Lao government eyes annual GDP growth of at least 4 percent

People join traffic in Vientiane (Illustrative photo: Xinhua/VNA)

Vientiane (VNA) - The Lao government has set an annual economic growth target of at least 4 percent by 2025, reported Vientiane Times newspaper.

According to a 20-page decree signed by Lao Prime Minister Phankham Viphavanh, the agriculture sector is expected to grow at an average annual rate of 2.5 percent and will represent 15.3 percent of gross domestic product (GDP) by 2025.

Meanwhile, industry is projected to grow at an annual rate of 4.1 percent and account for 32.3 percent of GDP by 2025. The service sector is set to expand at 6 percent, making up 40.7 percent of GDP in the next 3-4 years.

In addition, the tariff and tax sector is forecast to rise by 5.8 percent and represent 11.7 percent of GDP by 2025. Annual GDP per capita income is estimated to reach 2,880 USD.

Vice President of the Lao National Chamber of Commerce and Industry (LNCCI) Daovone Phachanthavong said Laos can achieve its economic goals if mega development projects in smart cities, expressways, special economic zones, and hydropower and mining, among other, progress as planned.

However, one of the biggest challenges will be the Lao government’s ability to bring the COVID-19 pandemic under control and bolster economic recovery./.

VNA