Lao People’s Democratic Republic
Peace Independence Democracy Unity Prosperity

9TH FIVE-YEAR NATIONALSOCIO-ECONOMIC DEVELOPMENT PLAN
(2021-2025)(Approved by the Inaugural Session of the Ninth National Assembly on 22-26 March 2021
in accordance with the Resolution No. 20/NA, dated 26 March 2021)

Vientiane Capital
March 2021

PREAMBLE
The 9th Five-Year National Socio-Economic Development Plan (2021-2025) aims totranslate the Resolution of the 11th Party Congress, as well as continue the implementation of the
National Strategy on Socio-Economic Development 2025 and Vision 2030 of the Lao PDR. This
Five-Year Plan sets out the fundamental direction for creating a new turning point in socio-economic
development in the coming years, particularly ensuring quality establishment of the politicalideological factors, the economic system and the material and technical basis; continuing torecognise economic development as the central task of the entire Party and all citizens, inconjunction with socio-cultural development, including the development of human resources, andstrengthening of the existing structural elements such as public governance and administration,national defense, public security and foreign affairs; aiming to develop all potential of the country
into spearheading production and service sectors in line with the green and sustainable development
direction, improving people’s well-being, ensuring a well-balanced system for international tradeand settlement, and ensuring comprehensive preparation for the country’s firm graduation from theLeast Developed Country status in the future.
The 9th NSEDP will continue to address economic and financial difficulties and accelerate
the implementation of the Four Breakthroughs including: the breakthrough in creativity; thebreakthrough in human resource development; the breakthrough in improving administrative andregulatory mechanisms; and the breakthrough in poverty alleviation in a more proactive, vigorous,and comprehensive manner. The accomplishment of these Four Breakthroughs will help overcome
obstacles, difficulties and challenges associated with economic vulnerabilities, debt problems,budget revenue collection, expenditure and investment management, exchange rate fluctuations,inflationary pressures, foreign reserves, commercial production, unemployment and thus preventthe possibility of falling into crisis by ensuring comprehensive economic transformation throughextensive economic restructuring, enhancing and effectively utilising the country’s potential, andensuring that development efforts move in the direction of quality, focused, green and sustainablegrowth.
• Quality: Quality development is a transformation towards improved efficiency andeffectiveness of public investment, public-private partnerships, and domestic and foreign private
investment, in line with the direction of socio-economic development goals. Emphasis will beplaced on evaluation and prioritisation within priorities, and ensuring that competitive processes areused to select the most qualified enterprises, and continuous monitoring of implementation andassessment is in place. This also will also require transforming and enhancing the competitivenessof production of goods and services to international standards, and creating a skilled, disciplined
and healthy workforce that meets market demand and is capable of studying and applying modern
scientific and technological research as a driving factor for sustainable development in the age ofIndustry 4.0.
• Focused: Focused development involves developing the distinct potential of different
sectors and regions to be an engine of national development. Public investment will be targeted inline with provincial potential, and in provinces facing difficulties by focusing on building theinfrastructure needed to facilitate private sector investment and poverty alleviation. This will help
encourage private investment in the production of high-potential commodities, especially inagriculture and agro-processing, handicrafts, tourism, and logistics services, such as dry ports andothers, in the provinces with the railway passing through, and utilising Official Development
Assistance in a targeted, verifiable and widely accessible manner.

1Sonexay SIPHANDONECONTENTS
PREAMBLE .............................................................................................................. 1
PART I: IMPLEMENTATION ASSESSMENT OF THE 8 TH FIVE-YEAR
NATIONAL SOCIO-ECONOMIC DEVELOPMENT PLAN (2016-2020) ....... 8
I. STATUS OF IMPLEMENTATION OF THE 8TH FIVE-YEAR NATIONAL SOCIO-ECONOMIC
DEVELOPMENT PLAN (2016-2020).......................................................................................................... 8
1.OVERALL CONTEXT OF THE 8TH NSEDP ..................................................................................... 8
1.1. INTERNATIONAL CONTEXT ........................................................................................................ 8
1.2. LOCAL CONTEXT ............................................................................................................................ 8
2.ACHIEVEMENTS OF THE IMPLEMENATION OF THE 8TH FIVE-YEAR NATIONAL SOCIOECONOMIC DEVELOPMENT PLAN (2016-2020) ............................................................................. 92.1. Outcome 1: Sustained, Inclusive Economic Growth with Economic Vulnerability (EVI) Reduced
to Levels Required for Growth Support ...................................................................................................... 9(1) Output 1: Sustained and inclusive economic growth ................................................................................. 9(2) Output 2: Macroeconomic stability.......................................................................................................... 11(3) Output 3: Integrated development planning and budgeting ..................................................................... 13(4) Output 4: Balanced regional and local development ............................................................................... 14(5) Output 5: Improved public/private labour force capacity ........................................................................ 15(6) Output 6: Develop entrepreneurs, technical experts and professionals ................................................... 16(7) Output 7: Regional and international cooperation and integration .......................................................... 172.2. Outcome 2: Human resources are developed and the capacities of the public and private sectors
are upgraded; poverty in all ethnic groups is reduced, people of all ethnic groups, ages and genders
have access to quality education and health services; the unique culture of the nation is protected andconsolidated; political stability, social peace and order, justice and transparency are maintained. ... 19(1) Output 1: Improved living standards through poverty reduction and Sam Sang Directive implementation
19(2) Output 2: Food security ensured and incidence of malnutrition reduced ................................................ 20(3) Output 3: Access to high quality education ............................................................................................. 20(4) Output 4: Access to high quality health care and preventative medicine ................................................ 21(5) Output 5: Enhanced social welfare .......................................................................................................... 23(6) Output 6: Protection of traditions and culture .......................................................................................... 23(7) Output 7: Political stability, order, justice, and transparency .................................................................. 24
2.3. Outcome 3: Natural resources and the environment are effectively protected and utilised according
to green-growth and sustainable principles; there is readiness to cope with natural disasters and theeffects of climate change and for reconstruction following natural disasters ........................................ 24(1) Output 1: Environmental protection and sustainable natural resources management ............................. 24(2) Output 2: Preparedness for natural disasters and risk mitigation ............................................................. 26(3) Output 3: Reduced instability of agricultural production ........................................................................ 26
2.4. Outcome 4: Priority Cross-Cutting Outputs ...................................................................................... 26

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(1) Output 1: Enhance effectiveness of public governance and administration ............................................ 26(2) Output 2: Promote local innovation and utilisation of science, technology and telecommunications andmanagement and application of ICT.............................................................................................................. 28(3) Output 3: Promote and develop women, juveniles and young people ..................................................... 29
3.IMPLEMENTATION OF THE SUSTAINABLE DEVELOPMENT GOALS (SDGS) ................... 31
4.IMPLEMENTATION OF LEAST DEVELOPED COUNTRY (LDC) GRADUATION ................. 31
5.GREEN GROWTH............................................................................................................................ 32
II. OVERALL EVALUATION OF THE 8TH FIVE-YEAR NATIONAL SOCIO-ECONOMIC
DEVELOPMENT PLAN (2016-2020) IMPLEMENTATION ................................................................. 34
1.ACHIEVEMENTS ............................................................................................................................ 34
2.KEY SUCCESS FACTORS .............................................................................................................. 35
3.SHORTCOMINGS, DIFFICULTIES AND CHALLENGES ........................................................... 36
4.CAUSES OF SHORTCOMINGS ...................................................................................................... 37
5.LESSONS LEARNT ......................................................................................................................... 37
6.SOME IMPORTANT ISSUES THAT NEED TO BE ADDRESSED URGENTLY IN THE NEXT FIVEYEARS ................................................................................................................................................. 38

PART
II:
9TH
FIVE-YEAR
NATIONAL
SOCIO-ECONOMIC
DEVELOPMENT PLAN (2021-2025) .................................................................. 40
I. ENABLING ENVIRONMENT AND CHALLENGES ...................................................................... 40
1.REGIONAL AND INTERNATIONAL CONTEXTS ....................................................................... 40
2.LOCAL CONTEXT .......................................................................................................................... 41
3.SOCIO-ECONOMIC DEVELOPMENT POTENTIAL .................................................................... 42
4.LEAST DEVELOPED COUNTRY (LDC) GRADUATION............................................................ 44
5.BECOMING AN UPPER-MIDDLE INCOME COUNTRY ............................................................. 45
6.SUSTAINABLE DEVELOPMENT GOALS (SDGS) ...................................................................... 45
7.GREEN GROWTH............................................................................................................................ 46
III. OVERALL DIRECTIONS, OUTCOMES AND OUTPUTS OF THE 9TH FIVE-YEAR NATIONALSOCIO-ECONOMIC DEVELOPMENT PLAN (2021-2025) .................................................................. 46
1.OVERALL DIRECTIONS ................................................................................................................ 46
2.MAIN OUTCOMES .......................................................................................................................... 46
3. OUTPUTS OF THE 9TH FIVE-YEAR NATIONAL SOCIO-ECONOMIC DEVELOPMENT PLAN
(2021-2025) .......................................................................................................................................... 47
Outcome 1: Continuous quality, stable and sustainable economic growth achieved ............................ 47
1. Output 1: Quality and sustainable economic growth ............................................................................... 47
2. Output 2: Robust and stable macroeconomic management ensured ........................................................ 52
3. Output 3: Investment quality and effectiveness enhanced ....................................................................... 53
4. Output 4: Better quality, robust and regionally and internationally competitive micro, small and medium
enterprises ...................................................................................................................................................... 57
5. Output 5: Enhanced efficiency and effectiveness of state-owned enterprises and collective economy .. 58
6. Directions for Economic Structural Reforms for National Resilience..................................................... 59

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7. Large-scale and Priority Projects for Outcome 1 ..................................................................................... 61
Outcome 2: Improved quality of human resources to meet development, research capacity, science andtechnology needs, and create value-added production and services ....................................................... 62
1. Output 1: More inclusive and better-quality healthcare services and nutrition ....................................... 62
2. Output 2: Improved quality of all levels of education and conditions created for access to education to
support readiness for regional and international integration and Industry 4.0............................................... 64
3. Output 3: Workforce skills and productivity improved, and job diversification, security and income
opportunities increased to meet the demands of socio-economic development ............................................ 67
4. Output 4: Promoting and utilising scientific research, technology, innovation and knowledge to drivesocio-economic development ........................................................................................................................ 68
5. Large-Scale and Priority Projects for Outcome 2 .................................................................................... 69
Outcome 3: Enhanced well-being of the people ........................................................................................ 71
1. Output 1: Poverty alleviated in rural and remote areas, and people’s livelihoods, cultural values, andmedia work improved .................................................................................................................................... 71
2. Output 2: Public utility infrastructure improved and access to public services made more inclusive andequitable......................................................................................................................................................... 73
3. Output 3: Equal access to socio-economic development opportunities promoted and the rights of womenand children protected.................................................................................................................................... 74
4. Output 4: Promote and develop youth to improve human capital and participation in the workforce .... 76
5. Output 5: Expand access to more efficient social protection services for the people, including workers
and self-employed individuals ....................................................................................................................... 77
6. Output 6: Unexploded Ordnance (UXO) clearance progressively accelerated and more lives made safe
from UXO ...................................................................................................................................................... 79
7. Large-Scale and Priority Projects for Outcome 3 .................................................................................... 79
Outcome 4: Environmental protection enhanced and disaster risks reduced ....................................... 80
1. Output 1: Natural resources sustainably used and managed .................................................................... 80
2. Output 2: Green growth promoted and actions taken towards climate change mitigation ...................... 82
3. Output 3: Capacities for disaster prevention, management and recovery enhanced ................................ 84
4. Large-Scale and Priority Projects for Outcome 4 .................................................................................... 85
Outcome 5: Engagement in regional and international cooperation and integration is enhanced withrobust infrastructure and effective utilisation of national potential and geographic advantages ........ 85
1. Output 1: Infrastructures improved for national, regional and international connectivity to facilitate
production, services, trade and investment .................................................................................................... 86
2. Output 2: Regional and international trade and investment cooperation and integration enhanced andexpanded ........................................................................................................................................................ 88
3. Output 3: Robust regional and local development based on the potential of each region ....................... 90
4. Output 4: Urban areas and Special Economic Zones developed into production, investment, trade andtourism bases for regional and international integration................................................................................ 91
5. Large-scale and Priority Projects for Outcome 5 (See details in the Annex): ......................................... 92
Outcome 6: Public governance and administration is improved, and society is equal, fair, and protectedby the rule of law.......................................................................................................................................... 95
1. Output 1: Enhanced efficiency of public governance and administration and deepened implementation of
the Sam Sang Directive ................................................................................................................................. 95

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2. Output 2: Improved and harmonised coordination mechanisms and regulations within the public sector
to increase efficiency ..................................................................................................................................... 96
3. Output 3: Ensure political stability, peace and order, unity, democracy, justice and civilisation within thesociety ............................................................................................................................................................ 97
4. Large-Scale and Priority Projects for Outcome 6 .................................................................................... 98

PART III: IMPLEMENTATION MEASURES AND MECHANISMS FOR
THE 9TH FIVE-YEAR NATIONAL SOCIO-ECONOMIC DEVELOPMENT
PLAN (2021-2025) ................................................................................................. 101
I. MEASURES FOR THE IMPLEMENTION OF THE 9TH FIVE-YEAR NATIONAL SOCIOECONOMIC DEVELOPMENT PLAN (2021-2025) .............................................................................. 101
1. Strengthening macroeconomic management to be sustainable and diversified .................................... 101
2. Development of Human Resources and the Labour Force ................................................................... 102
3. Promoting Well-being and a Prosperous and Just Society ................................................................... 103
4. Environmental Protection and Risk Reduction ..................................................................................... 103
5. Building Resilient Infrastructure to Enhance Connectivity and Integration at All Levels ................... 103
6. Improving Public Governance and Administration .............................................................................. 104
II. MECHANISMS FOR THE IMPLEMENTATION OF THE 9TH FIVE-YEAR NATIONALSOCIO-ECONOMIC DEVELOPMENT PLAN (2021-2025) ................................................................ 105
III. DELEGATION OF RESPONSIBILITIES TO THE SECTORS AND LOCALITIES ................. 105
IV. MONITORING AND EVALUATION .............................................................................................. 107

ANNEXES .............................................................................................................. 108

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PART I:
IMPLEMENTATION ASSESSMENT OF
THE 8TH FIVE-YEAR NATIONALSOCIO-ECONOMIC DEVELOPMENT
PLAN (2016-2020)7

PART I: IMPLEMENTATION ASSESSMENT OF
THE 8TH FIVE-YEAR NATIONAL SOCIOECONOMIC DEVELOPMENT PLAN (2016-2020)
I. STATUS OF IMPLEMENTATION OF THE 8TH FIVE-YEAR
NATIONAL SOCIO-ECONOMIC DEVELOPMENT PLAN
(2016-2020)
1.

OVERALL CONTEXT OF THE 8TH NSEDP

1.1.

INTERNATIONAL CONTEXT

The implementation of the 8th Five-Year Plan took place during a time of enormous regionaland global challenges, including: 1) economic and political instability in many countries; 2)fluctuations in global oil and food prices; 3) trade conflicts between the superpowers; and 4) anincrease in natural disasters in the region and outbreaks of diseases. These issues had both direct
and indirect impacts on socio-economic development of many countries.
Global economic growth ranged between 3.2% and 3.6% between 2015 and 2017, before
slowing to 2.8% in 2018. The world continued to be in a state of rapid and complex changes,
including the ISIS war in the Middle East, refugee crisis, and developments on the Korean Peninsulaand South China Sea, among others. Moreover, the outbreak of the coronavirus disease (COVID19) that has spread worldwide, with the World Health Organisation (WHO) declaring it a global
pandemic in early 2020. This pandemic is expected to have a devastating effect on people’s lives
and the economies of many countries around the world. As a result of the pandemic, in 2019, theglobal economy contracted by 3.2%. In 2020, the IMF estimates that at the global level the economy
rebounded with growth of 6%, but the recovery remains very uneven and a high level of risks
persists.
During the initial phase of the 8th Five-Year Plan period, global commodity prices fellsignificantly, before rising again in 2017 and 2018. In particular, copper prices fell by 30% from
USD 6,863 per tonne in 2014 to USD 4,808 per tonne in 2018. The World Bank estimated that
copper prices will be around USD 6,816 per tonne in 2019 and USD 6,833 per tonne in 2020.
Similarly, oil prices saw significant declines during the first half of this Five-Year Plan period,
falling from USD 96 per barrel in 2014 to USD 43 per barrel in 2016. By 2018, oil prices had
recovered to USD 65 per barrel and were expected to remain at this level, or slightly lower, in 2020
as a result of the outbreak of COVID-19.

1.2. LOCAL CONTEXT
The implementation of the 8th Five-Year National Socio-Economic Development Plan (20162020) experienced a number of difficulties and challenges, such as fiscal and monetary issues andfloods and droughts in some areas, which particularly affected economic growth in the first year of
the Plan (2016), leading to growth of 7%, below the target of 7.5%. Reflecting this reality, theGovernment proposed to the National Assembly to revise some targets for the remaining four years(2017-2020), including adjusting the average economic growth target from 7.5% to 7.2%. During
the 2017-2020 period, the socio-economic development of the country continued to encounter
difficulties that had accumulated over the years, leading to macroeconomic vulnerabilities, such as
debt problems and fiscal deficits, resulting in declining annual growth rate during 8th Five-Year Plan
period. Furthermore, disasters including typhoon Son-Tinh in 2018, the collapse of the saddle dam

8

in Xe-Pien Xe-Nam Noi in Attapeu Province, tropical storm Bebinca, and severe flooding in 2019
affected national socio-economic development. In addition, there were outbreaks of animal andplant diseases and pests in several provinces which caused considerable damage to production andproperty of the people, particularly the outbreak of the African swine fever in 2019. Since the endof 2019, Lao PDR has been severely affected by the COVID-19 pandemic. As a result, the economic
growth target for 2020 has been adjusted from 6.5% to 3.3%-3.6%. This is expected to bring the
average growth rate of the 8th Five-Year Plan to only 5.8%, lower than the target of 7.2%.
Nonetheless, over the past five years, under the close guidance and leadership of theGovernment, combined with the high level of commitment of sectors, local authorities and the Laopeople, and the support of strategic partner countries and development partners, the socio-economic
development of the country, despite the many difficulties and challenges, has been able to withstandthe challenges and avoid economic recession, while also ensuring production and improved
livelihoods of the people. This has been demonstrated by the continuation of large-scale investment
projects in different sectors, such as the Laos-China railway project, the Vientiane-Vang Vieng
expressway project, energy and mining projects, Special Economic Zone development projects, andtourism development projects. This has provided an important starting point for the transition fromreliance on natural resource exploitation to utilizing all of the nation’s potential through green andsustainable development. Moreover, modernisation and the use of technological achievements has
fostered a new positive environment for development opportunities. Reflecting these achievements,
the country met all three criteria – Gross National Income (GNI), Human Asset Index (HAI), andthe Economic and Environmental Vulnerability Index (EVI)– to be eligible to graduate from Least
Developed Country (LDC) status during the United Nation’s 2018 triennial review. Overall, thecountry was able to maintain and promote strong social order and stability, and achieve a decline inpoverty levels, as demonstrated below.

2.

ACHIEVEMENTS OF THE IMPLEMENATION OF THE 8TH FIVEYEAR NATIONAL SOCIO-ECONOMIC DEVELOPMENT PLAN (20162020)

The evaluation of the implementation achievements of the 8th Five-Year Plan (2016-2020)
has been based primarily on the target figures set out in the National Assembly Resolution No.
014/NA on the Adoption of the Amendment to the Macro-Figures for the 4-Year Plan (2017-2020)of the National Socio-Economic Development Plan, the 8th Five-Year State Budget and Monetary
Plans (2016-2020), and the Monitoring and Evaluation Framework of the 8th Five-Year Plan in orderto provide an objective evaluation of achievements, shortcomings, constraints, and lessons.

2.1. Outcome 1: Sustained, Inclusive Economic Growth with Economic
Vulnerability (EVI) Reduced to Levels Required for Growth Support(1) Output 1: Sustained and inclusive economic growthOver the five-year period 2016-2020, the national economy continued to grow steadily, withan estimated average rate of 5.8% per year (2016: 7.02%; 2017: 6.9%; 2018: 6.3%; 2019: 5.5%, andin 2020 growth was estimated at 3.3%). However, the overall economic growth rate continued toslow and fell short of the target set out in the Plan (target: 7.2%), with the agriculture sector growing
by an average of 2.1% (target: 3.4%), the industrial sector by 9.1% (target: 9.3%), the service sector
by 4.8% (target: 8.1%), and the tax and customs sector by of 5.2% (target: 5%). The main driversof economic growth came from the industrial sector, particularly power and construction.
Wholesale-retail and the finance and insurance sectors grew reasonably well, but their contribution
to the economy was low.

9The main reasons for the slowdown in economic growth, and the resulting inability to meettargets, were the downward trend in the agricultural sector and the impact of natural disasters, themining sector’s declining trend during 2017-2019, and the slow growth of the processing industry.
At the same time, the growth of the service sector has been declining, particularly in the areas ofaccommodation services and restaurants related to tourism. In addition, Lao economic growth has
slowed down in line with the overall trend of regional and international economies and major trading
partners, which have also been declining. Factors contributing to the decline include the effects ofnatural disasters such as floods, and the outbreak of COVID-19. Another important factor was theshift to increase production and export of non-natural resource goods, to promote the production ofagro-processing industries, electronic components, electronics, and services related to tourism. At
the same time, the Government has tightened enforcement of laws, such as curtailing the illegal
export of timber. This has slowed down the Lao economy slightly, but this has provided a better
quality growth, shifting to a more efficient and sustainable production to create a viable basis forfurther growth.
Overall, economic growth over the past years has relied heavily on the natural resource
sector, but such growth is unsustainable. However, the economy has begun to shift toward thehigher-quality processing and service sectors, which are linked to job creation and people’s income
generation in a more sustainable direction.
- Gross Domestic Product (GDP) per capita increased from USD 2,025 in 2016 to USD 2,654
in 2019 and is expected to increase to USD 2,664 in 2020 (target: USD 2,978). Gross National
Income (GNI) per capita reached USD 2,106 in 2020 (National Assembly (NA) approved target:
USD 2,354).
- The economic structure has not yet shifted towards industrialisation and modernisation,
which can be noted in the share of the agricultural sector in the economic structure which has
decreased from 15.8% in 2016 to 16.6% in 2020 (target: 16.80%); while the share of the industrial
sector decreased from 33.7% in 2016 to 33% in 2020 (target: 39%) and the share of the service
sector decreased from 40.3% in 2016 to 39.5% in 2020 (target: 35.4%).
- The production and services of goods show the potential to grow and yield benefits asfollows:• Agricultural sector: Agriculture has seen considerable progress, but due to natural
disasters affecting production, the yield of some crops declined- the 5-year average riceproduction was 3.7 million tonnes per year (2016: 4.14 million tonnes; 2017: 4.05 million
tonnes; 2018: 3.27 million tonnes; 2019: 3.53 million tonnes; and 2020: 3.5 million tonnes(target: 4.35 million tonnes/year)). Nevertheless, rice production has been able to meetdomestic consumption needs, with reserves, and surpluses for sale. Livestock production
saw strong growth, especially cattle rearing, which increased from 1.92 million cattle in2016 to 2.18 million cattle in 2020, and fish farming increased from 164,000 tonnes in2016 to 200,020 tonnes in 2020.
• Industrial sector: The industrial sector continued to grow. In the past 5 years, the value ofindustrial and handicrafts production reached LAK 52,728 billion, an average increase of
9.2% per year (target: 15% per year). However, its growth trend has slowed year-by-year(2016: 15.07%; 2017: 15.38%; 2018: 10.68%, 2019: 8.39% and 2020: 3%). The
processing industry is mainly manufacturing to meet the needs of the domestic market,
such as food processing, beverage, and construction materials (cement, rebar, structuralsteel, PVC pipes, paints, and plastics). The manufacturing industry for export under tradeprivileges includes clothing and footwear, and electrical and telecommunication parts andequipment, which are manufactured in Special Economic Zones and industrial estates.
The agro-forestry industry includes the production of cassava starch, coffee, sugar,
rubber, and paper from trees. Electricity generation (5-year cumulative figure) is
estimated to have reached 161,923 million kWh, an average increase of 19% per year due
10

to the completion of 52 power projects, with a total installed capacity of 4,718 MW,
generating 22,933 GWh. Outstanding power projects include Xayaboury dam, Hongsa
coal-fired power plant, Don Sahong dam and Nam Ou 5 dam. Mineral production reached
USD 7.53 billion and the export value of minerals was estimated at USD 6.66 billion, but
production declined due to diminishing production in some projects. The Government has
temporarily suspended mining concessions in order to improve policies and regulations
to ensure national interests and to manage environmental impacts. Lower mineral prices
have also disincentivised production. The value of exports reached USD 26,429 million,
an average increase of 10.4% per year, lower than the Plan (target: 15% per year), of
which exports of processed industrial goods accounted for 43% of total export value. The
value of exports of the Special Economic Zones is estimated at USD 1.81 billion (mostnotably the Savan-Seno Special Economic Zone and the Vientiane Saysettha
Development Zone), and the trade openness ratio (excluding services) reached 61.5%(target: 70%).
• Service sector: The service sector has grown continuously and accounts for the largest
share of GDP. The value of flow of goods reached LAK 285,153 billion, an averageincrease of 10.2% per year, though lower than the Plan (target: 12% per year). The
average number of tourists visiting Lao PDR is 2.64 million per year (NA approved target:
6 million tourists per year), with 4.23 million tourist arrivals in 2016, 3.86 million in2017, 4.18 million in 2018, 4.79 million in 2019, and 0.88 million in 2020, which is adecrease of 81.49% compared to year 2019, generating an average of USD 673 million
in tourism revenue (NA approved target: USD 953 million). The reason for the shrinking
number of tourists in 2020 was the COVID-19 pandemic, which caused airlines aroundthe world to suspend travel and services. According to the United Nations World Tourism
Organisation (UNWTO), international tourism fell by 74% in 2020 or a fall from 1.5
billion international tourist arrivals in 2019 to around 381 million, representing a loss ofan estimated USD 1.3 trillion in international tourism expenditure globally. Asia and thePacific suffered a decrease of 84% in international arrivals or a drop from 630 million to
57 million international tourist arrivals, and an estimated 114 million jobs were lost in
2020. Lao PDR is facing unemployment in the tourism sector, with about 22% of theurban workforce. In addition, revenue from the tourism sector is expected to besignificantly reduced, with many tourism businesses, including hotels, guesthouses, andrestaurants unable to do business and so terminating their services.
(2) Output 2: Macroeconomic stability- Fiscal performance: The Government has focused on reforming public financial management
systems, including the formulation of the Vision 2030 and the Public Finance Development Strategy
2025, by improving fiscal policy, establishing and improving financial sector legislation, reforming
the revenue collection management system, reforming the expenditure management system,
modernising the financial sector, improving organisation and personnel, and strictly implementing
budget savings measures in accordance with the Prime Minister’s Order 09/PM, which has resulted
in an increase in revenue collection each year. This enabled a total revenue collection of LAK
120,672 billion, equivalent to 98.4% of the target (revised each year), an average of 15.9% of GDP(revised target: 18.6% of GDP). Total expenditures reached LAK 150,633 billion, equivalent to 95%
of the target (revised each year), an average of 19.8% of GDP (revised target 23.3% of GDP). The
average five-year budget deficit was 3.9% of GDP (revised target: not more than 4.23% of GDP).
One particular reason for under-collection of revenue as planned is the underperformance of revenue
collection from the natural resource sector as a result of the sharp fall in the price of minerals andcrude oil in the global market. Moreover, a large number of business entities are yet to implement
the value-added tax (VAT) system, and among those businesses that have entered the system, many
have not yet fully implemented the VAT declaration process in accordance with the law. Some11

sectors and localities have not yet addressed the management of revenue collection as much as theyshould have, particularly the fees and service charges, and management of administrative revenues
and expenditures and the various funds also need to be improved. The low level of awareness ofcompliance with financial law and discipline among some financial staff, including a number ofsectors and localities is an important issue. Moreover, there has been limited expansion of therevenue base, with the main focus remaining on the management and efforts to fully extract fromexisting sources of revenue in accordance with the law. With regard to expenditures, theadministration and management of expenditures have not been effective, and the implementation of
the government’s austerity policies and the Law on Public Procurement and the Law on Public Debt
Management has not been strictly enforced, while public investment budget allocation lacks focus
and investment has not been cost-effective.
- Monetary policy performance: The Bank of Lao PDR (BOL) has implemented monetary
policies using indirect policy tools such as BOL’s base interest rates, requirement reserve ratio, andopen market operations (OMOs) in conjunction with the implementation of exchange rate policies
under a managed market mechanism. Additionally, focus has been put on the management of foreign
currency in strict accordance with regulations, such as the management of inflows and outflows ofcapital through the banking system, and monitoring the activities of exchange bureaus under the
management of BOL, coordinating with relevant parties to limit and prevent foreign exchange
business activities that do not comply with rules and regulations, and encouraging commercial banks
to expand their service network, create new products and modernise services to promote payments
through the banking system and reduce reliance on cash.
- Inflation: In the past five years, inflation averaged at 2.57% per year, which was in line with
the Plan’s objective (NA approved target: to remain below the economic growth rate). However,from mid-2019, inflation rose sharply from 3% in July 2019 to 6.94% in January 2020, 6.21% in
February 2020, 6.14% in March 2020, 5.28% in June 2020, 5.12% in July 2020, 5.84% in August
2020, before starting a downward trend to 4.63% in September 2020, 3.63% in October, 2.84% in
November 2020 and 3.19% in December 2020. During the period 2016-2020, the highest increases
were in the prices of food and non-alcoholic beverages averaging at 3.73%, clothing and footwear
price increases averaged at 3.61%, health care prices increased by 2.25%, home appliances prices
increased by 1.99%, and post and telecommunications prices increased by 1.42%. The main factors
contributing to a rise in inflation were the impact of natural disasters on production and services,leading to increased prices of vegetables and meat. Moreover, domestic production has not met theneeds of society. Most consumer goods are imported and commodity prices have increased due tothe depreciation of the Lao Kip.
- Exchange rate: The Lao Kip (LAK) exchange rate against major foreign currencies has
fluctuated within the target band (target: ±5% percent): during 2016-2020, the LAK depreciatedagainst USD by an average of 2.75% (LAK depreciated against USD in 2016 by 0.36%; 2017 by
2.03%; 2018 by 1.56%; 2019 by 3.59%, and 2020 by 6.23%). Meanwhile, LAK depreciated against
Thai Baht (THB) by an average of 5% (LAK against THB in 2016 appreciated by 3.27%; 2017
depreciated by 5.68%; 2018 depreciated by 6.86%; 2019 depreciated by 7.59%, and in 2020
depreciated by 8.15%). The depreciation of the Lao Kip is because Lao PDR has had a continuous
trade deficit with other countries. Domestic production has been weak and insufficient to meetdemand, whilst both the USD and THB strengthened in global markets.
- Money Supply (M2): M2 money supply has increased in line with the pace of economic growth,
on average at 13.48% per year (NA approved target: not more than 24% on average). This was dueto the slowdown in credit growth in line with the overall business climate combined with the impact
of government debt.
- Foreign exchange reserves: Foreign reserves were sufficient to cover on average 4.26 monthsof imports (NA approved target: more than five months). Foreign reserves in 2016 covered 5.26

12

months of imports; 2017: 4.39 months; 2018: 3.23 months; 2019: 3.59 months, and 2020: 4.81
months.
- Non-Performing Loan (NPL) ratio: During 2016-2020, the non-performing loan ratio averaged
3.08% of the total credits (target: not more than 3%). Non-performing loans are mainly linked to
public investment projects.
- The ratio of outstanding commercial bank deposits to Gross Domestic Price at current pricerecorded 50.67% in 2016, 52.16% in 2017, 51.99% in 2018, 57.73% in 2019 and 64.43% as ofDecember 2020.
- Outstanding credit balance of banking sector as of December 2020 registered at 48.76% ofGDP, of which commercial banks’ credits by sector: industry 27.42%, construction 14.34%,
materials and techniques 1.13%, agriculture and forestry 7.65%, trade 19.12%, transport-post
1.87%, service 13.26%, handicraft 1.34% and other sectors 13.87%.
- Import-export: reached USD 52,976 million, of which export was USD 26,429million andimport USD 26,547 USD, resulting in trade deficit of USD 118 million.
(3) Output 3: Integrated development planning and budgeting
Investment mobilisation was estimated to amount to LAK 169,744.6 billon, equivalent to97.9% of the plan (NA approved target: LAK 173,329 billion) or equal to 26.9% of GDP, of which:+ State budget investment was estimated at LAK 17,099.9 billion, equivalent to 10.1% of total
investment (NA approved target: 12-15%).
+ Investment from Official Development Assistance (ODA) reached about LAK 29,666.1
billion, equivalent to 17.5% of total investment (NA approved target: 15-24%).
+ Domestic and foreign private investment was estimated at LAK 86,127.6 billion, equivalent
to 50.7% of GDP (NA approved target: 40-49%).
+ Bank credit investment was estimated to reach about LAK 36,851 billion, equivalent to21.7% of total investment (NA approved target: 21-23%). Total credit growth in 2016reached LAK 10,876 billion; 2017: LAK 7,800 billion; 2018: LAK 8,763 billion; 2019: LAK
9,788 billion, and 2020: LAK 10,500 billion.
Funding for the implementation of this Five-Year National Socio-Economic Development
Plan did not reach the planned target due to many challenges, such as: investment from the statebudget that declined year-by-year, the actual investment was not as targeted as it should have been,
and there have been breaches of planning and financial discipline that have resulted in liabilities. In
the future, attention must be paid to the integration of planning, financing, and budgeting, andmonitoring and evaluation, as well as systematic and continuous public finance management (PFM)
reform, ensuring that budget allocation is in line with the development priorities; and expenditureplanning must be based on available revenue and in line with the approved budget, with continuous
and regular monitoring and evaluation.
Over the past years, the Government has made great efforts to improve the investment
climate by issuing Order No. 02/PM on Improving Regulations and Coordinating Mechanism for
Doing Business in Lao PDR, Order No. 12/PM on Facilitation of Import and Export, Border
Crossing, Temporary Import and Movement of Goods in Lao PDR, and Order No. 03/PM on the
Improvement of Services Related to the Issuance of Investment and Business Licenses. However,
Lao PDR’s ranking in the Ease of Doing Business Index has deteriorated from the 134th place in the
beginning of 2016 to 154th in 2020. Improvements in some of the 10 indicators have been delayed,such as applying for investment licences, which still takes a long time and exceeds the time requiredby law, averaging more than three months in the controlled business activities (8 business days
according to the law) and more than six months in the concession activities (30 business days
according to the law). The ranking of the “Starting a Business” indicator, in relation to procedures
and costs, has not improved (181st position out of 190 countries), which is an obstacle to promoting
13

the development and expansion of private investment to be able to compete and integrate effectively
regionally and internationally. Delays have also been recorded in the consideration of issuingbusiness operating licenses, granting customs duty and tax exemption policies for enterprise importplans, accessing electricity, receiving construction permits and others. Indicators requiring urgent
attention include: enforcing contracts and judgement (particularly reducing the amount of time spenton case mediation and improving the quality of the justice system), protecting investors (especially
corporate transparency), and the ease of procedures to pay taxes.
(4) Output 4: Balanced regional and local development
The Party and the Government have placed high importance on local socio-economic
development by promoting policies and providing technical and financial support for the
implementation of the goals and priority targets of the provinces according to the potential of each
locality. This has enabled continuous economic growth and improvement in living standards, as
shown below:- Northern region: The economy has continued to grow consistently, with growth averaging
7.95%, and GDP per capita in 2020 reaching LAK 15.11 million. The region has focused on
agricultural production in areas with outstanding potential for rice cultivation in Luang Namtha,
Bokeo, Sayaboury and Vientiane Provinces, tea cultivation in Phongsaly, and banana, cassava, andmaize cultivation in Oudomxay, Huaphanh, Sayaboury and Vientiane Provinces; as well as
promoting the raising of large livestock and grass planting in Xieng Khouang. In the industrial
sector, key initiatives include the completion of the Hongsa lignite-fired power plant and Sayabouryhydropower project. The processing industry has begun to grow, with the establishment of tea
processing plants in Phongsaly, rubber processing plants in Luang Namtha and Oudomxay, woodprocessing plants in Luang Prabang, Sayaboury and Xieng Khouang; and a large number of One
District One Product (ODOP) production groups, with the most prominent products being butteredbanana chips in Sanakham District, turmeric compounds in Tholakhom District, salted buffalo driedskin in Sayaboury Province and others. In terms of services, tourism in particular has improved
thanks to two World Heritage Sites (Luang Prabang city and the Plain of Jars), as well as famous
natural tourism sites such as Namkat Yorla Pa in Oudomxay Province. Infrastructure has beensignificantly renovated, such as the improvement and upgrading of Route 3 (R3) road and the KasiMuang Nan road, the Laos-China railway construction project, and the completion of theconstruction of the Vientiane-Vang Vieng expressway; development of Bounneua District,
Phongsaly Province, development of Kuan District, Houaphanh Province; construction of threepriority roads in Xaysomboun Province, Hongsa-Chomphet road construction project, PaklaiThongmixay road construction project, Xienghon-Ngeun District road construction project, Hin
Herb-Sanakham strategic road construction project and others.
- Central region: The region is an economic, political, and socio-cultural centre. In the past
five years, the growth rate averaged 8.39%, with a GDP per capita in 2020 of about LAK 28.7
million. Agricultural production has the highest growth potential, including the cultivation of
Homsavanh fragrant rice, organic rice for export, sweet corn, sugarcane and cassava in Savannakhet,
Khammouane and Bolikhamxay, and organic crops and vegetables cultivation in Vientiane Capital.
The industrial sector has seen an increased number of processing plants such as tapioca factories in
Bolikhamxay Province and modern rice mills in Savannakhet Province; minerals such as: iron, tin,lead, limestone, potash-magnesium salt, barite, gypsum, zinc, bismuth, tellurium and others in
Khammouane Province and Vientiane Capital for domestic supply and export. Infrastructure has
been extensively improved and renovated, with the most prominent projects including the Xebangfai
plain irrigation system construction and improvement project, Huay Tha Hao irrigation system, thecompletion of concrete road construction from Sikeut to Tan Mi Xay, road development fromXaychamphone District to the Thang Thuy border, Viet Nam, municipal road construction in Paksan
District (Nos. 1, 2, 3, 4), construction of concrete road in Kaisone Phomvihane city, construction of14

double-layer asphalt-paved road on the National Highway 1G to the border of Saravan Province,and upgrade and repair of National Highway (Route 9) for transportation and freight traffic.
- Southern region: The region has agricultural production potential, with an average economic
growth rate of 7.13% in the past five years and a 2020 gross domestic product per capita of LAK
18.47 million. Agriculture focused on growing potential food and commodity crops, mainly coffee,
cassava, cashew nuts and passion fruits, as well as contract farming, such as planting cabbage,
bananas, maize, and passion fruits in Champassak, sugarcane and chilli in Phu Vong District,bamboo shoots in Tha Teng District for export to Viet Nam, and sticky rice and white rice in Saravan
Province. The industrial sector has established a Special Economic Zone in Champassak. In
addition, investment has now been approved in the Pakse-Japan SME Special Economic Zone,
Sithandone Special Economic Zone, and Vang Tao-Phonthong Economic Zone, which could boost
job creation and production. The most prominent manufacturing industries are food and beverage
processing, wood processing, minerals, chemicals, and construction materials and office supplies.
In terms of infrastructure, considerable achievements have been made, such as the Sedone 3 concrete
bridge construction project, NR9 North to NR9 South concrete road expansion project, constructionof asphalt road 14 (from Khop to Dontalat road, Sukhuma district), construction of Wang Taointernational checkpoint, Phonethong District (Lao-Thai border), road construction along theeastern side of the Savannakhet-Saravan-Sekong border, construction of mixed red dirt road from
Pasom village to Thongsa village, Ta-Oi District; construction of access road to Phouphasouk tourist
site in Saravan Province, construction of Sekong river-crossing bridge, a river embankment
construction project in Sekong village, Samakkhixay District, construction of double-layeredasphalt Road 1J, Attapeu Province, and completion of Route 15A, Route 16B road construction(Sekong-Dakcheung), which has facilitated people’s mobility and trade efficiency.
Overall, despite the remarkable progress and achievements in many aspects of regional andlocal development, economic progress has not been sufficiently systematic, in particular the
production, service and trade of agricultural products and other commodities have not yet operated
as a coherent value chain between villages, districts and provinces and the Capital city.
(5) Output 5: Improved public/private labour force capacity
The Government has made strong efforts to develop quality skilled labour to meet the needsof socio-economic development through various activities, such as: the completion of thedevelopment of national skills standards in five skill areas (target: 25 skill areas); 9,582 people, of
which 3,145 were women, equivalent to 76.66% of the plan (target: 12,500 people), have been tested
and issued certificates of skills in accordance with the national skill standards in three sectors:
agriculture, industry and services. Two national skill competitions have been organised in sevenoccupations, with a total of 131 participants, equivalent to 40% of the target. Efforts were also madeto support skill development institutes, schools, public and private vocational training centres,labour units, and relevant authorities in training and developing skills for a total of 419,264 people,
184,556 of whom were women, equivalent to 64% of the plan (target: 658,000 people). Efforts werealso implemented to promote collaboration with both public and private sector employment
agencies to supply labour to domestic and international labour markets, a total of 559,533 people,
including 243,120 women, equivalent to 78% of the plan (target: 716,193 people), of these, 251,974
people, including 82,966 women, were recruited within the country, and 307,559 workers, including
160,154 women, were sent to work abroad, including Lao workers with formalised status in
Thailand.
The results of the Lao Labour Force Survey 2017 show that the working-age population
amounts to 4.7 million (estimated population 6.9 million), of which 1.95 million are economically
active, accounting for 40.8% of the working-age population. Of these 1.75 million were employed.
and the unemployment rate stood at 9.4%. In 2020, businesses and industrial plants abroad andwithin the country were affected by the COVID-19 pandemic, and as a result, Lao migrant workers
15returned home and a large number of domestic workers were laid off, raising the unemployment
rate to 20%.
On employment by sector (1.75 million employed people): Agriculture, forestry andfisheries accounted for 35.8%, trade (wholesale and retail) accounted for 21.4%, manufacturingaccounted for 9%, electricity and mining accounted for 0.7% and 0.5% respectively, and othersectors accounted for 32.6% of total employment.
Overall, despite the active implementation efforts in labour skill development and job
creation, labour efficiency has changed little. Training and application in practice, as well as public
and private investment in skills development, are still limited and often without focus on specificoccupational development. Moreover, skills development and manpower supply have not been able
to meet the needs of key sectors and large-scale investment projects. The electricity and mining
sectors are main contributors to economic growth, but job creation in these sectors is limited. The
population outside the formal labour force still accounts for the majority, particularly in rural areas
where occupational change and productivity have been limited.
(6) Output 6: Develop entrepreneurs, technical experts and professionals
The Government has attached great importance to human resource development andenhancement of skills in various occupations in order to contribute to socio-economic development
efficiently and effectively by focusing on improving the curriculum and creating opportunities forvocational education, such as: improving the curriculum for undergraduate vocational teachers inthree fields (electrical technology, mechanical technology, and civil engineering) and developing
and improving courses in various fields, including factory mechanics, small mechanical repairs,
construction, carpentry, agriculture and livestock husbandry. To date, there are 25 public vocational
education institutions including one institute, one development centre, 11 colleges, and eight
integrated technical-vocational schools, three technical-vocational schools and one vocational
school. The establishment of these education institutions indicate that the targets of The Five-Year
Plan have been met. At the same time, allowances and other incentives have been introduced toencourage general education graduates to enter vocational education, which has resulted in an
increase in the number of students enrolled in vocational education every year. In the 2019-2020
school year, 3.8% of lower secondary school graduates entered vocational education and 18.04% of
upper secondary school graduates entered vocational education.
In addition, the Government has placed great emphasis to the strengthening of small andmedium sized enterprises (SMEs), focusing on the implementation of the seven policies and 43
measures, projects and activities of the SME Development Plan, as follows: (1) Promoting andincreasing productivity, technology, and innovation; (2) Promoting access to finance; (3) Promoting
business development advisory services; (4) Promoting market access and expansion; (5) Creating
and developing new entrepreneurs and enterprises; (6) Creating an enabling environment forbusiness establishment and operation; and (7) Tax-customs and finance policy. Notableachievements include providing advisory support, training, and monitoring and evaluation of Good
Manufacturing Practices (GPM) support to rice mill groups; and certifying quality management
system (ISO 9001) and food safety system for the Vern Kham salt factory; creating opportunities
for SMEs to access banks with SME funds as well as loans from China through commercial banks;
establishing four SME service centres in four provinces (Vientiane Capital, Luang Prabang,
Savannakhet, and Champassak) to provide various services; and completing the development of thewww.plaosme.com website to improve market access through an online trading platform. Throughthe implementation of these policies, many SMEs have improved the efficiency and quality of theirbusiness and have been able to better access local and international markets.

