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Vientiane eyes 12 percent GDP growth
Vientiane expects to see 12 percent economic growth this year as industrial development projects boom in the capital.
According to the Planning and Investment Department, the capital's GDP will reach 21,400 billion kip (US$2.6 billion) - an increase of about 12 percent compared to last fiscal year - with industry as the main driver of growth.
Industry is expected to see 14 percent growth, accounting for 43 percent of GDP, with the services sector projected to see a 13 percent increase, accounting for 38 percent of GDP. The agriculture sector is forecast to experience 10 percent growth, accounting for 19 percent of GDP.
The rapid growth of the industry and services sectors, amid slowing growth in the agriculture sector, will help the government to create jobs for new graduates and move several thousand labourers from farming and livestock businesses into non-traditional fields of work.
The Planning and Investment Department also projects the output of rice in the capital for the year will reach 344,608 tonnes, vegetable output will reach 105,215 tonnes, fruit will reach 12.717 tonnes and industrial tree yields will reach 65,124 tonnes.
Production of beef, pork and chicken is projected to reach 43,240 tonnes this year. The increasing output of the agriculture and livestock sector will provide sufficient food for the capital's growing population and enough raw materials for the processing industry, which is expected to see 14 percent growth.
The garment industry is expected to see stable growth this year despite the ongoing debt crisis in Europe. Garment makers are now taking more orders from China and other developed nations due to the rising price of garments as a result of higher labour costs.
Economists project that the number of tourists visiting Vientiane will reach 1.3 million in 2012, generating income of US$130 million. The city will play an important role in hosting Visit Laos Year events and the Asia-Europe Meeting Summit in November.
The government has allowed investors to build the necessary infrastructure and accommodation to host the international event. The private sector also has more confidence in investing in real estate, which is a major reason for the short supply of cement in Vientiane.
Surging real estate development in Vientiane will also bolster the capital's GDP growth.
Vientiane authorities fo-recast that economic growth will enable them to collect revenue of 412 billion kip
vientiane times
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