Nayoby Bank (NBB) has set an ambitious target to issue 6.4 trillion kip in loans for 2025, as announced by General Manager Mr Sonphak Thinxayphone. This goal is part of the bank’s broader strategy to support key sectors for Laos’ economic development. In 2024, NBB issued 648.6 billion kip in loans, achieving 79% of its 817 billion kip target, which represented significant growth compared to previous years.
The bank’s 2024 loan portfolio included substantial investments across sectors, with 41% allocated to agriculture, 46% to animal husbandry, 2.41% to handicrafts, 1.84% to processed handicrafts, and 8.34% to the service sector. NBB’s loan services have expanded throughout Laos, reaching all 17 provinces and benefiting over 286,000 families through their loan programs. The bank has supported 311 projects directly benefiting 532 model families.
Looking ahead, NBB plans to focus on IT and core banking, diversify products and services, provide more assistance to SMEs, solidify its customer base in rural areas, and develop innovative organizational models for sustainable growth.
Key Points Why to Invest in Laos
- Government-Backed Economic Development: NBB’s implementation of government policies through low-interest and nonprofit loans demonstrates strong state commitment to economic growth, creating a stable investment environment with policy support.
- Untapped Rural Market Potential: With NBB’s focus on providing financial services to rural areas and SMEs across all 17 provinces, investors can access emerging markets with less competition and significant growth potential.
- Strategic Sector Support: The government is prioritizing key sectors including agriculture (41% of loans), animal husbandry (46%), handicrafts, and small-scale services with financial backing, offering targeted investment opportunities in these growth areas.
- Expanding Financial Infrastructure: NBB’s focus on developing IT and core banking systems indicates modernization of financial infrastructure, which will increase transparency and efficiency for business operations.
- Inclusive Economic Growth Model: The bank’s support of ethnic communities and underserved regions shows a commitment to balanced nationwide development, which creates more stable, sustainable long-term growth prospects less subject to urban-rural disparities.