Lao Official: The American Financial Crisis Has No Direct  Impact on Laos’ Economy

Financial crisis in America may affect Laos’ economy in two ways: a) via foreign investment and through Laos’ import-export sector. However, according to a Lao banking professional and high-ranking official, it will not have a direct impact on Laos’ economy. This due mainly to the offset of the increase in investment in hydropower and mining sectors, which accounted for 27% of Laos’ gross national products (GNP), and increased as much as 15% during the fiscal year of 2007-08. As a result, as estimated by Asian Development Back (ADB), Laos will still gain economic growth at an annual rate of between 7% and 8% for the next three years.

This growth is shown greatly in major cities, especially in Vientiane. Mr. Sombath Yialiher, Lao People’s Revolutionary Party Secretary of Vientiane Prefecture, reveals, with GDP of over 11 thousand trillion Kips or approximately US$1,400 per capita income, economy in Vientiane Prefecture has continuously been growing.

Listen to Songrit's report for more details in Lao.