Remittance of Lao workers contributes 5 percent of GDP

Laos News Agency (KPL) 
11/28/2006

The remittances of Lao workers have contributed to 5 percent of Gross Domestic Product.
At least 200,000 Lao workers in Thailand, 55 percent of them women sending back as remittance as estimated US$100 million a year or estimated approximately 5 percent of GDP. Thailand now offers work permits and other benefits if foreign workers register with the Thai government.

This is according to a press release of United Nations Development Programme related achieve human development by boosting international trade: states the Lao PDR’s National Human Development Report 2006, is released at the 9th Round Table Meeting held from 28-29 November in Vientiane.

The third Lao National Human Development Report “International Trade and Human Development” supported by the UNDP is released by the National Centre under the Committee for Planning and Investment at the meeting. 

Statistics

The Lao PDR is preparing to become an active participant in regional integration and globalisation. Since it joined the ASEAN in 1997, its pace of involvement in regional activities has steadily accelerated. The Lao export has increased thanks to trade agreements with various partners and Normal Trade Relations with the USA. The mining and hydroelectricity sector has experienced spectacular growth. Lao PDR focuses on development path and to consider which is the best path to take for sustainable growth, poverty reduction and human development.

The “best path” to take that will simultaneously boost trade and human development is highlighted by the new Lao National Human Development 2006 “International Trade and human Development.” The NHDR spreadheaded by Committee for Planning and Investment, with support from UNDP, confirms that under the right conditions, increasing international integration and trade in the Lao PDR could play a vital role in the realisation of the Millennium Development Goals and in the country’s graduation out of least developed country status by 2020.

However, the report also makes clear that for market-oriented trade and equitable economic growth to be sustainable and successful; it needs to be accompanied by well-targeted public policies and appropriate governance reforms that are pro-poor in their focus and outreach.

There are five pathways that need to be addressed are highlighted by the NHDR 2006 and include cross border trade, migration and remittances, employment, rural electrification, and improved information.