Vientiane (VNA) – Laos aims to achieve average economic growth of 6% or higher per year over the next five years, while accelerating the building of an independent and self-reliant economy, Prime Minister Sonexay Siphandone has said.
Presenting the draft 10th five-year National Socio-Economic Development Plan for the 2026–2030 period at the opening session of the 12th National Congress of the Lao People’s Revolutionary Party (LPRP) on January 6, the PM said the plan is designed to help the country graduate from least developed country (LDC) status in a substantive and sustainable manner, while laying a solid foundation for long-term development.
According to the Lao PM, Laos recorded average economic growth of only 4.24% over the past five years, due largely to the impacts of the COVID-19 pandemic, inflationary pressures and global instability. Nevertheless, the country managed to avoid falling into the group of economically bankrupt nations, he noted.
The 10th five-year plan is built around the guiding slogan of “strengthening determination for robust development, resolutely building an independent and self-reliant economy, effectively harnessing all strengths, and promoting rapid, green and sustainable socio-economic development.” To advance reforms, the Lao Government has identified three urgent measures - accelerating the digitalisation of state management, fostering a sense of self-reliance among citizens, and enhancing transparency in the management of natural resources.
Under the plan, Laos’ gross domestic product (GDP) is expected to grow by an average of at least 6% annually. GDP per capita is targeted to reach 3,104 USD by 2030, while gross national income (GNI) per capita is projected to rise to 2,914 USD.
In terms of economic structure, the services sector is set to serve as the main growth engine, expanding at an estimated 7.1%, followed by industry at 5.7% and agriculture at 4.1%. To maintain macroeconomic stability, the government aims to keep inflation below 5% and ensure foreign exchange reserves sufficient to cover at least five months of imports.
Strengthening public finances has been identified as a top priority. The Lao Government targets reducing public debt to below 70% of GDP throughout the five-year period. Budget revenue is projected to reach 554.4 trillion LAK (over 26 billion USD), equivalent to about 20.95% of GDP, through expanded tax and fee collection, including land tax, construction tax and environmental taxes.
The development plan for the 2026-2303 period outlines six strategic objectives and 26 key programmes spanning economic development, human resource development, livelihoods, environmental protection, connectivity and public administration reform.
Key social targets include reducing the poverty rate to below 10%, improving living standards in rural areas, and enhancing the quality of education and healthcare services. Environmental goals focus on increasing national forest coverage to 70% and cutting greenhouse gas emissions by 60%, in line with green growth principles.
In addition, the plan prioritises infrastructure development to strengthen regional and international connectivity, with an emphasis on expanding public–private partnership (PPP) cooperation.
Reviewing the previous five-year period, Sonexay acknowledged that the quality of economic growth remained limited and that depreciation of the kip continues to pose challenges. He stressed the need for deeper and more comprehensive institutional reforms to ensure more resilient and sustainable growth in the years ahead./.
