Minister of Industry and Commerce Khemmani Pholsena was presenting findings on the Industrial Development Strategy 2016-2030 of Laos which was carried out by the Economic Research Institute for Asean and East Asia (ERIA) in cooperation with Japan’s Daiwa Institute and National Economic Research Institute from the Ministry of Planning and Investment.

The research focused on eight industries that Laos can develop with sustainable growth: agriculture food processing, tourism, garment and other labour intensive industry, transport equipment, electric and electronic machinery, small-and-medium enterprises, finance, energy and transportation.

Khemmani explained the industrial development strategy would help Laos achieve its socio-economic development goals and strengthen sustainability, and especially graduating from least developed country status in 2020 and becoming an upper-medium income country in 2030.

“Industrial development is important to encourage the country’s economic growth, so it is necessary that concerned authorities should issue policies and appropriate strategies to attract quality industrial growth,” Khemmani said.

This research would also help Laos in the process of developing the country’s industry by comparing neighbouring industry strategies, reviews, and evaluating past strategies while looking forward to further industrial development.

While Laos is a land-locked country it has the potential of becoming a land-linked country to take advantage of global and regional value chains.

ERIA chief economist Fukunari Kimura said the research would be a guideline to drive balanced development in a developing economy while achieving rapid sustained economic growth and poverty alleviation.

Laos has 11 Special Economic Zones with Savan-Seno, Vientiane Industrial and Trade Area, Saysettha Development Zone, and Champasak (Pakse-Japan SME), earmarked for industrial estate development.

These would be an important part in the analysis of the industrial development strategy; such as links with neighbouring countries, particularly Thailand which should be prioritised.

The economic impact can be amplified through combinations of many development projects, such as SEZ development, border facilitation measures, and reduction in non-tariff barriers.