Laos’ garment industry exports decline due to currency appreciation

According to Laos’ “Social Economic News”, the Lao Garment Industry Association released news that Laos’ garment industry exports are expected to reach US$160 million in 2009, a decrease of 18% year-on-year. The main reason for the decline in exports is the continuous appreciation of the Laotian currency kip in recent years, from 10,000 kip to 1 US dollar to the current 8,400 kip to 1 US dollar, an appreciation of 16%; at the same time, the global financial crisis has also led to sluggish demand in the export market, and Laos’ garment manufacturing industry has declined. More than 80% are exported to European and American markets.
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