From November 10th to 21st, the 10th session of the 9th National Assembly of Laos was officially held. Following the opening address, National Assembly Speaker Dr. Saysomphone Phomvihane delivered the opening address, followed by Prime Minister Somxay Siphandone's government work report. President Thongloun Sisoulith, current and former senior party and government leaders, government officials, foreign diplomats, and representatives of international organizations in Laos attended the meeting.
According to the meeting agenda, the members of parliament focused on discussing three core issues: the draft national budget and monetary plan for 2026; the budget adjustment plan for 2025; and the progress in implementing the national agenda, resolving economic and financial issues, and combating the drug trade.
In his report, Prime Minister Somxay Siphandone highlighted the implementation achievements of the 9th National Socio-Economic Development Plan (2021-2025). He stated that the government has consistently focused on implementing the twelve priority measures proposed at the 11th National Congress of the Communist Party of China, with the core objective of resolving fiscal difficulties and stabilizing economic growth. Despite facing multiple challenges, the economic goals of the five-year plan were largely achieved—the average annual economic growth rate reached 4.24% over the five years, consistent with the plan's expectations; furthermore, Laos' economy is projected to continue growing by 4.8% this year, demonstrating its sustained recovery and resilience under pressure.
From an industry performance perspective, different sectors exhibited a "polarization" characteristic:
The agricultural sector performed exceptionally well: averaging 2.9% growth over five years, accounting for 19.4% of GDP, exceeding both the 2.5% growth target and the 15.3% GDP share target;
The industrial sector slightly exceeded expectations: averaging 4.7% growth, accounting for 32.5% of GDP, higher than the 4.1% growth target and the 32.3% GDP share target, respectively. Electricity production, mining, and processing were the main growth engines;
The service sector and tax revenue fell short of expectations: the service sector averaged 4.5% growth over five years, accounting for 36.6% of GDP, significantly lower than the 6% growth target and the 41.3% GDP share target; net product tax grew by 3.8%, accounting for 11.5% of GDP, also failing to meet expectations.
Regarding the shortcomings in the service sector and taxation, Prime Minister Somxay Siphandone analyzed the dual causes: externally, the ongoing impact of the COVID-19 pandemic and extreme weather disrupting production and business activities, coupled with regional economic fluctuations and the slow economic recovery of neighboring countries, have collectively constrained economic performance; internally, financial constraints have led to the devaluation of the kip, which in turn has triggered inflation and soaring prices of imported goods, pushing up the cost of living and even forcing some people to seek employment opportunities abroad.
Despite the severe challenges, Prime Minister Somxay Siphandone reiterated the government's determination to continue promoting macroeconomic stability, strengthening the financial system, and striving for sustainable and inclusive growth. Furthermore, this report laid the foundation for the draft of the Tenth National Sustainable Development and Economic Development Plan (2026-2030) – a plan that will guide Laos' next stage of development with "independence, self-reliance, and a green economy" as its core direction.
