Lao Government Reviews Economic Performance, Security and Digital Transformation

25/10/2026 18:09
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KPL (KPL) The Lao Government has reviewed the country’s economic performance, security situation and development priorities, while approving in principle draft resolutions and decrees on digital transformation, diplomatic import privileges, and environmental and forest protection funding.


The outcomes were announced by Khampha Phimmasone, Deputy Minister and Deputy Head of the Prime Minister’s Office, at a press briefing on October 23, following the Government’s regular monthly plenary session held on October 22–23 under the chairmanship of Prime Minister Saleumxay Kommasith.
The two-day meeting was attended by deputy prime ministers and cabinet members, while provincial governors, mayors and local administrative representatives joined via video conference.
The Government reported that political stability, public security and social order had been maintained despite continuing regional and global uncertainties.
During the reporting period, authorities dismantled 322 drug-related cases, intercepted 11 scam syndicates and confiscated 136 illegal firearms. They also cracked down on illegal mineral extraction in Vientiane Capital and Xieng Khouang Province, seizing 50 excavators and related heavy equipment.
State revenue collection reached 87% of the annual target, while budget expenditure stood at 67%. Average inflation was maintained at 7.8%, and financing for domestic and foreign budget deficits reached 66% of the annual target.
More than 18,000 workers received vocational skills training aligned with national standards, while more than 17,000 workers secured legal employment opportunities at home and abroad.
The Government also marked the 32nd National Teachers’ Day on October 7, announced the establishment of the National University of Education and launched the 2026–2027 academic year.
However, the cabinet identified persistent challenges, including drug trafficking, petty crime, traffic congestion, urban waste management, illegal trade outside the formal system, education quality, oversight of foreign workers and the spread of misinformation on social media.
The Ministry of Public Works and Transport was instructed to prioritise strategic economic corridors, cross-border routes, tourism roads and roads serving agricultural areas under the 2026–2027 Road Fund plan. Projects must comply with engineering standards, vehicle weight limits and reasonable cost requirements.
The cabinet approved in principle a draft resolution on advancing science, technology, innovation and digital transformation. The Ministry of Technology and Communications was tasked with refining targets, resource allocation, infrastructure maintenance and human resource development.
It also approved in principle a draft decree on import privileges for Lao diplomatic representatives abroad, directing the Ministry of Foreign Affairs to align tax exemptions and duty-free provisions with existing laws and prevent potential loopholes.
A draft decree on the Environment and Forest Protection Fund was likewise approved in principle, with the Ministry of Agriculture and Forestry instructed to clarify funding objectives and establish transparent management mechanisms.
On decentralisation, the Ministry of Finance was asked to streamline a draft resolution covering finance, investment and land, and consult the Central Theory Council before finalising the document.
The cabinet also reviewed the master plan for electric vehicles and alternative energy. The Ministry of Industry and Commerce was instructed to strengthen provisions on promotional policies, after-sales services, import quality controls and battery and electric vehicle recycling. The revised plan is expected to be resubmitted at the November cabinet session.
Prime Minister Saleumxay instructed ministries and local administrations to intensify efforts against cybercrime, drug networks, armed robbery and illegal alluvial gold mining.
Other priorities include finalising the working regulations of the Government under the 10th legislature, implementing resolutions from the second ordinary session of the 10th National Assembly, and preparing documents for the upcoming plenary session of the Lao People’s Revolutionary Party Central Committee.
The Government also called for stronger revenue collection, measures to prevent fiscal leakage, faster recovery of overdue tax arrears and targeted support for provinces at risk of missing annual revenue targets.
On infrastructure, authorities were instructed to accelerate priority highway construction and speed up approval procedures for Output-Performance-Based Road Contracts to enable road repairs to begin promptly.
In agriculture, the focus will be on export-oriented production and restoring dry-season farming following recent natural disasters. Health authorities were also directed to maintain active surveillance for seasonal disease outbreaks.
In foreign affairs, preparations will be made for high-level delegations attending the 49th ASEAN Summit and related summits in Manila, the Philippines, in mid-November, as well as the 12th CLMV Summit and 11th ACMECS Summit in Vietnam later in the month.
The Government said the measures are intended to strengthen economic management, maintain security, improve public services and advance national development priorities.
KPL

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