The government will strive to ensure that at least 50 per cent of export receipts enter Laos in the coming years. The Prime Minister told the National Assembly this week.
Dr Sonexay Siphandone highlighted the importance of ensuring that foreign currencies. Thus, earned from exports made available so the government can address the shortfall in the balance of payments.
At present, only a little more than 30 per cent of export receipts enter Laos through the banking system. For instance, in 2022, the value of exports stood at US$8.19 billion, but only US$2.7 billion actually entered the country.
This is because investors permitted to pay their debts in foreign countries after borrowing money offshore to finance development projects in Laos. As especially in hydropower and mining.
She said her ministry will work with other sectors, including the Bank of the Lao PDR, to handle the matter.
The Ministry of Industry and Commerce will also work with the Ministry of Agriculture and Forestry to reduce exports of raw materials. And allocate supplies to domestic industries. So that more high-value products such as coffee, potatoes and sweetcorn can produced.
The government also wants to limit imports of luxury and non-essential goods that require large amounts of foreign currency. While reducing unnecessary use of foreign currencies in Laos.
In the medium- and long-term, Dr Sonexay said the government will continue to tighten its monetary policy in a way. It does not ramp up pressure on the demand for foreign currencies as this would result in continuing depreciation of the kip.