16Overall, even though the Government has implemented many important policies to promoteand strengthen SMEs, there remain barriers to accessing business services, technology and financial
services, particularly accessing loans without collateral. At the same time, business entities
themselves need to improve their operation in many respects, such as having feasible and reliablebusiness plans, effective management, and improvement of accounting and financial reporting
system to allow for better access to more sources of finance. In addition, it is necessary to encourage
and support Lao businesses to use and leverage opportunities from greater openness and regional
and international integration.
(7) Output 7: Regional and international cooperation and integration
Lao PDR’s international relations and cooperation have made significant progress,
particularly bilateral cooperation with Viet Nam, China, Luxembourg, France, Thailand, Australia,
Switzerland, the Republic of Korea, and Japan. Some of the most notable achievements include theexchange of visits at all levels with Viet Nam, the signing of the Master Plan on cooperation fordeveloping the “One Belt One Road” between Lao PDR and China, the Laos-China railway
construction project, and the signing of a financial cooperation framework agreement between the
Governments of Lao PDR and Switzerland. Multilateral cooperation has been implemented in linewith the framework of various cooperation plans, including the signing of cooperation agreement
between the Government of Lao PDR and the Food and Agriculture Organisation (FAO), review ofcooperation programmes between the Lao Government and the United Nations Development
Programme (UNDP), the United Nations Children’s Fund (UNICEF), and the United Nations
Population Fund (UNFPA), and other agencies. Cooperation with international financial institutions
has continued to make progress, and cooperation policies have been improved to ensure sustainable
development.
Regional and international economic integration has seen good progress and achievements:• Bilateral Trade Cooperation Framework: Lao PDR has trade relations with more than 60
partners around the world and has signed bilateral trade agreements with 15 countries. There are
two Free Trade Agreements (FTA): the Laos-Vietnam Trade Agreement and the Trade Relations
Agreement between Lao PDR and the United States. On the basis of strengthening and consolidating
trade relations with existing strategic partners, Lao PDR also further pursues trade relations withpotential trading partners.
• Multilateral Trade Cooperation Framework: Achievements include the improvement anddrafting of more than 100 pieces of legislation, reducing tariffs for 1,032 items (out of a total of
10,600 items negotiated); establishment of a Trade in Services Enquiry Point, which is available on
the Laos Services Portal website containing information related to trade and investment in services
in Lao PDR; promulgation of the law on protection from the impact of imports under the WTO
provisions, completion of the ratification process of the Trade Facilitation Agreement (TFA) and
the Protocol amending the Trade Related Aspects of Intellectual Property Rights (TRIPS), andNotification Submission to the WTO Secretariat on acceptance of the Code of Good Practice under
the Technical Barriers to Trade (TBT) Agreement; completion of the drafting of Decision on trading
rights of foreign traders in the import and export of goods; and completion of the notification of
categories B and C designations of the WTO Trade Facilitation Agreement provisions.
• ASEAN Cooperation Framework: Achievements include the completion of the signingof Free Trade Agreements with six Dialogue Partners: China, the Republic of Korea, Japan,
Australia, New Zealand and India aiming to enhance trade integration between ASEAN and its
Dialogue Partners in the global economy on the basis of ASEAN centrality; completion of theratification of the ASEAN-India Investment Agreement; signing of the First Protocol to amend theASEAN Trade in Goods Agreement (ATIGA) so as to implement the ASEAN-Wide SelfCertification (AWSC) scheme related to goods origin, the Protocol to Implement the 10th Package
17

of Commitments under the ASEAN Framework Agreement on Services (AFAS 10), and theASEAN Agreement on Electronic Commerce, completion of the Regional Comprehensive
Economic Partnership (RCEP) negotiations; and signing of the ASEAN Trade in Services
Agreement (ATISA) and the Fourth Protocol to Amend the ASEAN Comprehensive Investment
Agreement (ACIA).
• Sub-regional Cooperation Framework: Good progress has been made in sub-regional
cooperation, in particular: the Asia Pacific Trade Agreement (APTA) has completed the fourthround of tariff concession negotiations and continued negotiations on trade in services, investment
and trade facilitation; the Cambodia-Laos-Vietnam Development Triangle Area (CLV-DTA)
negotiated the Agreement on Trade Promotion and Facilitation in the CLV-DTA and prepared theAction Plan for the implementation of this Agreement; and progress has been achieved in theimplementation of the Mekong-Lancang Cooperation framework and other sub-regional
cooperation frameworks.
• Transport infrastructure integration and connectivity have seen remarkable progress andachievements, such as the completion of the construction of 6A Hanglong-Sopbao road project, 6B
Sopbao-Pahang road construction project, Ban Huak-Muang Khob-Pak Khob-Kon Teun road
construction project, Hongsa-Xiengman road construction project, Road No. 9 repair project fromSavannakhet to the Vietnamese border, Wattay International Airport Terminal Expansion project,
Thalao-Sam Tai road construction project, Nasang-Thongthu three-way junction construction
project, and the Road 16B construction project from Dakcheung District to the Laos-Vietnam
border. The Vientiane-Vang Vieng expressway project was officially launched on 20 December
2020. In addition, implementation of other major projects is currently underway, such as the firstphase of the Laos-China railway project (Vientiane Capital-Boten) which is 94.49% completed,including 71 tunnels (of 75 in total) drilled with a total length of 225,838 meters, 165 bridges and202.8 km of railways (from Vientiane Capital to Luang Prabang). Furthermore, construction of Road
No. 11 from Na Sang to Khok Khao Dor has progressed 24.4%; the improvement and expansion of
the 13th North road from Vientiane to Phonehong has progressed by 8.36% of the total project value.
The 5th Lao-Thai Friendship Bridge (Paksan-Neung Kan) construction project has completed thesigning of the contract and is in the process of mediating the construction area of 52 hectares, theconstruction of Non Khang International Airport in Huaphanh Province is 92.34% complete, theHuay Xai airport improvement project is 58.88% complete, and preparations for the Vung Ang 1, 2
and 3 port projects are underway.
Telecommunications integration has attained several achievements, as follows:
Telecommunications: Completed the launch of the LAOSAT-1 satellite, stationed at 128.5°
East with a Satellite Ground Control System and Satellite Broadcasting and Telecommunication
System for Lao PDR; completed the construction of three Remote Monitoring Stations in Vientiane
Capital; expanded the fibre optic transmission network, both aerial and underground, by 29,445
kilometres, which now covers a total of 90,258 kilometres, enabling communication connections
from the central level to provincial and district centres; extended cellular transceiver stations by
1,106 stations amounting to a total of 7,882 stations, which has expanded 2G, 3G, and 4G coverage
to 95%, 81%, and 53% respectively of all villages nationwide; registered a total of 1,453,262 landlines and wireless telephone users, registered 4,362,183 mobile phone users, bringing a total numberof registered fixed line telephone and mobile phone users to 6,090,188 numbers, equivalent to 87
numbers per 100 people; registered 3,540,020 internet users (landline and via 3G SIM), bringing
internet use penetration rate to 51% of the total population (population: 7 million).
Internet interoperability: Completed the integration of a one-stop communication system,completed the transfer of ownership of the Lao country domain (.LA) from overseas to manage
locally within the Lao PDR, expanded and upgraded the Lao National Internet Centre to be thedomestic gateway for internet traffic, completed expansion of the international telephone and18internet hubs to accommodate all domestic and international connection volumes, expanded sharedserver system /new Cloud system to support up to 1,400 servers, provided website hosting services
for more than 1,900 websites of public organisations and other agencies.
To date, transmission networks have expanded and now Lao PDR has 18 transmission points
connecting to neighbouring countries: Thailand (six), Viet Nam (five), Cambodia (two), Myanmar(two) and China (three) to facilitate telecommunication and internet communication.
Energy integration: Over the past five years, Lao PDR has been able to export electricity tofive countries (Thailand: 123,384 million kwh worth USD 6,877 million, Viet Nam: 4,926 million
kwh worth USD 266 million, Cambodia: 1,160 million kwh worth USD 51 million, Myanmar: 4
million kwh worth USD 380,000, and Malaysia: 130 million kwh worth USD 8 million). Overall,during the 8th Five-Year Plan period, the estimated export of electricity (five-year cumulative figure)totalled 129,605 million kwh, valued at USD 7,203 million, an increase of 164% compared to theexport figure of the 7th Five-Year Plan.
In sum, Lao PDR has over the years enjoyed trade privileges under several cooperationagreements, including quotas for agricultural exports to China and quota-free and duty-free market
access for exports to Europe. Nonetheless, due to limited production capacity, low productivity,
impacts of severe natural disasters and budget and technological limitations, agricultural production
has been fragile and unable to meet export quantity and quality requirements.

2.2. Outcome 2: Human resources are developed and the capacities of the public
and private sectors are upgraded; poverty in all ethnic groups is reduced,
people of all ethnic groups, ages and genders have access to quality educationand health services; the unique culture of the nation is protected andconsolidated; political stability, social peace and order, justice andtransparency are maintained.
(1) Output 1: Improved living standards through poverty reduction and Sam Sang Directive
implementation
Sectors and localities have continued to implement the Resolutions No. 03 and No. 25 of the
Political Bureau of the Party Central Committee and Order No. 34/PM of the Government on
Directions, Goals and Measures for Building Provinces as Strategic Units, Building Districts as
Comprehensively Competent Units, and Building Villages as Development Units by focusing on
the allocation of land for livelihoods, the transformation of large villages into small towns, providing
the necessary infrastructure as well as technical support and credit through the Policy Bank, with a
total of LAK 1,697.55 billion provided in the period 2016-4/2020. From the total credit allocated,
LAK 1,286.1 billion was disbursed to target poor districts, LAK 214.88 billion to the government
and local focus areas, and LAK 196.57 billion for the Sam Sang Directive (Three-Builds Directive)
activities to boost local production, which has improved people’s access to basic services, incomes
and livelihoods.
According to the survey results per the Government’s Decree 309/PM on Poverty Criteria
and Development Criteria, in 2019, there were 62,384 poor families or 5.61% of the total numberof families.
According to the 6th Lao Expenditure and Consumption Survey (LECS 6) conducted by the
Lao Statistics Bureau in 2018-2019, the poverty rate was 18.3% of the total population (down from
23.2% according to the LECS 5 survey in 2012-2013), equivalent to 13.5% of the total number ofhouseholds (NA approved target: the rate of poor families should be below 10% by 2020).

19

In collaboration with the Ministry of Education and Sports, unexploded ordnance (UXO)
primary education courses were established and conducted in nine target provinces to inform
communities about the risks and safe practices associated with UXO to reduce the number ofcasualties in 2,203 villages. Non-technical surveys to identify confirmed hazardous areas (CHA)
were conducted in 2,495 villages, equivalent to 64.62% of the target, technical surveys of UXO
were conducted on 54,999 hectares of land, equivalent to 22.35% of the target, and 17,805 hectaresof land were cleared of UXO, exceeding the target (NA approved target: 16,000 hectares). There
have been 55 UXO accidents, with a total 101 casualties, of which 87 people were injured and 14
people died. Assistance was provided to 1,583 mine victims, exceeding the target (NA approved
target: 1,500 people). Of these, 1,156 people received medical treatment and rehabilitation,
including prosthetic devices, and 327 people received vocational training and support to improvefamily economic well-being.
Overall, despite the many achievements and progress in rural development and poverty
alleviation, several challenges remain, such as rural-urban disparity, increased inequality andinadequate resources, limited capacity for UXO clearance and insufficient impact mitigation
capacities, as well as climate change preparedness.
(2) Output 2: Food security ensured and incidence of malnutrition reduced
In order to ensure food security and nutritious and safe consumption, over the past five years
the Government has focused on implementing food security and nutrition projects, free assisted
childbirth and under-five child care policy, and implementation of activities to integrate nutrition
promotion in the community and in primary health care in order to reduce chronic malnutrition. Thishas been done by providing ready-to-eat supplements to women during pregnancy, and children
under two years old to prevent malnutrition during the first 1,000 days of life in 1,110 villages,
equivalent to 95% of the total villages in all districts of three provinces: Luang Namtha, Oudomxay,
and Sekong; providing nutrition supplies and food to malnourished children in eight districts inChampassak and Sekong provinces. Through implementation, many targets have made good
progress as follows:- Food consumption of meat, eggs and fish has increased from an average of 55 kg / person /year in 2016 to 63 kg / person / year in 2019 and in 2020 it is expected to reach 65 kg / person /year.
- The malnutrition rate in the population, which is one of the indicators of the Human Asset
Index (HAI) as a criterion for LDC graduation, has decreased from 42.8% in 1990 to 18.5% in 2015.
- The proportion of underweight children under five years of age has decreased from 26.6%
in 2012 (LSIS 1) to 21.1% in 2017 (LSIS 2), 20.8% in 2019, and in 2020 it is expected to decrease
to 20.3% (NA approved target: 20%). The proportion of stunting among under-five children has
decreased from 44.2% in 2012 (LSIS 1) to 33% in 2017 (LSIS 2), 32.7% in 2019 and 32.3% in 2020
(NA approved target: 32%).
Nevertheless, food production over the past years has not met demand due to landdegradation, land use issues and a number of large-scale investment projects affecting people’s
production areas. In terms of nutrition, infant care and the application of recommended nutritional
practices has not yet been well-practiced because some households still follow the traditionalcustomary practices.
(3) Output 3: Access to high quality education
Over the past five years, the focus has been on implementing the priority activities of the
Education and Sports Sector Development Plan and the National Human Resource Development
Strategy in order to support all children of all ages to have access to quality education, which iscentral to strengthening human resources in terms of knowledge and ability according to the Three
20

Characteristics and Five Domains of national education, from early childhood education to
university education by focusing on improving the learning curriculum at all levels, providing
teaching and learning material and equipment, providing school administration funds to schools
nationwide, providing necessary incentives and policies to teachers and students, particularly inremote areas, and improving and building infrastructure that has enabled the implementation of theeducation work as follows:+ Targets achieved:- The enrolment rate of 5-year-olds increased from 70.9% in the 2015-2016 school year
to 82.7% in 2020, exceeding the plan (target: 80%).
- The net enrolment rate of primary school students increased from 98.8% in the 20152016 school year to 99% in 2020, exceeding the plan (target: 98%).
- The proportion of the masses of all genders and ages in society engaged in physicalexercises, playing sports and gymnastics reached 30% of the total population (target:
30% of total population)+ Targets that have been implemented more effectively compared to the 2015-2016
academic year but did not meet the set targets:- Repetition rate of grade 1 students decreased from 11.5% to 6.3% (target: 5%).
- Dropout rate of grade 1 students decreased from 7.2% to 6.4% (target: 5%).
- Repetition rate of primary school students decreased from 4.8% to 3.1% (target: 2%)- Dropout rate of primary school students decreased from 4.7% to 4.3% (NA approved
target: 2%)- Survival rate up to grade 5 increased from 79.6% to 82.1% (NA approved target: 90%)
- Gross enrolment rate of lower secondary school students increased from 82.2% to 83.3%(NA approved target: 85%).
- Gross enrolment rate of upper secondary school students increased from 47.8% to 54.8%(NA approved target: 60%).
- Completion rate of lower secondary school students enrolled in vocational education
increased from 3% to 3.8% (target: 5%).
+ Targets that have underperformed compared to 2015:- Dropout rate in lower secondary school education increased from 8.1% to 10.3% in 2020
(NA approved target: 2%);
- Dropout rate in upper secondary school education increased from 5.4% to 8.8% in 2020
(NA approved target: 2%)
Reasons for not meeting some targets include the fact that some educational infrastructure
has been affected by the floods in the last two to three years, leaving many schools unable to open
on time, while families affected by natural disasters needed to relocate their livelihoods, forcing
their children to drop out of school. Lack of follow-up and support for teaching and learning andschool management is another challenge in the development of education, as well as the low levelof accountability of a number of school principals and teachers especially in rural remote areas.
The issue of dropouts of secondary school students has not yet been addressed or studied by therelevant authorities. Moreover, there has not been sufficient investment in the provision oflaboratory equipment, IT equipment, and textbooks for classrooms.
(4) Output 4: Access to high quality health care and preventative medicine
There has been continuous and more inclusive progress in public health in terms ofinfrastructure, medical equipment, quality of service and treatment by health professionals from thecentral level to the local level. Hospitals at each level have been constructed and improved, such as
the new extension of the Mittaphab (Friendship) Hospital, Setthathirath Hospital, the new 103
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Hospital building, Mother and Child Health Hospital, and the new Mahosot Hospital buildings underconstruction. At the same time, some provincial and community hospitals have been improved andre-constructed such as Huaphanh Provincial Hospital and Xiengkhuang Provincial Hospital, and thenumber of small hospitals has increased from 985 to 1,066. The health care service system has
focused on upgrading the technical capacity and ethics of health professionals, and theimplementation of the 5 Goods and 1 Satisfaction policy nationwide. The Universal Health
Coverage policy has been strongly implemented, focusing on primary health care, surveillance, andresponse, as well as the control of communicable diseases along the borders, in particular the control
of and response to COVID-19, dengue fever and other diseases, nutrition, and quality and safety offood and medicine. The social health protection system has been extended to all provinces, giving
Lao people, including mothers, children, and the poor access to free health care services as aprerequisite for achieving Universal Health Coverage by 2025. As a result of these efforts, thetargets that are likely to be achieved are as follows:+ Targets achieved:- Under-one mortality rate decreased from 68/1,000 live births in 2012 (LSIS 1) to
40/1,000 live births in 2017 (LSIS 2), 14.4/1,000 live births in 2019 and 12/1,000 live
births in 2020 (NA approved target: 30/1,000 live births).
- Under-five mortality rate decreased from 79/1,000 live births in 2012 (LSIS 1) to
46/1,000 live births in 2017 (LSIS 2), 16.6/1,000 live births in 2019 and 15.3/1,000 live
births in 2020 (NA approved target: 40/1,000 live births).
- Maternal mortality rate decreased from 206/100,000 live births in 2015 (2015 Census),
68.4/100,000 live births in 2019, reaching 66.4/100,000 live births in 2020 (NAapproved target: 160/100,000 of live births).
- Household latrine utilisation rate increased from 67.92% in 2014 to 75.9% in 2019, and79.6% in 2020 (NA approved target: 80%).
- Universal Health Coverage increased from 71% in 2017 (MOH, 2017) to 80% in 2019,
and 94% in 2020 (NA approved target: 80%)
+ Targets at risk of not being achieved:- Under-five wasting rate reduced from 26.6% in 2012 (LSIS 1) to 21.1% in 2017 (LSIS2), 20.8% in 2019 and 20.3% in 2020 (NA approved target: 20%).
- Under-five stunting rate reduced from 44.2% in 2012 (LSIS 1) to 33% in 2017 (LSIS 2),
32.5% in 2019 and 32.34% in 2020 (NA approved target: 32%).
- The rate of births attended by skilled health personnel increased from 42% in 2012 (LSIS
1) to 64.4% in 2017 (LSIS 2), 79.1% in 2019, and 72.8% in 2020 of the target population(planned target: 80%).
- Immunisation rate for children under the age of one year increased from 63.7% in 2012
(LSIS 1) to 66% in 2017 (LSIS 2), 92.5% in 2019, and 89.8% in 2020 of the target
population (planned target: 90%).
- Clean water consumption rate increased from 69.9% in 2012 (LSIS 1) to 83.9% in 2017
(LSIS 2), 85.9% in 2019, and 88.5% in 2020 (NA approved target: 90%).
- Accreditation rate of Model Health Villages increased from 71.4% in 2017 (MoH, 2017)
to 78.9% in 2020 (NA approved target: 80% of total villages).
The reasons why some targets are not expected to be achieved as planned include insufficienthuman resources in terms of both quantity and quality, inadequate quality health infrastructure andmedical equipment, particularly at the district level and remote health centres, lack of medical staff,
lifestyle patterns that follow traditional customs, and slow adoption of new ways of thinking.

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(5) Output 5: Enhanced social welfare
Social welfare work has expanded significantly, evidenced by increased coverage of thesocial security and health insurance schemes from 30.36% in 2015 to 89.11% in 2019. This is
expected to reach 94% of the total population in 2020 (NA approved target: 80% of the total
population). Welfare policy has been implemented for 17,491 people who have contributed to thenational revolutionary cause, equivalent to 54.31% of the target (NA approved target: 32,204
people), of these, in 2016, the policy was implemented for 3,026 people, amounting to LAK 53
billion; in 2017: 3,304 people, amounting to LAK 56.99 billion; in 2018: 3,452 people, amounting
to LAK 55.99 billion; in 2019: 2,921 people, amounting to LAK 51.15 billion; and in 2020: 4,775
people, amounting to LAK 88.26 billion. In addition, child protection and support networks were
established at the village level in 1,117 villages, equivalent to 139.62% of Plan (target: 800 villages),and social welfare funds were established in 13 provinces, equivalent to 72.22% of the plan (target:
18 provinces). Donations from various stakeholders, both domestic and foreign, have been actively
mobilised to provide relief to the poor, the disadvantaged, and victims of natural disasters in theform of cash amounting to LAK 22.12 billion, USD 14.38 million, and THB 202.23 million.
Moreover, a large amount of material, equipment, supplies, and consumables have been received.
(6) Output 6: Protection of traditions and culture
The information and culture sector has improved in both quantity and quality to meet socioeconomic development needs. In terms of information and media, there has been progress in themodernisation and improvement of quality, with the transition from analogue system to digitalsystems, improvement of the content and format of the programmes to disseminate information
about the policies of the Party and the State, important days of observance, cultural events andfestivals and news events with better quality and speed, and the use of print, electronic, and online
media. In addition, the village loudspeaker network has been extended to 5,840 villages and remoteareas, accounting for 69.16% of the total number of villages (total villages: 8,443). In the area ofculture, there has also been progress in both quantity and quality. In the past five years, 197,635
Cultural Families have been developed. To date, there are a total of 970,369 Cultural Families,
accounting for 76.97% of all families in the country (NA approved target: 80% of all families
nationwide). So far, 1,703 Cultural Villages have been established, amounting to a total of 6,548
Cultural Villages, covering 77.68% of total villages (target: 65%). Lao tourism has been advocatedand promoted, with the most outstanding events being the launch of the Visit Laos Year 2018,
launch of the Laos-China Tourism Year 2019, recognition of Lao Khaen Music as UNESCO World
Intangible Cultural Heritage at the end of 2017, and the Plain of Jars in Xiengkhuang Province wasadded to the list of World Heritage Sites, becoming the third Lao UNESCO World Heritage Site at
the end of 2018 (NA approved target: To make the Plain of Jars in Xiengkhuang Province and Hin
Nam No in Khammouane Province World Heritage Sites).
Considerable attention has been given to the restoration, preservation, and promotion ofunique tangible and intangible culture. Among the outstanding activities were the completion of
Phase 4 of the restoration of murals in the Sisaket Temple Archaeological Museum project; shortmovies and documentaries competition to celebrate two historical days under the theme of 40 Yearsof Beloved Motherland and on the occasion of the 10th anniversary of World Day for Audiovisual
Heritage; and completion of the collection of intangible heritage data under six areas, namely:
puppets, traditional food, lacquer ware (Namkieng), Khap Thoum Luang Prabang (traditionalmusic), mulberry paper (Por Saa) handicrafts, and traditional embroidery handicrafts in Luang
Prabang.

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(7) Output 7: Political stability, order, justice, and transparency
Political stability has been maintained, and peace and order in society has been
fundamentally ensured, which has facilitated socio-economic development. Focus has been given
to addressing the issues of drug abuse, road accidents, and negative social phenomena in acomprehensive manner. In addition, the public has been educated about the law and social issues.
In the past five years, a total of 81 laws have been developed and amended, of which 34 were newly
created and 47 improved. Laws have been disseminated via different means and at the central andlocal levels, through a total of 21,399 meetings and through various media platforms a total of
14,635 times. A total of 45,825 court judgments have been implemented of which, 13,165 were civil
cases and 32,660 were criminal cases. 9,043 court judgments have been successfully enforced ofwhich, 4,079 were civil cases and 4,964 were criminal cases. Economic disputes in 279 cases havebeen addressed, of which 237 cases were successfully resolved. To date, there are 6,604 Model
Villages compliant with law enforcement and 921,650 Model Families compliant with law
enforcement. A total of 29,655 traffic accidents occurred, 50,316 vehicles were damaged, 47,245
people were injured and 5,263 were killed, with the damage value totalling LAK 443.33 billion.
Efforts have been made to encourage and monitor the implementation of laws by the court
to ensure accuracy and uniformity throughout the country. A total of 9,503 court decisions andjudgments at each level were examined. Over the years, the people’s courts at each level havefocused efforts on studying and adjudicating cases in a prompt, effective, detailed, and prudent
manner and ensuring the accuracy of the procedures prescribed by law. The quality of the court
hearing procedures has progressively improved the acceptance and satisfaction of the parties
involved with the court’s decision. As can be seen that out of the total number of 41,699 cases in alllevels of the court (Court of First Instance, Court of Appeal, Court of Cassation), 38,497 cases havebeen resolved, accounting for 92.32% of all cases.
Despite the progress, however, the level of ownership and awareness among some membersof the society in national defence, public security and social order is not yet high, resulting in highlevels of drug abuse and road accidents.

2.3. Outcome 3: Natural resources and the environment are effectively protected
and utilised according to green-growth and sustainable principles; there isreadiness to cope with natural disasters and the effects of climate change andfor reconstruction following natural disasters(1) Output 1: Environmental protection and sustainable natural resources management
The Government has focused its efforts on developing and improving laws and regulations
for the sustainable management and protection of natural resources and the environment, such as:
Law on Water and Water Resources (Revised) No. 23/NA, Law on Meteorology and Hydrology
No. 36/NA, Resolution No. 26 of the Party Central Committee on the Enhancement of Land
Management and Development in the new period, National Master Plan for Land Allocation 2030,
Law on Land (Revised ) No. 70/NA, Law on Forestry (Revised) No. 64/NA, Decree No. 247/GO
on Promotion of Commercial Tree Plantations, Decree No. 21/GO on Environmental Impact
Assessment, Decree No. 84/GO on Compensation and Resettlement Management in Development
Projects, Decree No. 321/GO on Climate Change, Decree No. 06/PM on the Establishment of
Watershed Protection Forest in Nam San Watershed, Decree No. 258/GO on Pesticide Management,
Decree on the Approval and Promulgation of National Environmental Standards, Order No. 15/PM
on Strengthening Strictness of the Management and Inspection of Timber Exploitation, Timber
Movement and Timber Business, and Order No. 05/PM on Strengthening Strictness of theManagement and Inspection of Prohibited Wild Fauna and Flora. In addition, the National Policy
on Energy Efficiency and Conservation, and the National Green Growth Strategy 2030 of Lao PDR
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were announced. All of these have led to many satisfactory achievements in the management andprotection of natural resources and the environment.
Land management: Achievements include the completion of the development anddissemination of the National Master Plan for Land Allocation 2030 and division of responsibilities
between relevant ministries and sectors. Land allocation, natural resource management andcomprehensive environmental management plans at the provincial level have now been approvedby 13 provinces, with the remaining five provinces to be completed by 2021. The land registrationand titling system has been improved and modernised. In the past five years, land titles have been
issued for 589,262 plots of land nationwide, exceeding the plan (NA approved target: 460,000 plotsof land). Of these, in 2016, land titles were issued for 78,729 plots of land, 2017: 117,772 plots ofland, 2018: 132,286 plots of land, 2019: 153,020 plots of land and 2020: 107,455 plots of land.
Forestry management: Efforts have been made to ensure the sustainable management andprotection of forests. To date, the forest cover has increased, reaching 62%, an increase of 4% withina period of four years (2015-2019) (NA approved target: 70%). Allocation of forests and forest
resources has been largely completed, including: defining the locations and areas of 172
conservation forests, covering an area of 4.8 million hectares (25 national conservation forests, 54
provincial conservation forests and 95 district conservation forests); 139 protection forests, covering
an area of 7.98 million hectares, and 51 production forests, covering an area of 3.1 million hectares.
Village-level forests have been allocated to a total of 1,366 villages, equivalent to 91% of the target.
At the same time, three National Protected Areas have been upgraded to National Parks, namely:
Nam Aet-Phou Loeuy, Nakai-Nam Theun and Phou Hin Nam No; one National Wildlife Sanctuary(Khok Ong Mang forest conservation area), and Phou Hin Nam No National Park has been
nominated to be listed as a World Natural Heritage Site and nominated Phou Xieng Thong National
Protected Area to be an ASEAN Heritage Site.
Mineral resource management: in 2016, geological and mineral survey, data collection, andmapping at a scale of 1/200,000 were carried out throughout the country, covering 66.42% of thetotal area of the country, including the area of Vientiane-South Luang Prabang (about 15,870 km2)
and the area of Sayaboury-Luang Prabang (about 16,309 km2).
Environmental protection: Focus has been given to monitoring and addressing
environmental issues arising from development projects. Environmental and social obligations havebeen implemented in accordance with the environmental and social management plans of various
development projects. Air quality has been monitored, and the implementation of environmental
quality standards and the green, clean, and beautiful campaign has been promoted. Comprehensive
Environmental Management Plans have been developed in five provinces (Huaphanh,
Xiengkhuang, Vientiane Capital, Bolikhamxay, Vientiane Province, and Saravan) (NA approved
target: at least 50% of the provinces have approved the plans). Construction of one National
Environmental Quality Laboratory has completed in accordance with the international standard ISO
17025, basic equipment has been provided to three regional environmental quality laboratories(Luang Prabang, Xienghkhuang, and Champassak) and small-scale environmental quality monitors
has been installed in provinces throughout the country. Collection of hazardous waste pollution data
has been completed at landfills in five provinces: Vientiane Capital, Bokeo, Luang Namtha,
Huaphanh and Xiengkhuang, and the use of the ‘3Rs’ principle of waste management has beenpromoted to control and reduce the amount of waste generated in two areas: Kaisone Phomvihane
city and Pakse city.
Water resource management: The drafting process has started for a strategy for the
management, administration and use of water and water resources, decree on river basin
management and a river basin management plan. Water quality in the 10 priority river basins has
been monitored on a regular basis, such as: Nam Ou, Xebanghieng, Xebangfai, Sedone, Sekong,25Nam Ngiep, and Namsong river basins (NA approved target: 10 priority river basins); 312 sites havebeen identified for water quality monitoring (NA approved target: 200 sites).
Despite the many achievements and much progress made, overall environmental protection
and use of natural resources have not been as effective as had been planned, evident in illegal
logging, slash-and-burn farming and the number of endangered flora and fauna species increasingfrom 115 in 2008 to 210 in 2017. In general, there remain many challenges such as a lack of budget
for the management of protected areas and watersheds.
(2) Output 2: Preparedness for natural disasters and risk mitigation
Lao PDR has over the past years experienced natural disasters more frequently. Accordingly,
the Government has placed greater emphasis on preparing for mitigating the effects of natural
disasters, such as completing the establishment of the National Water Resources Information
Centre; completing the modernisation of 28 meteorological stations and the construction of 10 new
stations; and completing the upgrading and modernising of 33 hydrological stations and theconstruction of 15 new stations. Additionally, the construction of 15 National Earthquake Data
Centres and stations throughout the country to monitor seismic data has been completed, exceeding
the target (NA approved target: five stations), including the improvement of two stations: KM 20
station and Luang Prabang station (NA approved target: two stations). Methods, mechanisms andreporting of weather forecast have been updated; disaster preparedness and disaster risk reductionplans at the provincial level have been completed in six provinces; and post-disaster recovery andreconstruction needs assessment tools have been developed in 15 sectors, as well as trainings on
how to use the tools. Disaster Prevention and Control Committees have been set up in 12 ministries,
18 provinces, and 54 districts in eight provinces at risk. In addition, integration of disastermanagement and climate change under the framework of Sustainable Development and Poverty
Alleviation into the public works and transport sector (bridges, roads and water works) has been
initiated.
At the same time, the third revision of the Handbook for Developing Joint Crediting
Mechanism on greenhouse emission and Reducing Emissions from Deforestation and forest
Degradation (REDD+) has been completed, and the process of developing a National Adaptation
Plan was initiated.
(3) Output 3: Reduced instability of agricultural production
Lao PDR has developed and implemented a number of policies and strategies to ensure foodsecurity, including the commodity production and national food security promotion project,promotion of climate change resilient agricultural production, and development of agricultural
products’ storage capacity. Moreover, effort has been made to monitor and build preparedness for
dealing with pest and animal disease outbreaks, and drought and flood prevention plans have beendeveloped annually to address the impact in a timely manner.
Nonetheless, many shortcomings, constraints and challenges remain in promoting
production for food security and for commercialisation due to the overall instability of agricultural
production.

