KPL
The Lao government is targeting average annual economic growth of at least 6% from 2026 to 2030 under its 10th National Socio-Economic Development Plan, presented on Feb 25 by Prime Minister Sonexay Siphandone at a high-level party meeting.
(KPL) The Lao government is targeting average annual economic growth of at least 6% from 2026 to 2030 under its 10th National Socio-Economic Development Plan, presented on Feb 25 by Prime Minister Sonexay Siphandone at a high-level party meeting.
The plan outlines sector-specific growth targets, with agriculture projected to expand by an average of 4.1% annually, contributing 20.7% of GDP. Industry is expected to grow by 5.7% and account for 31.3% of GDP, while the services sector is forecast to lead growth at 7.1%, representing 37.5% of GDP. Taxes and tariffs are projected to grow by 5% and contribute 10.5% of GDP.
By 2030, the government aims to raise GDP per capita to 3,104 US dollars and Gross National Income per capita to 2,914 US dollars, supporting the country’s goal of sustainable graduation from Least Developed Country status.
Fiscal targets include total state revenue of at least 554,400 billion Kip, equivalent to 20.95% of GDP, while expenditure is projected at 528,400 billion Kip, or 19.96% of GDP. The government aims to achieve a budget surplus of 26,000 billion Kip and reduce public debt to below 70% of GDP. Inflation is expected to be controlled at no more than 5%, and foreign reserves will be maintained at levels sufficient to cover at least five months of imports.
To support growth, the government plans to mobilize total investment of 636,178 billion Kip, or at least 24% of GDP. The majority of funding is expected to come from private investment and foreign direct investment, alongside state budget allocations and official development assistance.
Sector development goals include producing 4 million tons of rice annually and generating 1.9 billion US dollars in agricultural and forestry exports each year. The tourism sector aims to attract 22 million international visitors over five years, generating approximately 8 billion US dollars in revenue. Energy and mining production are also expected to expand to support industrial development and export earnings.
The plan emphasizes maintaining political stability, strengthening economic governance under market-oriented mechanisms, developing human resources for the digital era, preserving cultural identity, improving living standards, and promoting green, inclusive growth that reduces disparities between urban and rural areas in Lao PDR.
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