Vientiane (VNA) – According to the Lao Statistics Bureau, the country's inflation rate in the first quarter of 2023 was 40.85%, one of the highest in the region.
Although the country's inflation rate fell slightly from 41.3% in February to 41% in March, the overall inflation rate in Laos remains very high.
The high cost of goods and services in Laos is due to both internal and external factors. The conflict in Ukraine disrupted supply chains while the US Federal Reserve raised interest rates, making the USD stronger against Asian currencies, including the Lao kip.
The depreciation of the kip against the USD and Thai baht is one of the main factors driving inflation in Laos. The weak kip makes it difficult for the Lao government to contain the escalation of goods and service prices, especially as one-third of the goods used to calculate the price increase in Laos are imported.
In the Southeast Asian country, most of the machinery, animal feed, fertiliser, fish fingerlings, and many agricultural inputs are imported.
To deal with inflation, Director of the Monetary Policy Department, State Bank of Laos, Soulisack Thammavong said that the bank will continue to tighten monetary policy and manage the exchange rate which is considered a measure to curb inflation.
To tighten monetary policy, the central bank in February 2023 also raised the reserve requirement to 5.5% for kip and 8% for foreign currency. The Lao Government also committed to managing commodity prices in local markets to minimise the rising prices’ impacts on the poor./.
The first international cross-border passenger train services between Laos and China officially began on April 13, with one train per day in each direction making the border crossing.
Chairwoman of the Vietnam Fatherland Front (VFF) branch in Ho Chi Minh City Tran Kim Yen had working sessions in the city on April 19 with leaders of the Lao Front for National Construction (LFNC) branches in Champasak province and Vientiane.
Truong Thi Mai, Politburo member and permanent member of the Party Central Committee’s Secretariat, met with Thongsavanh Phomvihane, member of the Lao People's Revolutionary Party (LPRP) Central Committee and head of its Commission for External Relations, in Hanoi on April 20.
The Republic of Korea (RoK), China and Japan agreed on May 3 to reinforce the regional financial safety net, along with members of the Association of Southeast Asian Nations (ASEAN), by launching a new financing facility programme meant to extend greater support in case of a financial crisis.
A technical issue combined with an extreme heatwave was blamed for a series of explosions at a military base that killed 20 soldiers and injured several others in Cambodia on April 27, the country’s Ministry of Defence said in a May 2 statement as reported by the Xinhua news agency.
The Customs Department of Thailand is scheduled to commence the collection of value-added tax (VAT) on imported goods sent via postal services, regardless of the goods value, starting in May.
A lecturer from Chulalongkorn University’s Faculty of Medicine has warned Thais to be more vigilant against COVID-19, saying infection rates appeare to be worsening with higher hospital admissions, deaths and severe cases.
Malaysia should harness the collective expertise and resources to drive sustainable growth and development of the halal industry, according to Minister of Investment, Trade and Industry Zafrul Abdul Aziz.
Laos has officially restored the 10% value-added tax (VAT) rate starting May 1, in a bid to support the country’s budget revenue and socio-economic development.
The ASEAN Future Forum 2024 (AFF 2024) entered its second plenary session in Hanoi on the afternoon of April 23, discussing ways to ensure comprehensive security for the people-centred ASEAN Community.
The first session of the ASEAN Future Forum 2024 (AFF 2024) in Hanoi on April 23 focused on fast and sustainable growth for the Association of Southeast Asian Nations (ASEAN).
The Canada-ASEAN Business Council (CABC) and the ASEAN Alliance on Carbon Markets (AACM) have signed a Memorandum of Understanding (MoU) to strengthen collaboration and accelerate the implementation of carbon crediting programmes across Southeast Asia.
ASEAN Secretary-General Kao Kim Hourn reaffirmed ASEAN leaders' commitment to empowering the youth to unleash their full potential when he had a dialogue with ASEAN youth in Hanoi on April 22 on the sidelines of the ASEAN Future Forum (AF 2024).
The Thai Government is being urged to increase the proportion of renewable power generation to more than the target of 50% set in the power development plan (PDP).
The Centre for Volcanology and Geological Hazard Mitigation (PVMBG) of Indonesia on April 21 lifted its tsunami advisory issued previously following the eruption of Mount Ruang in Sitaro district of North Sulawesi province.
Thailand expects to export about 1 million tonnes of durian, valued at an estimated 130 billion THB (3.53 billion USD) this year, with most of the shipments to China, according to Minister of Agriculture Thammanat Prompao.
The 72nd meeting of the ASEAN Working Group on Intellectual Property Cooperation (AWGIPC) and related meetings are being held by the Ministry of Science and Technology’s Intellectual Property Office (IPO) of Vietnam in the central city of Da Nang on April 22-26.
Enhancing regional food security and tackling the pressing challenges of climate change will be key agendas defining Malaysia’s ASEAN Chairmanship in 2025, Speaker of the Dewan Rakyat (lower house) Johari Abdul told the press on April 19.
Illustrative image. (Photo:laotiantimes.com)
