Laos' government would spend more than $100 million to boost domestic production.

[ASEAN NOW]

 

Laos' government intends to invest more than $100 million to encourage domestic manufacturing and increase exports.

 

According to KPL, a loan from China's National Development Bank (CDB) would be utilized to assist certain firms as part of the government's attempts to boost local production and overseas exports.

 

Mr. Sonexay Sitphaxay, the Governor of the Bank of Laos, said the Lao economy is under a lot of strain as a consequence of large foreign currency appreciation, rising crude oil costs, inflation, and international interest rates, and that it would take some time to recover.

 

Governor Sonexay stated, "The government would use funding from China's National Development Bank (CDB), with the first USD 100 million being drawn in installments until March 2022."

 

The government will also get funds from the World Bank, the Lao Access to Finance Fund (LAFF), and commercial bank deposits, which are likely to rise when the Lao-China Railway project gets underway.

 

Mr. Sonexay Sitphaxay stated, "The government would give certain financial policies for small business initiatives and small and medium-sized companies (SMEs)."

 

Mr. Sonexay Sitphaxay added, "Authorities will coordinate between the public and private sectors to collect information on genuine producers and the need for real finance, especially for the Power Generating-Export Credit Project, Export Production Credit Project, Production Credit Substitute for Import Scheme, and others."

 

In order to eliminate currency value differences between the official and unofficial exchange rates, the government has targeted inflation at 5-7 percent in 2022 and devised a new exchange rate structure.

 

Credit Source: The Laotian Times

 

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