Laos Makes Progress in Poverty Reduction, But Challenges Remain
(KPL) Recent data from the Ministry of Agriculture and Forestry shows that Laos has made significant strides in reducing poverty, though obstacles persist as the country works toward developed nation status.
In 2023, 83.13% of families in Laos, roughly 1,026,083 households, were above the poverty line, while 16.87% (208,231 families) remained in poverty, according to Bouahong Khamha, Director General of the Department of Rural Development.
Of Laos' villages, 69.69% (5,855 villages) have moved above the poverty line, while 30.31% (2,547 villages) still face poverty. On the district level, 48% of districts remain impoverished, while 52% have risen out of poverty.
In terms of development, 68.17% of families (841,454 households) are classified as developed, with 33.66% of villages (2,828 villages) reaching developed status nationwide.
Looking ahead, the government has set ambitious goals, aiming to lift 100,000 families, 1,000 villages, and 25 districts out of poverty next year. At the same time, it plans to establish 200,000 developed families, 2,000 developed villages, and 20 resilient districts.
Despite these gains, challenges remain. Laos still relies heavily on agriculture, and income instability persists. Many areas lack adequate infrastructure, and access to essential services like electricity and transportation is limited.
As of December 2023, Laos is one of 45 Least Developed Countries (LDCs), according to the UN. To graduate from LDC status, Laos must meet three UN criteria: a GNI per capita of at least USD 1,305 (currently USD 1,996), an HAI score of 66 or higher (currently 72.8), and an EVI score of 32 or below (currently 33.7).
While Laos has made progress, it has not yet met the EVI threshold required for LDC graduation. However, the government remains committed to achieving this by 2026. Minister of Planning and Investment Khamjane Vongphosy stated that Laos will focus on human resource development, economic reform, and poverty reduction to meet its Sustainable Development Goals (SDGs) and improve overall stability.