2.4. Outcome 4: Priority Cross-Cutting Outputs(1) Output 1: Enhance effectiveness of public governance and administration
The Government has attached great importance to improving public governance andadministration to be more streamlined, relevant, and efficient. The establishment of the eGovernment portal has been completed to modernise and digitalise public administration, with thecurrent system now able to integrate the information and services of ministries and Government
offices in various sectors at a basic level. In terms of state structure and public administration, the26Government’s structure has been improved to be more in line with actual roles and responsibilities
in order to enhance the role of macro-level management of more than 20 entities by moving the
National Committee for Rural Development and Poverty Eradication to be under the Ministry ofAgriculture and Forestry; the Lao Red Cross and National Regulatory Authority for UXO and Mine
Action (NRA) to be under the Ministry of Labour and Social Welfare; the Secretariat of the National
Committee for Special Economic Zones to be under the Ministry of Planning and Investment;
creating and improving a number of organisational structures under the Ministry of Post andTelecommunications; and moving the Secretariat of the National Commission for the Advancementof Women, Mothers and Children to be under the Lao Women’s Union. Moreover, Decrees on theorganisation and activities of a number of ministries have been revised, such as the Ministry ofJustice, Ministry of Education and Sports, Ministry of Post and Telecommunications, Ministry of
Public Works and Transport, Ministry of Energy and Mines, Ministry of Finance and Ministry of
Science and Technology. In the area of local governance, the roles and responsibilities of a number
of Divisions and District authorities have been adjusted to suit conditions and to be in line with Sam
Sang Directive. Luang Prabang, Kaisone Phomvihane, and Pakse cities have been established. In
addition, preparations have been made for the establishment of district municipalities as Provincial
Administrative Offices in four provinces (Bolikhamxay, Khammouane, Huaphanh and Luang
Namtha). As of 2019, the central-level political system has a total of 38 sectors, comprising 509
Departments, 572 Departments at the provincial level and 3,550 offices at the district level.
One-Door Service mechanism: Good progress has been made, including the review of
relevant legislation and regulations related to the establishment of One-Door Service Centres(ODSCs), evaluation of the implementation of the ODSCs throughout the country, as well as
research on the mechanisms, regulations and standards of new modern One-Door Service Centres,
identifying Xaysettha District in Vientiane Capital and Bachieng-Chalernsouk District inChampassak Province as a pilot model.
Civil Management: Progress has been made in the implementation of inspections,
recruitment, and promotion of civil servants, and adjustment of civil service information, andimplementation of pension and other benefit policies. A total of 10,459 Civil Servant identification
cards were issued for 37 sectors (of 46 sectors in total) at central-level ministries and agencies. The
use of the Personnel Information Management System (PIMS) has been expanded at the provincial
and district levels, and integration of personnel records and payroll has been carried out for accurate
data management.
Document management: Instructions on the implementation of the Decree on Official
Documents and regulations on the preparation of official documents have been issued, and a review
and compilation of regulations related to document management has been completed.
A number of legislations have been improved, including the Law on Local Administration,
Law on the Government, Law on Civil Servants, and Decree on Management and Protection of
Religious Activities in Lao PDR.
Nevertheless, there remains a number of shortcomings and challenges. For example,
improvements to the organisational structure of the ministries and organisations have not proceeded
in a streamlined and rational manner, and unclear job descriptions have resulted in enlarged
departmental and divisional structures. Local public administration has not been in line with theSam Sang Directive, especially the delegation of rights and responsibilities at local level. The
implementation of laws and regulations, including the regulations on civil servants has not been
sufficiently effective.

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(2) Output 2: Promote local innovation and utilisation of science, technology andtelecommunications and management and application of ICT
Over the past five years, the Government has promoted research institutes to focus on using
science and technology to contribute to socio-economic development, most notably the extractionof chemicals from medicinal plants containing anti-cancer and health-promoting properties,
covering more than 102 new plant species. A new species of insect fungus has been discovered in
Huay Yang conservation forest that has the potential to be developed into an anti-cancer drug, which
is being researched, including the naming of the species and scientific publication in international
journals. Research has been conducted on the production of 34 species of lactic acid bacteria and39 species of yeasts to be used in food products, as well as research to improve the quality and yieldof Khao Kainoi sticky rice in Xiengkhuang Province. Research has also been done on the use of
banana fibre as a packaging material, on drones, and on demining robots. In 2019, two scientists
were selected to become members of the International Science Council, and 13 doctoral positions
were created. Moreover, important infrastructure has been developed, including the completion of
the construction of the Biotechnology and Ecology Institute that is equipped with a modern
laboratory, completion of a science and technology development zone, and completion of the
improvement and upgrading of one scientific research institute according to international standards.
Software has been developed for document, personnel and asset management, and the constructionof a national science and technology data centre and construction of a Data Centre that uses modern
technology, is energy efficient and can hold data up to 400TB have been completed. The
establishment of the e-Government portal has been completed to support the transformation towards
electronic public administration and a modern digital government, with the current system now able
to integrate information and services of ministries and government offices in various sectors at abasic level. The installation of video conference system for Party and State organisations, massorganisations, and 18 provinces throughout the country has been completed in a total of 49 sectors(17 at the central level and 32 at the local level) and 1,115 users have been created (focusing on the
installation at the Party Central Committee Office, the Prime Minister’s Office, and the National
Assembly in order to facilitate meetings with 18 provinces during the COVID-19 outbreak).
Furthermore, achievements have been made in completing the establishment of one Information andCommunication Technology Centre in Xaysomboun Province, the development and official use of
the Lao language font (Phetsarath OT), the development of the Microsoft Translator system at abasic level (with a total of 5,000 English sentences translated into Lao added to the system), and theestablishment of a modern office system (e-Office) within the Ministry of Post andTelecommunications, the Prime Minister’s Office and Provincial Departments of Post andTelecommunications in three provinces. The government e-mail system has been installed andexpanded to support 2,000 users, and email lists of 34 government sectors have been created. The
development of the government’s common G-Web Platform, using the government cloud systemadministered by the National Internet Centre has been completed and has been used to create
websites for several sectors within the Ministry of Post and Telecommunications and various otherministries, particularly the creation of the website www.covid19.gov.la to serve the prevention andcontrol of COVID-19. The creation of a government messaging application G-Chat has been
completed to promote quick and secure communication and information exchange within the
Government. Progress has also been made in the installation of ICT facilities and other technologicalequipment in many sectors, as well as the continuation of South-South Cooperation and international
cooperation programmes that support ICT and technology development. In the area of legislation,
policies and legal frameworks have been developed to improve innovation, such as the Law onIntellectual Property, and registration of trademarks, copyrights and industrial patents, and the Law
on Science and Technology has been researched for submission to the National Assembly for
approval.

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Telecommunication security: The establishment of the Lao Computer Emergency Response
Team (LaoCERT) has been completed to manage and prevent cybercrimes, becoming a member ofthe Asia-Pacific Computer Emergency Response Team (APCERT). An international cooperationagreement has been signed to install Public Key Infrastructure (PKI), and the establishment of the
Cyber Attack Monitoring System has been completed. The Tsubame Sensor packet trafficmonitoring system has been installed, and the information security system of the National Internet
Centre has been improved in accordance with ISO27001.
Postal sector: There has been improvement and a shift to more electronic management withthe utilisation of modern technology in various forms, such as e-post, e-logistics, e-Finance and eCommerce. A national postal service has been established as a channel to provide services tosociety, and postal services have been improved to meet standards, high-quality, and security needsin order to be able to integrate regionally and internationally.
Despite many achievements, the conduct and management of research and application ofresearch results in development has not been as extensive as had been expected, and the level ofownership in carrying out research and development by some sectors is not yet high.
(3) Output 3: Promote and develop women, juveniles and young people
The promotion and development of gender and youth equality has received more attention
and has made good progress, as follows:
Promotion and development of gender equality: Policies, strategies and international
conventions on the promotion of the advancement of women, gender equality, protection andpromotion of children’s rights, and the elimination of violence against women and children, havebeen disseminated at educational institutions, ministries and organisations at the central and local
levels in connection with the annual commemoration of the International Day for the Eliminationof Violence against Women and International Children’s Day, with the aim of changing traditional
attitudes and old traditions that hinder the development of women, as well as eliminating violenceagainst women, violence against children, and promoting gender equality, protection and promotionof children’s rights, as well as the celebration of the 30th anniversary of the Convention on the Rightsof the Child (1989-2019).
Efforts have been made to implement the National Action Plan for Gender Equality, theNational Action Plan on Maternal and Child Health, the National Action Plan for Protection andElimination of Violence against Women and Children, and the guidelines on involving thecommunities to prevent and respond to violence against women and children, resulting in the
improvement in the Global Gender Gap Index value from 0.713 in 2015 to 0.731 in 2020, climbing
to the 43rd spot from 52nd, placing Lao PDR in second place among ASEAN countries in the overall
index. Women in the leadership and management positions at the Minister level reached 18.18% in
2019, at the Director-General and Deputy Director-General level 22.38%, at the Provincial
Governor and Deputy Governor level 4.76%, and at the District Governor and Deputy Governor
level 6.72% in 2019. Children in the age group 0-17 years who meet the seven dimensions of
livelihoods reached 12%, however, challenges remain as the prevalence of multidimensional
deprivation among children continues, especially deprivation in the three dimensions of livelihoods
reaching 50.4%.
Notably, the Lao Government has completed the drafting of the Law on Gender Equality,
which was approved by the National Assembly in 2019 and promulgated by a Presidential Decree
in 2020. Moreover, the Government renewed its commitment to promote the rights of the childunder the theme: “Unleash the Unlimited Potential of the Lao Generation 2030” with the joint
signature of the Government, Deputy Governors, the private sector, civil society organisations, nongovernmental organisations, and the United Nations and embassies in the Lao PDR.

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Youth: Youth organisations from the central level to the local and grassroots level have paid
attention to educating young people and disseminating Party and State policies, resolutions, orders
and regulations, as well as developing and promoting vocational training for young people so thatthey have strong political values and revolutionary moral qualities, and have the knowledge andability to become a force for development of the country in the future. Achievements aredemonstrated in the completion of the development of the Law on Lao Youth, the issuance of theDecree on the Implementation of the Youth Development Strategy for the period 2021-2030 andcompletion of the construction of the Lao Youth Palace and Youth Heritage Centre; provision of
vocational training and job creation for 4,475 people in 2017, especially young people in remoterural areas, and the poor and disadvantaged in fields such as motorcycle and car repair, electricians,
tailors, beauticians, and others; and provision of interest-free loans to young people to set up
motorcycle repair and tailoring shops in five provinces: Bokeo, Vientiane Province, Khammouane,
Attapeu, and Vientiane Capital worth LAK 49,228,000, and to raise cattle (goats, pigs and chicken)
in three provinces (Sayaboury, Xiengkhuang, and Xaysomboun) worth LAK 50,000,000; andprovision of counselling to 480 women and children.
Nevertheless, the share of youth in the 18-30 age group not in education, employment, or
training (NEET) account for about 39% for men and 45% for women. Youth unemployment is alsomuch higher than the national average. Overall unemployment increased from 4.1% in 2012-2013
to 15.7% in 2018-2019, but youth unemployment increased to 21.8% and the labour force
participation also fell. With the labour force projected to grow from 4.1 million in 2015 to 5.5
million in 2030, improving development policies and labour markets to match the demographic
trends will be challenged to ensure the creation of domestic employment opportunities.
The urban youth is keener to set up their own enterprises, while rural youth have preference
for the Government jobs. It is estimated that half of the small enterprises are run by women.
Moreover, young people’s enthusiasm for voicing thoughts and ideas and contribution to socioeconomic development is still limited.
The ASEAN Youth Development Index (YDI) 2015 ranks Lao PDR the lowest among
ASEAN countries with an index value of 0.365 (with ‘0’ as the worst and ‘1’ the best). The firstever youth and adolescent strategy of Lao PDR, initiated by the Lao People’s Revolutionary Youth
Union (LPRYU), is expected to address youth issues in a more comprehensive manner.
Among the youth, the following are identified as needing attention the most: unemployedyouth, young women, youth with disabilities, youth-at-risk including youth living with HIV, drug
and alcohol-using youth, sex workers, trafficked youth, school dropouts, youth in conflict with thelaw, youth exploited for labour, victims of violence or abuse, youth migrants, LGBT youth, andyouth stigmatised for their ethnic identities.
The 2015 Census estimates that there are 160,881 persons with disabilities covering 2.8%of population, half of which are women. Very little comparable information is available about thesocio-economic characteristics of persons with disabilities, severity of disability and their living
conditions. For example, it is not known how many among persons with disabilities are youth notin education, employment or training (NEET) and what their labour force participation rate is.
Lao PDR has ratified the Convention on the Rights of Persons with Disabilities (CRPD) andenacted the 2019 Law on the Rights of Persons with Disabilities. The national initial report to theCommittee on the Rights of Persons with Disabilities was submitted in 2016. The country has adraft Plan of Action for Persons with Disabilities (2021-2025). The Constitution and current
legislation do not specifically prohibit discrimination on the basis of disability.
Despite the legislation and institutional mechanisms in place, shortcomings and challenges
remain, particularly regressive attitudes and negative stereotypes that affect the livelihoods anddevelopment of women and children. Women and children continue to face poverty and lack of30

awareness about their basic rights. The proportion of women in occupations and decision-making
roles or in leadership positions is still low compared to men. There remains the prevalence of childmarriage and early pregnancy and birth.
The implementation of legislation and mechanisms related to persons with disabilities is not
yet strong. Persons with disabilities continue to face discrimination and barriers in accessing health,education, employment and public buildings and transport. Skills and vocational training are notdesigned to meet the special needs of persons with disabilities, which excludes them from the labour
market. Children with developmental and intellectual disabilities are not accepted in the mainstream
educational system.

3.

IMPLEMENTATION OF THE SUSTAINABLE DEVELOPMENTGOALS (SDGs)

The 17 Sustainable Development Goals (SDGs) of the 2030 Agenda for Sustainable
Development, together with their 169 targets, were adopted in 2015 at the United Nations (UN)headquarters in New York, USA. Lao PDR adopted its own SDG 18 called “Lives safe from
unexploded ordnance (UXO)”, uniquely developed to address the UXO challenges, which is one of
the major hindrances to development in Lao PDR. The localised SDG 18 was adopted on 7
September 2016 in Vientiane Capital.
The implementation of the SDGs in Lao PDR has seen considerable progress in many areas,such as the President of the Lao PDR's appointment of the National Steering Committee for SDG
Implementation, which is chaired by the Prime Minister of the Lao PDR, with members of theCommittee drawn from all relevant sectors to provide overall guidance on the coordination andimplementation of the SDGs through the National Socio-Economic Development Plan and sectoraland local development plans, with a total of 92 SDG indicators integrated into the 8th Five-Year
National Socio-Economic Development Plan (2016-2020). Notably, in July 2018, Lao PDR
presented the Voluntary National Report (VNR) for the first time on the progress of theimplementation of the SDGs in July 2018 in New York, USA. The report offers progress of 124
indicators out of a total of 242 global indicators. In this respect, sectors and localities are continuing
their efforts to actively implement the SDGs.
Nevertheless, many challenges remain in the implementation of the SDGs due to lack offunds, and a lack of good understanding and ownership in the implementation among some sectors
and the people.

4.

IMPLEMENTATION OF LEAST DEVELOPED COUNTRY (LDC)
GRADUATION+ 2018 LDC graduation review: According to the 2018 assessment by the Committee forDevelopment Policy (CDP), Lao PDR met two of the three Least Developed Country (LDC)
graduation criteria. Despite this, Lao PDR must continue to focus on building domestic andinternational competitiveness by promoting added value in production process and reducing the useof natural resources to mitigate vulnerabilities from external economic impacts and ensuring
sustainable graduation from the LDC status. Graduating from the LDC status does not mean thatthe country is on track to sustainable development., especially when it has met only two criteria,
Gross National Income (GNI) and Human Asset Index (HAI), but not the Economic Vulnerability
Index (EVI). Therefore, in order for development to be more sustainable and inclusive, Lao PDR
must focus on structural changes as defined in the 8th Five-Year National Socio-Economic
Development Plan, including strengthening the production capacity and productivity, economic
diversification, and emergency preparedness.

31

+ Progress on LDC by criteria:- Gross National Income (GNI): Lao PDR has been on a consistent upward trend interms of the per capita GNI, which has enabled the improvement of the lives of the Lao people. Lao
PDR’s GNI in 2018 reached USD 1,996, exceeding the USD 1,230 graduation threshold, andrepresenting an increase by USD 1,486 compared to its 2009 GNI of only USD 510. If Lao PDR’s
gross domestic product (GDP) continues to grow at 6.5-7%, it is expected that Lao PDR will be able
to meet the GNI criteria in 2021.
- Human Asset Index (HAI): The HAI is a measure of level of human capital, which isan important driving force in the national development, including stunting, maternal and under-five
mortality rate, literacy rate, secondary education enrolment rate, and gender parity index forsecondary enrolment. The assessment of Lao PDR’s HAI saw significant progress, rising from 60.8
in the 2015 assessment to reach 72.8 in the 2018, which exceeded the graduation threshold of 66 or
above. The main reasons for the progress in the HAI include: ❶ The indicator on adult literacy rate
reached 84.7%, up from 72.7% in 2015. ❷ The under-five mortality rate has also improved from
71 per 1,000 live births in 2015 to 63.9 per 1,000 live births in 2018. ❸ In 2018, the CDP added
the maternal mortality ratio indicator to the HAI which is 197 per 100,000 live births. The grosssecondary school enrolment ratio increased from 50.5 in 2015 to 61.7 in 2018.
Among the existing challenges are the percentage of undernourished population and thematernal and child mortality rates in Lao PDR that remain high compared to other ASEAN
countries.
- Economic Vulnerability Index (EVI): The EVI is a measure of structural vulnerability
to external and environmental shocks. Lao PDR did not meet the EVI criteria in the 2018 review.
Therefore, special attention must be given to strengthening the economy and reducing
vulnerabilities.
EVI assessment: The EVI includes some indicators over which countries can only have
limited control Some of the EVI indicators are outside any one country’s control. For example, acountry may have only limited control of market access due to its remote geographical location. The
distance between Lao PDR and its trading partners is an important factor in the decision-making
process regarding infrastructure investment or value chain development. In other words, it isimportant to consider investing in infrastructure close to trading partners. Additionally, many EVI
indicators measure elements of the economic structure associated with policy formulation and longterm impacts, particularly on exports (both in terms of merchandise export concentration andinstability of exports of goods and services) and the agricultural sector (ratio to GDP and instabilityof agricultural production).
There was a significant improvement in Lao PDR’s EVI value from 36.2 in 2015 to 33.7 in
the 2018 LDC graduation review (the lower the EVI value, the better). The main reason for the
improvement in the EVI was due to the improved performance in the export instability andagricultural instability indices.
Five ASEAN countries have EVI scores higher than Lao PDR’s, indicating higher levels ofvulnerability.

5.

GREEN GROWTH

Global green growth: Many countries around the world achieve accelerated economic
growth by relying on natural resource extraction, but this approach is damaging the environment
and accelerating climate change. This development model is no longer appropriate and has becomea priority topic of discussion in the international arena, and as a result, many countries have put
green growth at the centre of their national development strategies, along with social andenvironmental impact assessments.
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Lao PDR is a country that embraces the concept of green growth as a mechanism forsustainable economic development along with environmental protection. Therefore, theGovernment appointed the National Steering Committee for Green Growth in 2016 to implement
this work. On October 10, 2017, Lao PDR became a member of the Global Green Growth Institute,aiming to create opportunities to receive technical assistance to build capacity for efficient green
growth in Lao PDR. The implementation of green growth in Lao PDR focuses on three main areas:(1) Implementation of the green growth development policy framework, (2) Development andimplementation of the Lao PDR Green Growth Strategy 2030, and (3) Activities of the Global Green
Growth Institute implemented in Lao PDR. Details are as follows:(1). The Green Growth Development Policy Operation has been implemented since 2016
and is divided into three phases (Phase 1: 2017-2018, Phase 2: 2018-2019, and Phase 3: 2019-2020).
The objective of this operation is to support Lao PDR in improving its policies, legislation andregulations related to green growth through three main components as follows:• Component 1: Strengthening the financial and monetary stability and sustainability under
the responsibility of the Ministry of Finance, Ministry of Home Affairs, and Bank of Lao
PDR• Component 2: Integration of green growth into the National Development Strategy under
the responsibility of the Ministry of Planning and Investment, National Institute for
Economic Research, Ministry of Natural Resources and Environment, Ministry of Public
Works and Transport, and Office of the Environmental Protection Fund
• Component 3: Integration of green growth into sectoral and local development plans under
the responsibility of the Ministry of Natural Resources and Environment and Ministry ofAgriculture Forestry
To date, all activities within the Green Growth Development Policy Operation Phase 1 andPhase 2 have been successfully implemented, with the Government of Lao PDR having received
USD 38.6 million in budget funding for Phase 1 and USD 40 million for Phase 2.
In 2019, the Government approved a number of policies, decrees, and legal instruments suchas the National Green Growth Strategy of Lao PDR, Guidelines for Strategic Environmental
Assessment, Decree on Environmental Impact Assessment, Decree on the Establishment of NakaiNam Theun National Park, guidelines for procedures and standards for water quality, and draft
Guidelines on Atmospheric Particulate Matter (PM) Measurement.
(2). Development and implementation of the National Green Growth Strategy 2030 of the
Lao PDR focused on implementing activities that support the integration of green growth into the
National Socio-Economic Development Plan and sectoral and local development plans, withachievements as follows: Publishing and disseminating the National Green Growth Strategy,
researching the establishment of the National Green Growth Promotion Centre within theframework of the Centre for Scientific Research, the Economic and Social Development Policy, andthe National Institute for Economic Research; drafting guidelines and creating a monitoring andevaluation framework for the implementation of the green growth strategy; drafting guidelines for
integrating green development into national, sectoral and local socio-economic development
strategies and plans; and completion of training on monitoring and evaluation of the National Green
Growth Strategy at the local level.
(3). Some of outstanding activities of the Global Green Growth Institute (GGGI)
implemented in Lao PDR include supporting the Government of Lao PDR in improving policies inorder to mobilise and attract investment and increase capacity in the areas of green growth andsustainable development, with progress as follows:• Guidelines have been drafted for integrating the National Green Growth Strategy into the
National Socio-Economic Development Plan and sectoral and local development plans.
33• Support has been provided to the Ministry of Natural Resources an Environment toimplement capacity building activities for monitoring, inspection, reporting and certificationin the implementation of climate change mitigation programmes; and identify potential
projects to attract funding from the Green Climate Fund and private sector engagement.
• Assistance has been provided to the Ministry of Public Works and Transport to promote theuse of electric vehicles (cars), including policy framework and work plan improvement to
attract funding; and implement the green city development pilot project in Vientiane Capitaland Pakse City, focusing on waste management in Vientiane Capital and wastewater
treatment in Pakse City, with funding support from Korean International Cooperation
Agency (KOICA).
• Support has been provided to the Ministry of Energy and Mines in preparing a plan tomobilise investment for the implementation of the 40 MW solar power project.
• Collaboration with the Ministry of Industry and Commerce was initiated to develop a projecton energy efficiency in the industrial sector and green industry policy to attract energy
efficient investments.

II. OVERALL EVALUATION OF THE 8TH FIVE-YEAR
NATIONAL SOCIO-ECONOMIC DEVELOPMENT PLAN
(2016-2020) IMPLEMENTATION
Throughout the implementation of the 8th Five-Year National Socio-Economic Development
Plan, both regional and international economic affairs and Lao PDR’s domestic conditions haveencountered many difficulties. The global economy has experienced a slowdown, with financial andmonetary fluctuations, especially in Europe, the United States, and a number of other major
economies. Additionally, the political and social instability in the Middle East. Moreover, thedomestic economy has faced many difficulties and chronic problems, such as macroeconomic
vulnerabilities, accrued liabilities, low budget revenue collection resulting in the inability to balance
the necessary public expenditures, and violations of the planning-financial discipline, which, despite some improvements- remain unresolved. Furthermore, natural disasters have occurred
continuously and more frequently across the country, including the saddle dam collapse in Attapeu
Province, which has had a direct impact on the state budget and the livelihoods of the affected
people. Since the end of 2019, Lao PDR has also been severely affected by the COVID-19 outbreak.
Nevertheless, in the past five years, under the close leadership and guidance of theGovernment and the proactive and responsible actions of the sectors and local authorities, together
with support from the people and development partners, the implementation of the 8th Five-Year
National Socio-Economic Development Plan (2016-2020) has achieved many significant results,
such as:1.

ACHIEVEMENTS
1. Our country continues to have political stability, and peace and order in society. The public
administrative system has become more integrated with the rule of law, modernised, andsociety is becoming increasingly equitable and fair.
2. Significant milestone in leading the country towards graduation from Least Developed
Country status (meeting two of the three LDC graduation criteria: per capita GNI of USD
1,996 and the Human Asset Index value of 72.8).
3. The implementation of the SDGs and the Government’s Green Growth Strategy has beentranslated into concrete practice and received active international support, with many
countries continuing to maintain their level of development assistance to Lao PDR, andsome increasing their level of support.
34

4. The development of infrastructure and economic corridors for regional and international
connectivity has yielded more tangible results, such as the Laos-China railway project andthe Vientiane-Vang Vieng expressway, with satisfactory progress, which has become afundamental factor in the production of goods and services along these corridors.
5. There has been improvement in the promotion and attraction of private investment. Manylarge-scale projects in the power and mining sectors have moved into production forexport. Strengthening micro, small, and medium sized enterprises (MSMEs) has taken a
step forward, and the processing industry has grown to include the production of
construction materials, textiles, beverages, mineral products, and wood products.
6. People’s living standards have improved, while poverty has steadily declined. Attention
has been given to the development of the material and technical foundations in the culturaland social fields, such as the construction and equipping of major hospital buildings,
construction of schools and vocational training centres to develop human resources to ahigher quality, and the promotion of gender equality have made good progress.
7. The state’s organisational structure has been streamlined, in line with the actual roles andresponsibilities as well as the personnel reorganisation plans of each sector.
8. The application of technological achievements to social services, and the modernisationof certain sectors of industrial production, banking and financial services and public
administration services have been proactively and extensively implemented.
9. Cooperation with strategic partner countries has deepened, and at the same time regional
and international cooperation has broadened and expanded in many forms and at many
levels, which is an important contribution to the realisation of the SDGs and the National
Green Growth Strategy.
10. Meteorological, hydrological, and agrometeorological work and activities have beendeveloped and improved throughout the country. The climate change forecasting systemand drought and flood monitoring have enabled timely reporting and response preparation.
Planning has also been conducted to pilot the information system and prepare for seasonal
animal and plant disease prevention.

2.

KEY SUCCESS FACTORS
1. Throughout the implementation of the Plan, the Party Central Committee has provided
close leadership and guidance in a systematic and consistent manner, in line with
developments in the domestic and international environment.
2. The development directives set out in the Resolution of the 10th Party Congress are fully
appropriate. As a result, the 8th Five-Year National Socio-Economic Development Plan
2016-2020 has been translated into detailed actions, in conjunction with the close
supervision of the Government, sectors, and localities on the implementation this FiveYear Plan.
3. Our international partners have provided continued support, and our people of all ethnic
groups have actively participated and contributed to the implementation of development
plans.
4. The domestic and foreign private sectors have been actively involved in business andproduction, as well as contributing to social support.
5. Upon the approval of the Five-Year Plan by the National Assembly, the Government,
sectors, and local authorities have translated it into detailed work plans and projects inorder to mobilise funds for implementation in a targeted manner.

35

Nevertheless, an objective assessment shows that our socio-economic growth still faces
many vulnerabilities, and therefore the sustainability of growth is not yet guaranteed in line with thedirections set out.

3.

SHORTCOMINGS, DIFFICULTIES AND CHALLENGES
1. Economic growth has not been in line with the direction set. The quality of growth is not
yet sufficiently high and stable, still relying on the natural resources sector as the main
driving force of the economy. Commodity production is undiversified and has not yet
realised export potential.
2. Economic, financial, and monetary difficulties and public debt problems have not yet beenproactively addressed. Revenue collection has not been achieved according to plan, andthe state budget deficit remains high and rising. Offsetting this deficit is largely dependent
on external borrowing. The accumulation of domestic and foreign debt has increased
pressure on budget administration. Planning and financial discipline has not been strictly
implemented. Monetary stability remains fragile, with foreign exchange reserves in someperiods lower than planned.
3. Improvement of the investment and business environment has not been carried out inaccordance with the policies and Orders issued by the Government. There remain many
areas that lack transparency, which hinders development.
4. The promotion of local entrepreneurs, especially MSMEs is not yet sufficient. Most local
enterprises lack self-development and efficiency in competition, and most state-owned
enterprises (SOEs) operate at a loss and are heavily indebted.
5. The level of ownership in enhancing the utilisation of national potential, geographicallocation and other key factors have not been high enough and leveraging new opportunities
and conditions arising from international cooperation have not been commensurate withneeds and expectations. On the other hand, protecting the environment from unsustainable
exploitation of natural resources has not been as effective as it should have been.
6. The modernisation process has not progressed sufficiently, and technical improvements
and upgrading in many areas have not been able to meet the needs of development projects.
7. The issue of negative social trends, such as drug abuse and trafficking in persons, has notbeen effectively addressed. The quality of human resource development is still low,
especially in the areas of education and health services. The labour force is lacking skills
and competencies, and employment protection for the Lao people in the domestic labour
market has not been firmly implemented. The problem of illegal foreign workers and the
management of Lao labour working abroad has not been addressed in an effective manner.
Unemployment remains high. In addition, inadequate management of income adjustment
and distribution has led to social disparities between regions, between urban and rural
areas, and between the rich and poor. Rural development and poverty alleviation, despite
the effort, have not yet been carried out in a sufficiently comprehensive manner.
8. Public administration and governance by the rule of law, despite the attention and effort,
have not been as effective as expected. There have been violations of the law andviolations of individual rights on a regular basis, as well as interference by organisations
or individuals in the public administration process. The enforcement of court judgments
in some cases has not been straightforward or fully executed, with the issue of social
justice not having been fully addressed. Management mechanisms and the division of
responsibilities between the vertical and horizontal lines of organisational structure are notclear-cut, with the coordination among sectors and coordination between sectors andlocalities not being harmonious, , leading to unwarranted pressures in many cases. The
36

division of management responsibilities according to the Sam Sang Directive has not yet
been transformed. Efforts to improve and streamline the state’s restructuring have not beeneffective and not as robust as had been expected and there is still duplication and overlapof responsibilities, including the implementation of the One-Door Service mechanism,
thereby causing investors to lack confidence.
9. There has been a lack of responsibility among some individuals, with cases of abuse of
authority for direct or indirect personal gain. Deployment of employees and staffing at
each level in some areas of work have not been able to truly create a breakthrough andsignificant transformation.

4.

CAUSES OF SHORTCOMINGS
1. The leadership and guidance on translating the 8th Five-Year Plan, in close connection
with the implementation of the Resolution of the 10th Party Congress, into detailed work
plans of the sectors and localities has not been implemented in a proactive, systematic,robust and correct manner, resulting in outcomes not being commensurate with thepotential of the country. There has been insufficient planning of programmes and projects,
as well as inadequate financial planning and human resource planning to support effective
implementation. The presence of autocratic and bureaucratic working and leadershipmethods in organisations, and the lack of research into identifying problems accurately
have resulted in unclear and unfocused identification of problem-solving measures. There
has also been a lack of a systematic, continuous, and strong system of leadership, guidanceand supervision from the central to the grassroots level, resulting in insignificant andlimited outcomes.
2. The lack of strict implementation of laws and regulations has become a loophole forplanning and financial discipline violations and misuse of authority. Poor inter-sectoral
coordination and coordination between sectors and localities, as well as loose monitoringsuch as allowing the acquiring of land, forests and mines without clear development plans,
has made it difficult to turn those resources into capital and to develop them to generatereal revenue for the state budget.
3. The development needs of sectors and localities, including the grassroots, are high, but thecapacity to provide the required budget is limited, leading to a chronic debt problem.
4. The overall macroeconomic situation is fragile, with a weak, unfocused and undiversified
domestic production structure, as well as an imbalance between exports and foreignexchange inflows. In the event of incidents and emergencies, there is insufficient funds toaddress or correct the situation in order to efficiently return to normal conditions.
5. The occurrences of natural disasters such as floods, droughts and pests, the collapse of thesaddle dam in Attapeu Province, the outbreak of COVID-19, and the ongoing trade war
between the superpowers have inevitably affected the achievement of the 8th Five-Year
Plan targets.

5.

LESSONS LEARNT
1. Ensuring political stability and social order and strengthening the unity and solidarity ofthe multi-ethnic people of the nation under the leadership of the Party, as well as deepening
the implementation of the Sam Sang Directive in close connection with the “Patriotic andDevelopment Movement” is an important condition and determinant of the success or
failure of the Plan.
2. Ensuring the consistency between the National Socio-Economic Development Plan and
the National Strategy on Socio-Economic Development 2025, the Vision 2030, the LDC
37

graduation objective, the National Green Growth Strategy and the Sustainable
Development Goals is a key principle for continuous development.
3. Increasing the efficiency of public administration in accordance with the law, the strict
implementation of laws and regulations, as well as the proactive deepening of efforts toalleviate poverty and address social disparities are determining factors of the quality ofdevelopment.
4. Creating a conducive environment in a systematic manner, including the formulation ofcoherent policies and mechanisms, and establishing a clear and comprehensive databaseand effective economic structure is important in attracting both domestic and foreign
investment.
5. Enhancing the implementation of the strategy for developing a modern industry in the
direction of Industry 4.0 and linked to the strengthening of personnel development in linewith the economic structure, is an important factor for driving national development in the
direction set by our Party. Additionally, educating people in the whole society to be frugal
and disciplined is important in the development of a stable and sustainable country.

6.

SOME IMPORTANT ISSUES THAT NEED TO BE ADDRESSEDURGENTLY IN THE NEXT FIVE YEARS
1. Poverty alleviation and development efforts must be in accordance with the Sam Sang
Directive, along with the creation of jobs and more inclusive distribution of income inorder to reduce social gaps (between the rich and poor, and between urban and rural areas),focusing on ensuring access to essential public services (education and health) in remoteareas.
2. Address economic vulnerabilities, especially growth that is largely dependent on the
exploitation and use of natural resources, which has been low quality not as fast as
expected, low quality unable to distribute income widely, and been based on a fragile andunstable production base. There is also a need to increase monitoring of theimplementation of key targeted projects that promote production and services.
3. Resolve financial vulnerabilities, including the issues of public debt, incomplete revenue
collection that is inconsistent with revenue potential, revenue leakages, as well as
insufficient budget to meet the needs of development (budget is mostly focused on debt
relief, which does not stimulate the economy and development), by elevating theimplementation of austerity policies.
4. Address monetary vulnerabilities by focusing on resolving the foreign trade deficit,
adjusting the growth of M2 money supply to create fiscal space and provide bank credits
for efficient domestic production and services aimed at reducing imports and boosting
exports, and strengthening the foreign exchange position to ensure the stability of thecurrency and prices.
5. Address the impact of the COVID-19 outbreak, focusing on the recovery of businesses
affected by the outbreak, resolving unemployment, and developing skilled labour.
6. Improve public administration and social management, and address challenges such as
drug abuse, corruption, and road accidents in a strict manner, moving decisively towards
the rule of law. Improve and create an environment conducive to attracting investment andaddress inappropriate use of authority.
7. Focus on developing quality human resources in a targeted manner, promote occupational
development and build experts in specific fields linked to modernisation in the era ofIndustry 4.0 and the post-COVID 19 new way of life (New Normal).
38

PART II:
9TH FIVE-YEAR NATIONAL SOCIOECONOMIC DEVELOPMENT PLAN
(2021-2025)

39

PART II: 9TH FIVE-YEAR NATIONAL SOCIOECONOMIC DEVELOPMENT PLAN (2021-2025)
The 9th Five-Year National Socio-Economic Development Plan (2021-2025) aims to
implement the Resolution of the 11th Party Congress. This Five-Year Plan sets out the fundamental
direction for creating a turning point in socio-economic development in the coming years, and for
ensuring the improvement of political-ideological factors, the economic system, and materialtechnical and socio-cultural foundations, including human resource development, and public
administration and governance, national defence, public security and foreign policy, with the aimof developing the full potential of the country through the productive and service sectors in line withthe green and sustainable development direction, improving people’s well-being, ensuring a wellbalanced system for international trade and settlement, and ensuring smooth graduation from theLeast Developed Country (LDC) status, with economic development continuing to be the core taskof the entire Party and the people.
During this Five-Year Plan period, it will be difficult for the economy to grow rapidly due
to the limited capacity of the budget. However, the Plan will continue to implement the Four
Breakthroughs: breakthrough in creativity, breakthrough in human resource development,
breakthrough in improving administrative and regulatory mechanisms, and breakthrough in poverty
alleviation in a more proactive, vigorous and comprehensive manner. This will support the country
to overcome obstacles and difficulties encountered at the end of the previous Five-Year Plan period,
counter the possibility of falling into crisis, address economic risks, the high level of debt and low
reserves, as well as promoting comprehensive transformation through extensive reforms of theeconomic structure, and enhancing and effectively utilising the potential of the country. Therefore,
development efforts must move in the direction of quality, focused, green and sustainable.

I. ENABLING ENVIRONMENT AND CHALLENGES
1. REGIONAL AND INTERNATIONAL CONTEXTSGlobal economy: The global economic and development outlook in the next five years faces
especially high levels of uncertainty, owing to the ongoing impact of the COVID-19 pandemic,
leading to unprecedented levels of debt, combined with disputes between major economies and theaccelerating impact of climate change. As of July 2021, the International Monetary Fund (IMF) has
estimated that the global economy contracted by 3.3% in 2020, but projects a rebound to growth of
6.0% in 2021, followed by 4.9% in 2022.
However, in practice the medium-term growth outlook for the world economy will dependon the scale, severity, and duration of the COVID-19 pandemic and the ability to control the
pandemic and produce and roll-out vaccines. Although the global economy has reopened in someareas and sectors, recovery is expected to be uneven.
China’s economy is growing at a slower pace than it has done in recent years, while risks
from natural disasters continue to affect growth and slow down the pace of poverty reduction.
Notably, in mid-May 2020, China announced that it would not set a 2020 GDP target due touncertainties that made it difficult to estimate. According to the IMF estimates in October 2020,
China's economy will grow by 2.3%. The United States is estimated to have experienced acontraction of 3.5% in 2020.

40

Outbreak of the coronavirus disease (COVID-19): To date (7th October, 2021), more than
219 million people worldwide have been infected with COVID-19 and more than 4.55 million
deaths have been recorded. Due to rapid and widespread transmission, many countries have taken
strict measures to prevent the outbreak such as issuing instructions for people to stay home,suspending international flights, thereby forcing many airlines close to bankruptcy, restricting
domestic and international movement, and suspending production, among others. The impact
caused by this pandemic is the worst since the Great Depression in the 1930s, surpassing the East
Asia financial crisis in 1997 and the global financial crisis in 2008. Moreover, the COVID-19
pandemic has also affected global poverty with an estimated 88-150 million people expected to bepushed back into extreme poverty: the global extreme poverty rate rising to about 9.1-9.4% in 2020
from 8.23% in 2019, effectively reversing development progress made since 2017 (World Bank,
October 2020). Although the impact is mostly negative, there have been some positive effects suchas air quality improvement due to a reduction in emissions from the industry and transportation
sectors leading to the most significant drop in emissions since World War II.
Trade war among the economic superpowers: The superpower trade war is likely going
to continue for some time according to the assessments of various international institutions, which
will affect the global economy, production and consumption, thus destabilizing the investment
climate as investor confidence falls. Global foreign direct investment (FDI) is expected to decline
by 40% in 2020 (United Nations). The effects of the superpower trade war have weakened the Yuan
currency, causing China’s economy and domestic consumption’s growth rates to slow down. At thesame time, decreasing consumption growth has also directly affected tourism in Southeast Asia.
This may affect Lao PDR’s tourism as well as Chinese investment in Lao PDR, as the Chinese
economy is expected to grow at a slower pace for the next two to three years.

