon said.
The economist explained that the GMS enjoyed sustained economic growth in the lead up to the global financial crisis in 2008-2009.
Up until the financial crisis, the GMS had growth at a faster pace than the whole of developing East Asia and the Pacific, with much of this growth coming from Cambodia, Laos, Myanmar and Vietnam.
“In fact, the financial crisis did not have a very big impact on Laos, but Cambodia felt a greater impact because it was heavily reliant on the US for its exports,” Dr Menon said. “So, while Laos wasn't affected too badly, there was still an impact from the crisis.”
While Laos has among the fastest GDP growth rates in the region, the country must still work hard on various developmental issues to prepare for economic integration in order to meet AEC goals by 2015.
Bangkok Research Centre President Mr Yasuhiro Yamada said Laos faces various challenges in the form of trade facilitation, investment, small and medium sized enterprise (SME) promotion and industrial development if it is to ensure international competitiveness when the AEC comes into play in 2015.
Ministry of Industry and Commerce's Foreign Trade Policy Department Deputy Director, Mr Saysana Sayakone, said SME fund assessments are very important to SME development and growth in Laos.
The seminar aimed to raise awareness of the AEC among Asean countries, and share ideas to deepen and broaden economic integration and narrow the developmental gaps between Asean countries by 2015. It was attended by representatives from leading ministries, related organisations and the private sector from Laos and other countries.
The topics covered included issues related to economic integration, trade facilitation, investment and services, financial systems in developing countries, SME development and potential industries in Laos.
The seminar was co-organised by the ministries of Industry and Commerce, and Planning and Investment, and the National Economic Research Institute, with support from the Bangkok Research Centre and Japan External Trade Organisation.
vientiane times
|
