Laos aims to transform economy to be more resilient

VIENTIANE, Jan. 8 (Xinhua) -- General Secretary of the Lao People's Revolutionary Party Central Committee and Lao President Thongloun Sisoulith has vowed to transform the economy by guiding it towards independence and Lao ownership, so as to make it more resilient.

Lao Economic Daily on Monday quoted Lao President Thongloun saying at a nationwide meeting of the finance sector 2023, "From now on, the Party Central Committee and the Politburo will quickly devise policies to transform our country, in particular the economic system, from the current overwhelmingly dependent situation to a system based on independence and Lao ownership of the economy."

The move comes as the economy is heavily dependent on external factors, such as heavy reliance on imports for domestic consumption, which causes economic fragility and exposes the country to external shocks and disruption, according to the report.

At the meeting held in the Lao capital Vientiane on Dec. 19, 2023, President Thongloun laid down the concept of an independent and Lao-owned economy for economists, researchers, scholars and various institutions to consider, analyze and shape this economic model that better suits Laos' circumstances.

Giving guidance on the proposed economic model, the president said an independent and Lao-owned economy does not mean that Laos has to produce and manufacture everything. Rather, the concept aims to reduce Laos' heavy dependence by making the most effective use of the country's natural resources and other areas of potential, so that more Lao people are involved in the process.

Lao President Thongloun stressed the need to commercialize and capitalize on natural resources sustainably and to export products to a broader global market. Foreign capital, know-how and technology should also be encouraged to commercialize natural resources, while value must be added to these products to maximize the benefits.

He also instructed meeting participants to do their best to ensure effective revenue collection and spending to strengthen the budget, while spreading the risks regarding foreign currencies and preventing a single foreign currency monopoly.

The main focus for the finance sector of this economic model should be on preventing the accumulation of debt to an unmanageable level, he added.