2. LOCAL CONTEXT
Despite the regional and international political turmoil and trade tensions between the
superpowers, Lao PDR has been able to maintain political stability, peace, and social order, and thepeople of all ethnicities have full trust in the policy leadership and guidance of the Party and theState, and actively contribute to the nation’s development efforts.
Nevertheless, Lao PDR continues to face difficulties, such as budget constraints, climatechange, and natural disasters that have affected lives and property in the last two to three years. In
addition, the COVID-19 outbreak at the end of the 8th Five-Year Plan period is expected to affectthe country’s economic development prospects in the coming years particularly the implementationof the 9th Five-Year Plan. At the same time, there remain risks coming from evolving global
economic and trade trends, with the global trade volume expected to reduce by 10-30% in 2020 andrecover to a modest level in 2021, as well as political conflict, climate change, and a declining trendof ODA. On the other hand, private investment may slow down, (UNCTAD reported that global
foreign direct investment fell by 49% in the first six months of 2020 compared to 2019, prompting
many countries to review and promote more domestic investment). Trading partners of Lao PDR
such as China, Viet Nam, Thailand, Japan, and the United States have been severely hit by COVID19, thereby significantly disrupting regional and international value and service chains and causing
fluctuations in the price of goods and the level of demand and supply of services. The upgrading of
measures to control and prevent COVID-19 outbreak has increased costs along the borders, directly
affecting transportation. It is, therefore, necessary to continue to improve domestic policies to beharmonious and resilient in the long-term, especially in the event of future natural disasters or
pandemic. In addition, Lao PDR faces other challenges such as weak public finances, difficulties in
identifying sources of financing for green economic growth, and fully utilising the country’s
potential and advantages, including a young population to drive private sector development, andtherefore relevant policies should be prioritised to be implemented uniformly and effectively.

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Lao PDR has been heavily affected by the COVID-19 pandemic, with 26,876 confirmed
cases and 23 deaths so far in the country (7th October, 2021). The pandemic has had a profoundeffect on the country’s socio-economic development. Based on the lessons learned from these
impacts, and looking ahead, Lao PDR should identify policy options to mitigate medium-term andlong-term impacts aimed at treating infected cases and recovering and strengthening the resilienceof the country’s socio-economic development process starting from the focus on expendituretightening, reprioritisation of public spending and continued efforts to mobilise financing fromvarious sources to provide targeted support to social sectors, particularly affected households andbusinesses. In the long run, as well as during the implementation of the 9th Five-Year Plan, it isnecessary to actively promote economic diversification along with building the competitiveness ofthe business sector by enhancing connectivity. At the same time, focus should also be given tostrengthening human resource development and the social protection system to be able to cope with
future emergencies and sudden changes. Furthermore, attention must be given to strengthening thehealth sector, in particular the availability of medical equipment, health workers, testing anddiagnostic facilities, and strengthening emergency response capacities in the areas of prevention andcontrol, monitoring system, laboratories, healthcare services, and timely provision of data andinformation.

3. SOCIO-ECONOMIC DEVELOPMENT POTENTIAL
The implementation of the 9th Five-Year Plan is taking place at a critical moment, both
domestically and internationally, offering important opportunities for Lao PDR to achieve its
development goals. The key factors that will drive development in the coming five years are: 1)
Young population, 2) Rich natural resources, 3) Geographical location of Lao PDR and growth ofcountries in Asia, including neighbouring economies and 4) Application of modern science andtechnology.
Lao PDR has the advantage of geographical proximity to neighbouring countries with good
economic growth, which provides a stable basis for development and a source of employment for
its young people, with 60% of the population under the age of 25, which can in turn contribute tonational development. Lao PDR has enjoyed stable economic growth over the past years, its clean
energy sector still embodies great potential, and its fertile land is suitable for agriculture and is avaluable asset that can become a source of growth and job creation in the future.

3.1. Young population and modern development process
The young population in Lao PDR account for 60% of the population, which serves as adriving force in attracting future investment on the basis of building workforce readiness by
optimising investment in the development of human resources. Based on the country’s population
growth, the share of working-age population, and trends of birth and death rates, Lao PDR entereda period of opportunity to reap a demographic dividend in 1996. and is expected to last until 2048.
This will be a 50-year of window of opportunity. As of 2018, the median age in Lao PDR is 24 years
and it is projected that Lao PDR will become a pre-aging society by 2038, and an ageing society by
2059. The country has a great opportunity to benefit from having a vibrant young population
including migrant workers who can contribute to development to drive rapid growth. To achieve
this requires effective investment in the health and education sectors at all levels, both quantitatively
and qualitatively, in particular, early childhood education, to create opportunities and targeted andeffective investments for maximum benefits.

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3.2. Abundance of natural resources and diversity of national assets (natural
resources, infrastructure and institutions)
Lao PDR is blessed with rich and diverse natural resources, which has been the country’s
major growth driver and can continue to be a lucrative economic force if the economy is restructured
so that it supports the diversification of goods, markets and assets, and a gradual shift towards thedigital transformation to reduce risks affecting development. Therefore, it is important andnecessary to identify policies that promote the diversification of production and export, including
policies to promote the diversification of the use of national assets to turn them into both physicalcapital (e.g. number of schools and hospitals) and intangible capital, which will be more valuable
than the physical capital in the long run (e.g. educational achievement and road quality
improvement).
Sectors showing potential include agriculture, tourism, energy, and transport, with
agriculture and tourism having the highest labour force participation rates. Agriculture: Lao PDR
is rich in arable land and has a relatively large land area for production due to low population density,
making it favourable for agricultural production, especially for clean, modern and sustainableagriculture, which is increasingly in demand in the domestic and international markets. Lao PDR
has benefited from various preferential tariff schemes particularly the quota-free and duty-freemarket access for agricultural products to China and exports to the European Union. However, due
to limited productivity, budget and technological capacities, and the impact of natural disasters,
agricultural production has been unstable and unable to meet export demand and quality. Tourism:
Tourism is another sector with great potential given the country’s geographical location, being
connected to many adjoining countries, and covering unique cultural and natural features. According
to the United Nations World Tourism Organisation (UNWTO), international tourist arrivals in Lao
PDR reached 4.8 million, an increase of 14.4% in 2019, making Lao PDR one of the world’s fastest
growing tourist destinations. Tourism accounted for 13% of GDP and 13% of total employment,with international tourism receipts in 2019 totalling over USD 900 million, prior to the impact of
COVID-19. Therefore, it is necessary to promote tourism related to agricultural production, poverty
reduction and rural development including homestay programmes, nature conservation andhandicrafts, such as the use of locally produced products, construction materials, and Lao
handicrafts for decoration, among others. Energy: Efforts must be made to increase the production
and consumption of clean energy and study the potential of production and consumption of energy
along with energy export, as Lao PDR has a high level of potential for electricity generation. This
could include promoting the use of electric vehicles (an indicator in Lao PDR’s National Green
Growth Strategy), which could reduce the import of fossil fuels and shift towards electricity use.
However, detailed research is needed, including a feasibility study of the energy needs of othersectors. Transport: Transport is a sector that will turn the country’s challenges from being alandlocked country into an opportunity for regional and international integration and connectivity,
through the opportunities provided by land and air transport links, such as the Laos-China railway,
and the Vientiane Capital-Vang Vieng expressway to transport domestically produced goods andtransit goods to neighbouring countries, enabling integration into the value chains through moderntransportation logistics and production systems, with policy adjustments to ensure versatility,
agility, quality, cost-efficiency, economy of scale, and environmental sustainability.

3.3. Geographical location of Lao PDR and growth of countries in Asia,
including neighbouring economies
The favourable geographical location of Lao PDR and the growing prosperity of Asia,
especially China and ASEAN countries, is another important factor that will create opportunities
for the implementation of the 9th Five-Year Plan. In 2018, Asia’s manufacturing output was about
24% of total global manufacturing output, compared to only 4.1% in 1960. In particular, since 2008,
the rapid economic growth of China and East Asia has attracted investment and further accelerated
43

economic growth. It is expected that most of the future global growth will take place in Asia, with
China and India becoming the sources of concessional financing for infrastructure projects, tourist
inflows, foreign investment and export markets that provide preferential trade benefit for Lao PDR.
At the same time, according to the World Economic Forum (December 2019), by 2030, Asia is
expected to contribute about 60% of global growth, and Asia-Pacific will be responsible for the
majority of the 2.4 billion new members of the middle-class entering the global economy, therefore
giving Lao PDR the potential to take advantage of its geographical location being at the centre of
regional integration and connectivity in terms of capitalising on spending power, financing sources,
and partnerships.

3.4. Application of modern science and technology
In recent years, science and technology development has advanced rapidly. Therefore, Lao
PDR should seize this opportunity for socio-economic development, especially the application ofscience and technology in production, services, and human resource development to achieve higher
quality growth and to be able to compete at the regional and international levels, as well as improve
public governance and administration to be more efficient in revenue collection and expenditure.

4. LEAST DEVELOPED COUNTRY (LDC) GRADUATIONThe 2011 Istanbul Program of Action aims to enable at least half of the 47 LDC countries tomeet the criteria for graduation by 2020. However, this goal may not be achieved as over the period
2011-2021, only 14 countries will have been found eligible, with different effective dates forgraduation spread throughout this decade.
At the 2021 triennial review of the list of LDCs Lao PDR met all three graduation criteria,
and was recommended for graduation with an extended 5-year preparatory period. Based on theassessment of the United Nations Committee for Development Policy (CDP), at the 2021 triennial
review, Lao PDR has met all three graduation criteria: Gross National Income (GNI) reached USD
2,265 exceeding the graduation threshold of USD 1,222 or above, the Human Assets Index (HAI)reached 72.2 exceeding the threshold of 66 or above, and the Economic Vulnerability Index (EVI)
reached 26.6 surpassing the threshold of 32 or below, making this the second time that Lao PDR isfound eligible at two successive triennial reviews (at the previous review in 2018, Lao PDR only
met two of three criteria: GNI and HAI, but did not meet the EVI criterion). The improvement
recorded on the EVI partly reflects revisions made to the method used to calculate the index.
The privileges and benefits of being an LDC include preferential market access including
the Everything But Arms (EBA) benefits and access to low-interest loans. These benefits will cease
to be available after leaving the LDC status. Nonetheless, as Lao PDR’s exports and export value
under the EBA framework is not of a significant level, it is therefore not an unmanageable cause forconcern. In the long run, the benefits that Lao PDR will gain after graduation will outweigh thoseof being an LDC as the economy grows and becomes more diversified, while the development
constraints and challenges are addressed. Therefore, it is necessary to have a plan and determine astrategy for graduation. The least developed countries, including Lao PDR, have benefited from the
136 international support measures, making it essential to ensure continued benefits and minimise
disruption with consistent measures during the transition and post-graduation period.
The benefits of LDC graduation for Lao PDR are twofold: 1) it will help enhance thecountry’s overall political image, with a clearer strategic direction and effort to ensure more
effective implementation; and 2) improved credibility in international markets, facilitating access tofinance and more favourable credit terms. Such benefits, however, may not be sustained if thecountry’s sovereign credit rating, credit history and business environment fail to meet external
expectations. However, if clear regulations and improved processes and policies are in place, Lao
PDR’s LDC graduation can change the perception of the international markets from negative topositive.
44

The Government must continue to prioritise and prepare comprehensively for LDC
graduation over the extended 5-year preparatory period (2021-2026) to ensure that graduation issmooth and sustainable. To that end, Lao PDR needs to implement development measures to copewith the impact that will follow, especially moving towards sustainable, self-reliant development,by taking steps to reduce economic barriers. Therefore, developing a sound smooth transition
strategy is important to build resilience to external influences such as declining aid and large-scaleforeign investment, due to the unstable international environment and the need for countries to build
preparedness under the Sendai Framework for Disaster Risk Reduction and the United Nations
Framework Convention on Climate Change (UNFCC).

5. BECOMING AN UPPER-MIDDLE INCOME COUNTRY
Lao PDR could become an upper middle-income country by 2030 if it could maintain an
economic growth of 6.5%-7% and a population growth rate of 1.7% per year, thereby achieving a
per capita gross national income (GNI) of USD 4,000, an increase from USD 2,445 in 2018 (Atlas
method). However, even then, Lao PDR would still be at the lowest end of the spectrum as upper
middle-income countries range from a GNI per capita of USD 3,996 to USD 12,375 (World Bank
classification as of July 2019). The long-term sustainability of Lao PDR’s growth would depend on
economic structural transformation related to diversification of production and trade, driven by theproactive and effective implementation of the National Socio-Economic Development Plan.

6. SUSTAINABLE DEVELOPMENT GOALS (SDGs)
The 2019 United Nations Economic and Social Commission for Asia and the Pacific(UNESCAP) survey called upon countries, especially least developed countries, and Cambodia, Lao
PDR, Myanmar, and Vietnam (CLMV)in particular, to increase investment in human capitaldevelopment to 12-16% of GDP to address poverty and improve education. The survey also
highlighted the need for Lao PDR to increase its efforts to improve education, health, and social
protection, which is in line with the direction of the 9th Five-Year Plan. Attention must be paid tomobilising resources to continue integrating the SDGs into the country’s development plans andfinancial plans by setting clear policies, monitoring and evaluation frameworks, and implementation
mechanisms.
One global priority is financing the SDGs, with a longstanding commitment by developed
countries to provide 0.7% of GNI in ODA to developing countries, in order to increase investment
in urgent and priority areas, or goals for which the global community risks being off-track, inparticular, provision of quality nutrition and health services, reducing maternal mortality ratio tobelow 70 per 100,000 live births (SDG3.1) and under-five mortality to at least as low as 25 deaths
per 1,000 live births (SDG3.2), which remain a challenge in Lao PDR.
Achieving the SDGs is very challenging and there are disparities among countries on
progress towards the SDGs. Moreover, the COVID-19 pandemic has impeded development efforts
and threatens to reverse accumulated gains, further undermining the goal of achieving the 2030
Agenda for Sustainable Development, especially amid shrinking development assistance budgets
and investment, rising poverty rates, overburdened health systems, and rising climate change risks.
Specifically, the SDGs that are likely to be most severely negatively affected by COVID-19 are
SDGs 1, 2, 3, 8 and 10, according to the assessment of short-term impacts of COVID-19 on the
SDGs in the 2020 SDG Report by the Sustainable Development Solutions Network (SDSN). In
order to provide a framework for recovery towards achieving the SDGs, the SDSN recommends
focusing on the six SDG Transformations namely: 1) Education, gender and inequality; 2) Health,well-being and demography; 3) Energy decarbonisation and sustainable industry; 4) Sustainable
food, land, water and oceans; 5) Sustainable cities and communities; and 6) Digital revolution forsustainable development. Overall, the direction and priorities of the 9th Five-Year Plan are in linewith these six principles.
45

7. GREEN GROWTH
Lao PDR’s National Green Growth Strategy 2030 is a key tool to ensure that the long-termsocio-economic development objectives, in particular LDC graduation, moving towards becoming
an upper middle-income country and achieving the SDGs in 2030 are in line with the green andsustainable growth direction. The Strategy contributes to the promotion of (1) economic growth,
improving the living standards of people in urban and rural areas, and creating jobs and incomegenerating activities for the people; (2) enhancing the efficiency, effectiveness, and sustainabilityof the country’s use of finite natural resources for maximum benefit, especially forest resources,
land, minerals, water resources, water sources, and biodiversity, among others; (3) mitigating therisks and vulnerabilities of the country’s economy in relation to natural disasters and the increasingly
volatile global economic situation that is difficult to predict; and (4) reducing or limiting the increasein pollution, waste, and greenhouse gas emissions that are the main causes of climate change, natural
disasters and many diseases.

III. OVERALL DIRECTIONS, OUTCOMES AND OUTPUTS OF
THE 9TH FIVE-YEAR NATIONAL SOCIO-ECONOMIC
DEVELOPMENT PLAN (2021-2025)
The 9th Five-Year Plan aims to implement the Resolution of the 11th Party Congress and tocontinue the implementation of the Party's Development Strategy 2016-2025 and Vision 2030.

1. OVERALL DIRECTIONS
1) Continue to make comprehensive preparations to lead the country out of the Least
Developed Country status, ensuring employment and improved living standards of thepeople with inclusive, equal and fair access to benefits, ensuring political stability, building
a peaceful, united, democratic, just, civilised and orderly society, achieving socio-economic
development by ensuring a balance between economic, social and environmental
development, and effectively implementing the National Green Growth Strategy and theSustainable Development Goals 2030;
2) Achieve breakthroughs in overcoming weaknesses, shortcomings, and obstacles todevelopment, addressing financial and monetary difficulties effectively, and increasing
preparedness to deal with emerging challenges, such as the impact of COVID-19, climatechange, and regional and international uncertainties;3) Develop quality human resources as an important factor in promoting socio-economic
development, create quality economic growth by reforming the economic structure in eachsector and locality, enhance the factors that promote national potentials by using appropriate
information and communication technologies (ICT) to create opportunities and to leadproduction of goods and services, as well as the engine for growth to step by step build astrong foundation for economic strength and self-sufficiency.

2. MAIN OUTCOMES
In order to achieve the overall directions of the 9th Five-Year Plan, efforts must be focusedon implementing the following six main Outcomes:
1) Continuous quality, stable and sustainable economic growth achieved;2) Improved quality of human resources to meet development, research capacity, science andtechnology needs, and create value-added production and services;3) Enhanced well-being of the people;
4) Environmental protection enhanced and disaster risks reduced;465) Engagement in regional and international cooperation and integration is enhanced withrobust infrastructure and effective utilisation of national potentials and geographicaladvantages;
6) Public governance and administration is improved, and society is equal, fair and protectedby effective rule of law.

3. OUTPUTS OF THE 9TH FIVE-YEAR NATIONAL SOCIO-ECONOMIC
DEVELOPMENT PLAN (2021-2025)
Outcome 1: Continuous quality, stable and sustainable economic growth achieved
The objective of continuous quality, stable, and sustainable economic growth is linked to thetransformation of the economic structure in the direction of industrialisation, modernisation, andeconomic diversification towards production and service sectors with higher efficiency,
effectiveness, and value-added potential, in line with the country’s untapped potential, adopting
high yield technologies in agriculture, upgrading industrial production capacity and promoting theservice industry in order to create jobs for the people. Macroeconomic stability needs to be ensured
through strong financial and monetary positions, systematic alignment of fiscal and monetary
policies in line with current socio-economic situation, focus on reforming public financial
management in a systematic and continuous manner, improvements in revenue collection and
expenditure control, stability of the national currency, and efficient channelling of available
resources towards the achievement of national development priorities, aimed at economic recovery
from the impact of the COVID-19 pandemic after 2020. Efforts must be made also to ensure moretargeted, quality, and effective investment; strengthen the linkages between state plans and budgets,and attract private sector investment to support socio-economic development goals; create anenabling business environment and investment climate to enhance competitiveness and diversify
the economy; develop quality, robust, and regionally and internationally competitive MSMEs; andstrengthen SOEs to be more efficient and able to fully contribute to socio-economic development.
1.

Output 1: Quality and sustainable economic growth

The quality of the national economy must be developed by transforming the economic
structure towards industrialisation and modernisation, increasing economic diversification in the
production and service sectors with high efficiency and added value in line with the potential of thecountry. Focus should also be given to promoting industrial processing sectors linked to regional
and international value chains and other potential sectors that can be further explored such as
agriculture and tourism to generate revenue and foreign exchange earnings, create jobs for a large
number of people, and substitute imports.
Based on the direction of quality growth, Lao PDR will diversify its economy by reducing
its reliance on natural resources to make growth sustainable, while minimising external impacts andincreasing productivity, as well as shifting towards sectors that promote and drive economic growth.
This could be realized with the use of modern technology, aiming to create more jobs, build
connections with other sectors of the economy and integrate into regional and international value
chains and transportation logistics processes. Nonetheless, in the coming years, the country will stillneed to use natural resources for economic and social development, but will use them responsibly
in line with sustainable and green growth directions.
1.1. Targets and Indicators:- Attain economic growth at an average rate of 4% or more per year, valued at LAK 1,056,692
billion at current prices over five years, GDP per capita of USD 2,880, and GNI per capita
of USD 2,280 by 2025:
o Agriculture sector growth at an average rate of 2.5%
o Industry sector growth at an average rate of 4.1%
47

o Service sector growth at an average rate of 6%
o Customs and tax revenue growth at an average rate of 5.8%
- Restructure the economy in the direction of quality, sustainable, and green growth, by 2025,
the agriculture sector to account for 15.3%, industrial sector 32.3%, service sector 40.7%
and customs and taxes 11.7% of the gross domestic product (GDP).
- Agriculture and forestry sector:
o Agriculture: To guarantee food security and products for export, total paddy riceproduction must reach 3.5-4 million tonnes per year, an increase of 17,310 tonnes or about
10.9% compared to 2020; average crop production per year: 175,000 tonnes of coffee;
636,900 tonnes of feed corn, an increase of 118,774 tonnes or about 22.9% compared to2020; 3.6 million tonnes of cassava; 1.6 million tonnes of sugarcane, an increase of over
400,000 tonnes or about 34.3% compared to 2020; 753,500 tonnes of bananas, an increaseof 14,396 tonnes or about 1.9% compared to 2020; 131,220 tonnes of sweet potatoes;
14,000 tonnes of tea; and 74,750 tonnes of beans;o Livestock: Livestock growth to reach 3-4% per year, of which buffalo growth should be
at 1% per year, cattle 3% per year, pigs 4% per year, sheep/goats 5% per year and poultry
5% per year. Export 200,000 cows by 2025. Supply 340,000 tonnes of meat and eggs, anincrease of 7.8% compared to 2020;o Fishery: Fish farming and aquafarming growth to reach 3-4% per year. Supply 237,000
tonnes of fish and other aquatic animals, an increase of 8.4% compared to 2020;o Forest growth to reach 1.5% per year;
o Agricultural export average to reach USD 1,200 million per year, an increase of USD 400
million compared to 2020.
- Industry sector:
o Increase the value of industry and handicraft production to LAK 83,079.8 billion or an
average growth of 8-10% per year;
o Export value to reach USD 38,043.5 million or an average growth of 8-10% per year;o Import value to reach USD 32,927.3 million or an average growth of not more than 9%
per year;o Generate 276,096 million kWh of electricity, an average increase of 15.8% per year (70%increase compared to the 2016-2020 plan), production value at LAK 140,879 billion (anincrease of 79% compared to the 2016-2020 plan);o Average domestic demand for electricity in the period 2021-2025 is estimated to increaseby an average of 8.1%-10.7% per year, indicating that by 2025 the domestic demand forelectricity is expected to be at least 2,132 MW and in the maximum case will increase toabout 2,880 MW. Electricity export to reach about 5,000 MW;
o Mineral production (unprocessed) to reach USD 7,832.10 million (an increase of 4%
compared to the 2016-2020 plan) and sales of minerals to reach USD 8,336.40 million,of which, domestic sales is USD 1,974 million and export is USD 6,362.40 million;o Survey and establish baseline geological and mineral data at a scale of 1/200,000 in
74,696 km2 of non-surveyed areas (equivalent to 31.5% of the country’s total area)- Service sector:
o Increase the value of flow of goods to LAK 424,227.5 billion or an average growth of 810% per year;
o Increase the volume of passenger transport in the transport connectivity network withcountries in the region, via all modes of transport: road by 7% per year, waterways by
5%, airways by 12%, railway by 3-5%;48

o Increase freight volume in the transport connectivity network with countries in the region,
via all modes of transport: road by 7% per year, waterways by 5%, airways by 12%,
railway by 3-5%;o Attracting 15 million tourist arrivals, in order to generate USD 3,813 million in revenue(accumulated over 5 years), with an average tourist stay of seven days per person(providing that COVID-19 vaccination is available and that the international borders are
re-opened);o Survey, allocate, demarcate, and issue certificates for 30 tourism destinations.
1.2. Priority Activities:- Agriculture sector: The agricultural sector is a potential sector that can be further leveraged
to maximise the benefits of the trade privileges that Lao PDR enjoys, as well as to generate
more income and jobs for the people. Focus must be given to the following areas: (1)Agricultural production must be closely linked to the production chains of the processing
industry to serve domestic and international demands; (2) Produce crops and livestock that
already have a market and support the needs of new markets; (3) Shift from single-crop
farming to diversified or multi-crop farming (mixed crop system) especially high-yieldcrops; (4) Promote Good Agricultural Practices (GAP) and organic farming for domestic
consumption and tourism attraction; (5) Improve the efficiency of agricultural production
with the use of modern tools, new techniques and science innovations, and new varieties ofcrops, and transform traditional and fragmented farming practices into production groups or
the new cooperative production model, using modern technology (Smart Farming); (6)Create access to credit and markets; (7) Develop strong agricultural infrastructure resilient
to natural disasters; (8) Identify areas and types of farming and animal husbandry that aresuitable to the potential of each locality and the actual needs of the market; and (9) Establish
higher food safety standards.
• Rice production is concentrated in seven major plains namely: Vientiane plain, Bolikhamxay
plain, Xebangfai plain, Xebanghieng plain, Xedone plain, Champassak plain, and Attapeu
plain. Whereas the production of food crops and other industrial crops is based on the special
features of each potential production area in each province, such as: growing vegetables tosupply big cities (potential production areas include the Bolaven plateau - Champassak,
Saravan and Sekong), growing sweet corn for domestic consumption and to supply
agricultural processing plants (potential production areas include Sayaboury, Vientiane
Province and Bolikhamxay), growing cassava to supply cassava starch factories and export
dried cassava to Thailand and Viet Nam (potential production areas include Sayaboury,
Saravan, Champassak, Savannakhet and Bolikhamxay), growing sugarcane to supply sugar
factories in potential areas such as Savannakhet, Attapeu, Phongsaly and Luang Namtha,
growing bananas for export to China, focusing on Oudomxay, Bokeo, and Attapeu, andgrowing watermelons for export to neighbouring countries, focusing on production areas inVientiane Province, Savannakhet and Luang Namtha.
• Livestock and fisheries: Aim to supply meat, fish, and eggs to meet demands and generate
income for the people, focusing on raising large animals, 200,000 cattle for export to China (5year cumulative figure); develop native buffalo breeds and promote breeding techniques toincrease production efficiency; promote the shift to more farm-based pig-raising, as well as
promote adequate pig feed production and improve the quality of animal feed, ensuring
vaccination and treatment of parasites in animals to reduce the damage caused by epidemics;
encourage raising of native poultry in rural areas to increase food stocks with measures topromote breeding techniques and implement production standards for consumer safety; produce
native fish species and all kinds of aquatic animals that have economic potential to cover 30%
of all fish hatcheries with the aim of expanding breeding grounds and centres, and transferring49

integrated farming techniques, along with water source conservation, and sustainable use of
aquatic resources.
• Promotion of agricultural techniques and production models: By 2025, areas for clean and safe
agricultural production will have been identified and certified by standards such as GAP, OA,
SCV and GI in at least one to two places per district; food crops and commodities are to beclassified, have standardised packaging, to be value-added and processed into primary products
to account for 50% of the goods entering the market. Promote the use of agricultural machineryin the production process such as ploughing, cultivating and harvesting to reduce costs, savelabour and increase productivity; promote the production of rice and crop seeds and varietiesthat are resistant to climate change and reserve them for rain-fed production and as mitigation
measures against droughts and floods. Upgrade and modernise technical infrastructure such as
agricultural machinery, mills, dryer domes, seed sorting plants, drying plants, wholesale-retailmarkets, cold storage, bio-fertiliser factories, feed mills and slaughter houses to meetinternational standards; and develop agricultural extension centres and agricultural technicalservice stations, focusing on disseminating agricultural farming knowledge and training forfarmers and agribusinesses, and establish technical service units for farmers.
- Industry sector: The transition from reliance on the natural resource sectors to light industry
sectors must be realised to diversify and restructure the economy, promote job-generating
industries and reduce imports, along with the continuation of industrial sectors that areimportant in driving economic growth and generating national revenue. The key prioritiesare:• Continuously develop and expand the processing industries that are connected to the regional
and international value chain networks, including the current potential industries such as
food and beverage, textile and garment, construction materials, and agro-forestry processing.
New potential industries to be promoted include metal mineral processing, non-ferrous
metals and chemicals, electrical appliances and electronics, automobile and agriculturalequipment, and printing and packaging;• Promote the goods and services production with high growth opportunities that help reduce
imports;• Promote the production of One District, One Product traditional and unique handicraft
products to promote local knowledge and link them to tourism, such as: silk fabric, wood
carving, accessories and souvenirs, weaving tools, pottery, traditional food, and traditional
weaving;• Encourage investment in Special Economic Zones, and industrial zones and industrial estatesto establish a production base for export, especially the production chain sectors related to
MSMEs and international production networks and direct buyers, while ensuring that any
tax exemptions are based on the direction of expanding the tax revenue base and protecting
workers’ rights;• Enhance efforts towards building Smart Cities, study and develop dry ports and warehouses,
and loading-unloading facilities along the Laos-China railway, including smart cities inLuang Namtha, Oudomxay, Luang Prabang, and Vientiane Province;• Promote the energy and mining sector, particularly ensuring commencement of theconstruction of Luang Prabang hydropower dam, development of solar energy and wasteto-energy technologies, and increase the efficiency of pre-export mineral processing by
ensuring markets for exports and supporting the establishment of processing plants or
smelters to generate products for domestic consumption and export;50

• Focus on building infrastructure to strengthen domestic connectivity, as well as regional andinternational connectivity, and building infrastructure needed for rural development andpoverty alleviation, such as the Vang Vieng-Luang Prabang expressway and the Luang
Prabang-Luang Namtha expressway.
- Service sector: The service sector covers the largest share in the economic structure and job
creation. Therefore, it is necessary to take advantage of the emerging opportunities,
especially from the Laos-China railway (Boten-Vientiane Capital section) and the Vientiane
Capital-Vang Vieng expressway in an effective manner in order to maximise the growthpotential for tourism, and goods and passenger transportation. Focus must be given to:• Tourism sector: Develop and improve infrastructure, tourism facilities, as well as upgrade
the services of hotels, restaurants, and travel agencies to a high-quality and modern standard;
improve and develop tourist attractions, in particular focusing on eco-tourism, and cultural,
historical, and agricultural tourism related to participatory conservation tourism, as well as
create a variety of tourism products, and increase the use of local products, raw materials,
and organic vegetables to reduce imports. Facilitate the use of technology to attract target
tourist groups and link with regional and international tourism programmes, and implement
the Lao PDR Tourism Recovery Roadmap for 2021-2025, in particular, the promotion ofdomestic tourism campaign “Lao Thiao Lao” to help stimulate the domestic economy with
policies to promote and support more local tourism, such as: creating conditions for booking
services with multiple options, tours with discounts according to marketing strategies,
discounted fares, and studying the possibility of a working policy to enable a 4 to 4.5-day
work week or long weekend to encourage domestic tourists to travel locally for several days
and also to boost and distribute revenue for the tourism and hospitality businesses (as has
already been implemented in other countries to create conditions for tourists to travel andspend more). This should run in parallel with other studies to prepare for welcominginternational tourist groups, and tourism cooperation with neighbouring countries andcountries that present a low risk of transmission of COVID-19 as designated travel bubbles.
In the aftermath of COVID-19, the tourism sector must promote and increase domestic
production and consumption, along with increasing safety and confidence for consumers andtravellers, which is important as the pandemic has changed lifestyles, such as concerns about
traveling, strict travel hygiene requirements, working from home and online learning.
Therefore, planning for tourism development and promotion must consider the “newnormal” to ensure that travellers have confidence in the standards and safety ofaccommodation, transportation, food services, green tourism, as well as agricultural
production by promoting the use of local raw materials, and credible, standardised insurance
services, among other things. In the future, tourists are expected to be more inclined tochange their behaviours and become more interested in rural and natural tourism activities;• Promote wholesale-retail and repair services related to the promotion of domestic
production; and review relevant legislation and regulations on the development andpromotion of e-Commerce, as well as improve coordination between stakeholders andpromote an environment conducive to e-Commerce;• Upgrade telecommunication, integrated logistics, and postal services to be agile and modern
in order to facilitate efficient business transactions and payments, among others;• Logistics services: Continue to manage the dry ports that have been developed such as
Savannakhet and Thanaleng dry ports; and monitor and manage the construction of dry ports
being developed such as Thakhek and Champassak dry ports. In addition, develop otherpotential dry ports as hubs connecting ASEAN countries and the region with destinations
suitable for stopover and distribution of goods, and transit transportation, such as Natoei dry

51port (Luang Namtha), KM 20 dry port (Bolikhamxay), Huayxai dry port (Bokeo), Luang
Prabang dry port (Luang Prabang) and Meuangxay dry port (Oudomxay).
2.

Output 2: Robust and stable macroeconomic management ensured

Macroeconomic management in the next five years must focus on systematic and continuousreform of public financial management, aiming to: (1) increase revenue collection by expanding thetax base, (2) manage public expenditures more efficiently, (3) manage contingent liabilities andpublic debt prudently, and (4) maintain exchange rate stability.
2.1. Targets and Indicators:- Maintain fiscal and monetary stability with close harmonisation of fiscal and monetary
policies.
- Build strong, transparent, modern, and fair public financial management foundations:o Attain total budget revenue of no less than LAK 179,500 billion or 17% of GDP, of whichdomestic revenue should reach LAK 166,753 billion or 15.8% of GDP;o Expenditures should not exceed LAK 190,000 billion or 18% of GDP, of whichinvestment expenditure should be LAK 59,500 billion or 5.6% of GDP;o The average budget deficit over five years should be LAK 10,500 billion or 1% of GDP.
The maximum deficit should not exceed 2% of GDP;o Restructure and manage public debt to a manageable level;o Gradually increase government reserve funds and foreign exchange reserves to ensure themanagement of disaster risk and other risks of economic crises;o To ensure the stability of the national currency, the average inflation rate should notexceed 6%, the exchange rate against the USD should be stable within the defined bandof ±5% per year, foreign exchange reserves should be maintained to cover at least threemonths of imports, and manage M2 money supply growth at an average of no more than
20% per year;
o Deposits in commercial banks should reach 60% of GDP; bank credits should be at 49%
of GDP, and capital market mobilisation should be increased to 15-18% of GDP;o The average non-performing loan (NPL) ratio of the entire banking system should notexceed 3% of the total credit balance.
2.2. Priority Activities:- Fiscal policy: Continue to comprehensively reform the financial sector to be sound andsustainable by improving the efficiency of revenue management and budget expenditure
implementation, establishing legislation that sets the framework for financial security;
establish a system of mechanisms, regulations and the use of modern tools for revenue
collection and expenditure through the banking system; and strictly implement financial
discipline by enforcing the financial sector laws in order to fully collect revenue andimplement expenditures in accordance with the law.
- Ensure effective management of public debt by considering and issuing appropriate
measures in accordance with the public debt management strategy as well as the Public Debt
Management Law, and reduce budget risk from contingent liabilities by identifying
appropriate measures to address issues such as post-disaster recovery costs. At the sametime, it is necessary to ensure systematic alignment and consistency between development
planning and budgeting by tightening expenditures and increasing revenues in order to create
fiscal space aimed at allocating more resources to the social sector and infrastructuredevelopment; and focus on strengthening public investment management to reduce risks
associated with multi-year budget execution by establishing an effective coordination
mechanism between the Ministry of Planning and Investment and the Ministry of Finance,enhancing efficiency in project proposal submission and monitoring in accordance with the52

project schedule, ensuring quality investment, and avoiding the creation of contingent
liabilities.
- Increase the efficiency of public expenditures and reduce expenditures in line with revenue
collection capacity by implementing the Mid-Term Budget Framework 2021-2025, which
will help create fiscal space for public finances. Improving the efficiency of progressive
revenue collection will continue to focus on the transition to a modern Tax Registration
Information System (TaxRIS), bank payments, online revenue collection, and databasemanagement especially for value-added tax, personal income tax, land tax, tax exemptions
and other taxes. In the medium term, it is necessary to expand the tax revenue base to include
new taxable enterprises and businesses. In the long run, the Government must focus on
expanding its tax base by gradually shifting away from a resource-based economy to a morediversified economy, aimed at improving the business environment, and set policies topromote micro, small and medium enterprises, especially modern and diversified financial
access mechanisms.
- Monetary policy: Ensure the stability of the national currency by continuing to use anddevelop monetary policy operations more effectively; apply the exchange rate policy
according to the managed market mechanism; manage foreign currency efficiently, alongwith the development of a modern and secure national payment system to better meetinternational standards; improve the management of commercial banks and non-bankfinancial institutions to better meet international standards; establish legislation on the
management of financial security; continue to develop the infrastructure necessary for themodernisation of the financial and monetary system to support the transition to a digital
economy, particularly a system for collecting, monitoring and verifying financial
information in a more up-to-date and accurate manner; support financial consumer
management organisations, asset assessment agencies, and electronic payment management
systems to be more comprehensive, secure and effective; and promote financial inclusion to
enable individuals and businesses to have greater access to credit and savings products andservices.
- Macroeconomic management: Establish a stronger, integrated and effective coordination
mechanism between the macroeconomic sectors, and develop a comprehensive set of tools
for systematic macroeconomic monitoring and analysis.
- Ensure the consistent and harmonious implementation of fiscal and monetary policies,
aiming to contribute to continuous and sustainable socio-economic development.
3.

Output 3: Investment quality and effectiveness enhanced

The overall investment in the next five years must be focused on and consistent with the
Outcomes and priority activities of the 9th Five-Year National Socio-Economic Development Plan
(2021-2025), as well as sectoral and sub-national development plans as follows: (1) Production andservices sectors that can drive green and sustainable economic growth, increase production to
substitute imports and promote exports, and create more diversified jobs; (2) Human resource
development, especially to improve the quality of education, health and skills development as asupporting factor for new technical, scientific and technological innovations; (3) Research andDevelopment (R&D) to increase the efficiency of production and services, create added value anddiversity of products, provide educational and medical equipment, and increase agricultural
productivity moving towards science and technology-driven industries; (4) Rural development andpoverty alleviation linked to commodity production, and improvement and building of rural andeconomic infrastructure; (5) Improving public governance and administration to be more modern,transparent and agile, and creating conditions and factors to support the work of national defence

53and public security; and (6) National infrastructure for regional and international integration andconnectivity.
In order to realise the targets for investment across these sectors, it is important to ensure
efficient channelling of public resources (including ODA) to these investment priorities. To that
end, a number of policy priorities are set out to institute long-term planning and budgeting ofsectoral and sub-national plans that are consistent with the 9th Five-Year Plan. At the same time,
there is a need to establish an effective investment monitoring and management system in thecontext of declining development assistance. LDC graduation is not expected to have a major direct
impact on future flows of assistance from development partners to Lao PDR, however, implications
will be monitored closely and consulted with development partners on a regular basis.
3.1 Targets and Indicators:- Mobilise resources for development in the next five years to reach LAK 204,599 billion or
19.4% of GDP, of which:+ Investment from the national budget should reach LAK 22,950 billion or 11% of total
investment;+ Official Development Assistance should reach LAK 37,344 billion or 18% of total
investment;+ Domestic and foreign private investment should reach LAK 100,000 billion or 49% of
total investment;+ Other investments should reach LAK 44,305 billion or about 22% of total investment.
3.2 Priority Activities:(1). Public Investment:
Sectors and localities must develop their 5-year public investment plans in line withbudget capacity and to directly support the overall directions, outcomes, targets and priority
activities of the National Socio-Economic Development Plan, sectoral and local
development plans, as well as ensure maximum efficiency of all investment projects.
The formulation of a 5-year public investment plan should focus on the following:+ Public Investment Structure: The priority is to invest in completing infrastructure projects
that have been started during the 8th Five-Year Plan (2016-2020) period, and rehabilitate andrepair existing infrastructure to be able to maximise the benefits and full utilisation, andensure regular access to markets, production areas, and traffic. New investment projects
should focus on rural infrastructure, human resource development, development of modern
public governance and administration, technical and scientific research and the provision oftechnical equipment, while national projects such as highways, railways, and transmission
lines will use other non-government funding sources. Investment in human resource
development, research and equipment must be commensurate with the construction of
infrastructure. Public investment must consider the risks and sustainable use of natural
resources.
+ Ensure that public investment programmes and projects are developed based on the
directions and targets of the national socio-economic development plan, and sectoral andlocal development plans in order to support the achievement of the agreed goals, taking into
account the linkages between each goal and public investment programme and project and,
importantly, the need to balance with the actual financing capacity of the government.
+ In order to ensure successful and effective implementation of the National Socio-Economic
Development Plan, and sectoral and local development plans, investment programmes andprojects must be selected in a targeted manner in accordance with the priorities within the
allocated budget framework.

