Southeast Asia Information Port (www.dnyxxg.com) – According to the latest UN assessment, Laos has been officially recommended to leave the list of least developed countries (LDCs) by 2026, joining Bangladesh and Nepal as one of the three candidate countries to "graduate" after a comprehensive UN review. This recommendation requires formal approval from the UN Economic and Social Council (ECSC) and the UN General Assembly. If approved, it will be a significant milestone in Laos' long-term development and international integration process, marking a new stage in its national development.
It is understood that whether a country is included or removed from the LDC list is determined by relevant UN mechanisms and assessment systems, not by the independent decisions of individual governments. The UN Development Policy Committee, under the ECSC, is responsible for examining the LDCs and reviewing the list every three years. Its assessment is primarily based on three core indicators: income, human resources, and economic diversification. Meeting the relevant "graduation" thresholds qualifies for a recommendation.
Earlier this month, the National Congress of the Lao People's Revolutionary Party was successfully held. General Secretary Thongloun Sisoulith submitted a draft political report, outlining the Party's development vision for the next five years and emphasizing that political stability and social order are the solid foundation for socio-economic development. Regarding economic development, the report sets a target of no less than 6% annual economic growth for Laos between 2026 and 2030. Lao Prime Minister Somxay Kommasith reiterated this goal in his report on the 10th Five-Year Plan for National Socio-Economic Development at the conference, noting that this growth level will provide strong support for Laos to shed its Least Developed Country (LDC) status and ensure a smooth transition after graduation.
It is worth noting that Laos's development process has previously been hampered by multiple obstacles, including the COVID-19 pandemic and regional and global economic and financial challenges. In light of these practical difficulties, the UN General Assembly adopted a resolution in November 2021 extending the LDC graduation transition period from the usual three years to five years, allowing more time for candidate countries like Laos to prepare. According to this arrangement, Laos will complete its LDC preparations by 2026, with the transition period lasting until 2029, ensuring a smooth and orderly transition.
The continued positive economic data provides solid support for Laos's graduation. According to assessments by the Asian Development Bank (ADB), the International Monetary Fund (IMF), and the World Bank (WB), Laos' economic growth rates in 2024 were projected to be 4.0%, 4.3%, and 4.1%, respectively. Data from the Lao National Statistical Center shows that the country's economic growth rate in 2024 was 4.3%, slightly higher than the 4.2% in 2023, and its GDP reached 32,528.7 billion kip in 2024, more than doubling from 15,829.3 billion kip in 2012, demonstrating a strong momentum of sustained economic expansion. Furthermore, Laos' Ninth Five-Year Plan (2021-2025) has achieved significant results, with an average annual economic growth rate of 4.24%, exceeding the established target of 4%, laying a solid foundation for future development.
It is expected that Laos' graduation from the ranks of least developed countries will drive multiple transformations—not only marking a new stage in national development but also helping it transition from a low-income country to a lower-middle-income country and then to a developing country, following a development path similar to that of Vietnam, Indonesia, and the Philippines in the region. Following its "graduation" (entry into the Least Developed Countries Technology Bank), Laos is expected to further increase its application of technology and innovation, enhancing the domestic and international competitiveness of its products. Simultaneously, with funding from the UN Least Developed Countries Technology Bank, Laos will receive strong support in areas such as standards improvement, product quality optimization, business environment enhancement, and export capacity strengthening. This will attract more foreign investment, create more jobs, raise national income levels, and promote high-quality economic and social development.
Currently, the UN, various development partners, and the Lao government have jointly conducted relevant research, focusing on assessing the potential impact of reduced international aid and adjustments to special support measures after "graduation," and developing contingency plans to ensure a smooth and sustainable transition for Laos. As members of the "Friends of Least Developed Countries" group, countries such as China are also providing support to Laos through South-South cooperation and trilateral cooperation in areas such as agriculture and sustainable energy, helping it successfully complete its transition.
