(KPL) Hungarian Minister of Foreign Affairs and Trade, Mr. Péter Szijjártó, concluded an official visit to the Lao PDR on February 4, 2026, marking the successful completion

So far, the total sum of the Hungarian tied aid loan programmes in Laos amounts to 213.6 million USD. The first of the three programmes started in 2009, and the wastewater treatment project is part of the third programme. On 4 February, the first phase of the wastewater treatment plant project was handed over, costing more than 90 million USD. In the 2nd phase of this project, the capacity of the plant will be doubled to 52,000 cubic metres per day with additional financing of 15 million USD. Agreements about the additional financing were signed in 2024 and 2025, and work on this 2nd phase has already started of an important milestone of a decade-long infrastructure cooperation programme between the two countries.

A key highlight of the visit was the official handover of the first centralized wastewater treatment plant in the history of the Lao PDR, valued at over US$90 million. Located in Kham Ngoi village, Vientiane Capital, the facility currently has a treatment capacity of 26,000 cubic metres per day, serving approximately 80,000 residents. Upon completion of Phase II in 2027 with an additional US$15 million tied aid loan financing, the plant’s capacity is expected to increase to 52,000 cubic metres per day, benefiting around 160,000 people across four districts of Vientiane.

Mr. Szijjártó noted that the wastewater treatment plant represents the sixth major cooperation project supported by Hungary in Laos. Previous projects have focused on fisheries and livestock development, food safety enhancement, population registry and national identification systems, as well as the Dongbang water purification plant, completed in 2023, which currently supplies clean water to about 250,000 residents in the capital.

With the full utilization of the US$213 million Hungarian concessional credit line, both sides agreed to advance cooperation toward a more market-oriented framework. During the visit, the two ministers discussed the possibility of signing an agreement on the mutual promotion and protection of investments the investment promotion agreement has not been signed yet, only proposed by Hungary. The Government of Hungary has been urging the Lao side for years to start negotiations, as we think it would be mutually beneficial for both countries, paving the way for more Hungarian investment in the Lao PDR. On 4 February, Minister Thongsavan Phomvihane expressedhis hope that negotiations could start soon after the February elections and the approval of the new government in Laos in March 2026, aimed at facilitating greater participation of Hungarian enterprises in Laos under competitive market conditions.

Looking ahead, the Lao Ministry of Agriculture and Environment has requested Hungarian technical support for the development of a national agricultural land registry system, which is expected to contribute to improved land management and economic development.

Mr. Szijjártó also reaffirmed Hungary’s support for Laos as the country prepares to graduate from the United Nations’ Least Developed Country (LDC) status. Hungary pledged to assist Laos within the European Union framework, including support related to the EU’s Generalized System of Preferences Plus (GSP+).

Cooperation in human resource development continues to expand. The Stipendium Hungaricum scholarship programme was extended until 2028, providing 150 scholarships annually for Lao students to pursue higher education in Hungary, particularly in the fields of healthcare, life sciences, and modern agriculture.

The visit reaffirmed the long-standing friendship and growing strategic partnership between the Lao PDR and Hungary, based on mutual respect and cooperation for sustainable development.

KPL