54

+ Sectors and localities shall coordinate closely in the selection of programmes and projects
with clear division of responsibilities or clarified roles according to the Sam Sang Directive
and the vertical and horizontal coordination of sectors, by centralising the technical processaccording to the vertical reporting line of the respective sectors, and taking responsibility to
avoid duplication of plans and ensuring that implementation is effective.
+ The 5-year public investment plan should be developed and serve the formulation of a 3year mid-term public investment budget framework so that sectors and localities are
informed of the annual resources available for their projects. Sectors and localities are in
charge of selecting priority programmes and projects that support the achievement of thegoals of the National Socio-Economic Development Plan, and sectoral and local
development plans in an effective and targeted manner.
+ Development partners are encouraged to align their development support programmes withthe priorities of the national socio-economic development plan and the public investment
plan.
+ A transition strategy for graduation from LDC status will be developed, including carefulanalysis and consultation on potential implications for availability of concessional
resources. Appropriate measures to address issues identified will be defined though thestrategy to ensure that risks from graduation are appropriately managed.
(2). Private Investment:
FDI is important and will continue to be a major source of development funding,especially the promotion of quality investment in Special Economic Zones to create jobs,
increase energy consumption, enforce the implementation of public sector obligations,promote technology transfer and capacity building. However, during the 9th Five-Year Plan
period, measures must be taken to attract more private investment in line with the Plan’s
priorities. Private sector investment, especially FDI, may grow more slowly, as foreign
investment countries have been affected by the COVID-19 pandemic with global FDI flows
expected to decrease by 40% in 2020. As a result, many countries are focusing more on
domestic. including Lao PDR.
Focus must be given to the priority sectors set out in the Investment Promotion Law(revised 2016). Investment projects must be a key driver for the development of the country’s
economy, and must be quality investments and ensure that technology and innovationtransfer opportunities are closely linked to industrialisation and modernisation, andIndustrial Revolution 4.0, supporting adaptation to the era of artificial intelligence (AI) andvalue chain creation to produce quality and diversified products, moving towards
international standards. Moreover, investment projects must produce goods that can reduce
dependence on imports, and create jobs for a large number of people in areas such as clean
and organic agriculture, food processing, consumer goods, eco-tourism development,
including environmentally friendly and sustainable cultural and historical tourism,
education, building of modern hospitals and pharmaceutical production, and development ofroad infrastructure, freight services, and transit and international connectivity services. In
addition, efforts should be made to attract investment in Special Economic Zones, industrial
zones and industrial estates, small and medium sized projects, and projects that use
appropriate modern science and technology in line with the actual conditions.
Public-private partnerships (PPP) should be promoted for large-scale projects thatare capital, technology and innovation intensive to reduce financial burdens and investment
risks, and increase efficiency and effectiveness and transparency in project management andsustainability in infrastructure projects such as bridges, roads, ports, dry ports, as well as
energy, education, and health (modern hospitals) projects, among others.

55In order to promote private investment to reach the expected targets, the following
are key priorities:- Strengthen coordination between the concerned sectors to implement the Prime Minister’sOrder No. 02/PM, dated 01/02/2018 on Improving Regulations and Coordinating
Mechanism for Doing Business in Lao PDR. Create an environment favourable to doing
business with transparency and agility by continuing to improve procedures and regulations
for doing business aimed at making concrete progress in the 10 indicators of the Ease of
Doing Business Index by improving the Enterprise Law in line with the current context,
establishing an online enterprise registration system, and merging the Tax Identification
Number, enterprise code and social security number into one number through the
improvement of the Enterprise Registration System (ESR) and Tax Registration Information
System (TaxRIS), improving the business climate to address the difficulties associated withthe ‘Starting a Business’ indicator, and enhancing the competitiveness of the business sector
to promote the business sector at the enterprise unit level and others, as appropriate and inline with the actual conditions;- Strengthen the implementation of the Prime Minister’s Order No. 03/PM, dated 21 January
2020 on the Improvement of Services Related to the Issuance of Investment and Business
Licenses in order to make the process more agile, transparent and uniform in promoting andmanaging investment, and facilitating the ease of doing business for both domestic andforeign investors, with the Ministry of Planning and Investment as the focal point tocoordinate with the investment one-stop service coordination units in each relevant sector;- Continue the nationwide dissemination of the Law on Investment Promotion, No. 14/NA,
dated 17 Nov 2016 and other legislations related to investment;- Continue to ensure the effective implementation of the investment one-stop service
coordination mechanism, improve the regular updating of timely information for investors
by publishing a one-stop investment service manual and providing relevant information on
the website for investors;- Continue to research, revise and improve existing legislation, including investment
promotion policies, in line with the current situation in Lao PDR;
- Focus on the development and application of ICT in public administration and public
services in each sector.
- Continue work to complete the drafting of tax policies of the investment promotion sector;
The priorities mentioned above are to prepare a robust effort to attract and promote
as much investment as possible to Lao PDR, taking into account the rising competition forinvestment capital and investment promotion policies of neighbouring or other economies,
especially in the context of the aftermath of COVID-19 where all countries will need capitalto help recover and stabilise their national economies.
In addition to developing plans and policies to attract and promote private
investment, the management and monitoring of the implementation of approved investment
projects is important and must focus on the following:• Coordinate with the relevant sectors periodically to manage and inspect the implementationof the obligations of the projects specified in the project agreement and in accordance withthe revised Investment Promotion Law 2016;• Coordinate with the relevant sectors and localities to inspect the implementation status of
the signed projects, in particular projects where problems have occurred in order toencourage and assist those projects to complete their work as planned;56

• Monitor the reports of the projects on a quarterly basis and review the implementation statusof the projects to report to the higher-level authorities;• Organise an annual or biennial taskforce consisting of the relevant sectors and local
administrations to inspect and review the implementation of projects to report to higher-levelauthorities. Well-performing projects will receive continued support and assistance toaddress any issues to complete project implementation. Whereas any project that has beenfound to have signed a contract in an attempt to secure the project without any progress in
implementation, will be reported and recommended to be terminated. This is to discourage
potential false investment agreements that could delay the channelling of resources intended
to support the development of the national economy; The above management andmonitoring priorities are to ensure that the implementation of projects is successfullycompleted as expected and to ensure that the Government receives the maximum benefit
from the approved projects, which serve as a contribution to the development of the national
economy.
4.

Output 4: Better quality, robust and regionally and internationally competitive micro,
small and medium enterprises

Micro, Small and Medium Enterprises (MSMEs) play an important role in job creation andeconomic development. In order to create a competitive environment for MSMEs, focus should begiven to developing MSMEs to be closely linked to the market and production network of large
companies, both domestic and international; continue to implement policies and plans for MSMEs
development; improve credit information management system, diversify financial products, reduce
informal borrowing and create conditions for access to finance, ensure systematic monitoring andreporting of operations, and effective application of science, technology and innovation; improvethe capacity to plan and run modern businesses, and improve legislation for the systematic and fairbusiness conduct of MSMEs. In addition, focus should be given to creating conditions andpromoting the increase in productivity and quality of labour, production and services in the public
and private sectors to enhance competitiveness and sustainable development by adapting working
methods and labour regulations towards a modern and innovative industrial models.
While the economy is still being negatively affected by the COVID-19 pandemic, there mustbe specific support measures for the affected businesses, which must be considered based on regularmonitoring and budget considerations.
4.1 Targets and Indicators:- Improve Lao PDR’s ranking in the ‘Starting a Business’ indicator to be above the 120th
position by 2025;- Increase the number of new MSMEs by 2% per year;- MSMEs contribute 18% to GDP per year;- Increase the number business units awarded the national ODOP trademark by 20 units per
year, and increase the number of One District, One Product (ODOP)-certified products by
20 products per year;- At least five MSMEs per year are awarded outstanding business achievement;- By 2025, increase the number of modern markets (supermarkets, shopping malls, etc.) to a
total of 18 locations across the country.
4.2 Priority Activities:
Continue to implement the sector’s priorities, focusing on the following:- Start-up promotion: Enhance competitiveness by improving telecommunication
infrastructure, providing quality Internet at low service rates, as well as creating an
ecosystem to support aspiring entrepreneurs; develop policies and strategies to promote newenterprises to be robust, sustainable, and competitive at the regional and international levels;57

create opportunities for access to SME capacity building services by supporting an effectivefunctioning of SME service centres; and promote start-up businesses, especially those thatuse information technology in business administration, and businesses that produce
handicrafts, food, beverages, and utensils, among others, as well as the ODOP products thatare environmentally friendly, green and sustainable and meet the needs of the local andregional markets.
- Improve business management practices, access to markets and sources of funding, scientificand technological know-how and innovative local knowledge, and packaging and labellingto improve product quality and competitiveness by: 1) Enhancing the technical awareness ofbusinesses and those who want to start a business to have access to regulations and relevant
information and easy access to sources of funding from financial institutions and reduce therisk of accessing informal sources of funding; 2) Improving the mechanisms and procedures
for accessing credit for MSMEs to promote business units that have the real potential, alongwith the development and improvement of the quality of employees, products of financial
institutions, as well as the quality of the management system of financial institutions tobecome stronger in all respects; and 3) Encouraging SMEs to become more involved in value
chains and international markets in order to upgrade their skills, productivity, access to newtechnologies and innovations, and access to markets under regional and international supply
chains;- Continue to mobilise low-cost capital from both domestic and foreign sources to improvesources of capital for MSMEs with production and export potential, along with creating
conditions for upgrading the technical skills of responsible personnel in a continuous andsystematic manner;- Promote and develop products to meet the quality and market demands with appropriate
support policies in place.
- Promote inclusive business by encouraging the value chain linkages between large
enterprises and MSMEs; and establish specific policies to incentivise large companies and
MSMEs to integrate production groups into local, regional and international value chains.
- Encourage large companies and MSMEs to strengthen the communities’ capacity to improve
the quality of people’s production to be able to integrate into the value chain.
- Support MSMEs and businesses that invest in agriculture, food and medicine to access newmarkets and chemical residue testing laboratories (attract investment opportunities,
including laboratory and agricultural product inspection) through Business AssistanceFacility (BAF) funding, as well as direct access to production techniques, funding sources,international production networks and buyers.
5.

Output 5: Enhanced efficiency and effectiveness of state-owned enterprises and collective
economyThe 9th Five-Year Plan prioritises the management and development State-Owned Enterprise(SOE) so that they can be economically strong and efficient, reduce substantial liabilities, support asustainable economic base, and generate income for the country. Efforts must be made to develop
and expand the collective economic model to ensure that it becomes a stable and secure economic
foundation, able to compete with other economic sectors and to integrate regionally andinternationally. In this context, for economic growth to be robust, it is necessary to carefully review
the state-owned enterprises particularly in the energy sector, especially with respect to the
management of the fiscal burden and to ensure that investment is economically and environmentally
sustainable.

585.1 Targets and Indicators:- Create and improve 18 units of agricultural and agro-forestry service cooperatives;- Establish 4,420 production groups, establish 250 qualified production cooperatives andestablish 10 model cooperatives.
5.2 Priority Activities:- Improve and develop legislation to manage and develop SOEs more effectively;- Undertake vigorous reforms of SOEs by establishing and improving the revenue-expenditure
management mechanism and mixed-ownership enterprises, using modern tools inaccordance with regulations, and ensuring transparency, fairness, auditability, andefficiency;- Improve and develop policies on access to finance, promote domestic and foreign private
investment in line with the new phase of enterprise development and enhance SOE capacity
to compete regionally and internationally;- Transform some major SOEs into the public-private partnership model with management
capacity and a strong financial position to ensure that the organisation and management
mechanisms meet the standards of public companies.
- Reform organisation and management processes by conducting recruitment examination for
professional executives for some SOEs.
- Conduct thorough studies on public investment projects in the forms of PPP and Build,
Operate, Transfer (BOT), in particular, large-scale projects that are being implemented andmanaged by SOEs to ensure economic and social returns, along with a re-evaluation of SOEs
to consider cases that need to be improved or closed down, and take measures to resolve
non-performing loans, encourage more private joint capital.
- Promote production to generate a stable income for people in remote areas, and expand andsystematise production chains linked to the establishment of strong production groups,
leading to the creation of conditions for establishing agricultural production and service
cooperatives in the future.
6.

Directions for Economic Structural Reforms for National Resilience
1) Improve measures to address economic and financial challenges, ensuring quality growthand sound macroeconomic stability. Studying the improvement of public debt structure (bothshort-term and long-term debt) in order to reduce the level of debt to a level that can be
managed and settled in different ways, such as triangular-debt-diversion disbursement, andissuance of bonds, among others; urgently implement measures to increase revenue by
enforcing a modern revenue collection and expenditure management system so that allenterprises can pay their taxes accurately, transparently and completely.
2) Improve the quality and sustainability of the economic structure according to the sectors,
economic actors (state, collective enterprises, MSMEs), and regions (focusing on
development along the Laos-China economic corridor, East-West corridor), includingSpecial Economic Zones, industrial estates, smart cities, dry ports, and others.
3) Continue to deepen regional development (northern, central and southern regions) according
to the comparative advantage of each region to create harmonious inter-linkages, promotemutual support and to create quality and more balanced economic relationships; and focus
on the development of the Laos-China economic corridor, North-South corridor, East-Westcorridor, Special Economic Zones, smart cities, dry ports and logistics services, industrial
estates, tourism industry (nature, history, culture and agricultural production).

594) Strengthen and translate national potential into economic development, particularly in thefollowing potential areas: (1) Make use of the potential of natural resources, such as: land,
forests and water resources in a systematic manner, especially the allocation of land for
maximum benefit, including the clear identification of production areas, industrialprocessing zones and residential areas, as well as the improvement and development oflegislation for strict, transparent and effective management; (2) Agro-processing industry
and construction materials industry: Strengthen coordination between the agricultural andindustrial sectors to encourage more agricultural production related to processing; (3)Tourism: Lao PDR has natural, historical and cultural potential, so focus must be on
developing that potential into a tourism industry that can attract more domestic and foreign
tourists; (4) Connectivity along various economic corridors, including the Laos-China
railway: Infrastructure must be connected to the railway to facilitate the transportation of
goods and passengers, and commercial production areas must be defined in the provinces
where the railway passes in the coming years, and in the long run, continued focus shouldbe placed on developing other provinces throughout the country to be able to produce goods
for export; (5) Energy and mining: There is a need to review the strategy for the developmentof electricity projects to suit the potential of the country and the needs of domestic
consumption and foreign markets. At the same time, attention must be given to strengthening
the management of the exploration and exploitation of mineral resources in an effective anddiversified manner, ensuring more processing to create added value and create more jobs;(6) Young population: Develop and fully utilise the available population for maximum
benefit by investing in the development of young people to be knowledgeable and capable;
and raise the capacity and level of skills of the young people to become a viable workforce
in various production processes and to be able to contribute to national development in the
future; and (7) Information, Communication and Telecommunication (ICT) and modern
science and technology: Focus investment on research and increasingly leveraging regional
and international scientific and technological achievements in the development of
production, administration-governance work and services.
5) Encourage and strengthen local enterprises, in particular SMEs, to enable them to integrate
into and contribute to regional and international value chains, and create a conducive
environment, including the development of policies and mechanisms necessary for local
enterprises to have access to sources of capital and markets, and to increase domestic andforeign private investment, both in terms of quantity and quality, as well as to proactivelytransform SOEs into effective entities that generate revenue for the national budget andgradually accelerate progress. Explore the possibility of transforming some SOEs into joint
ventures with the private sector by ensuring a strong management mechanism.
6) Public investment reform must be effective and provide a basis for facilitating private
investment and poverty alleviation. In doing so, focus should be on identifying and selecting
projects in line with national and sectoral development priorities to ensure that investment
is not scattered in unrelated projects but targeted, transparent, agile, open and systematic, as
well as encouraging private investment in the commercial production of high potential
commodities in areas such as agriculture and agricultural processing plants, tourism, and dry
ports, among others in the provinces with the railway passing through, and utilising ODA
for targeted development.
7) Ensure targeted development of infrastructure and public utility system aimed at improving
the living standards and quality of life by developing and expanding the infrastructurenecessary to facilitate production and transportation to balance urban and rural areas, andallocate and expand production activities and small and medium-sized processing industries
to rural areas to create jobs and income for the people.

608) Proactively protect the environment, monitor and ensure timely preparedness for disasters,in particular, increase the implementation and enforcement of the relevant laws andregulations, and discipline Government organisations and economic units that violate laws
and regulations. At the same time, it is important to build and strengthen the capacity oforganisations that manage and monitor natural resources.
7.

Large-scale and Priority Projects for Outcome 1:
1. Agriculture-Forestry:• Food security and commodity production programmes for domestic consumption andexport(1) Food crops and commodity production project (New project)(2) Livestock, fish and aquafarming promotion project (New project)(3) Agricultural land management and development project (New project)(4) Irrigation and integrated irrigation systems development project (New project)(5) Production technology and organisation promotion project (New project)(6) Technical infrastructure upgrade project (machinery, mills, dryer domes, seed-sorting
mills, drying plants, wholesale-retail markets, cold storage, organic fertiliser factories,
feed mills, slaughterhouses, etc) (New project)(7) Agricultural business unit promotion project (organisational planning, business plans,
accounting, access to credit, production factors and markets) (New project)(8) Project on development of plant and animal health standards and market integration(New project)(9) Project on experimental research on agriculture, forestry and rural development (Newproject)(10) Project on development of policies and legislation to promote the production of foodand agricultural products (New project)• Human resource development programmes in agriculture, forestry and ruraldevelopment(1) Project to upgrade the capacity of sectoral staff (New project)(2) Project to develop promoters, skilled workers and agribusinesses (New project)(3) Project to upgrade and improve the curriculum in the Agriculture and Forestry College(New project)(4) Village and model family development project (New project)(5) Project to develop agricultural knowledge-information service network system
between the public sector, businesses and agricultural producers (New project)
2. Energy and mining
(1)
(2)

(3)
(4)

Construction of 26 hydropower dams (New project)
19 mining and processing projects (including coal mining project for Sekong power
plant, potash-magnesium salt mining project in Nongbok District, Khammouane
Province) (New project)
Sepon gold exploration, processing and refining project for a period of 10-20 years to
produce 250,000 ounces of gold bars per year (Ongoing project)
Construction of 500kv, 230 kv and 115 kv transmission lines, a total of 48 projects(New project)

3. Commerce
(1)
(2)
(3)

Project for the promotion and development of industrial processing for quality,
balanced, green and sustainable development (New project)
Commodity production promotion project (New product)
Lao PDR trade and competitiveness promotion project (New project)
61

(4)

MSMEs promotion and development project (New project)

4. Post and telecommunications(1)(2)

Project to encourage and support SMEs towards Digital Business Transformation(New project)
Project to promote the development of digital commerce support system (New project)

Outcome 2: Improved quality of human resources to meet development, research
capacity, science and technology needs, and create value-added production andservices
Develop quality human resources to foster national development, graduation from the Least
Developed Country status, and the realisation of the Sustainable Development Goals; take active
measures to accommodate the requirements of regional and international integration and Industrial
Revolution 4.0; promote research and apply the results of scientific research, technologies, technicalknow-how and the knowledge in socio-economic development; improve the quality of education at
all levels while creating conditions for access to education, especially in rural and remote areas; andcreate a skilled and diversified workforce according to market demand and the needs of economic
restructuring and socio-economic development.
1.

Output 1: More inclusive and better-quality healthcare services and nutrition

Continue to implement the Universal Health Coverage (UHC) policy with the primary focus
on hygiene, disease prevention, and health promotion, prioritising quality, fair and equitableprovision of treatment and universal health services, and taking a people-centred approach; ensuring
good health and promote the well-being of all people of all genders and ages, sensitising people tothe importance of maintaining a good health, the right response to health risk factors, andstrengthening primary healthcare so that people take the initiative to stay healthy; and coordinate
healthcare initiatives pertaining to hygiene, disease prevention, health promotion related totreatment and rehabilitation, and modern and traditional healthcare delivery, aiming to contribute toleading the country out of the LDC status by 2026, and realising UHC goals by 2025.
1.1. Targets and Indicators:- Reduce the prevalence of underweight among under-five children to 15%;
- Reduce the proportion of stunting among under-five children to 27%;
- Reduce the infant mortality rate to 20/1,000 live births;- Reduce the under-five mortality rate to 30/1,000 live births;- Reduce the maternal mortality rate to 110/100,000 live births;- Increase the number of births attended by skilled health personnel to 85% of the target
population;- Increase immunisation coverage for babies up to one year old to 95% of the target
population;- Increase the proportion of people with access to safe drinking water to 95% of the total
population;- Increase household improved latrine utilisation rate to 85% of all households;- Increase universal health insurance coverage rate to 96% of the total population;- Increase the accreditation rate of Model Health Village to 85% of all villages;- Increase the average life expectancy to more than 73 years.
1.2. Priority Activities:- Provide quality, universal and equitable health promotion, medical check-up, diagnosis andfunctional rehabilitation services by focusing on: (1) Upgrading and expanding hospital
facilities at all levels, including modernising all aspects of central hospitals and gradually62

transforming central and some provincial hospitals to become financially self-sufficient;improving provincial hospitals’ capacity for major surgical procedures, orthopaedic
surgeries, minimally invasive surgery, and general emergency care; upgrading community
hospitals’ capacity for caesarean delivery, and small hospitals to be able to provide regularchildbirth delivery service; study the provision of a comprehensive essential health services
package, including: maternal and child healthcare, vaccinations, reproductive health, andnutrition services consistent with the actual conditions of the hospitals at each level; in thisregard, priority should be given to the human resource aspect, particularly continuing toenhance the implementation of the 5 Goods and 1 Satisfaction policy at each level of thehealthcare facilities, along with the promotion of private investment into healthcare; (2)Support the implementation of the training programmes for health workers and medical staff
in various fields to become professional medical doctors in development focus areas andremote rural areas that lack medical staff; upgrade the knowledge of medical professors,build, improve and provide the necessary equipment for the medical schools and training
facilities, and improve the teaching-learning curriculum, integrate health reporting andsurveillance training into medical schools so that medical students know how to collect,monitor, report and enter data correctly prior to graduation and placement; and alignscientific research with the needs of the health services to enable gradual integration with
regional and international systems; and establish a harmonised coordination mechanism
between health educational institutions and hospitals, set a systematic minimum medical
knowledge and skills test in various fields such as midwifery, surveillance, immunisation,
medication, maternal and child health, communicable diseases, pharmaceutical, and data
entry in the public health database to ensure that medical staff can deliver quality healthservices in line with the EHS package at each level, and link the exam results to the medical
certification and lifelong medical training/learning system; (3) Enhance the capacity forsurveillance, diagnosis, prompt detection and response to an outbreak, risk assessment, andimproving early warning and emergency response systems with more efficient and effective
surveillance system, in particular in the case of COVID-19, to prevent and prepare for future
disease outbreaks; integrate health surveillance and epidemiological data into the Health
Information System (DHIS2), improve diagnostic capacity at the central level and at subnational (or regional) laboratories; (4) Encourage the production of medicines and basic
medical products for domestic self-sufficiency, as well as pay attention to the effective
management and promotion of the cultivation and production of medicinal plants and theuse of traditional medicine; improve monitoring and surveillance systems for food, drug andmedical product safety; standardise the prices of essential drugs, medical equipment andcosts of treatment in the essential health services package in order to be able to set the budget
for the National Health Insurance Fund; (5) Strengthen and ensure the sustainability of thehealth financial system including small hospitals; implement vertical financial management
mechanisms; centralise financial management through the one-door mechanism; increase
the budget and management responsibilities of local level authorities as per the Sam Sang
Directive to ensure that the health financial system at each level is sustainable, transparent
and consistent; use modern tools to manage revenue and expenditure at the district level;
merge social health protection schemes into a single fund; and strengthen the capacity to
manage such fund to achieve UHC goals by 2025; (6) Improve the Centre of Informationand Education for Health (including medical and health statistics, health IT system andeducation for health); integrate information between the Health Information System of the
Ministry of Health and the Civil Registration; and at the same time, seize the opportunity
during the current period of preventing, controlling and managing the outbreak of COVID19 to bring about change in the health sector, mobilise doctors and nurses, promote a vibrantwork process, as well as reform the health sector to contribute more to building healthierLao people.
63

- Nutrition: Prioritise maternal and child health and nutrition to support the growth and fulldevelopment of children as a basis for building the new generation with the ability to learn
effectively and efficiently; encourage and promote all stakeholders to participate in theimplementation of the nutrition work in a proactive and consistent manner, focusing on tasks
such as: integrating reproductive health, maternal, infant and child health, and nutrition into
the community in a participatory manner; establish a plan to work with the community todeliver health services in each period to ensure that the community can participate, and savetime and resources during such activities. Continue to implement school meal programmes
to ensure that children receive adequate nutrition necessary for their growth anddevelopment both in terms of quantity and quality on the basis of hygiene and nutrition, as
well as to building a culture of improved nutritional diets, both at home and at school;
continue to implement the educational campaign on health, hygiene, nutrition and exclusive
breastfeeding, to raise awareness and deepen understanding of the importance of maintaining
good hygiene and nutritional diet, and continue the quality expansion of accreditation anddeclaration of Model Health Villages as per the established annual targets.
2.

Output 2: Improved quality of all levels of education and conditions created for access to
education to support readiness for regional and international integration and Industry
4.0

Enhance quality of education by investing in targeted human resource development to build
human capital with high skills, knowledge, ability, revolutionary moral qualities and correct values,
patriotism, honesty, discipline, and good physical and spiritual health, and aspiration for lifelong
learning to ensure a quality, relevant and responsive workforce that meets the demands ofsustainable national economic growth, and is ready to cooperate and compete with countries in theregion. Expand the education network from early childhood education to vocational education anduniversity education at the central and local levels, including at the grassroots-level and in remoteareas; ensure equal rights in accessing education for rural residents, vulnerable groups and thosewith special needs, and pay special attention to the needs of women. Promote the use of science
tools and ICT systems in education, including digital learning.
2.1. Targets and Indicators:- Enrolment rate for 5-year-olds in pre-school education nationwide to reach at least 86% by2025;- Enrolment rate grade 1 to exceed 98%;
- Gross enrolment rate for grade 5 to reach more than 99%;
- Reduce the dropout rate for grade 1 from 6.4% to 4%;- Completion rate of primary education to reach more than 95%;
- The proportion of grade 5 students enrolled in Year 1 of lower secondary education to reachmore than 90%;
- Reduce the dropout rate of primary school students from 4.3% to 2%;- Gender parity index for transition rate from grade 5 to Year 1 of lower secondary education
to reach between 0.97-1.03;- Gross enrolment rate for Year 4 of secondary education to reach more than 74%;
- Reduce the dropout rate in lower secondary education from 10.3% to 8%;- Number of youth and those dropped out of school can have access to non-formal educationand vocational training to reach 150,000 people;- Percentage of primary and secondary school teachers having completed trainings to reach atleast 10% per year;- Percentage of lower secondary school graduates enrolled in technical and vocational schools
to reach more than 5% of the total number of lower secondary school graduates by 2025;

64

- University student enrolment in science, technology, engineering, and mathematics (STEM)
to reach 12,500 persons;- The proportion of people of all genders and ages in society practicing physical exercise,playing sports and gymnastics to reach 50% of the total population;- Increase the literacy rate of 15-24-year-olds to 91%.
2.2. Priority Activities:- Early childhood education (ECE): Invest in early childhood education, which is a key
priority to improve the quality of education along with healthcare, nutrition, sanitation,
hygiene, and children’s all-round development. This will enable children to comprehend andlearn using a range of different methods and approaches. Efforts will include cooperation
between the public and private sectors, and community involvement, including to ensure
adequate supply of nutritious food. It is also important to provide parenting knowledge andskills to parents and guardians, as well as other support measures to ensure that children are
well-prepared before formal primary school and acquire the basic skills needed to continue
their education later in life.
- Primary education: Enhance the quality of teaching and learning in primary schools,
particularly improving literacy and numeracy by increasing the knowledge, ability andenthusiasm of teachers, and the ability and ownership of school principals in school
management. Establish school clusters as centres for continuous development of the teachingprofession and technical assistance to teachers, including the establishment of a system fortechnical counselling for teachers. At the same time, attention should be given to monitoringand evaluating the performance of teachers and school principals on a regular basis in orderto recognise those who perform their duties well and find ways to support those who lackskills with clear guidelines and mechanisms. Use digital technology and innovation tofacilitate learning, including 21st century skills such as problem-solving skills, cognitive
skills, collaboration-communication, creativity and innovation skills, personal
responsibility, social skills, and understanding of international cultures.
- Secondary education: Improve the quality of teaching and learning by focusing on
upgrading the capacity of full-time teachers and assigning teachers to classes according totheir technical expertise. Provide effective lower secondary education, ensure sustainability,
and adapt to the realities of each locality. Improve the quality of upper secondary education
to encourage students who show talent and interest in a particular subject to study and delve
deeper into that subject by developing a variety of upper secondary education curricula, suchas natural sciences and social sciences; and promote the use of ICT in teaching and learning,as well as the use of digital technologies and innovations to facilitate learning, including 21st
century skills. Introduce international standards of literacy and numeracy tests to monitor
the quality of education in schools at all levels.
- Life-long learning promotion: Continue the programme to eradicate illiteracy and improveeducation for target groups, especially those aged 15-40 years, and provide basic vocational
training for people who drop out of school and the unemployed. In order to promote lifelong learning, there must be proper organisation and adequate resource commitment, andpromotion of participation from the business community to determine policies and incentives
to encourage the recruitment of graduates from public schools and vocational training
programmes, and ensure fair and socially-acceptable wages.
- Technical and Vocational Education and Training (TVET): In order to match the skills
supply with the needs of the labour market, it is necessary to cooperate with businessemployers to develop and improve consistency of TVET courses and to monitor the qualityof the courses on a regular basis ; integrate information on new graduates of TVET into thenational labour market information system; and create good facilities and a positive65

environment, provide and upgrade teaching and learning materials, tools, and machinery, as
well as internships to enable the integration of theoretical knowledge into practice. Private
sector engagement in internship programmes should be encouraged to closely link students’learning opportunities to employment. Furthermore, the important role of TVET institutions
should be further enhanced in training human resources to promote greater entrance into thelabour market while meeting the standards of the public and private sectors. It is also
important to develop education programmes so that graduates of TVET schools can continue
their studies at the tertiary level. There must be a system for classifying or ranking TVET
institutions to promote competition and improve institutional management to meet thestandard requirements. Collaboration between TVET institutions and local firms in the formof public-private partnership should also be promoted.
- Higher education: Raise the quality of the curriculum, and build research capacity on
various topics. Improve standards and credibility at the regional and international levels
through extensive collaboration with reputable institutions and universities, focusing on
developing leadership skills, language skills, and analytical and problem-solving skills.
Provide internships to prepare students for graduation and on-the-job training after
graduation. Provide scholarships for students studying in priority areas of socio-economic
development, especially in science, technology, engineering, mathematics (STEM);
strengthen the quality assurance system of higher education; create excellence in teaching
and learning, scientific research, technical services, especially in STEM and artificial
intelligence for universities; and use the results of academic performance to track students
who graduate each year as a basis for curriculum improvement, promote the use of ICT inteaching and learning and the development of artificial intelligence by setting clear andconsistent policies in line with changing circumstances, and strengthen universities togradually become financially self-sufficient.
- Teacher Development and Utilisation: In order to improve teaching quality, it is important
to develop training courses for teachers, as well as assess the professional knowledge andskills of teachers at all levels according to the professional fields. All teacher training
colleges must serve as professional development centres to support pre-service and full-timeteachers, including teacher orientation. Improve the system for creating and upgradingteachers on a regular basis by selecting those who have the talent and technical excellence
to continue their study in their field of expertise, and provide a policy to support outstanding
teachers and students; promote the use of digital technologies and innovations to support
teacher training and continuous professional development; and strengthen the link between
teacher training institutes and the university’s Faculty of Education.
- Development of Lao sports: Encourage the masses to exercise for health, promotetraditional Lao sports, as well as develop professional athletes, coaches and referees to meetregional standards; and improve, utilise and manage sports facilities at all levels to beefficient and effective.
- Development of digital learning: Promote the use of ICT in the administration of education,teaching and learning, development of teaching and learning curriculum with science andcommunication technology courses starting from the primary education level. Develop elearning tools to meet the needs of inclusive education. Encourage the development ofmodern technology courses. Transform higher education and university education towards
the use of Smart Digital Tools, expand the internet network and promote affordable internet
charges for teaching and learning purposes.

66

3.

Output 3: Workforce skills and productivity improved, and job diversification, security
and income opportunities increased to meet the demands of socio-economic development

Develop the quality of the labour force as the main productive force in socio-economic
development in the direction of industrialisation and modernisation; balance the labour force inproportion to the needs of the labour market; promote the creation of stable and diversified jobs inline with the economic sectors in both urban and rural areas; increase labour productivity and decent
income; strengthen labour relations, occupational safety and health standards to protect the rights
and interests of workers and employers; and assist and create opportunities for disadvantaged
labourers to have access to the labour market and contribute to the workforce for socio-economic
development, including by monitoring labour force numbers by type of labour, occupation, gender,
ethnicity, level of education, and disability to determine appropriate policies.
3.1. Targets and Indicators:- Train 10,000 people at skills development institutes and training centres at different levels,and provide mobile training in various skill areas to 5,000 people;- Support labour units to develop skilled labour in various areas for 25,000 people;- Test skill standards of at least 1,700 people in 32 skill areas;- Develop skills of workers in labour units to meet the national skill standards in 10 skill areas;- Promote the organisation of local level skill competitions on a more regular basis, organise
two national level competitions, participate in two ASEAN Skills Competitions and host one
ASEAN Skills Competition, and host one international level competition;- Improve seven skill development institutes and centres, through the provision of equipment,
and encourage the economic sector to invest in the building of two labour skill development
centres;- Promote the creation of jobs for 392,197 people, both at home and abroad; including for355,620 people currently outside the labour force but ready to enter, and 36,577 currently
unemployed;- Reduce the unemployment rate to 15% in 2025;- Increase the labour force to 2.69 million people or 48.3% of the working age population;- Establish and develop a labour market information system to monitor data for the 17
indicators of the labour market and the relevant indicators of Sustainable Development
Goals;- Inspect Labour Law compliance by the labour units 12,500 times; support 100 labour units
to meet the national skills standards; support 500 labour units to establish and improve
internal regulations; support 500 labour units to establish employment contracts; encourage
100 labour units to provide workers with annual health check-up; and establish occupationalsafety and health units in 100 workplaces;- Resolve and mediate 80% of reported labour disputes per year, and eliminate 100% of
hazardous child labour.
3.2. Priority Activities:- Develop a systematic labour market database to provide information for balancing andadjusting the labour force to suit the needs of the domestic and foreign labour markets, andas a basis for the development of plans for skills development and recruitment that are
tailored to the needs of the labour market;- Develop and improve infrastructure and labour skills development mechanisms through theparticipation of the public sector, private sector, labour units, development partners anddomestic and foreign investment projects to ensure a harmonised capacity building and fieldtraining process;- Focus on developing more specialised courses and standards for skills training in various
areas, as well as organise skill competitions and tests, and issue vocational certificates withspecified validity period according to the type of skills and vocational categories, with re-

67

-

-

-

-

-

-

4.

examinations required to maintain certification according to the occupational categories,
with the participation of a wide range of stakeholders;
Expand the employment service network to provide higher quality services, with a focus ontransitioning from informal employment to formal employment towards decent work
promotion, creating jobs according to the needs of the labour market and economic sector.
Emphasise the implementation of the National Rural Employment Strategy to provide jobs
for rural workers, closely linked to agricultural production, handicrafts, consumer goods,
food, small businesses, services and ecotourism, and ensure that the rural labour force
receives continuous development and access to stable jobs. Work to increase labour
productivity and income, recognizing current challenges including high levels of seasonaland household labour, migrant workers from rural to urban areas, and illegal migration toforeign countries; and set minimum wages and standards for each type of labour to protect
workers' rights and ensure decent and fair pay;
Research, develop, and improve the necessary legislation to protect and preserve jobs thatare essential to the daily life of the Lao people;
Coordinate with relevant sectors to establish mechanisms for the protection and managementof labour, including foreigners working in Lao PDR according to the needs of the required
occupations; and protect and manage labour rights in the event of a disease outbreak thatcauses a temporary closure of business units, resulting in unemployment, through theimplementation of social protection policies, Labour Law, and Social Security Law.
Strengthen the tripartite organisations in promoting labour relations by establishing a
tripartite coordination and consultation mechanism for more effective implementation of
responsibilities in accordance with their respective roles;
Promote the creation of favourable conditions and a conducive environment, such as having
regulations on the use of labour, employment contracts, decent wages and welfare, andoccupational safety and health to incentivise more workers to enter the formal labour market;
Implement labour inspections in a more comprehensive manner and in more labour units,strengthen the technical capacity and accountability of authorities, and provide adequate
associated facilities;
Improve the effectiveness of the labour dispute resolution system, protect the rights andinterests of specific workers, such as women, youth, and other disadvantaged people, forequality and non-discrimination in the workplace, and promote cooperation with the private
sector and labour units to establish labour protection and management mechanisms andpromote the implementation of the Labour Law.

