Southeast Asia Information Port (www.dnyxxg.com) – On November 13, 2025, Prime Minister Somsay Siphandone pledged to accelerate action to address key development challenges facing the country, including repairing damaged infrastructure, mitigating the impact of natural disasters, and increasing agricultural output during the dry season.
At the 10th regular session of the 9th National Assembly Legislative Body, Mr. Siphandone reiterated the government's commitment to achieving its 2025 economic and social development goals. He outlined specific measures consistent with Resolution 169/NA adopted in June 2025 to guide the national strategy for the final six months of the year.
Stabilizing the Economy
The Prime Minister emphasized that macroeconomic stability is the government's top priority. This includes maintaining the stability of the Lao Kip exchange rate, controlling inflation, managing prices, improving public communication, and continuing to address public debt. One key focus is the introduction and implementation of tighter monetary and exchange rate policies.
He also stressed the ongoing efforts to modernize the financial system through digital infrastructure, aiming to expand credit access and strengthen the tax collection system.
Strategic Spending and Infrastructure
Mr. Sipandone stated that to responsibly manage the budget deficit, the government will cut non-essential spending and prioritize investment in critical infrastructure. Damaged national roads, particularly those connecting provinces and neighboring countries, will be repaired more quickly.
In accordance with Resolution 165/NA, the government will authorize provincial governments to expedite road repair and maintenance, prioritizing the repair of 15 main arterial roads and 28 key road sections. This policy is supported by Resolution 10/Govt and Ministry of Public Works Notification No. 24370/MPWT dated October 10, 2025.
Human Development and Social Sector
Investment in education and healthcare remains a key component of the government's strategy. Mr. Sipandone revealed that the government is adjusting the salary structures and allowances for civil servants, military personnel, police officers, teachers, and retirees, expected to be implemented in January 2026, subject to parliamentary approval.
Human resource development will also be closely linked to the needs of a modern economy, including improving access to digital skills training and vocational education.
Promoting Domestic Production and Private Investment
The government aims to increase domestic production capacity, reduce unnecessary imports, and stimulate exports. To this end, the government will introduce policies to create a more attractive environment for private investment and strengthen the supervision of existing projects.
New laws concerning the leasing and commercial use of state-owned land aim to facilitate smoother business operations for the private sector.
Regional Connectivity and Tourism
Laos plans to leverage the Laos-China railway to establish itself as a regional logistics hub by improving cross-border services and transportation systems. The Lao government will also deepen cooperation with ASEAN, the Regional Comprehensive Economic Partnership (RCEP), the Greater Mekong Subregion (GMS), and other partnerships.
Meanwhile, the tourism industry will receive renewed attention through infrastructure upgrades and targeted promotional activities, supported by diversified funding sources.
