VIENTIANE, Oct. 13 (Xinhua) -- Fund raising of the Lao capital market is an important contribution to the country's socio-economic development, whereas this process currently faces many challenges, said a Lao central bank official.
Deputy Governor of the Bank of the Lao P.D.R. (BOL) Khankeo Lamaningao made the remarks when addressing an event marking the 13th anniversary of the Lao Capital Market in Vientiane, according to a report issued by Lao Securities Commission Office.
Companies registered on the Lao Securities Exchange (LSX) in 2023 have raised funds worth 38,123 billion kip (some 1.8 billion U.S. dollars), equal to 17.95 percent of GDP, from the government, state enterprises, and the private sector through sale of shares and bonds and issue of loan shares.
In 2023, the Lao Securities Commission introduced and revised various pieces of legislation, created a mechanism to manage property valuation companies with the Ministry of Finance as the main manager, completed the creation of new products and issued loan shares within the country, Khankeo said.
The commission also supported the issuing of securities and registration of small and medium-sized enterprises (SMEs), which saw considerable progress and enabled issuing of green development bonds.
Khankeo said every relevant sector should work to improve the operations of the capital market so that it matches the country's development circumstances, especially focusing on creating conditions for SMEs which are the basis of the economy.
It is also necessary to develop capital market infrastructure to meet accepted standards, and to gain the trust of fundraisers and investors, both domestic and foreign.
She also advised that products traded on the stock market be diverse, of high quality, yield appropriate returns and support the country's green and sustainable economic ambitions.
In the coming years, the party and government will continue to support the development of the Lao capital market by accelerating the implementation of relevant policies and measures, aimed at building the all-round strength of businesses, especially state-owned enterprises, through appropriate reform mechanisms. ■