Output 4: Promoting and utilising scientific research, technology, innovation andknowledge to drive socio-economic development

Develop science, technology and innovation to become a driver for national development,along with the application of technical and scientific research, technology, innovation, andknowledge-based economy and society combined with production and service processes to diversify
and create value-added products that are regionally and internationally competitive; and strengthen
the knowledge economy and green economy, making use of new technologies that are energy andraw material efficient and environmentally friendly, and linked to research and application ofadvances in science, technology and innovation in the age of the Fourth Industrial Revolution todrive national socio-economic development in the direction of the digital economy.
4.1. Targets and Indicators:- Build 8.5 scientific researchers per 10,000 people nationwide; train 160 science andtechnology researchers at the master's and doctoral levels; and train 120 social, political, andadministrative science and theories of party behaviour researchers at the master's anddoctoral levels by 2025;

68

- Public investment in research and development (R&D) in science and technology to reach
1% of the public investment budget each year; and allocate the budget of the science andtechnology research and development fund for natural and social sciences research related
to the promotion of green development and sustainable development goals to reach 30% of
the annual research budget;- Promote and encourage private sector investment, both domestic and foreign, in researchand development to reach at least 35% of the budget each year;- Establish and adopt 900 national standards, provide registration of 10,000 industrial assets
and new varieties of crops, and provide international registration of 6,000 trademarks
through the Madrid System;- Encourage use of the digital data centres across all sectors, both public and private, to reach80%;- Establish one advanced science, technology, and innovation development zone by 2025.
4.2. Priority Activities:- Develop a strategy for the development of science, technology, and innovation in the age ofIndustrial Revolution 4.0, and establish policies, legislation and mechanisms to promote thework of science, technology, innovation, innovation funds and intellectual property
protection, as well as appropriate standards and measurements aiming to promote innovationin the Industry 4.0 era;
- Develop researchers, scientists, specialists, entrepreneurs, and workers from both the public
and private sectors in a targeted manner;- Promote harmonious coordination with universities and educational-research institutes, andpromote cooperation with the private sectors with potential for scientific research anddevelopment, technology and innovation, as well as promote the application of research
results to develop diversified products and create added value;- Promote research and the use of ICT innovations that are beneficial to socio-economic
development;- Promote social, economic, and theoretical-behavioural research, and research on politicaladministrative teaching programmes to establish a theoretical basis for teaching andformulating development policies in each period;- Research and develop the transfer of technological innovations into production and service
processes by establishing a centre for the transfer and exchange of information, and sharingof best practices in science, technology and innovation to promote the knowledge-based
economy and society, and strengthen start-up businesses and SMEs.
5.

Large-Scale and Priority Projects for Outcome 2:
1. Health
(1)
(2)
(3)
(4)
(5)
(6)
(7)

Project for Sustainable Development and Quality Assurance of Healthcare Professionals
in Lao PDR (JICA) (Ongoing project)
Project for Improving Xaysettha Hospital and Champassak Provincial Hospital (JICA)(Ongoing project)
Construction of a 400-bed University Hospital building project in Dongphosy (Loanfrom EDCF) (Ongoing project)
Construction of Hospitals in four Southern Provinces, Ministry of Health (EDCF)(Ongoing project)
Savannakhet Provincial Hospital construction project (EDCF) (Ongoing project)
Xaysomboun Provincial Hospital upgrading project (New project)
Project for health administration, college of health sciences, training of medical
specialists, provision of equipment and vehicles for hospitals and schools in Saravan
Province, construction of a new hospital building in Sayaboury Province, and69

construction of a new medical treatment administration building in Khammouane
Province (New project)(8) Access to health and nutrition services project (New project)(9) Quality health care project (New project)(10) Construction of the Faculty of Medicine of the University of Health Sciences (Newproject)
2. Education
(1)
(2)
(3)
(4)
(5)
(6)
(7)

School construction and renovation projects across the country (New project)High school student dormitory construction project (New project)
Laboratory construction project (New project)
School sanitation facility construction project (New project)
Project for improvement of eight teacher training colleges (JICA) (New project)
Project for improving the facility and laboratory equipment in the Faculty ofEngineering, National University of Laos (JICA) (New project)
Project for strengthening human resource development of engineering and technology
for industry development in Lao PDR (JICA) (New project)

3. Labour skills development
(1)

(2)
(3)
(4)

Project for labour skills development in the target groups of people outside the labour
force and the unemployed entering the labour market according to the economic sectors(New project)
National, regional and international skill competition programmes (New project)
Skills development infrastructure construction and development projects in Attapeu,
Savannakhet, Oudomxay, Sayaboury and Champassak provinces (New project)
Project for improving and developing the labour market information system (Newproject)

4. Science and technology(1)

Project for developing and improving the laws of the science and technology sector(New project)(2) Project for developing a 10-year strategy for science and technology personnel
development (2021-2030) (New project)(3) Project to research, promote and strengthen the quality of priority products and goodsin accordance with national, regional and international standards for export throughout
the country (New project)(4) Project for introducing intellectual property rights into the commodity production
process in the registration of geographical places of origin of durians and cardamoms
and the creation of trademarks and collective trademarks in Champassak and Sekong
provinces (New project)(5) Project to promote the use of solar energy to provide clean water to rural communities(New project)(6) Project to research on techniques for mulberry cultivation, silkworm raising andpropagation, and sustainable production promotion(7) Project to test plant nutrient in soil and water in agricultural areas in eight provinces(Vientiane Capital, Vientiane Province, Xiengkhuang, Khammouane, Savannakhet,
Champassak and Saravan) (New project)(8) Laos-China Hi-Tech Park development cooperation project (New project)(9) Project to establish a centre for scientific research and analysis and technology for Lao
PDR (LAO-NFEC) (New project)(10) Information technology security consulting centre project (New project)70(11) Project to build a Disaster Recovery Site to improve the security and quality of digital
data centre services (New project)(12) Certification Authorities (CA) system development project for CA Service Providers(New project)(13) Software Park development project (New project)

Outcome 3: Enhanced well-being of the people
While poverty reduction has been driven by growth in labour income, improvements in
education, and enhanced access to opportunities, the poverty rate in Lao PDR is now expected toincrease to 21.5% due to the impact of COVID-19. Moreover, the decline in poverty was also
accompanied by an increase in income inequalities. Poverty reduction has not been commensurate withGDP growth: a 1% growth in GDP led to only a 0.4% reduction in poverty, which went up to 0.67% in
2018-2019. The resource-driven growth seen in Lao PDR has been capital-intensive, limiting largescale creation of jobs, and a vast majority of households remain economically insecure. The
development of human capital in Lao PDR has tended to be unequal across locations, gender andethnicities. As measured by Gini coefficient, inequality increased from 36.0 to 38.8 in 2018 and2019
respectively.
Poverty also varies widely between the urban and rural areas and across regions and ethnic
groups. Poverty in rural areas was more than three times higher than in urban areas in 2018-2019. In
recent years, northern and southern provinces have shown a significant decline in poverty, while thecentral regions have now stagnated and show the highest incidence of poverty at 21.5%, compared with
20.7% in the northern region and 17.7% in the southern region. Poverty reduction has been slower
among non-dominant ethnic groups.
To address poverty and development disparities in Lao PDR, the Government's development
efforts will focus on the poorest to ensure sustainable livelihoods by evenly distributing income andproviding social protection to all groups of people, especially vulnerable groups and those affected by
COVID-19 and other shocks. To do so, six key Outputs have been identified as follows:1.

Output 1: Poverty alleviated in rural and remote areas, and people’s livelihoods, culturalvalues, and media work improved

Continue to develop rural areas and alleviate poverty in a comprehensive manner inaccordance with the Sam Sang Directive, and establish new rural areas by promoting the productionof goods, access to finance, production systems, markets, personnel, resources (land, forests andnon-timber forest products), agricultural information, social services (education and health, cleanwater and sanitation), and rural finance; promote skills development and advanced technicalcapacities to increase productivity, in conjunction with rural settlement and stable occupations
development; and develop infrastructure to facilitate production and improve people’s livelihoods,
and develop human resources and the public health system.
Preserve, protect, and enhance the cultural heritage of the nation and ethnic communities ina sustainable manner, enhance material and spiritual values in Lao society, and promote theprogressive cultural values of humanity to create diversity and socio-economic values. Promote
media development to be high quality, modern, agile and up-to-date in order to act as the capable
voice of the Party and the State in the comprehensive and extensive implementation of the Party andGovernment guidelines and policies in each period from the central to the local level.
1.1. Targets and Indicators:- Based on the results of the 6th Lao Expenditure and Consumption Survey (LECS6), reduce
the poverty rate to 13.9% of the total population, and reduce the rate of poor households to
9.5% of all households;
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- Based on the Decree No. 348/PM on Well-being Criteria and Development Criteria:+ Increase the number of families lifted out of poverty by 204,360 families (from 964,149
to 1,168,509 families);+ Increase the number of villages lifted out of poverty by 3,104 villages (from 4,792 to
7,896 villages)+ Increase the number of districts lifted out of poverty by 69 districts (from 53 to 122
districts)+ Increase the number of Developed Families by 245,754 families (from 736,996 to
982,750 households)+ Increase the number of Developed Villages by 4,420 villages (from 747 to 5,167 villages);+ Build 10 large villages into small towns in rural areas- Provide resettlement and stable occupations for people in 25 target areas;- Expand the Village Development Fund of 500 million kip per poor district to 64 othervillages;- Establish three modern ICT centres at the local level;- Build and expand radio transmitting stations at the district level in 36 stations and expand
radio broadcast speakers in 2,800 villages;- Expand the transition from the analogue system to the digital system in 22 stations
nationwide;- Nominate 130,000 Cultural Families and 750 Cultural Villages;- Continue to nominate natural heritage, (Hin Nam No National Park in Khammouane
Province) to UNESCO’s World Heritage List; four types of cultural heritage (traditional
handicraft knowledge, traditional Lam Vong Dance, Baci ceremony and midwifery) to thelist of Cultural Heritage of Humanity and three types of historical heritage (pictures ofhistory and culture, traditional bookbinding and Buddhist works in promoting legacy andmemory of the past to world community.
- Survey, collect information and register cultural heritage: survey 35 archaeological sites andexcavate five sites; register ancient artefacts and Buddha images in five sites; register andupgrade 20 cultural, historical and natural heritage sites from the local level to be listed at
the national level and register five ancient Buddhist sites.
1.2. Priority Activities:
Rural development and poverty alleviation:- Continue to develop rural infrastructure in the focus areas of rural development and address
the issue of poverty by providing the necessary infrastructure, such as expanding roads,
bridges and transportation systems to reach the villages and the centre of each focus area,
and connect all villages to the national infrastructure; expand telecommunication and postal
systems; expand the power transmission network, both grid-connected and off-grid energy
technologies, to rural and remote areas; expand the coverage and quality of education toensure that all focus areas have secondary education that is easily accessible; improve andexpand the provision of health services to rural and remote mountainous areas, so that all
type-A health centres are provided with experienced senior doctors and adequate medical
equipment to ensure primary care and treatment services and remote villages have home
medical kits; and focus on completing the survey, design and layout planning of big villages
to create economic and socio-cultural centres in the focus areas and the new allocated areasof localities and the government.
- Continue to provide the fundamentals of permanent settlements and secure livelihoods forthe people in target areas, and address the problem of illegal and scattered relocation.
- Focus on efforts to help families without a permanent settlement, without a permanent
location for livelihoods, without a stable job, and living in small scattered villages in slashand-burn areas with poor conditions for sustainable development, and target villages affected72

by development projects by relocating to a suitable area, or consolidating neighbouring
hamlets into big villages, focusing on allocating land (within the locality without any
relocation), and carry out inter-provincial arrangements as needed with careful planning.
- Continue implementing the Poverty Reduction Fund and the border development fund;- Promote private sector investment related to rural development and poverty alleviation;- Improve technical centres and provide technical support in the areas of production, value
chain, and business operation.
Information and culture:- Improve and upgrade the technical structure for the production of television news, radio
broadcasts, newspapers and new integrated media, and continue to expand the transition
from analogue digital systems nationwide;- Develop diverse and quality television and radio programming, new media and newspapers,
including news and opinion columns;- Systematically establish and expand stations and network for cable and digital television
signal transmission, and expand the radio broadcast speaker system;- Develop software and systems for sending and receiving information on print and electronic
media between the central and local levels in a smooth, fast and secure manner;- Establish media centres to manage and provide services throughout the country;- Improve cooperation mechanisms, including coordination with local and foreign enterprises
to develop quality, diverse and modern media products;- Restore cultural heritage, improve the National Library database, and survey and collectartefacts for display in the National Museum;- Improve and enhance the process of building new Cultural Families and Villages in close
connection with the development of new life plans and moral values of the society on thebasis of inheriting the fine traditions of the local communities.
2.

Output 2: Public utility infrastructure improved and access to public services made more
inclusive and equitable

In order to reduce the gap in access to infrastructure and essential public services, it isnecessary to increase investment in the construction and improvement of public utility service
infrastructure, and to promote the creation of sustainable jobs in rural areas through the participationof the private sector and society as a whole.
2.1 Targets and Indicators:- Increase the electricity access rate to 98% (an increase of 3 percentage points) of total
households in the country, of which, the grid system should expand by 2.26 percentage
points (28,000 households) and the off-grid system by 0.74 percentage points (more than
9,000 households);- Complete the electricity grid expansion in three provinces (Phongsaly, Huaphanh and
Sekong), which currently have the lowest electricity consumption rates in the country;- - 90% of all village clusters (households) have all-year road access;- 98% of all families have access to public health care services;- - Reduce the maternal mortality rate in rural areas by 30%;
- - Reduce the infant mortality rate in rural areas by 30%.

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2.2 Priority Activities:
Gradually reduce the urban-rural disparity in terms of people’s incomes, access to
infrastructure and essential public services by prioritising: continuing to improve infrastructure
where it is most needed and lacking, especially rural roads, improving access to electricity
consumption in rural areas in different ways by extending transmission lines with the single-wire
earth return (SWER) system, expanding solar power into remote areas where the power grid systemcannot reach, expanding telecommunication systems, water supply, schools, hospitals, small
hospitals, production areas and other essential public services. Continue to mobilise and engage
people to contribute to the socio-economic development process as well as rural development andpoverty alleviation efforts in a proactive manner, closely linked to the production process to ensure
food security, commercial production, and agro-processing.
3.

Output 3: Equal access to socio-economic development opportunities promoted and therights of women and children protected

Advance the capacity of women and children to enable their contribution to socio-economic
development, along with protecting the rights and interests of women, children, and ethnic groups
by providing the necessary assistance or essential support to improve their livelihoods andpromoting broader social participation.
3.1 Targets and Indicators:+ Promotion and advancement of gender equality:
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Reduce the Gender Inequality Index from 0.459 in 2019 to 0.430 in 2025;
Increase the Gender Equality Index from 0.927 in 2019 to 0.984 in 2025;
Increase the Gender Development Index from 0.589 in 2019 to 0.675 in 2025;
Reduce the rate of women being abused by their intimate partner (physical, sexual or
psychological), from 30.3% to 15%;
Promote and create conditions for women to take up leadership and management
positions at various levels, reach an average of 20%:
• Women to account for 30% or more of members of the National Assembly andProvincial People’s Assembly;• Women to account for 30% or more in leadership positions at the central level;• Women to account for 20% or more in leadership positions at the provincial andVientiane Capital level;• Women to account for 20% or more in leadership positions at the district level;• Women to account for 10% or more in leadership positions at the village level;• Women to account for 50% or more of civil servants;
Increased access to legal, health and social services for female victims of violence from
2% to 20%;
The proportion of women who have experienced domestic violence in their lifetime to be
reduced from 15.3% to 6%;
80% of women aged 15 and over can participate in the dissemination of state policy
guidelines, the constitution, laws and conventions related to women and children,
development plans, and historical and cultural heritage;
50% of district and provincial women’s unions receive capacity building on counsellingfor women and children; and women and children at risk and victims are protected by thelaw and have greater access to justice, and child marriage is prevented and reduced;
1,500 poor and disadvantaged women in the provincial Women's Unions receive shortterm and long-term vocational training;
Expand the organisation and membership of the Women's Unions in the business sector(business units with women accounting for 50% or more) to reach 20%.
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+ Promotion of children's rights and development:- Prevalence of multidimensional deprivation among children, based on the national
definition of multidimensional child poverty, to be reduced to 30% in each province;- Early marriage among adolescents under 15-19 years of age, for girls to be reduced from
23.5% to 20%, and for boys to be reduced from 5.9% to 3%;- Reduce violence against children:• Physical violence among girls to be reduced from 15% to 10% and among boys from
16.9% to 10%;
• Psychological violence among girls to be reduced from 24.2% to 20% and among boys
from 17.7% to 12%;
• Sexual violence among girls to be reduced from 7.3% to 4% and among boys from
12% to 8%.
3.2 Priority Activities:+ Promoting and creating opportunities for women and children:- Research and disseminate state policy guidelines, the Constitution, laws and conventions,development plans and historical and cultural heritage, related to the development andprotection of rights and interests of women and children;- Expand the membership of the Lao Women’s Union to cover all areas of work, andstrengthen the capacity of female leadership and management staff and successor staff;- Coordinate with relevant parties to create conditions for women staff members to participate
in upgrading professional skills, and political ideology training;- Prevent and combat violence against women and children, trafficking in persons and earlymarriage among female children; strengthen, monitor and evaluate the work of counsellingand protection of women and children with problems in the family and society; and improveand expand hotline services on violence against women and children;- Reduce multidimensional deprivation among children (nutrition, health, child protection,
hygiene, housing, early childhood development, education, information);- Coordinate with all parties to integrate gender equality into development plans, programmes,
projects and activities to promote and create gender equality in all areas;- Strengthen mechanisms to monitor, promote and enforce laws related to gender equality, theConvention on the Elimination of All Forms of Discrimination against Women (CEDAW)
and the Convention on the Rights of the Child (CRC);- Strengthen the mechanisms for effective assistance to survivors of violence in the social andhealthcare sectors;- Strengthen the creation and use of gender equality statistics for all sectors and localities;- Raise awareness about gender equality among politicians, members of parliament, industry
leaders, lawyers, youth, parents, guardians, community leaders and civil servants to enhance
understanding of the importance of gender equality, CEDAW, temporary special measures,and to apply the knowledge of gender equality into the development of laws related to therights of women and children and the implementation of gender equality in the family,community, and society;- Encourage women and children to receive vocational and technical training such as:
agricultural production, farming, animal husbandry, handicrafts, financial services, business
management, banking, taxation, laws and business regulations, as well as research andformulate policies on access to finance and women’s entrepreneurship to contribute to socioeconomic development;- Promote the development of adolescents and girls through various policies and measures,such as the “Noi 2030 Framework” to mobilise all parties to increase investment inadolescent girls of childbearing age; raise girls’ awareness of their value in development;

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4.

and promote the role of women in urban and rural settings to contribute to development by
reducing the pay gap between men and women;
Build resilience for women and children through humanitarian assistance, including
resilience against COVID-19, climate change preparedness and emergency response;
Continue to implement the Convention on the Elimination of All Forms of Discrimination
against Women, the Convention on the Rights of the Child and Lao PDR's commitment to
the promotion of children's rights under the theme "Unleashing the Unlimited Potential of
the Lao Generation 2030", as well as the Beijing Declaration and Action Plan;
Improve the gender and ethnic balance of personnel at all levels;
Promote the participation of women in planning, monitoring, and implementing programmes
and projects related to socio-economic development, including capacity building for women.
Ensure the participation of children and women in urban development plans to create better
employment opportunities.

Output 4: Promote and develop youth to improve human capital and participation in theworkforce
4.1. Targets and Indicators:- Provide vocational training and create jobs for youths, especially young people in remoterural areas, the poor and disadvantaged in the fields of motorcycle and automobile repair,electrician, welder, tailor, beautician, agriculture and animal husbandry to increase by 20%
each year (organised through the Lao People’s Revolutionary Youth Union);- Increase provision of counselling to depressed and discouraged young people, or thoseexperiencing other problems to 15% of the youth population;- Disseminate laws and policies to young people across the country;- Conduct awareness raising in schools starting from the primary education level across thecountry;- Provide technical training and training on youth work for youth workers and personnel
across the country once a year.
4.2. Priority Activities:- Advocate and disseminate Lao Youth Union Law and National Youth Development Strategy(2021-2030);- Raise awareness among youth and adolescents to recognise, understand and actively
participate in priority activities such as education and sports, health, vocational
development, labour force, cultural heritage protection, especially the preservation of theunique style of the traditional Lao houses, traditional clothing and the way of life of thepeople of all ethnic groups, information consumption, the environment and protection of thelegitimate rights and interests of youth and adolescents;- Youth and adolescents in remote areas and rural communities have jobs and improved skills
in doing business to generate income for their families;- Promote career opportunities and create more jobs in the formal sector;- Improve the capacity of personnel of the Lao People's Revolutionary Youth Union and otherorganisations to be able to develop and implement various youth programmes;- Increase the capacity of Lao youth nationwide to actively participate in local development
and socio-economic development;- Provide counselling for young people who feel depressed, discouraged, lacking clear
direction, or experiencing other problems;- Promote youth-adolescent talent development by giving them a platform to express theirtalent so that the society, families, the Party, the State, and the people recognise the potentialof youth and adolescents;

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5.

Promote youth health by providing knowledge about reproductive health, sex education,
HIV/AIDs, and harmful effects of substance abuse. Create opportunities for young people
to be more involved in decision-making processes with regards to their health.

Output 5: Expand access to more efficient social protection services for the people,
including workers and self-employed individuals

Implement the National Social Protection Strategy 2025, focusing on strengthening theefficiency of the social protection system to expand social security coverage for workers covering
a wide range of target groups, providing access to social security services through contributory
schemes, and improving management and administration mechanisms to ensure the sustainabilityof the National Social Security Fund to be able to meet the payments of benefits and provide quality
and transparent services.
Improve the social welfare system so that those who contributed to the national revolutionary cause
and disadvantaged people, such as children with special needs, the disabled and the elderly have access tomore efficient social welfare services, as well as promote wider social participation.
Improve the social welfare schemes to be able to provide aid and relief services to the poorand disaster victims, including by promoting broad social participation.
5.1 Targets and Indicators:- Improve the audit of income-expenditure management of the National Social Security Fundin accordance with laws and regulations to be conducted twice a year;- Expand social security coverage to 1,275 new additional enterprises;- Expand social protection coverage to 157,500 people, of which 7,500 public sector workers,
135,000 private sector workers, and 15,000 voluntary participants (informal sector workers);- Provide various types of social security benefits to 479,633 people, of which 198,321 public
sector workers, and 283,312 private sector workers and voluntary participants;- Collect social protection contributions amounting to LAK10,630 billion, of which
LAK7,902 billion from the public sector, and LAK2,728 billion from the private sector andvoluntary participants; implement LAK9,461 billion in expenditure on benefit payments andadministration, of which LAK7,891 billion for the public sector, and LAK1,569 billion forthe private sector and voluntary participants; and by 2025, aim to achieve total social security
fund reserves of LAK2,810 billion, with an increase in investment expected to yield about
LAK602 billion;- Implement the welfare policy for 16,000 people who contributed to the national
revolutionary cause in the five priority target groups to reach 15,000 people and the generalgroup to reach 1,000 people, with a projected total budget of LAK418.82 billion;- Provide benefits to 950 disabled war veterans who rendered their services to the national
revolution;- Establish a database system for the implementation of policies for those who havecontributed to the national revolutionary cause at the central and local levels;- Establish a central database system to record information about the disabled and the elderly
to be installed in 18 provinces across the country;- Quality of life is improved for 2,000 people with disabilities and 800 elderly people;- Expand Child Protection and Assistance Committees at the district level in 35 districts andat the village level in 500 villages, as well as provide training on child protection andassistance to at least 500 people, an average of 100 people per year;- Provide funding contribution for childcare in SOS Children’s Villages to reach 1,003
children, including 444 girls;- Provide support to 2,000 children with special needs, pregnant women and children in thefirst 1,000 days of life;- Establish one Laos-Thailand Friendship Social Development Centre;77

- Upgrade two donation consumer goods warehouses, one in Vientiane Capital and one inChampassak Province, and construct one new warehouse in Oudomxay Province;- Support the establishment of social welfare funds in 23 poor districts;- Mobilise and collect 364,400 blood donations, of which 151,530 are to be donated at the
National Blood Transfusion Centre and 211,870 at the local level;- Provide food to 4,656 disaster victim families in Sanamxay District, Attapeu Province,
provide food to disaster victims, the poor and the socially disadvantaged across the country
to reach 210,000 people per year; and provide consumer goods and supplies for 4,000 people
per year, subsidise the construction of houses for 500 families per year and improve theliving standards of 100 people per year.
5.2 Priority Activities:- Strengthen the social security system so that workers have access to expanded insurance
services and cost-effective social security services without financial hardship, and eligible
family members can access services through payment of contributions;- Expand social security coverage for workers in various target groups, focusing on workers
at registered enterprises at the national and local levels, and self-employed workers in theformal economic sector;- Establish mechanisms to encourage and facilitate workers in the informal sector in various
occupational groups at the local level to participate in the social security system voluntarily
and ensure that they are offered benefits appropriate to their specific needs;- Improve the mechanism for the management and administration of the National Social
Security Fund to be sustainable and able to implement the payment of various benefits ineach period and provide quality, prompt, transparent and auditable services;- Improve the quality and system of the social security service network at the district level, as
well as establish a mechanism for inspecting social security work in a systematic andeffective manner;- Promote participation in social security by conducting effective and broad social protection
public relations campaigns to make employers and workers, including self-employedworkers, aware of their rights and the benefits under the social security schemes;- Conduct actuarial studies to ensure sufficient fund reserves and improvements according to
the results of the actuarial assessments to ensure sustainability of the National Social
Security Fund; and implement the necessary arrangements to allow contributions to thesocial security fund to be collected through the banking system and ensure the collection ofsocial security contributions and sustainability of the National Social Security Fund;- Establish an insurance system for small farmers;- Implement welfare policy to recognise the virtues of those who contributed to the national
revolutionary cause according to the various target groups, prioritising the priority target
groups, improve the information database to be systematic and accurate, and allocate morebudget for implementation, as well as encourage the participation of society at large;- Protect the rights and interests of persons with disabilities and the elderly in accordance withthe law and to be in line with regional and international standards, as well as improve thelivelihoods of persons with disabilities and the elderly through broader participation ofsociety at large;- Ensure the participation of disadvantaged groups and people with disabilities in urban
development planning to create employment opportunities, and study, improve and build
appropriate infrastructure that can be used by all, including the elderly;- Strengthen work on child protection to increase efficiency and enable the provision ofservices or assistance to children with special needs, children at risk of human trafficking,and encourage greater social participation;- Coordinate with international non-governmental organisations (INGOs) and civil society
organisations (CSOs) to participate in the effective implementation of social welfare work;78

- Continue to strengthen the implementation of humanitarian work, focusing on the promotionof safe blood donation and blood transfusion, early relief support, primary healthcare
promotion, first aid support, and emergency rescue with wider public engagement.
6.

Output 6: Unexploded Ordnance (UXO) clearance progressively accelerated and more
lives made safe from UXO

Unexploded ordnance (UXO) contamination in Lao PDR is a priority issue to be tackledwith important implications for poverty alleviation, land use for agricultural production, habitation,
tourism or land use to access natural resources, thus posing a major challenge to socio-economic
development and continuing to be a threat to lives. Over the years, despite the progress made by therelevant stakeholders in clearing UXO from agricultural land, construction land and otherdevelopment project areas, it is evident that the areas cleared of UXO so far are not sufficient tomeet the rising needs and demands of the people and socio-economic development, due to limited
resources, capital and technical capacity. It is therefore necessary to develop a long-term strategy
for UXO clearance, and strengthen the sustainability, ownership and capacity of the UXO clearance
sector.
6.1 Targets and Indicators:- Undertake mine risk education to inform communities about the risks and safe practices
associated with UXO in 3,000 target villages and roll out the UXO curriculum in 500 schools
to reduce the number of UXO casualties to less than 40 persons per year;- Conduct non-technical surveys to identify confirmed hazardous areas (CHA) in 2,776
villages, and technical surveys to identify CHA on 250,000 hectares, an average of 50,000
hectares of land per year;- Clear UXO on 50,000 hectares of agricultural land, community areas and economic centres,
an average of 10,000 hectares of land per year;- Provide assistance to 5,760 victims of UXO, out of a total of 9,607 victims, in medical
treatment, psychological support, healthcare and rehabilitation, vocational training andemployment opportunities; of these, provide medical treatment to 250 people, provide
psychological support to 250 people, provide rehabilitation to 750 people, provide vocationaland on-the-job training to 2,010 people, and raise awareness on the rights of people withdisabilities for 2,500 people.
6.2 Priority Activities:
Continue to address the issue of UXO so that people can live their lives safe from UXO andSustainable Development Goals can be achieved by focusing on:- Disseminating mine risk education to the wider community and providing timely assistanceto victims so that they can continue their livelihoods and contribute to development;- Conducting more non-technical and technical surveys and increasing UXO clearance
operations;- Strengthening UXO clearance agencies in terms of technical capacity, coordination,effective planning and responsibility of each sector; and increasing mobilisation of domestic
and foreign financial support;- Increasing coordination between the government and civil society organisations, which play
an important role in assisting the government in the implementation of UXO clearance.
7.

Large-Scale and Priority Projects for Outcome 3:
(1)
(2)
(3)
(4)

Rural infrastructure development for poverty alleviation project, Phase 1 (Ongoingproject)
Local Development Programme (Luxembourg) (Ongoing project)
UXO Clearance Project (Ongoing project)
Rural infrastructure development for poverty alleviation project, Phase 2 (New project)
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(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)

Rural infrastructure development project (public infrastructure, access road to production
sites) (New project)
Project on allocation of production areas and occupations to generate income for thepeople (New project)
Project for village development and formation of big villages into small towns in rural
areas in accordance with the Decree No. 348 /GO (New project)
Project to promote integrated agricultural production to guarantee food security andnutrition and generate income for people of all ethnic groups (New project)
Enhancing Social and Economic Opportunities for Youth in Lao PDR (UNDP) (Ongoingproject)
Occupation promotion programme for the elderly (Ongoing project)
Project to promote the elimination of hazardous child labour (New project)
Gender promotion and women’s development project
Project to improve and expand the network for women and children counselling (Newproject)
Project on prevention and elimination of violence against women for mainstreaming
gender into the national development agenda in Lao PDR (Ongoing project)

Outcome 4: Environmental protection enhanced and disaster risks reduced
Socio-economic development must be associated with the protection of the environment inline with the direction of green and sustainable development in order to improve the living standardsof people in urban and rural areas through strong cooperation and coordination between the public
sector, private sector, and all relevant stakeholders for efficient, effective and sustainable use ofnatural resources, and to ensure the maximum benefit of the country and its people, in particular the
benefits from forest-carbon trading through green budgeting initiatives. In this context, it isimportant to improve legislation and management of the use of land and natural resources to ensure thesustainability of investment projects and the management of pollution and waste, identify measures andconditions to build climate resilience through adaptation and mitigations, promote green growth throughtargeted investments in green sectors, which will help diversification and shifting towards a more circular
economy, and focus on tackling climate change by reducing pollution and greenhouse gas (GHG)
emissions, along with defining a climate change response strategy, and strengthening natural
disaster preparedness and timely emergency response.
1.

Output 1: Natural resources sustainably used and managed
1.1. Targets and Indicators:- Increase forestland to 70% and increase forest cover to no less than 70% of the total landarea by 2025;- Develop five national conservation forests into national parks by 2025 (Xe Pian, Dong Hua
Sao, Phu Khao Kuay, Nam Kan and Nam Kading conservation forests);- Review and re-evaluate investment models for the conservation and restoration of forests,
such as water source forests, with the participation of the public and private sectors and thecommunities in the form of the Namkat Yorla Pa model in order to expand and replicate themodel, particularly the areas of water source forests and biodiversity protection areas, while
promoting ecotourism in a sustainable manner;- Develop comprehensive plans for land allocation and management of natural resources andthe environment at the provincial level to be completed in all provinces and Vientiane
Capital, focusing on the successful and effective implementation of the Land Law;
- Register and issue 1.6 million land titles nationwide, as well as modernise the land
management system;80

- Plant trees on 200,000 hectares of land for commercial production and to guarantee thesupply of raw materials to industries;- Rehabilitate 1,800,000 hectares of forest;- Build at least nine air quality monitoring stations across the country;- Develop management plans for 14 large-scale river basins and provincial river basins to becompleted across the country.
1.2. Priority Activities:- Water resources management and use: Ensure the use of water resources in socio-economic
development for maximum benefit and sustainability, including uses such as for people’s
consumption, hygiene and health, production, fisheries, power generation, and industrial
consumption, among others. Therefore, in order to ensure the sufficient, efficient, effective
and sustainable use of water, it is necessary to focus on managing and conserving water
sources by promoting the establishment of coordination mechanisms for participatory
management, allocation and use of water by various sectors and localities, including peopleof all ethnicities and all sectors of society; protect and improve the quality of upstream
forests/water sources associated with river basins by implementing the National Water andWater Resources Management Strategy, and river basin management plans; protect, improveand expand natural catchments (streams, ponds, canals, lakes) and man-made water sources
to make them more efficient and sustainable; and protect water quality and develop
management plans to allocate and use water and water resources efficiently, effectively andsustainably. Additionally, improve and invest in the necessary and low-cost infrastructure for thecollection and treatment of wastewater in urban and rural areas, and establish strategies andpolicies at the national and local levels to encourage effective investment in appropriate sanitation
services.
- Pollution control: Support the improvement and efficiency of the pollution management
system, focusing on: continuing to develop, improve and implement the relevant laws andregulations in a more efficient, effective and competent manner; conduct environmental
quality monitoring, especially water and air quality (PM 2.5), establish a database systemand collect information on sources of emissions, toxic chemicals, hazardous wastes and otherwastes to control, monitor and measure pollution levels and formulate relevant policies.
Encourage industrial plants, businesses and consumers at all levels to manage and utilise waste
more by creating incentives and social activities to raise awareness and promote shared
responsibility, address air pollution, strengthen capacity to address the problem of pollution causedby the use of plastics; and develop legislation and regulations on chemical residues, especially inthe agricultural sector related to the use of pesticides. Encourage and implement measures toreduce and prevent forest fires, and haze from slash-and-burn agricultural practices at all
hotspots nationwide; and build capacity for sectoral and local staff.
- Forest resources management and use: Focus on establishing mechanisms for developing
and implementing plans for participatory forest management, protection and use of relevant
sectors at the central and local levels; survey, classify and demarcate forest areas andcategories to be completed as soon as possible, as well as monitor the management and useof each category of forest; promote the sustainable management, protection and use ofcommunity forests in order to reduce degraded forest areas; promote and encourage domestic
and foreign private investment in afforestation or planting various tree species in barren anddegraded forestland areas to expand forest cover for climate change mitigation purposes andto meet the needs of the wood processing and export industries to boost economic growth,
create jobs, reduce poverty and improve people’s livelihoods.
- Land management and use: Develop sectoral and local land use strategies and land use
master plans, complete the issuance of land titles nationwide and complete the modernisationof land title information management system; encourage the development of comprehensive
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land allocation, natural resources and environmental management plans at the provincial
level to be completed nationwide. Allocate land for clean agriculture and sustainable organic
farming, sustainable industrial production, and climate change mitigation and resiliencethrough afforestation or agroforestry.
- Biodiversity management: Protect biodiversity and ecosystems which both have economic value
and are vital for the stabilisation of habitats and species' ecosystems, by promoting eco-tourism,
developing national parks and protecting biodiversity hotspots that will reinforce economic
opportunities and reduce the risk of disease outbreaks. Pilot the development of a natural
resource and environmental inventory model in Phou Chom Voy Provincial Protected Area
as a basis for assessing the sustainable management and use of natural resources, as well as
undertaking measures to manage and reduce the conflict between biodiversity and wildlife
conservation and socio-economic development.
- Environmental safeguards: Develop, improve and support the implementation of subordinate
legislation related to the protection, management and promotion of public participation inenvironmental protection; develop action plans, manuals and environmental guidelines;
conduct Strategic Environmental Assessment (SEA); Environmental Impact Assessment(EIA); and Socio-Economic Impact Assessment (SEIA); and strengthen the monitoring ofinvestment projects.
2.

Output 2: Green growth promoted and actions taken towards climate change mitigation
2.1. Targets and Indicators:- Study the feasibility of developing a plan to reduce greenhouse gas emissions to a level thatis in balance with absorption capacity, moving towards net-zero greenhouse gas emissions(Net Zero Emission Plan 2050);- Reduce greenhouse gas emissions from deforestation to about 30 million tonnes of carbon
dioxide equivalent (tC02e) and sell forest carbon credits worth at least USD 95 million;- Develop a new Nationally Determined Contribution (NDC) and the National Adaptation
Programme of Action (NAPA);- Energy efficiency standards and codes for electrical equipment are established;- Implement strategies to promote the use of clean energy in the transportation sector to reach
14% of the use of vehicles nationwide;- Build more than 100 charging stations/bio-fuel stations nationwide (20 stations in thenorthern region, 50 stations in the central region and 30 stations in the southern region);- Build and improve standardised landfill infrastructure across the country, including at least
five locations in major cities.
2.2. Priority Activities:(1) Green growth: Promote targeted green investments in line with the green and sustainable direction
to reduce dependence on natural resource extraction, which will contribute to economic
diversification and growth. Study policies and regulations to mainstream green budgeting in thenational and sectoral budgets. Create incentives for both domestic and foreign private investmentin priority sectors with green growth potential.
- Circular economy: Economic growth must go hand in hand with sustainable, efficient andeffective use of natural resources by ensuring the lifespan and quality of products incompliance with the concept of circular economy aimed at reducing, reusing, and recycling
to create added value. For Lao PDR, potential sectors to employ circular economy include
nature-based tourism, possibilities for promoting algae farming in hydropower reservoirs forbiofuel, fish oil and fertiliser production. Another potential sector is the export of green
construction materials such as bamboo.
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- Industrial sector: Promote the development of integrated industries where raw material waste

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or other wastes from one industrial plant can be used as raw materials for another industrial
plant in order to increase the efficiency of the use of limited natural resources for maximum
benefit and to reduce waste.
Small and Medium Enterprises: Promote small and medium-sized processing industries per
the green and sustainable direction, especially green and organic agriculture, and ecotourism with local people’s engagement, and encourage tourism-supporting businesses toefficiently use natural resources and energy, have more environmentally-friendly behaviours
and reduce waste, among others.
Urban planning: Develop beautiful, green and liveable cities with artistic and cultural values,
focusing on: designing urban planning and management, facilities and construction ofbuildings in cities (provincial and district municipalities, towns and communities) aimed atdeveloping green and vibrant cities, with unique national artistic and cultural characteristics,
and strong infrastructure that is resilient to climate change and natural disasters; ensuring
availability of spacious and safe sidewalks, green spaces, public parks, sports facilities, andplaygrounds, among others; and improving treatment facilities and urban environmental
protection and management systems to reduce waste from industrial plants, hotels,
guesthouses, restaurants and residences. Study and pilot model green cities and rural areas.
Waste management: Improve the efficiency and effectiveness of solid waste and other waste
management by raising awareness to change people’s behaviour of littering, promote waste
segregation for recycling and reuse, reduce the use of single-use materials, promote the useof biodegradable products; build and improve infrastructure such as landfills to be more
effective and compliant with hygiene practices and guidelines, especially focusing on big
cities, starting with environmental issues in cities in different provinces such as Vientiane
Capital, Savannakhet, Champasack, and Luang Prabang. Encourage local and foreign
investment in the waste business to recycle waste and transform waste into raw materials tocreate economic value, and reduce the use of limited natural resources.
Sustainable agriculture development: Promote organic, effective and sustainable agricultural
production, promote integrated crop rotation to reduce soil degradation, limit and reduce thecultivation of monoculture crops or growing a single crop for an extended period of time,
which affects soil fertility and biodiversity, and promote multi-crop production, taking into
account economic efficiency, technical feasibility, climate change, food security capacityand nutritional value.
Transport sector: Study and develop legislation and policies to promote the use of vehicles
that are powered by clean energy or locally available energy, such as electric vehicles (EVs)that use hydro-energy and solar energy, and promote the development of biofuel plants frompalm oil, kerosene, cassava and the methane (CH4) production demonstration project fortransportation and industrial sectors to reduce the import and use of fossil fuels and greenhousegas emissions;
Energy sector: Encourage electricity generation from natural resources according to local
potential to reduce poverty and improve people's livelihoods; promote green infrastructuredevelopment and improve energy efficiency in households and other places; encourage thedevelopment of the renewable energy industry by focusing in a selective manner on public,
private, domestic and foreign investment in the production of hydropower, solar and wind
power to maximise benefit by creating financial incentives such as tax incentives forinvestment in renewable energy technologies for both domestic and foreign investors. Develop
regulations and guidelines on the implementation of energy saving and conservation forindustrial plants, office buildings, electrical equipment and energy equipment; and promoteenergy management systems in buildings and industrial plants.
83

- Eco-tourism: Promote eco-tourism, promoting energy efficiency; improve the quality of the

tourism service network in the production and use of environmentally friendly products to reduce
waste, aiming to protect natural resources; and create clean tourist cities and develop quality tourist
attractions to stimulate economic growth, create jobs and reduce poverty with the participation of
local people.
(2) Climate change mitigation: Lao PDR emits negligible carbon but is strongly affected byemissions taking place in the rest of the world. Therefore, in order to be able to adapt andmitigate the impact of climate change, it is necessary to focus on the following tasks:- Continue the implementation of the Nationally Determined Contributions (NDC) andgreenhouse gas emission mechanisms such as the REDD+ project in order to contribute tointernational greenhouse gas emissions mitigation; promote businesses with low greenhousegas emission to contribute to climate change mitigation; promote the use of modern
techniques and technologies that generate less waste, save energy, and use clean andenvironmentally friendly energies; and promote the protection and expansion of greenhousegas absorption sources such as forest cover, earth, and others.
- Mainstream climate change adaptation and community-based adaptation (CBA) into sectoraldevelopment plans to protect people from natural disasters.
3.

