According to data from the Lao Ministry of Finance, as oftwo thousand and twenty-threeIn the year, the total amount of public debt and publicly guaranteed debt in Laos reachedone hundred and thirty-eightUSD100mnoccupyIts Gross Domestic Product108%. amongThe total external debt of Laos is approximatelyone hundred and fiveAs the largest creditor country of Laos, China holds approximately half of Laos' total external debt, which is worth billions of US dollarsfifty-two point fiveUSD100mn

The reason why Laos has a large amount of debt and external debt is mainly due to the combined effects of various factors such as its economic structure, industrial development needs, economic development strategies, international economic environment, and debt management and risk prevention.

Laos,A landlocked country located in the northern part of the Indochinese Peninsula, bordered by China to the north, Cambodia to the south, Vietnam to the east, Myanmar to the northwest, and Thailand to the southwest，populationseven hundredMore than ten thousand.Laos is a country primarily focused on agriculture, with the agricultural population accounting for a significant proportion of the total population62.4%. Rice cultivation is the main agricultural activity in Laos, but its production efficiency and technological level are relatively low. Weak industrial foundation and relatively lagging development.

thereforeLaos has a single industrial structure，The industrial foundation is relatively fragile.governmentIn order to promote economic diversification and modernization,Implementing a series of economic policies,Vigorously develop infrastructure construction and industrialization process.andImproving domestic infrastructure conditions such as transportation and energy requires significant investment in construction. Due to its limited financial capacity, it can only meet these funding needs through borrowing.In fact, Laos is receiving support from the Chinese sideBorrowing moneyMost of them are usedYu Zhonglao"The Belt and Road" projectThe infrastructure.asThe Laotian government provides a full loan to ChinaseventyBillion US dollars for the construction of a connection between the China Laos border and the Laotian capital VientianeinOld railway，This railway is regarded as China“The Belt and Road Initiative”An important project that advocates strategic alignment with Laos.These projects not only contribute to Laos' economic and social development, but also deepen its connectivity with neighboring countries.

China Laos Railway

secondly,Laos in debt managementThe existence ofUnreasonable debt structure and high debt costsalsoThis has exacerbated Laos' debt burden and increased its default risk.How to plan and arrange debt repayment plans reasonably, ensuring that the scale of debt is commensurate with the level of economic development, is an important issue that the Laotian government needs to address.

in additionChanges in the global economic situationalsoThis has had an impact on Laos' debt situation. The volatility of global financial markets has led to an increase in financing costs for Laos,IncreasedExchange rate and interest rateetc.risk，These risks have an impact on Laos' ability to repay its debts.

Recently, Laos is facing enormous debt pressure，Due to the large scale of debt and the possibility that economic growth may not keep up with the pace of debt growth, international financial institutions and credit rating agencies have warned that Laos faces high default risks. This will not only affect Laos' international reputation, but may also trigger a chain reaction, such as capital outflows, rising financing costs, etc., further exacerbating its economic difficulties.meanwhile,High debt burdenalsoRestricting the Lao government's investment in public services and infrastructure construction, affecting the development of key areas such as education, healthcare, and transportation. In addition, in order to repay debts, the government needs to cut spending or increase taxes, which will further compress the living space and consumption ability of the people.

Lao Prime Minister Song Sai meets with Wang Yi, member of the Political Bureau of the Communist Party of China Central Committee and Minister of Foreign Affairs, in Vientiane

Therefore, the Laotian governmentUrgently hope to negotiate with various creditor countries to delay debt repayment and avoid serious consequences of default.inSpokesperson for the Ministry of Foreign Affairsexpress,The Chinese government has initiated cooperation with developing countries, including Laos“Mutually beneficial cooperation"We strongly support the economic and social development of these countries. At the same time, China has been making every effort to help relevant countries alleviate their debt burden.

The Lao governmentalsoActively exploring new ways of economic development, actively participating in regional cooperation, establishing economic and trade relations with neighboring countries, and expandingwideMarket andSource of Funds. Promote economic growth through measures such as attracting foreign investment, strengthening infrastructure construction, and promoting tourism development.With the government's attraction of foreign investment and the strengthening of infrastructure construction,LaosThe industrial sector is expected to further develop. The position of the service industry in the Laotian economyAlso thereGradually improving, especially in the tourism service industry. With the opening of the China Laos railway and the development of tourism, Laos' service industry is expected to become a new engine of economic growth.