How should we adapt to the spiralling cost of living?

The increasing inflation rate and the weak kip are driving up the cost of living, because most goods in Laos are imported. During this time of crisis, the government is urging everyone to band together and spend frugally. Vientiane Times asked for opinions on how we should all adapt to these difficult circumstances.

Ms Sone Lathtanasack, a resident of Xayaboury district, Xayaboury province:  We are all struggling these days, as almost everything we do is related to money, and the rocky economic situation isn’t helping matters. I don’t think we should just wait for the government to fix everything; we have to deal with it ourselves. We should give up any unnecessary spending habits and not buy fashionable, trendy things like expensive mobile phones or smart clothes. I’ve stocked up on food and am growing vegetables at my house. Reducing unnecessary expenses and trying to earn more money is the best way to deal with the situation.

Mr Chanthaphone Norladeth, a government official in Sisattansk district, Vientiane: It’s not easy to adapt because although we can buy things that are made in Laos, they are not good quality and people are accustomed to using imported goods. Now that the government has reopened borders, lots of Lao people are going to Thailand. It will be difficult for the government to resolve the situation if they can’t get inflation under control. In the meantime, there are many illicit currency exchange operations all across the country. The government is trying hard to promote Lao-made products but there’s not a great variety, so what’s on offer doesn’t really meet people’s needs.    

Mr Bounnam, a resident of Xaythany district, Vientiane: I don’t know what I should do for the best. I don’t have a regular income and live hand to mouth on the paltry wages I earn. I am paid 100,000 kip per day, which is not enough to buy food and milk for my children. Now we have to try to save everything we earn. Some days I don’t eat so that my children can have food. In addition, I’m not sure how many days I can go to work because of the fuel shortage. If I can’t go to work, things will get even harder for my family. I hope that the government will be able to put things right very soon.

Ms Duangmaly Phommaly, a government official in Luang Prabang province:  The cost of living is rising much faster than our incomes. Almost everything we use is imported and prices are greatly influenced by exchange rates. Today, a typical monthly salary is not enough to buy the petrol we need. We have to tighten our belts and try to be self-sufficient. This must be our guideline for general behaviour in these difficult times. We should not be extravagant and should spend within our means, in ways that are responsible. Most importantly, we should try to use products that are made in Laos and avoid anything that involves unnecessary expense, such as gambling, drinking alcohol, and buying brand name clothes and other products.

Mr Vannadeth Xaysana, a government employee in Vientiane:  In times of crisis like this, we don’t have much choice when our income is decreasing but the cost of living is rising. The most important thing is to cut down on unnecessary spending and try to earn more money in one way and another. And we should try to minimise our debts and avoid having to pay for anything in installments. In these difficult times, it’s very tough to be paying off debts because that will cause other problems.

By Lamphone Pasanthong
(Latest Update June 7, 2022)