Output 3: Capacities for disaster prevention, management and recovery enhanced

Lao PDR has suffered natural disasters such as floods, droughts, landslides and earthquakes
due to climate change, which has severely affected socio-economic development and the livelihoodsof the people. Therefore, it is important to increase prevention, responsiveness and post-disasterrecovery (from natural and man-made disasters), as well as disaster risk insurance, to mitigate theimpacts and provide timely monitoring and warning.
3.1. Targets and Indicators:- Build and upgrade the meteorological and hydrological station network nationwide, andimprove the system through the use of modern automated stations. Establish 45 new
meteorological stations and 25 new hydrological stations;- Undertake natural disaster risk and climate change hazard mapping, and establish anationwide hydrological forecasting system to provide information for agricultural
production;- Develop an action plan to address risks and vulnerabilities;- Establish and improve Disaster Management Committees at the district and village levels in
100 high disaster risk districts and 800 villages in all provinces and Vientiane Capital, andstrengthen disaster management capacity for the Provincial, District and Village Disaster
Management Committees to reach 750 people, an average of 150 people per year;- Establish one disaster management fund at the central level, 18 funds at the provincial leveland 56 funds at the district level;- Update disaster risk information at the central level and encourage localities to assess risks
and create disaster risk maps; and support the development of provincial disaster risk
reduction strategies and disaster preparedness plans for 10 provinces, 20 districts and 80
villages;- Conduct one ASEAN Disaster Emergency Response Simulation Exercise, two exercises at
the national level and five exercises at the local level;- Establish emergency assessment and assistance teams of 30 people at the central level, 100
people at the provincial level nationwide, and 300 people at the district level, and build
capacity for such teams.

843.2. Priority Activities:- Integrate climate change adaptation and mitigation of the effects of climate change andnatural disasters into the development plans of relevant sectors and localities in a systematicmanner; and develop standard operating guidelines on early warning of meteorological andhydrological hazards. Implement management plans, and measures to efficiently andeffectively counter the effects of climate change and natural disasters (warning system,
prevention, emergency assistance); build capacity to forecast floods, droughts andearthquakes in high-risk areas across the country; continue to improve and expand themeteorological and hydrological station network nationwide; improve and expand the
National Early Warning Centre as well as the information transmission network, theeffective forecasting and early warning of meteorological and hydrological disasters to meetthe standards of the World Meteorological Organisation; improve the quality of reportingand effectiveness of news alerts on temperature, weather, earthquake and water levels.
- Strengthen the prevention, control and recovery of natural and man-made disasters byenhancing capacity of the central and local disaster management committees in disaster risk
reduction and preparedness; promote the establishment and capacity strengthening of
national, provincial, district and village emergency relief reserves to be able to provide
timely and effective relief support to disaster victims, and at the same time, strengthen
coordination between government agencies and local administrations to effectively address
the damage, and provide assistance to those affected by natural disasters, and promote theparticipation of all sectors of society, both domestically and internationally.
4.

Large-Scale and Priority Projects for Outcome 4 :
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)

Conservation forests, national parks and world heritage management project (Ongoingproject)
Protection forest management project (Ongoing project)
Production forest management project (Ongoing project)
Village forests and non-timber forest products management project (Ongoing project)
Tree planting and reforestation promotion project (Ongoing project)
Aquaculture, wildlife and biodiversity management project (Ongoing project)
Project to reduce greenhouse gas emissions from deforestation (Ongoing project)
Forests and forest resources inspection project (Ongoing project)
Capacity building for natural disaster risk reduction project (Ongoing project)
Sustainable consumption and production project (Ongoing project)
Project for modernisation of land management nationwide (Ongoing project)
Integrated water resources management project (Ongoing project)
Climate resilience adaptation project (Ongoing project)
Project to integrate land allocation, and natural resource and environment management
plans (Ongoing project)
Project on management and reduction of waste and plastics (Ongoing project)
Project to develop land and environmental development plans (New project)
Disaster risk management project (World Bank) (Ongoing project)
Green Climate Fund (Global Green Growth Institute) (Ongoing project)
Pilot project for electric vehicle charging stations (Global Green Growth Institute) (New project)

Outcome 5: Engagement in regional and international cooperation and integrationis enhanced with robust infrastructure and effective utilisation of national potential
and geographic advantages
Lao PDR is a country with a strong geographic advantage due to its central location andproximity to countries with strong economic growth, especially ASEAN countries and China,
85

enabling it to potentially become a hub for the transportation of goods and services. Therefore, theimprovement and upgrading of land, water and air connectivity is necessary and important to enable
Lao PDR to transform from a landlocked country to a country that is fully connected to the region
and the rest of the world, thereby promoting economic, trade and service integration, as well as
improving integration in technology, clean energy and environmental protection, among others,
under bilateral and multilateral cooperation frameworks such as: ASEAN Economic Community(AEC), World Trade Organisation (WTO) and others. At the same time, it is important to researchand improve legislation and policy to create favourable conditions for the implementation of tradeand investment agreements in a consistent and accurate manner. Infrastructure connectivity
encompasses the construction of roads, railways, ports and airways to reduce travel time andtransportation costs, and increase safety, as well as the need to promote potential sectors andcooperation in areas such as tourism, South-South cooperation, value chains and services, which islikely to increase post COVID-19 recovery.
1.

Output 1: Infrastructures improved for national, regional and international connectivity
to facilitate production, services, trade and investment

Lao PDR has invested in the development of various types of connectivity infrastructure,including connection to the Singapore-Kunming Rail Link (SKRL), which will help shorten travel
time between Kunming and Vientiane from three days to three hours.
Focus should be placed upon developing and upgrading transport infrastructure, transit andtransportation services, transmission lines, and telecommunication and postal services to enableinternal connectivity, and connectivity with neighbouring countries, the region, and beyond in atargeted and coherent manner. This should be done through systematic monitoring of the efficiency
of logistics services with an aim to develop Lao PDR into an important transit point for thetransportation of goods and to expand the geographic, and other, potential of the country andlocalities to maximise benefits associated with the promotion of the tourism industry, production tomeet the needs of neighbouring countries, and promotion of the hydropower sector to contribute toincreasing the transition to clean energy. Efforts should also be focused on promoting railway travel
between China and Thailand by ensuring that the completion of the Laos-China railway project is
on schedule, and leveraging the four existing international airports for maximum benefits, especiallyto facilitate air transport from Lao PDR to Thailand, Viet Nam and China, which already accounts
for a high proportion of the number of flights, to increase further, and at the same time, promote
more convenient flights to Malaysia, Korea and Japan.
1.1. Targets and Indicators:- Improve Lao PDR’s ranking under the Logistics Performance Index (World Bank LPI
ranking);- Extend the use of high-speed Internet via the fibre optic transmission network to all districts(148 districts) nationwide;- Expand the use of long-distance meeting and email systems in the public sector to 68
government offices at the central and local levels;- Expand cellular base stations to increase coverage area, of which 3G coverage areas to reach
100%, 4G to reach 90%, and the 5G system to be extended to major cities in 18 provinces
nationwide;- Construct two national Internet backup centres;- Increase the computer literacy rate to 70%, the proportion of registered landline and wirelessInternet users to 60%, the proportion of registered landline and wireless telephone users to
100%, and the proportion of registered high-speed landline and wireless Internet users to
70% of the total population;- Create conditions to encourage the public and private sectors to use Lao satellite in theirwork for 18 sectors by 2025; and establish VSAT communication stations to provide links
for government work nationwide;86

- Expand the use of e-Office system in Party and State organisations in 45 offices at the central
and local levels;- Modernise the system of payments and revenue collection through various systems such as
mobile banking/systems (Mobile Money) to reduce the use of cash in society, promote the
new normal way of life and the development of the digital economy in the new period,
establish electronic markets (e-markets), and promote warehouse and dry port services.
1.2. Priority Activities:- Land, water and air connectivity:• Build, upgrade, rehabilitate and maintain 2,800 km of land transport infrastructure, including
roads, bridges and express ways as part of the network along the economic corridors
connecting the countries in the region in accordance with ASEAN technical standards.
• Develop, rehabilitate and maintain water transport infrastructure and facilities along the
Mekong River and Heuang River, which are international water borders, including ports,
canals and river embankment;• Establish an efficient and comprehensive maritime transport system that can compete at theregional level, including development and improvement of Vung Ang 1, 2 and 3 port projects
and their related facilities; and improve the management of Vung Ang port to be more
efficient;• Undertake a feasibility study, survey and design, construct and maintenance of railways andrailway facilities in accordance with the Government’s approved strategy, including the
Laos-China railway and the Laos-Thailand railway. The Vientiane Capital-Thakhek-Vung
Ang railway line is currently in the process of preparing a detailed survey and design tomove forward the construction of the Thakhek-Muya section (Laos-Viet Nam border).
• Build, improve, rehabilitate, manage and maintain airports and aviation facilities to ensure
safety and security in accordance with international standards, including: four international
airports, domestic airports and aviation communication systems in air traffic management;• Develop a comprehensive transportation service system in nine logistics areas to connect the
Laos-China railway to the Mekong sub-region and ASEAN railway network (SingaporeKunming Rail Link), regional and international networks (Trans-Asian Railway), andconnect to the road network, ports and airports to create a convenient, fast, modern, safe,
highly efficient and cost-effective transportation system;• Construct and install weighing stations and weighing equipment to manage heavy trucks on
the roads connecting with countries in the region to be more efficient; and improve themechanism and legislation for better management of heavy-duty trucks;- Transmission line connectivity: Focus on upgrading and constructing the transmission lines
necessary to connect from north to south and connect with neighbouring countries to enable
electricity trade, and cooperate in establishing an electricity trading market;- Telecommunication and postal connectivity:• Develop electronic public administration system to support socio-economic development, as
well as expanding public services such as: e-Disaster, e-Agriculture, e-Signature, and Open
Government Data;• Improve and expand the use of e-Service programmes to transform public administrationand public service delivery to provide Government-to-Government (G2G), Government-toBusiness (G2B), and Government-to-Community (G2C) services;87• Modernise telecommunication and ICT infrastructure to support evolving technologies andensure the provision of infrastructure in the digital economy era;
• Promote the development and use of information and communication technology, and themodernisation of mobile payments to serve as management tools for public administrationand public services to collect revenue more efficiently;• Develop high-speed ICT network to expand to urban, rural and remote areas in both quantityand quality at reasonable prices and to enable regional and international integration;• Establish a high-security ICT system to prevent cyber attacks and data breaches; protect
personal information, and prevent all forms of data infringements and prevent harmful data;• Modernise and develop the electronification of postal services to provide services to thewhole society, and promote a variety of new products and services to meet the needs ofconsumers;• Establish telecommunication transmission system and border connection points to support
the transformation of the country into an Internet gateway between China and ASEAN.
2.

Output 2: Regional and international trade and investment cooperation and integration
enhanced and expanded

Regional and international cooperation and integration are increasingly necessary andimportant to reduce development vulnerabilities by attracting foreign investment, expanding
markets and trading partners, and promoting the creation of value-added and diversified goods andservices in order to ensure sustainable and long-term development after graduation from Least
Developed Country (LDC) status. Therefore, it is necessary to research and develop appropriate
strategies, policies and measures to mitigate impacts on trade by actively engaging in tradenegotiations under existing agreements, as well as study other appropriate policies, such as the EU
Generalised System of Preferences Plus.
In the next five years (2021-2025), some of the main priorities in regional and international
integration that need to be addressed, such as customs and tax integration, cross-border trade,
intellectual property rights, e-commerce and the promotion of clean energy, must be linked to theimprovement of enabling legislation and capacity building of competent agencies in periodic
monitoring and evaluation.
2.1. Targets and Indicators:- Increase the trade-to-GDP ratio (Openness Index) to more than 70% by 2025;- Increase passenger transport volume in the transport connectivity network with countries in
the region, via all modes of transport: road by 7% per year, waterways by 5%, air by 12%,and railway by 10%;
- Increase freight volume in the transport connectivity network with countries in the region,
via all modes of transport: road by 7% per year, waterways by 5%, air by 12%, and railway
by 7%;- Increase the export value of processed industrial products by 50% in 2025.
2.2. Priority Activities:
Integration and reform of trade facilitation policies and intellectual property
regulations: Implement the Law on Intellectual Property, in particular the relevant legal
framework; ensure management of assets in the industrial sector, new industrial plants, aswell as management of copyright and other related rights. Integrate and implement
commitments under the EU-ASEAN Trade Facilitation Action Plan 2017-2022 byestablishing border inspection offices to enforce measures against intellectual property
infringers. In addition, integrate and implement the ASEAN Intellectual Property Rights

88Action Plan 2016-2025, and the Action Plan for Intellectual Property Protection of the WorldIntellectual Property Organisation, to which Lao PDR is a party.
Customs and tax integration: Continue to integrate tariff reduction policies and implement
customs duty and tax policies within the framework of the Most-Favoured-Nation, andexplore revenue from other non-tariff sources such as value-added tax and excise tax leviedon trade. At the same time, explore the possibility of providing incentives for export
promotion.
Improving trade facilitation mechanisms and reducing business costs: 1) Promote theuse of ICT information systems in the administration, communication and technical services
such as: e-Licensing, Electronic Certificate of Origin (e-CO) and e-Trade to create a more
standardised and convenient information system that will enable the business sector to
reduce the cost of doing business in various fields; 2) Improve the necessary legislation
related to production, trade, fair competition and services in line with international standards,
in particular the various regional and international trade cooperation frameworks andconventions that Lao PDR has ratified or acceded to; and 3) Improve the skills and disciplineof personnel , improve service facilities to be convenient and centralised in all activities, andestablish units to receive feedback and suggestions, and set up consulting kiosk to provide
advice to the business sector in addressing bottlenecks and to facilitate starting a business.
Improvement and modernisation of trade: Study and develop the e-commerce system,
implement the Decree on Electronic Commerce and raise awareness and understanding of
the implementation of said Decree for the business community and society as a whole.
Continue researching and developing the Electronic Certificate of Origin (e-CO) Issuing
System to be more efficient, convenient, fast, modern, and reliable. Study and develop asystem for trading One District One Product goods through a mobile application (ODOPApp) that is efficient, convenient, fast, modern and reliable. Coordinate with relevant sectors
to study and develop a Certificate of Authority (CA) issuing system that is efficient,convenient, fast, modern and reliable.
Improving trade environment and facilitation: Coordinate on regulations and proceduresfor issuing licenses and permits, and certificates for the import and export of goods to be
more simplified and agile, aiming to reduce the time required for export and importformalities by at least 50% and reduce the cost and documentation requirements for exports
and imports by at least 30% by 2022 in accordance with the Trade Facilitation Roadmap of
Lao PDR 2017-2022. If it is found that the regulations, procedures, processing time, costand documentation requirements for issuing licenses, permits and certificates are deemed
unreasonable and duplicating, they shall be amended or eliminated. Study and improve nontariff measures (NTMs) for imports and exports to focus on protecting the lives and healthof people and animals, ensuring product safety for consumers, national security andenvironmental protection, such as the Sanitary and Phytosanitary (SPS) measures, theTechnical Barriers to Trade (TBT) measures, and other measures in accordance with theagreements and conventions to which Lao PDR is a party. Continue to effectively implement
the Trade Facilitation Secretariat’s Action Plan, including the implementation ofcommitments and obligations under the WTO, ASEAN, Greater Mekong Sub-region (GMS)
and bilateral trade agreements.
Promoting the use of clean energy: Lao PDR plays a key role in providing clean energy toneighbouring countries. The shift from gasoline and diesel- powered vehicles to electricvehicles is a promising trend. Therefore, it is necessary to ensure an adequate supply ofelectricity to meet such demand. In addition to hydropower generation, alternative energy
sources must be explored, such as solar power, and agricultural waste and biogas tosubstitute hydropower when electricity generation does not meet the needs of the low water89

season. In order to sustain the energy sector, it is necessary to evaluate market demand
trends to be in line with the electricity supply by using more prudent assessment methods toensure profitability and sustainable energy consumption. Therefore, effective energy
management measures are needed to increase economic competitiveness and reducegreenhouse gas emissions and other emissions.
Domestic transport: The Vientiane Capital State Bus Enterprise Improvement Project aims
to improve public transport in Vientiane Capital to ensure that the service charges arereasonable with the aim of providing quality and broadly accessible transportation services.
Border development: Promote cooperation, trade, investment and services along the borderareas related to the development of Special Economic Zones and along the Laos-China
railway to attract investment in the processing industry and trade zones, focusing on theconstruction of facilities for freight, warehousing and loading-unloading services, tradeservices system, ICT and e-Commerce; and develop convenient, agile and modern crossborder markets between Laos-Viet Nam, Laos-China, Laos-Cambodia and Laos-Myanmar.
Improve regulations related to temporary admission of goods and inward and outward
processing to address inconsistencies in procedures, documentation, management ofbusiness units, as well as the period of validity of licenses and certifications.
3.

Output 3: Robust regional and local development based on the potential of each region

Regions and localities have many different areas of potential, especially with regards to theirgeographical location. Many provinces share borders with neighbouring countries, which facilitatescross-border trade and cooperation, and have natural resources potential such as forests, minerals,land, good climate and water resources, as well as rich potential for historical, cultural and natural
tourism that is suitable for promoting green and sustainable development. Therefore, regional andlocal development must be based on the potential and special features of each area by researching
and identifying legislation and policies to promote post-COVID-19 economic recovery to prepandemic levels, especially the affected business sectors such as tourism, services and industry tocreate jobs and income for the local communities. In addition, special attention must be given towater resources management and cooperation with the Lower Mekong countries. Utilise the LaosChina railway as a bridge for the economy, trade and tourism, linking with Special Economic Zones
and cross-border trade in the provinces with the railway passing through as well as the provinces
where the railway does not pass.
3.1. Targets and Indicators:- Establish at least one international checkpoint for the provinces of Lao PDR bordering withforeign countries.
3.2. Priority Activities:
Northern region: Focus on production and services related to the use of the Laos-China
railway for maximum benefit, in particular the development of tourism linked to nature andbiodiversity conservation and green agriculture, and handicrafts related to tourism for onsite services and exports. In the area of agriculture, focus on raising large livestock,
especially cattle for export to China, and growing fruit crops. In terms of industry, promotecorn processing plants, rubber processing plants, and slaughterhouses for processing beef.
Improve and build the necessary infrastructure to connect to the Laos-China railway,
primarily roads connecting the production and tourism service areas to the Laos-China
railway, the express way, dry ports, and smart cities in Luang Namtha, Oudomxay and Luang
Prabang provinces; and continue to develop existing Special Economic Zones.
Central region: Focus on services, ecotourism, food production and other light industries
such as food and beverage, clothing, electrical equipment, electronics, machinery, vehicles,
wood processing, construction materials, handicrafts, textiles and natural dyes, wood
carving, weaving looms and pottery, traditional food, and accessories and souvenirs; and90

continue to construct and develop the existing infrastructure in Special Economic Zones, andindustrial zones and industrial estates in Vientiane Capital, Khammouane, and Savannakhet.
Southern region: Focus on agricultural production and agro-processing industries such as
coffee processing, wood processing, rubber processing, vegetable oils, tea, and traditional
medicine; food and beverage industry, construction materials, and mineral processing
industry such as aluminium; and establish infrastructure such as industrial zones andindustrial estates in Phonethong District, Champassak Province, and Attapeu Provincial
Development Triangle Area, as well as ecotourism development.
4.

Output 4: Urban areas and Special Economic Zones developed into production,
investment, trade and tourism bases for regional and international integration

About 35% of Lao PDR’s population lives in urban areas, but the pace of urban population
growth is relatively fast, especially in Vientiane Capital. Therefore, proper urban planning andmanagement can be a force for economic and social development. Dense urban living and proximity
can lead to more creativity and increased productivity as scale gives rise to higher degrees of
specialisation, and cities can be made more environmentally friendly. However, unplanned
urbanisation and non-systematic urban management would create overcrowding and congestion,
problems of sanitation, air pollution and inadequate recreational spaces. Therefore, Lao PDR shallhave management actions to develop sustainable cities, as well as Special Economic Zones, to attract
and promote investment, trade and tourism, aiming to create more job opportunities and income
generation for the population, which would help reduce the gap between urban and rural areas. In
addition, effective urban planning and development will also enhance Lao PDR’s competitivenessat the international level and improve its regional and international integration efforts in the next
five years.
4.1. Targets and Indicators:+ Urban development:- Complete the implementation of urban development projects in three cities, and four towns
along the Greater Mekong Sub-region (GMS) corridor to improve the infrastructure andurban environment;- Develop the provincial municipalities as the administrative centres, in all provinces in asystematic manner to facilitate socio-economic development of the provinces;- Vientiane Capital, three cities and at least four towns along the Greater Mekong Sub-region
corridor have landfill sites that meet sanitation standards and requirements;- Vientiane Capital, three cities and at least four towns along the Greater Mekong Sub-region
corridor have proper wastewater treatment systems;- Garbage disposal services in Vientiane Capital, three cities and at least four towns along theGreater Mekong Sub-region corridor, covering more than 80% of general waste andinfectious and hazardous wastes;- Establish at least one model small smart city.
4.2. Priority Activities:+ Urban development:- Develop cities along various economic corridors, including along the Laos-China railway,
in particular the development of Smart Cities in Luang Namtha, Oudomxay, Luang Prabang
and Vientiane Province to serve as models for expansion to other cities.
- Focus on developing the capital city, cities and towns with economic potential in order tobecome centres that can support the development of other surrounding towns.
- Improve the urban environment, through creating public parks, green areas, protecting thenatural landscape and protected areas in Vientiane Capital and other cities, as well as urban

91

communities to be beautiful, green, clean, peaceful, safe and more liveable to ensure thequality of life of the people in urban areas.
- Encourage all economic sectors, both public and private, including the people to participate
in the services of management, transportation and waste disposal in the cities, along with thecreation of facilities for reusing and recycling in accordance with the principle of reducing
the amount of waste from the source. These will be further supported through theimplementation of circular economy, which has been highlighted as a key task under the‘green growth and climate action’ policy directions. This sector offers economic,
environmental and social opportunities if the waste is well managed within the life cycle.
The high share of organic matter in the waste composition in the country provides waste-toresource opportunities, which enables generating financial revenue from sales of the final
products, while reducing negative environmental impacts.
- Continue to improve and build drainage and flood prevention systems in cities, along withthe protection of protected areas, ponds, lakes, riverbanks and wetlands to ensure that cities
have good ecosystems and resilience to climate change.
- Encourage and promote the reduction of air pollution through supporting the use ofenvironmentally friendly vehicles, alternative energy for vehicles and the use of clean fuelsin cooking to ensure the quality of the urban environment and the health of the people.
+ Special Economic Zone Development:- Continue to support the development of 12 Special Economic Zones to be more effective,
including improving the transportation logistics system and reviewing tax policies to ensure
effective revenue collection by re-evaluating existing agreements and development plans ineach zone to be in line with current conditions and global market trends to increase regional
and international competitiveness.
- Improve the one-stop investment service mechanism by increasing coordination within the
public sector, improving policies, mechanisms, and regulations related to investment
approval to be more uniform and streamlined in order to facilitate investors.
- Continue to develop the necessary infrastructure such as roads, electricity and water supply
to attract more investment.
- Increase investment attraction in the new areas along the Laos-China railway and othereconomic corridors, including carrying out a feasibility study on building smart cities in
Natoei area, Lung Namtha Province, Namor area, Oudomxay Province, and Nongpan
village, Hadsaifong District in Vientiane Capital.
- Collaborate with public and private stakeholders to develop labour skills in line with thedevelopment needs in each area; and improve and disseminate legislation and regulations
related to employers and employees to raise awareness of the rights and interests of investors
and workers.
5.

Large-scale and Priority Projects for Outcome 5:
1. Connectivity
(1)
(2)
(3)
(4)
(5)

Construction of three ports project (Xieng Kok, Pak Beng and Khok Chong)
Project to continue the construction of Vang Tao checkpoint
Construction of checkpoint in Vang village, Meun District, Vientiane Province
International airport construction project in Ton Pheung, Bokeo Province
Expressway construction project from Pak Hok International Checkpoint LaosVietnam (Tai Chang) -Oudomxay Province (Road No. 2E) connecting Luang PrabangBoten expressway (New project)

92

(6)

(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)

Expressway construction project from Lan Touy International Checkpoint (LaosChina) – Bountai District, Phongsaly Province – Namor District, Oudomxay Province(or to Natoei area, Luang Namtha Province) (New project)
5th Friendship Bridge construction project (Paksan-Buengkan)
Project to construct a bridge crossing the Mekong River in Chomphet District, Luang
Prabang Province
6th Friendship Bridge construction project (Saravan-Ubon)
Construction of the 2nd bridge across the Mekong River on the north and south sidesof the Pakse-Phonethong (New project)
Ton Pheung Port Development and Services Project with an initial investment of USD
50 million (New project)
Construction of double-layer asphalt paved road bypassing Pakse city and constructionof the new Sedone bridge (New project)
Road No. 12 construction project (New project)
Vang Vieng-Luang Prabang expressway construction project (New project)
Luang Prabang-Oudomxay expressway construction project (New project)
Oudomxay-Boten expressway construction project (New project)
Boten, Luang Namtha-Houayxai, Bokeo expressway construction project (Newproject)
Natoei dry port development project (Luang Namtha Province)
Km 20 dry port development project (Bolikhamxay Province)
Huay Xai dry port development project (Bokeo Province)
Luang Prabang dry port development project (Luang Prabang Province)
Oudomxay dry port development project (Oudomxay Province)
Phase 2 Bridge-Road Project (World Bank) (Ongoing project)
Promoting Cross-Border Financial Transactions in the ASEAN+3 Region Project(ADB) (New project)
Bridge management and maintenance capacity development project (JICA)
Project for Technical Support for Continuous Improvement of Vientiane International
Airport (JICA)

2. Trade integration and cooperation
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)

Project to promote bilateral trade negotiations
Trade dialogue promotion in ASEAN (AEC) and World Health Organisation (WHO)Sub-regional cooperation promotion project
Project to promote the integration of standards and quality of industrial products andproduction networks into regional and international systems
Export promotion negotiations project
Project to promote and develop cross-border trade and trade services related tologistics in the era of integration and connectivity
Promoting the use of modern technology for quality infrastructure investment planningand monitoring (ADB) (Ongoing project)
CLV Cooperation Framework (Ongoing project)
REDD + Project (JICA) (Ongoing Project)

3. Urban development
(1)
(2)
(3)
(4)

Project for capacity development on urban development control and promotion (JICA)
Wastewater and solid waste treatment promotion project to improve the urban
environment (Vientiane Capital and Pakse) (Ongoing project)
Vientiane Capital central bus station construction project (Ongoing project)
Project to continue new town development in Vientiane Provincial municipality
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(5)

Project to build Mekong riverside tourist attraction as a continuous walkway and build
the Vientiane canal as a multi-hour tourist attraction in Vientiane Capital (New project)

4. Development of Special Economic Zones
(1)
(2)
(3)
(4)

AMATA Smart City modern urban development project in Luang Namtha andOudomxay Provinces
Smart City construction project in Nongpan Village, Naxaithong District, Vientiane
CapitalInland Container Depot (ICD) development project in Vientiane Saysettha
Comprehensive Development Zone
Thabok dry port construction project in Vang Tao-Phonethong area, Champassak
Province

5. Development and application of ICT innovations
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)

Project for the improvement of the online ICT licensing system to provide services
nationwide
Project for improving the inspection of ICT equipment standards
ICT services inspection project
Digital park / ICT park development project in Vientiane Capital
Innovation development and digital consulting centre development project
Digital camp project
Digital index development projectFree public Wifi project

6. Development of telecommunication, ICT and digital infrastructure(1)

IPv6 technical upgrade and trial project with local and international Internet service
providers(2) Technical and security improvement project for the national Internet service code
management system (.LA) and Lao(3) Feasibility study and construction of a national internet backup centre project(4) Project to establish a backup registry system at the national Internet backup centres in
the Northern and Southern regions(5) Project to improve the web hosting system to increase security and ability toaccommodate the growth of users(6) Project to improve the colocation system to be able to accommodate consumption
growth(7) Cloud system extension project to support modernisation(8) Project to establish the National Data Exchange Centre for the public sector(9) Government network improvement and expansion project(10) Project to develop high-speed information network to reduce poverty and support thedigital Silk Road Economic Belt
(11) High-speed Internet centre infrastructure development project connecting the Subregion (CLMV)(12) Project to establish connection points for the inbound and outbound telecommunicationtransmission system(13) Procurement and installation of the electricity system for Dongphosy information
backup centre(14) Project to improve the Dongphosy centre to become a backup centre(15) Project to study the market share structure and define the telecommunications market
along with promoting fair competition.

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Outcome 6: Public governance and administration is improved, and society isequal, fair, and protected by the rule of law
The Government of Lao PDR continues to improve public governance and administration
towards the goal of becoming an efficient and effective rule of law state. This is key to enhancing
public sector capacity, especially to respond to the increasing needs and challenges resulting fromCOVID-19, opportunities and risks from increasing regional and international investment andeconomic integration. At the same time, the Government also needs to increase the efficiency of
coordination and provision of public services.
1.

Output 1: Enhanced efficiency of public governance and administration and deepened
implementation of the Sam Sang Directive
1.1. Targets and Indicators:- Modernise public administration and improve public services by implementing an eGovernment system;- Public administration organisational structure at all levels is harmonised with the Sam Sang
Directive, aiming to increase the proportion of streamlined ministerial departments anddivisions to 20% of the total, and increase the proportion of streamlined sections, units andsub-units at the local administrative level to 30% of the total;- Develop at least eight municipalities/cities as local urban administrative authorities;- Public services under the One-Door service mechanism are improved, and people receive
convenient, prompt and transparent services;- Transform provinces into strategic units according to the seven areas (Party and personnelbuilding; public governance and administration governed by effective law; strategic
economic growth and strengthening the potential within the locality; national finances;
effective management, exploration and use of natural resources, infrastructure and technicalequipment; socio-cultural and human resource management; and strong national defence andpublic security) in at least 2/3, equivalent to 66.66% or more than 11 provinces of the total
number of provinces, build districts as comprehensively competent units in 1/3 of the total
number of districts, and build villages as development units in 2/3, equivalent to more than
66.66% or more than 5,575 villages of the total number of villages;- All Lao citizens and 70% or more of new-borns are registered and have an official birthcertificate;- Administration within government organisations, at the central and local levels, uses digitalsystems;- Transform 50% of all essential public services of the Party and the State into online services
in order to improve the index level of each indicator related to e-Government and ICT
development;- Enhance the development of the digital economy by establishing two big data centres, andinternet connection passage using the Laos-China railway infrastructure and the national
power transmission lines;- Create one digital Special Economic Zone to attract foreign investment.
1.2. Priority Activities:- Reform the public administration system and civil service management regulations tosimplify and improve consistency- Redefine the mandates and duties of some ministries and agencies more clearly to avoid
duplication and overlap.
- Improve the ministries and equivalent Government agencies to be more streamlined,
modern, and able to operate efficiently, effectively and smoothly by merging, dissolving,consolidating, and separating some ministries to reflect current context.

95

- Improve the organisational structure in accordance with the assigned mandates, define
positions to suit the required specialisation, in line with the actual tasks, as well as ensure
recruitment of civil servants in accordance with the job descriptions, professions andconditions specified. Train and develop civil servants and staff according to administrativeand positions, technical positions, by type, specialisation, and with regular and up-to-date
performance appraisal; and carry out exams to assess the level for the position, and specificevaluations before the appointment of a new position or transfer to a new position.
- Improve and clarify in more detail the division of administrative management levels related
to personnel management between the central and local levels based on the key performanceindicators (KPIs) under the responsibility of the State Audit Institution to enable a clear
mapping of responsibilities, bottlenecks, and progress.
- Define administrative areas clearly by designating local administrative areas between urban
and rural areas to enable concerned entities to carry out their roles in accordance with theactual situation in each area.
- Establish the Sam Sang Directive work as a regular work of sectors and local administrations
nationwide by assigning authority and responsibility to localities at each level in thedecision-making process under a clear regulatory and legal framework.
- Improve the framework for monitoring and evaluating national indicators, leading to the 10thFive-Year Plan, develop stronger coordination between the SDG secretariat and SDG focal
points, including increasing the accountability of concerned sectors in managing related dataand indicators.
2.

Output 2: Improved and harmonised coordination mechanisms and regulations within
the public sector to increase efficiency

Improve the capacity of public services to meet the increasing needs of society, trade volume
and investment and challenges arising at the regional and international level; improve the One-Door
Service mechanism to be more efficient and effective.
2.1. Targets and Indicators:- Improve the mandates, responsibilities, scope of rights and division of management levelsof technical sectors, such as natural resources and environment, energy and mines, public
works and transport, agriculture and forestry, industry and commerce, education and sports,and health;- Mechanisms and regulations for coordination between the central and local levels to be
improved according to the Sam Sang Directive in at least 50% of the total number ofministries and organisations;- Clearly assign management functions and responsibilities between the central and local
levels, between the provinces and districts, and between the districts and grass-roots
administrative units in line with the actual conditions to be completed in more than 80% of
all ministries, organisations, provinces and districts;- Establish 15 One-Door-Service Centres (ODSCs) at the local level (an increase from 43
ODSCs in 2019 to 58 ODSCs in 2025).
2.2. Priority Activities:- Improve the coordination mechanism between the sectors, ensuring that there is no overlap
between the central, provincial and district levels, and to be in line with the actual work inaccordance with the Sam Sang Directive and the Law on Local Administration. Issue
additional legislation and regulations to further clarify the roles and responsibilities of eachorganisation.
- Improve the coordination and communication mechanisms of the public sector to be agile,
efficient, and secure by using the public sector communication system.
- Strengthen the technical capacities, qualifications and expertise of staff in line with roles andresponsibilities to maximise existing human resources potential.
96- Improve capabilities of the technical units of certain sectors and support them to graduallybcome financially independent, including by experimenting this approach in a certain
technical field first.
- Develop and improve regulations to be more consistent and relevant, and conduct regularand continuous evaluation of implementation.
- Improve the implementation of the One-Door Service mechanism to be more consistent andable to provide faster services by encouraging sectors and localities to integrate their work
into the system or the One-Door Service Centres at the provincial and district levels;- Establish more One-Door Service Centres at the provincial and district levels to reach as
many service users as possible to align with the Sam Sang Directive and the Law on Local
Administration.
- Increase the digital transformation (e-Governance) in the implementation of the work of
sectors and localities and public services to enhance efficiency, accountability, transparency,
and public access.
- Create opportunities for people to provide feedback on public services by conducting an
Innovative Service Users Feedback Survey in order to provide important information on how
to gradually improve services.
3.

Output 3: Ensure political stability, peace and order, unity, democracy, justice andcivilisation within the society
3.1. Targets and Indicators:- Provide modern tools and equipment necessary for the People’s Supreme Court,
investigative-interrogative agencies, the Office of the Supreme People’s Prosecutor, andjudgement enforcement agencies across the country; the Office of the Supreme People’s
Prosecutor to issue 95% of statements; the People’s Supreme Court to achieve 85% of court
decisions-judgments, in accordance with the law and in line with particular circumstances;
and achieve 80% implementation rate of previously pending court judgements and new court
judgements, of which 20% court judgments that have been implemented and closed;- Declare 7,400 Model Villages for compliance with the law;
- Develop a system of training in law and justice for staff and students who have graduatedfrom law school to become judges, prosecutors and lawyers, of about 100 people per year.
- Provide legal services through the legal aid offices throughout the country to 200,000 people,
and provide services through the Village Mediation Units across the country to reduce thenumber of cases to less than 15,000 cases.
3.2. Priority Activities:- Develop strong and effective rule of law, focusing on developing and improving laws andsubordinate legislations in a systematic and comprehensive manner and in line with theactual situation; improve law dissemination via different means in line with the actual
conditions of the target audience; and create awareness of respect for the law by the people,
and engage the public in the dissemination of laws.
- Continue to coordinate with relevant parties in the implementation of various international
obligations such as the recommendations accepted by the Government under Universal
Periodic Review (UPR) and human rights instruments ratified by the Lao PDR.
- Increase efforts to promote and disseminate laws, including the penal and civil codes, among
relevant stakeholders and the people via different means and channels.
- Develop a new Master Plan on Development of the Rule of Law to guide and advance thedevelopment of Lao PDR’s legal and justice sector, including the judiciaries and prosecutors.
- Provide capacity building for justice experts, judges, prosecutors and lawyers to increase
efficiency and improve access to the justice process.
- Strengthen the role of the National Assembly and Provincial People’s Assemblies in
improving and adopting legislation, monitoring the implementation of socio-economic
97

-

-

-

-

4.

development plans, including the implementation of the SDGs through improved
coordination of SDG focal points and the SDG secretariat.
Strengthen the capacity of law enforcement agencies to be able to work more effectively
with regional and international counterparts.
Improve the management of border areas, ensure measures for systematic migration; combat
transnational crime, and increase the capacity of border officials.
Develop the quality of legal services, especially the accurate and timely enforcement of court
judgments; strengthen the local public Notary Offices to be able to meet the needs of society;improve the Economic Dispute Resolution Office to be a strong organisation capable ofsupporting socio-economic growth and building trust; and strengthen the Lao Bar
Association to be able to provide quality assistance and services to clients.
Improve and create conditions to increase people’s access to legal aid services and access tojustice more generally.
Promote the participation of civil society organisations in contributing to socio-economic
development.
Build national unity, advocate and disseminate the Party and State policies and guidelines,
and the revolutionary heritage on important national days and events.
Build the necessary infrastructure to serve national defence and public security.
Continue to implement the work of building political foundations at the central and local
levels, strengthening political ideology, and promoting patriotic tradition and developmentwith ownership among the entire population.
Combat negative social phenomena, such as robbery, theft and road accidents.
Develop and improve legislation, guidelines, and curricula, among others to provide basis
for implementing anti-human trafficking work.
Conduct awareness-raising via different means throughout society, especially among
women, children and vulnerable groups to recognise the risks of trafficking-in-persons, tobuild a sense of self-defence and to take part in the fight against human trafficking.
Create and update information databases and statistics on cases, and coordinate andexchange information related to human trafficking in a systematic manner.
Intensify efforts to fight against all forms of trafficking-in-persons by increasing access tothe social protection system, such as social funds specifically for victims or survivors ofhuman trafficking; and combat drug trafficking and wildlife smuggling, among others, which
negatively affect the development and security of the country.
Support the Lao Bar Association to provide quality services to clients and train a newgeneration of legal professionals in collaboration with universities and law firms.
Improve legal aid services for vulnerable groups, such as women who have been sexually
abused, children, ethnic minorities, and people with disabilities.
Develop e-Justice tools to improve access to social justice processes.

