Laos sets sights on growth rate of 7.5 percent

Vientiane, Laos' capital city. (Source: visit-laos.com)

Vientiane (VNA) – Laos set out its goal of achieving an average growth rate of 7.5 percent in its 8th five-year 2016-2020 Plan for Social-Economic Development.

Of which, the forestry sector will grow 3.2 percent annually and contribute 19 percent of gross domestic product (GDP); the industrial sector 9.3 percent representing 32 percent of GDP; and the service sector 8.9 percent or 41 percent of GDP.

In the plan, which has been passed at the first meeting of the 8th National Assembly of, Laos also aims for 3,190 USD per capita income by 2020 and a population of over 7 million people.

The country’s other goals include reducing the poverty rate to below 10 percent and ending its status as a least developed country by 2020.

Inflation during the period will be no higher than five percent and the national foreign currency reserves will be enough for importing goods for at least five months.

The literacy rate for those aged 15 and above will be over 95 percent of the population and the mortality rate in children aged below 12 months will be brought down to below 30 per 1000.

The Lao Government will also work to ensure around 90 percent of its population will have access to clean water; the rate of people accessing the social security system and health insurance will rise to 80 percent by 2020; and the rate of forest coverage will be increased to 70 percent.

In order to achieve those goals, the Government plans to invest 223 trillion kip (over 27 billion USD), equal to 30 percent of GDP during the period. Of which, domestic capital accounts for 9-11 percent and around 12-16 percent will be sourced from loan and aid capital.-VNA