Laos would suffer USD 300 million trade deficit this year

(KPL) According to a Ministry of Industry and Commerce ( MOIC) report, Laos would suffer a trade deficit, amounting to USD300 million for the current fiscal year, 2009-2010, due to an expected sharp increase in the volume of imported goods, including commodities from foreign countries.

Unidentified sources stated that the global financial crisis caused the markets for Lao exports to shrink and the price of commodities to nosedive and these had an adverse effect on the income for the country?s coffer, for the past fiscal year, 2008-2009.
Exports from Lao dropped by as much as 23 per cent for the fiscal year, 2007-2008, but for this year the volume of imported goods zipped upwards to support infrastructure construction and projects of private investors.

Dr Nam Viyaket, Minister of Industry and Commerce said that exports for the fiscal year 2008-2009 was worth USD 957 million and compared with the year previous to this, 2007-2008, it was a decrease of 23 per cent.

However, he said that for present fiscal year, 2009-2010, import of goods by Laos would increase and he arrived at the figure of USD 1.2 billion, just a four per cent increase over last year?s figure.

He added for the previous fiscal year, 2008-2009 the trade deficit of this country was USD 275 million because of am increase in the import of goods to support the development projects and private sector businesses.

For the current situation, the agricultural sector in Laos is on the roll as the prices of soft commodities had recovered but the garment industry is suffering because of the strong kip.