Hydropower, mining boost growth in Laos

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Mining in Laos: Tin and zinc mine in Houaphan Province

The economy of Laos is predicted to grow by 7.9 per cent in the country’s fiscal year 2012/13, the Asian Development Bank (ADB) stated in its latest report on one of Southeast Asia’s least developed countries.

The report has identified the electricity and mining sectors as being the primary drivers of Laos’ strong growth rate. Laos is aiming to become one of the region’s major producers and exporters of electricity through a large number of hydropower projects. Several new plants are expected to be completed this and next year, with total output expected to reach more than 3,800 megawatt by 2015.

Mining output is also expected to increase, in particular from the Ban Houayxai Gold and Silver mine. It is expected to produce 100,000 ounces of gold a year and 700,000 ounces of silver annually. Further expansion is expected in copper and potash mines and other minerals.

The report also points towards growing rice exports, rising tourism numbers and intensified construction activity.

Another boost is expected from Laos joining the World Trade Organisation (WTO) later this year. The application will go before the WTO General Council for approval on October 26, and is expected to be approved by the Laos parliament in December. In November, Vientiane will host the ASEM summit of Asian and European leaders, a meeting held every two years.

According to the ADB, Laos’ fiscal deficit is expected to remain at 4.6 per cent of GDP, while the central bank will keep money growth below 25 per cent to rein in credit growth. The inflation rate is expected to be 6 per cent next year. The country’s fiscal year runs from October to September.

In 2012, Vietnam has become the leading foreign investor in Laos, having injected $3.8 billion into the country in the first nine months of the year, and having taken over the top position from China and Thailand, according to a report by Vietnam’s Foreign Investment Agency issued on October 19.

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Reading Time: 2 minutes

Mining in Laos: Tin and zinc mine in Houaphan Province

The economy of Laos is predicted to grow by 7.9 per cent in the country’s fiscal year 2012/13, the Asian Development Bank (ADB) stated in its latest report on one of Southeast Asia’s least developed countries.

Reading Time: 2 minutes

Mining in Laos: Tin and zinc mine in Houaphan Province

The economy of Laos is predicted to grow by 7.9 per cent in the country’s fiscal year 2012/13, the Asian Development Bank (ADB) stated in its latest report on one of Southeast Asia’s least developed countries.

The report has identified the electricity and mining sectors as being the primary drivers of Laos’ strong growth rate. Laos is aiming to become one of the region’s major producers and exporters of electricity through a large number of hydropower projects. Several new plants are expected to be completed this and next year, with total output expected to reach more than 3,800 megawatt by 2015.

Mining output is also expected to increase, in particular from the Ban Houayxai Gold and Silver mine. It is expected to produce 100,000 ounces of gold a year and 700,000 ounces of silver annually. Further expansion is expected in copper and potash mines and other minerals.

The report also points towards growing rice exports, rising tourism numbers and intensified construction activity.

Another boost is expected from Laos joining the World Trade Organisation (WTO) later this year. The application will go before the WTO General Council for approval on October 26, and is expected to be approved by the Laos parliament in December. In November, Vientiane will host the ASEM summit of Asian and European leaders, a meeting held every two years.

According to the ADB, Laos’ fiscal deficit is expected to remain at 4.6 per cent of GDP, while the central bank will keep money growth below 25 per cent to rein in credit growth. The inflation rate is expected to be 6 per cent next year. The country’s fiscal year runs from October to September.

In 2012, Vietnam has become the leading foreign investor in Laos, having injected $3.8 billion into the country in the first nine months of the year, and having taken over the top position from China and Thailand, according to a report by Vietnam’s Foreign Investment Agency issued on October 19.

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