Large-Scale and Priority Projects for Outcome 6:
1. Public administration and legal capacity building
(1)
(2)
(3)
(4)
(5)
(6)

Public administration improvement project to promote participatory development(Switzerland) (Ongoing project)
Strategic Support to Achieve SDG 5 (Gender Equality) (UNDP) (Ongoing project)
Enhancing People’s Participation through Community Radio (UNDP) (Ongoingproject)
Strategic Support to Enhancing the Role of the National Assembly and the Provincial
People’s Assemblies (UNDP) (Ongoing project)
Project to build capacity and upgrade the Training Institute to a State Audit
Educational Institution
Project for developing and strengthening the Rule of Law in the legal sector (JICA)
98

2. Commerce management(1) Project for the promotion and development of experts and researchers in the field ofdevelopment and promotion of industry and commerce(2) Project for scientific research and development of the Commerce College(3) Project to improve and develop enterprises in the industrial and commercial sectors(4) Project to promote the services of the National Chamber of Commerce and Industry
3. Developing a modern public administration system(1) Project to improve and develop the government data exchange system to facilitatesharing and integration of government data
(2) Government information centre (G-Cloud) improvement and integration project(3) Project to improve and develop the internal network and ICT systems of the Ministryof Post and Telecommunications to be a model for a modernised Ministry(4) Project to improve and expand the video conference system at the central and local
levels(5) Project to improve and expand the government email system at the central and local
levels(6) Project to establish an electronic information centre in the provinces(7) Project to develop, improve and maintain the e-Office system(8) Project to develop and expand the use of e-Office system in ministries and government
offices across the country(9) Project to develop the Lao language file system (Phetsarath Office) and the system forfile storage and sharing on government cloud storage (G-Share, G-Drive)(10) Project to modernise public service system with digital transformation (e-Services andSingle Sign-On) at the central and local levels(11) Project to develop and expand the use of the government messaging application (GChat)(12) Project to expand the use of G-Web Platform across the public sector at the central andlocal levels(13) Government Open Data Platform integrated development project(14) E-gov security and anti-virus project(15) Project to study and develop a Smart City model using electronic public administration
system(16) Project to develop and establish a public sector reporting system (Dashboard) towards
digitalisation via mobile phones(17) Project to develop Lao Fonts and electronic Lao Font directory(18) Project to improve the e-Government Development Index(19) Public sector e-Signature (CA) development and expansion project(20) Project to study the use of Blockchain technology in government work.
4. Statistics(1) National survey and data collection project to support the monitoring of the National
Socio-Economic Development Plan

99

PART III:
IMPLEMENTATION MEASURES AND
MECHANISMS FOR THE 9TH FIVEYEAR NATIONAL SOCIO-ECONOMIC
DEVELOPMENT PLAN (2021-2025)

100

PART III: IMPLEMENTATION MEASURES AND
MECHANISMS FOR THE 9TH FIVE-YEAR
NATIONAL SOCIO-ECONOMIC DEVELOPMENT
PLAN (2021-2025)I.

MEASURES FOR THE IMPLEMENTION OF THE 9TH FIVEYEAR NATIONAL SOCIO-ECONOMIC DEVELOPMENT
PLAN (2021-2025)

In order for the implementation of this Five-Year National Socio-Economic Development
Plan to be effective, efficient and as successful as planned, emphasis and focus must be placed on
proactively implementing the Four Breakthroughs namely: breakthrough in creativity, breakthroughin human resource development, breakthrough in improving administrative and regulatory
mechanisms, and breakthrough in poverty alleviation by further optimising all sources of funding
and putting in place special promotion policies to build a well-targeted socio-economic
infrastructure. Moreover, it is also important to focus efforts on implementing key measures asfollows:

1.

Strengthening macroeconomic management to be sustainable anddiversified• Addressing economic and financial difficulties, including through austerity and antiextravagance measures and action against narcotic drugs abuse, as a national agenda inorder for the entire state, the entire armed forces and the entire Lao people to takeresponsibility and ownership of the implementation process in a comprehensive manner.
• Ensure continuous and quality economic growth to create fiscal space in the state's financial
and budget systems.
• Carry out reforms to create fiscal space in the state financial and budget systems byconducting an accurate base assessment, improving the system for collecting all budget
revenues in accordance with the law, managing revenue and expenditure budget withmodern tools, implementing measures to ensure the use of a uniform accounting system,
exploring a number of new different types of revenue base such as urban property tax,
environmental tax, and so on. At the same time, expand the revenue base by promoting
SMEs to be a driving force for development, aiming to encourage entrepreneurs andbusiness units to become more involved in the formal economy.
• Continue to improve control of expenditures, ensuring frugality and avoiding unnecessary
and wasteful spending; and manage procurement in accordance with the law and strictly
follow financial discipline.
• Improve financial services to be convenient, fast, secure and transparent by using modern
ICT tools.
• Manage public debt in accordance with the Public Debt Management Law and focus onconcessional loans.
• Improve and strengthen SOEs by shifting to public-private partnership;• Implement a prudent monetary and exchange rate policy according to market mechanisms
and government adjustments, reduce the use of foreign currency, and set policies toencourage exporters to transfer and send money through the banking system.

101• Manage the non-performing loan (NPL) ratio of the banking system to not exceed 3% of
the total credit balance and implement strict and effective debt collection measures.
• Continue to use the macroeconomic unit and debt management unit mechanism at thecentral level to carry out normal activities to monitor the macroeconomic situation, and set
policies and corrective measures in a timely manner.
• Establish a mechanism to mobilise domestic capital to accumulate funds for theconstruction of the necessary public infrastructure. Mobilise the domestic and foreign
private sector to invest in the form of public-private partnership (PPP) in infrastructure to
support economic integration and connectivity.
• Create an enabling environment to attract private investment with a variety of incentives,
along with improving and enforcing regulations effectively.
• Encourage and promote targeted and effective investment in high potential national andlocal sectors.
• Strengthen domestic production and services in a targeted manner according to thepotential of each locality by promoting the use of Lao products and increasing exports to
reduce trade deficit.
• Implement the government’s Three Opens policy (open mind, open door and open (toremoving) barriers).
• Carry out industrialisation and modernisation in agriculture and forestry, banking,telecommunications, transport and transit services to increase the efficiency andeffectiveness of production and facilitation of investment, trade, and tourism.
• Establish economic relations between sectors and localities such as integrated tourism
enterprises and agricultural processing enterprises.

2.

Development of Human Resources and the Labour Force• Increase funding for human resource development, from early childhood education to
university education and technical and vocational education and training, aiming to build
the quality of teaching and learning, and improving the curriculum to be relevant,especially preparing human resources to be competitive in the era of Industry 4.0 anddigital development.
• Develop plans to utilise the potential of young people by researching and identifying
priority sectors to focus investment on those areas, such as training courses that encourage
students to have complex problem-solving skills, leadership skills, time management skills
and creative ideas, which are needed skills in the future.
• Transform the imagination of human resources, particularly to have a sense of
responsibility at work, and self-learning, among other things to fully contribute to socioeconomic development.
• Ensure improved nutrition, safe drinking water, sanitation, life expectancy, and reduced
maternal and under-five mortality.
• Undertake long-term planning on population dynamics and trends to be prepared as Lao
PDR becomes an aged society by 2059.
• Increase investment in early childhood education to ensure that children during the first
1,000 days of life, which is the most important period of cognitive development, receive
education and complete nutrition.
• Develop plans to build foreign language skills for the next generation of young people tohave a good knowledge and level of foreign language skills.
• Increase environmental-related learning through hands-on learning and practice, aimed atraising students’ awareness of their connection to nature from an early age.
• Create a balance between the demand and capacity building of the labour force for socioeconomic development.
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3.

Promoting Well-being and a Prosperous and Just Society• Increase the mobilisation of investment from all sectors of the economy into ruraldevelopment and poverty alleviation.
• Continue to reduce poverty, gender inequality, disparities between rural and urban areas
and between the rich and poor, particularly inequality in income distribution andconsumption (Gini coefficient), and increase the proportion of women in the labour force.
• Continue to address unexploded ordnance, aiming to reduce casualties and prevent future
accidents.
• Strengthen the implementation of the National Social Protection Strategy and the National
Rural Employment Strategy.
• Protect the rights and welfare of children, reduce and combat all forms of child abuse, andencourage children to be more involved and share their voices in the development process;• Provide welfare policy to care for the elderly and people with disabilities and encouragethem to participate more in society, build infrastructure to accommodate people withdisabilities; and provide social assistance and physical therapy for people with disabilities;• Ensure an effective social protection system for equitable social welfare throughout the life
cycle.
• Increase social safety, orderly traffic, and strengthen hotlines, emergency response andsurveillance cameras.
• Increase coordination between the agriculture and forestry, industry and commerce sectors
and relevant stakeholders at the central and local levels.
• Provide adequate technical and budget support to boost the monitoring of agriculture andanimal husbandry, and establish production groups and cooperatives according to thecomparative advantages of each locality.

4.

Environmental Protection and Risk Reduction• Raise awareness so that everyone can protect the environment and use natural resources
sustainably;• Strengthen the role of natural resource and environmental management, ensure effective
implementation of mechanisms and legislation, and promote contribution to green
development and sustainable;• Increase reporting of weather, climate and flood conditions, as well as early warning ofspecific weather events to enhance rescue capabilities, mitigate the impact and ensure
recovery from natural disasters;• Promote the circular economy model to reduce reliance on the natural resource sectors andreduce environmental degradation, including reducing solid waste and other wastes,
reducing air pollution, water pollution, and noise pollution, and promoting significant
waste management and recycling;• Promote reduction of greenhouse gas emissions in accordance with Nationally Determined
Contributions (NDC). Enhance resilience and mitigate the effects of climate change;• Continue efforts to increase forest cover and rehabilitate forests, particularly biodiversitythat is at risk of extinction.

5.

Building Resilient Infrastructure to Enhance Connectivity and Integration
at All Levels• Enhance regional and international cooperation, connectivity and integration, particularly
trade and export cooperation to promote production and exports, with innovative ideas tobring the market (including online) to remote producers;103• Build a network of national roads, railways, waterways and airways with many different
routes and quality to promote connectivity with productive regional markets and larger
markets;• Promote sustainable energy sector infrastructure, and optimise the potential of the energy
sector to be able to meet the needs of domestic consumption. At the same time, it isnecessary to study and explore other energy-intensive industries to avoid oversupply ofenergy, such as the use of electric vehicles in the future to reduce fossil fuel consumption
and promote electricity consumption;• Increase irrigated areas that are able to produce all year round;• Integrate urban planning into the early stages of cities’ and towns’ development, and ensure
the creation of modern urban residential areas (including safe and accessible housing) to
reduce urban congestion caused by rural-to-urban migration;• Employ modern IT tools to facilitate access to and management of certain types ofinfrastructure, such as mobile applications for bus scheduling and bus ticket payments;• Strengthen and enhance cooperation with ASEAN countries and other friendly countries
in the world and international organisations in accordance with the foreign policy of peace,
independence, friendship and cooperation in order to strengthen socio-economic
development, and take ownership in implementing, monitoring and evaluating aid
effectively.

6.

Improving Public Governance and Administration• Enhance solidarity and unity, involving everyone in society in the development process,using online channels to gather opinions on improving innovative public services;• Continue to improve and reduce shortcomings in an effort to move the country’s level on
the Corruption Perceptions Index to a better level by 2025.
• Ensure a clear and appropriate allocation of funds for the ICT sector and research anddevelopment.
• Raise the capacity of personnel and improve the public service sector’s concept and correctunderstanding of providing services to the public in order to build public trust in the public
sector.
• Study the feasibility of using ICT tools to conduct transactions in various sectors in orderto save time and increase efficiency and trackability.
• Improve the efficiency of public administration and coordination between the central andlocal levels, and improve public services to be more auditable and transparent.
• Continue to cooperate with development partners in the implementation of the Vientiane
Declaration on Aid Effectiveness in line with national priorities.
• Enhance coordination between all levels of government, People’s Assembly, and the legal
and justice sector in accordance with their respective mandates and responsibilities.
• Raise public awareness of respect for and ownership of strict implementation of laws andregulations.
• Improve and establish a comprehensive system of laws and legislation as a tool for effective
public administration.
• Raise political responsibility at all levels in the implementation of their rights and duties,
as well as strengthen strict inspection and enforcement of laws.
• Combat and address corruption at all levels.
• Improve the statistical information system to serve the formulation, monitoring, evaluationand summary of reports on the implementation of socio-economic development plans, aswell as to ensure that there is budget to support systematic monitoring.

104• Continue to encourage the work of national defence and public security as the
responsibility of the entire people in a more vigorous manner in order to maintain politicalstability, peace and security in the society.
• Sectors and local authorities must take the lead in monitoring, inspecting and evaluating
the implementation of the 9th Five-Year National Socio-Economic Development Plan
(2021-2025) in accordance with their rights, duties and scope of responsibilities.

II. MECHANISMS FOR THE IMPLEMENTATION OF THE 9TH
FIVE-YEAR NATIONAL SOCIO-ECONOMIC DEVELOPMENT
PLAN (2021-2025)• The Government issues the Implementation Decree. The Ministry of Planning andInvestment issues technical guidelines and acts as the central agency in coordinating withthe central and local levels on the implementation and translation of the 9th Five-Year Plan
into detailed work plans, with maximum efficiency and effectiveness.
• Ministers, Provincial Governors and the Mayor of Vientiane Capital must increase their
responsibilities in translating the Plan Targets and Outputs into detailed actions according
to their respective responsibilities, ensuring consistency between planning, budgeting, andstaffing, and in accordance with the Sam Sang Directive management mechanisms fromthe central to the local level, in order to facilitate and enable successful and effective
implementation.
• Increase the coordination within the public sector (vertical and horizontal coordination)and between the public and private sectors on the implementation and monitoring of socioeconomic development plans.
• Strengthen the coordination mechanism for building, developing and upgrading labour
skills between the Ministry of Education and Sports, the Ministry of Labour and Social
Welfare and the Lao National Chamber of Commerce and Industry in order to movetowards enhanced production and business operations, employment, and income
generation for society as well as to respond to the labour market in a more targeted manner
and with more quality.
• Strengthen the role of all public and private organisations, the Front, mass organisations,the people, civil society organisations, and domestic and foreign investors, to participate in
the successful implementation of the National Socio-Economic Development Plan.
• The Ministry of Planning and Investment, in collaboration with all sectors and localities,
monitors and evaluates the implementation periodically in accordance with the Five-Year
Plan objectives and reports on the status of the implementation of development plans ineach period by using and managing the Monitoring and Evaluation framework efficiently
and effectively.

III. DELEGATION OF RESPONSIBILITIES TO THE SECTORS
AND LOCALITIES
1) The Ministry of Finance shall urgently modernise the management of revenue andexpenditure collection to be more timely and comprehensive; implement measures for business units
to use a uniform accounting system and to participate in the Value Added Tax system in order toincrease budget revenue; consider the transformation of inefficient State-Owned Enterprises into
other forms of ownership; and collaborate with relevant parties to resolve economic and financial
difficulties by setting it as a national agenda.

1052) The Bank of Lao PDR shall continue to manage and maintain monetary stability within
the framework of the plan, encourage and create favourable conditions for sources of financing topromote effective production and services in line with the Government’s priority goals,
strengthening the domestic production base and generating revenue for the country; strengthen the
management of commercial banks and non-bank financial institutions to operate strictly inaccordance with laws and regulations along with continuing to support the effective implementationof appropriate measures and policies for those affected by COVID-19, while ensuring the stabilityof the financial system in the medium to long term, and collaborating with the Lao Statistics Bureau
to ensure the quality and timeliness of the information required for national monetary stability.
3) The Ministry of Planning and Investment shall continue to coordinate with the relevant
sectors to improve the regulations and mechanisms for doing business and issuing investment andbusiness licenses effectively in accordance with the Prime Minister’s Orders No. 2 and No. 3,
encourage and attract more domestic and foreign private investment in compliance with the Law on
Investment Promotion, and continue to promote investment in Special Economic Zones.
4) The Ministry of Industry and Commerce, in collaboration with the relevant parties, shallidentify markets and products according to the needs of the domestic market and export items, as abasis for the relevant parties to create production plans to meet those needs; and determine, monitor
and manage the prices of goods, especially consumer goods, in order to prevent a rise in the cost ofliving.
5) The Ministry of Agriculture and Forestry and the Ministry of Industry and Commerce areresponsible for promoting the production sectors for domestic consumption and for export,
particularly the production of marketable products, including quotas received from China such as
rice, livestock and a number of crops in order to plan production or aspiring production projects tobe able to meet market demand;
6) The Ministry of Information, Culture and Tourism shall focus on advertising campaigns
and the promotion of Lao tourism to stimulate the economy, encourage and guide tourism business
units to improve tourist attractions and accommodation and restaurant services to be of high qualityand diversity; collaborate with stakeholders at all levels to disseminate measures to prevent, control
and address the COVID-19 outbreak; and encourage and upgrade the “Lao Thiao Lao” and “Madein Laos” campaigns.
7) The Ministry of Education and Sports is in charge of implementing the National Human
Resource Development Strategy and priority activities of the Education and Sports Development
Plan to improve the quality of human resources, focusing on improving the quality of teaching andlearning curriculum at all levels, as well as providing necessary equipment, tools and policies toteachers and students, especially in remote areas.
8) The Ministry of Health shall increase the management, monitoring, inspection andsupport of the regular and timely implementation of measures to prevent and address the outbreakof COVID-19; and continue to pay attention to expanding the healthcare network to remote areas,
along with enhancing the quality and ethics of medical personnel.
9) The Ministry of Labour and Social Welfare, in coordination with the Ministry of
Education and Sports, Lao Youth Union and Lao Women’s Union, shall improve the coordination
mechanisms for skills development and training to be consistent and in line with market needs, aswell as coordinate with Special Economic Zones, private sector investment projects and othersectors to identify labour needs; improve training curricula to meet international standards; andfocus on addressing the issue of unemployment, especially workers returning from abroad.
10) The Ministry of Natural Resources and Environment shall enhance responsibility andownership in the implementation of legislation on natural resource management and environmental
protection; and ensure systematic monitoring and reporting on the situation of climate change sothat society and the people are informed and prepared to respond to the effects of natural disasters
in a timely manner.

10611) All sectors and localities shall take ownership and responsibility to research and plan
production and services according to their respective potentials in order to effectively utilise theexpressways and Laos-China railway along the various economic corridors; and coordinate
harmoniously on the implementation of regional development plans to build effective and targeted
economic relationships that are not overlapping but mutually supportive.

IV. MONITORING AND EVALUATION• The Ministry of Planning and Investment, as the central agency for coordinating with allparties, is responsible for managing, monitoring and evaluating the implementation of the
9th Five-Year Plan, in particular the Outcomes at the national level.
• Sectors and localities shall monitor the progress of the implementation of the Outputs,
Priority Activities and cross-sectoral issues that are related to their respective sectors andreport to the Ministry of Planning and Investment periodically through the implementationof their annual workplans.
• The Ministry of Planning and Investment is responsible for providing general guidance on
monitoring and evaluation by (i) compiling indicators, baseline data and targets at theoutcome level specified in the Plan; (ii) coordinating with sectors and localities to compile
information on the Outputs and Priority Activities of each sector to help achieve national
outcomes; (iii) providing guidance to sectors in identifying key indicators, baseline data
and targets that are important to the achievement of the Plan; (iv) monitoring and evaluating
the implementation at the national outcome level and reporting on the implementation
progress; and (v) applying the results of monitoring and evaluation of the implementationof the Plan in periodic planning.

107

ANNEXES

108

Implementation of 8th National Socio-Economic Development Plan (2016-2020)
Compared with National Assembly Resolution No.14/NA

No.

1

2

A

Economic Targets

1
2

Population
GDP Current price
GDP Current Price
GDP Growth

3

4

ReviseTargets in
5 years
Implementation Implementation Implementation
4 Years
Targets 4
Resolution
Estimate 2020
Implementio
2017
2018
2019
Implemention Year (2017No. 09n2020)(2016-2020)

Unit

Implementation
2016

3

4

5

6

7

6,787,007
129,279
15,901
7.0

6,916,402
140,698
17,061
6.9

7,012,995
152,414
18,1296.3

7,111,968
164,017
18,8755.5

7,214,196
173,138
19,7793.3

PeopleBillion kip
Million USD%

8

9=5+6+7+8

10

11=4+5+6+7+8

630,267
73,8445.5

600,611600,611.00
7.2

759,546
89,745.00
5.8

7.5

%

2.80

2.90

1.30

1.20

2.30

1.9

3.40

2.10

3.2

-​​ Industry

%

10.50

11.60

7.80

5.60

9.80

8.7

9.30

9.06

9.3

-​​ Service

%

7.40

4.50

6.90

6.90

(1.60)

4.2

8.10

4.82

8.9

- Tax

%

5.30

7.00

6.20

5.50

1.80

5.1

5.00

5.16

6.0

100.00100.00100.00100.00100.00- ​Agriculture

%

15.80

15.30

14.50

15.20

16.60

19.0

-​​ Industry

%

33.70

35.20

35.70

31.40

33.00

32.0

-​​ Service

%

40.30

39.30

39.60

42.30

39.50

41.0

Shared of GDP

%

10.20

10.20

10.20

11.10

10.90

USD/Person
USD/Person

2,025
1,904

2,468
1,951

2,585
2,043

2,654
2,098

2,664
2,106

Billion kip

22,28823,011

25,772

26,62522,97598,384

111,670

120,672-​​ Domestic Revenue

Billion kip

20,367

20,666

22,84323,993

20,41087,912

98,312

108,280-​​ Grants

Billion kip

1,921

2,346

2,929

2,632

2,565

10,472

13,35812,037

7.2 Total ExpenditureBillion kip

25,88730,736

31,86630,624

31,520124,745

137,132

150,632

Billion kip(3,599)(7,725)(6,093)(3,998)(8,545)(26,361)(25,462)(29,961)

%

(2.8)

(5.5)

(4.0)

(2.4)

(4.9)

(4.2)

(4.2)

(3.94)- Tax

Budget expenditure
7.3 Budget deficit
Budget dedicit/GDP
State Accumulation Fund8

13

- ​Agriculture

GDP per capita
GNI per capita
Revenue-Expenditure
Total Revenue

5
6
7
7.1

12

8.0
2,978
2,354.00

3,190

≤%

%

(5.0)
2-3%

Monetary Sector

8.1 Inflation

19-20%

25.0% of Domestic
Revenue

1.60

0.83

2.04

109

3.32

5.07

2.82

< GDP
Growth

2.57

Note

No.

1

2

Unit

Implementation
2016

3

4

ReviseTargets in
5 years
Implementation Implementation Implementation
4 Years
Targets 4
Resolution
Estimate 2020
Implementio
2017
2018
2019
Implemention Year (2017No. 09n2020)(2016-2020)
5

6

7

8

9=5+6+7+8

10

11=4+5+6+7+8

12

Note

13

8.2 Exchange Rate
Kip/USD%(0.36)(2.03)(1.56)(3.59)

Kip/Baht%

3.27(5.68)(6.86)

%

10.9

12.2

8.37

8.4 Foreign Reserve

Months of import

5.26

4.39

8.5 Deposite/GDP

%

50.67

52.16

8.3 Money Supply (M2)

8.6 Non-Performing Loan (NPL)(3.35)+/-5(2.75)(7.59)(8.15)

18.9

17.04

(7.07)+/-5(5.00)

14.1

24%/ປີ

3.23

3.59

13.48

24%/year

4.81

4.01

> 5 ເດືອນ

4.26

51.99

57.43

>5

64.43

56.50

84.00

55.33

3.00

3.07

3.12

3.04

3.16

3.10

< 3%

3.08

Total Investment

Billion kip

44,129.5

30,327.5

43,550.2

44,999.6

50,867.3

169,744.6

173,329.0

213,874.2

Public Investment
9.1 State Budget

Billion kip
Billion kip

9,615.0
3,300.00

13,494.5
5,189.79

12,803.2
4,364.09

12,125.5
4,359.82

8,342.8
3,186.2

46,766.0
17,099.955,591.0
21,863.0

56,381.0
20,399.9

Capital ExpenditureBillion kip

3,300.00

3,191.10

2,767.97

2,450.00

1,608.9

10,018.0

15,300.0

13,318.0

OthersBillion kip

1,998.69

1,596.12

1,909.82

1,577.33

7,082.0

6,563.0

7,082.0

33,728.0

35,981.0

9

9.2 Official development assistance (ODA)
GrantsLoans
9.3 Domestic and Foreign Private Investment
Cash%(6.23)

9-11%

12-15%

12-16%

15-24%

6,314.96

8,304.75

8,439.07

7,765.69

5,156.55

29,666.1

Billion kip

1,951.00

2,283.00

2,607.76

1,813.35

3,692.0

10,396.1

Billion kip

4,464.00

5,893.00

5,831.33

21,457.3

23,639.00

9,033.00

21,984.00

5,300.00
23,086.13

4,433.0

Billion kip

32,024.5

86,127.6

79,462.00

109,766.6

54-57%

40-49%

10,876

7,800

8,763

9,788

10,50036,851.0

38,19947,726.6

19-21%

21-23%

4,350,000.0

3,704,926.2

12,347.1
25,921.3

Billion kip

In Kind

Billion kip
Billion kip

10 Production Sectors
1

Rice

Ton

4,148,800.0

4,055,409.0

3,279,110.0

3,534,500.0

3,506,812.0

3,593,957.8

2

Maize

Ton

1,245,840.0

955,700.0

603,535.0

714,375.0

518,126.0

697,934.0

807,515.2

3

SugarcaneTon2,019,000.0

1,764,290.0

1,109,360.0

1,807,470.0

1,191,240.0

1,468,090.0

1,578,272.0

4

CassavaTon2,410,000.0

2,083,605.0

3,324,290.0

3,127,590.0

4,634,436.0

3,292,480.3

3,115,984.2

5

BuffaloNumber1,177,000.0

1,189,000.0

1,200,000.0

1,212,000.0

1,234,000.0

1,208,750.0

1,202,400.0

6CattleNumber

1,923,000.0

1,984,000.0

2,041,000.0

2,110,000.0

2,181,000.0

2,079,000.0

2,047,800.0

7Pig

Number

3,700,000.0

3,869,000.0

3,825,000.0

4,110,000.0

4,327,000.0

4,032,750.0

3,966,200.0

8Poultry

Number

35,150,000.0

36,960,000.0

39,218,000.0

43,600,000.0

45,799,000.0

41,394,250.0

40,145,400.0

9Goat and Sheep

Number

560,000.0

588,000.0

616,000.0

648,000.0

686,000.0

634,500.0

619,600.0

10 EggTon

26,360.030,400.0

40,500.0

43,000.0

43,200.0

39,275.0

36,692.0

11 Capture Fish

Ton

57,401.0

59,050.0

60,508.0

64,701.0

69,770.0

63,507.3

62,286.0

12 Culture FishTon

106,599.0

109,818.0

118,709.0

123,001.0

130,250.0

120,444.5

117,675.4

Million Kwh

22,100.7

31,550.4

34,409.0

31,133.0

41,340.0

138,432.4

160,533.1

42.8

9.1

(9.5)

32.8

18.8

18.8

Growth Rate

< 3%

Billion kip

9.4 Bank Credit

13 Electricity Production

±5

110

No.

1

2

Unit

Implementation
2016

3

4

ReviseTargets in
5 years
Implementation Implementation Implementation
4 Years
Targets 4
Resolution
Estimate 2020
Implementio
2017
2018
2019
Implemention Year (2017No. 09n2020)(2016-2020)
5

6

7

8

9=5+6+7+8

10

11=4+5+6+7+8

14 Mining Production

Million USD

1,466.2

1,538.0

1,696.1

1,611.0

1,215.3

6,060.4

15 Trade

Million USD

8,455.6

9,672.2

11,258.1

11,639.6

11,951.0

44,520.9

8,933

52,976.4

Million USD

4,236.2

4,879.8

5,410.2

5,864.1

6,039.0

22,193.1

3,933

26,429.3

15.2

10.9

8.4

3.0

9.4

-​​ Export
Growth Rate

12

13

7,526.5

9.4-​​ Import

Million USD

4,219.3

4,792.4

5,848.0

5,775.5

5,912.0

22,327.8

5,000

26,547.1

16.9

87.4

(437.8)

88.7

127.0

(134.8)(1,067)(118)-​​ Trade Balance

Million USD

Export average growth

%

15.0

Import-Export value/GDP

%

70.0

16 Processing Industry and Handicraft
Growth Rate
Value of Flow of Goods (wholesale-retail and17
services)
Growth Rate
B
18
19
20
21
22

Social-Cultural Targets
Number of tourist
Tourism Revenues
Poverty Rate
Survival rate of primary school students
Drop out rate of primary school students
Gross enrolment rate of lower secondary school
23
students
Gross enrolment rate of upper secondary school
24
students
25 Drop out rate of lower secondary school students

Billion kip

8,585.0

8,942.0

10,277.6

12,144.6

12,779.0

44,143.2

52,728.2%
Billion kip

9.2
51,688.0

57,613.0

65,596.7

65,347.3

240,245.0

285,153.0

44,908.0

15.1

11.5

13.9

(0.4)

10.0

10.2

4,239,047.0
724.193,868,838.0
648.06

4,186,432.0
811.01

81.1
4.4

84.0
4.1

886,447.0
248.9
17.0
82.1
4.3

2,236,627.0
660.7

79.6
4.7

4,791.065
934.71
18.3
82.0
4.3

%

82.2

82.9

83.1

82.8

83.3

85

%

47.8

51.4

53.3

54.8

54.8

60
2

%
Persons
Million USD
%
%
%

Note

%

8.1

8.3

9.2

9.5

10.3

26 Drop out rate of upper secondary school students

%

5.4

5.8

7.1

8.0

8.8

Literacy rate of 15 years and above
27 Literacy rate of 15-45 years
28 Literacy rate of 15-24 years
Prevalence of weight, weight for age (% of children
29
under 5)
Prevalence of stunting, height for age (% of children
30
under 5)%%%6,000,000
953
10
90
2

2,637,111
673
10.0

.

95.0
95
99

%

24.2

21.1

21.5

20.8

20.3

20

20.0

%

35.6

33.0

33.5

32.7

32.3

32

32.0

31 Infant mortality rate

Per 1,000 live
births

40.0

14.4

12.0

30

32 Under 5 mortality rate

Per 1,000 live
births

46.0

16.6

13.5

40

33 Maternal Mortality Rate

Per 100,000 live
births

68.4

66.4

160

111

2020 is 9monthsestimate

160.0

No.

1

2

34 Clean Water Consumption Rate
35 Social security and health insurance

Unit

Implementation
2016

3

4

ReviseTargets in
5 years
Implementation Implementation Implementation
4 Years
Targets 4
Resolution
Estimate 2020
Implementio
2017
2018
2019
Implemention Year (2017No. 09n2020)(2016-2020)
5

6

7

8

9=5+6+7+8

%

83.9

85.9

88.5

%

71.0

80.0

94.0

10

11=4+5+6+7+8

90.0

80

80.0

Persons

559,553.0

716,190

37 Skilled labour development
Implement the welfare policy for people who
38
contributed to the national revolutionary

Persons

419,264.0

658,000

Persons

3,026.0

3,311.0

3,452.0

2,921.0

4,775.0

14,459.0

32,20439 Clearance of UXO areas

Hectare3,255.0

4,312.0

5,689.0

5,116.0

10,000.0

25,117.0

16,000

Persons

44.0

281.0

270.0

78.0

650.0

1,279.0

1,500

41 Cultural families
C Environmental Targets
42 Registration of land titles throughout the country
Allocation, identification, restoration and expansion
43of the forest areas
44 Improving Earthquake Warning Stations% Total Cultural
FamilyNumber

78,729117,772

132,286%

153,020

107,45558.0

400,000
70

Station

2

2

2

2

2

Station

0

0

10

11

13

5

46 Establish Water Quality Monitoring Points

Points

0

0

52

60

200

200

47 Monitor and Control of Pollution in River Basins

Basins10%50Develop Comprehensive Environmental
Management Plans at District and Provincial Levels

49 Create National Park Models
D

17,49180

45 Establish Earthquake Warning Stations

48

13

90

36 Supply labour to labour markets

40 Number of UXO survivors and victims

12

Model

2

USD/Person

1,996

589,262400,000
70.0

2

2

LDC Targets

50 Gross National Income (GNI)
51 Human Asset Index (HAI)
52 Economic Vulnerability Index (EVI)

72.80
33.70

112

Note

1,230
66
< 32

Monitoring-Evaluation Framework for 9th Five-Year National Socio-Economic Development Plan (2021-2025)
GG SDG

No

Indicators

Unit

Level ofmeasurement

Divided byBaseline

Base
Year

Data Source

2025 Target

Frequency ofreporting

Data Source

Responded by

Links with

SDG
Tier

Outcome 1: Continuous quality, stable and sustainable economic growth achieved

1

1

1

GNI per capita

US $OutcomeNational level

1,996

2018

Data from the report

1,222

3 years

Data from the report

Lao Statistics Bureau / CDP

LDC

2

EVI

%

OutcomeNational level

33.7

2018

Data from the report32

3 years

Data from the report

Lao Statistics Bureau / CDP

LDC

3Annual GDP per capita

US $OutcomeNational level

2,664

2020

Data from the report

2,880

Annually

Data from the report

Lao Statistics Bureau

SDG 8.1.1

Billion kip

OutputNational level759,546

2020

Data from the report

1,056,692

Annually

Data from the report

Lao Statistics Bureau

9th NSEDP%

OutputNational level

5.80

2020

Data from the report

4.82

Annually

Data from the report

Lao Statistics Bureau

9th NSEDP%

OutputNational level

2.10

2020

Data from the report

2.5

Annually

Data from the report

Lao Statistics Bureau

9th NSEDP%

OutputNational level

16.60

2020

Data from the report

15.3

Annually

Data from the report

Lao Statistics Bureau

9th NSEDP%

OutputNational level

9.06

2020

Data from the report

4.1

Annually

Data from the report

Lao Statistics Bureau

9th NSEDP%

OutputNational level

33.00

2020

Data from the report

32.3

Annually

Data from the report

Lao Statistics Bureau

9th NSEDP%

OutputNational level

4.82

2020

Data from the report6

Annually

Data from the report

Lao Statistics Bureau

9th NSEDP

Lao Statistics Bureau

9th NSEDP

Output 1: Quality and sustainable economic growth24

GDP (5-year cumulative figure)GDP growth rate

5

Agricultural sector growth
Share of Agricutural sector in GDP

6

Industrial sector growth
Share of Industrial sector in GDP

7

Services sector growth8

Average annual paddy rice production

9%

OutputNational level

39.50

2020

Data from the report

41.3

Annually

Data from the report

Million tons

OutputNational level

3.5

2020

Data from the report

3.5 - 4

Annually

Data from the report

Annual livestock growth%

OutputNational level

5

2020

Data from the report

3-4

Annually

Data from the report

10

Fish farming and aquafarming growth%

OutputNational level

2020

Data from the report

3-4

Annually

Data from the report

11

Average crop production per year:
CoffeeTon

OutputNational level

158,190

2020

Data from the report

175,500

Annually

Data from the report

Feed corn

Ton

OutputNational level

518,126

2020

Data from the report

636,900

Annually

Data from the report

CasavaMiliion tons

OutputNational level

4.63

2020

Data from the report

3.6

Annually

Data from the report

Sugarcane

Miliion tons

OutputNational level

1.19

2020

Data from the report

1.6

Annually

Data from the report

BananasTon

OutputNational level

728,1102020

Data from the report735,500

Annually

Data from the report

US $ million

OutputNational level26,5582020

Data from the report

38,043.52

Annually

Data from the report%

OutputNational level

8.25

2020

Data from the report

8-10

Annually

Data from the report

Share of service sector in GDP

12Export value of goods (5-year cumulative figure)average annual growth rate

13

Import value of goods (5-year cumulative figure)

US $ million

OutputNational level

25,6982020

Data from the report

32,927.35

Annually

Data from the report

average annual growth rate%

OutputNational level

8.90

2020

Data from the report<9

Annually

Data from the report

14

Annual export of argricultural products

US $ million

OutputNational level

852

2020

Data from the report

1,200

Annually

Data from the report

15

Annual growth of industry and handicraft production%

OutputNational level

9.10

2020

Data from the report

8-10

Annually

Data from the report

16

Electricity generation (5-year cumulative figure)Million kWh

OutputNational level

161,923

2020

Data from the report

276,096

Annually

Data from the report

Billion kip

OutputNational level

78,271

2020

Data from the report

140,879

Annually

Data from the reportElectricity genderation value (5 years accumulated balance)
Export of electricity (cumulative figure)17

Mineral production (5-year cumulative figure)
Mineral sales (5-year cumulative balance)

Megawatt

OutputNational level

6,500

2020

Data from the report

5,000

Annually

Data from the report

US $ million

OutputNational level

7,526.5

2020

Data from the report

7,832.10

Annually

Data from the report

US $ million

OutputNational level8,092.3

2020

Data from the report

8,336.40

Annually

Data from the report

113

Ministry of Agriculture andForestry
Ministry of Agriculture andForestry
Ministry of Agriculture andForestry

Ministry of Agriculture andForestry
Ministry of Agriculture andForestry
Ministry of Agriculture andForestry
Ministry of Agriculture andForestry
Ministry of Agriculture andForestry
Ministry of Industry andCommerce
Ministry of Industry andCommerce
Ministry of Industry andCommerce
Ministry of Industry andCommerce
Ministry of Agriculture andForestry
Ministry of Industry andCommerce
Ministry of Energy and
Mines
Ministry of Energy and
Mines
Ministry of Energy and
Mines
Ministry of Energy and
Mines
Ministry of Energy andMines

9th NSEDP
9th NSEDP
9th NSEDP

9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP

I

18

Survey and establish baseline geological and mineral data at a scale of 1/200,000%

OutputNational level

68.40

2020

Data from the report

31.5

Annually

Data from the report

Ministry of Energy andMines

9th NSEDP

19

Annual average growth (wholesale-retail and services and motorcycle and automobile repair services)%

OutputNational level

8.87

2020

Data from the report

8-10

Annually

Data from the report

Ministry of Industry andCommerce

9th NSEDP

US $ million

OutputNational level

231

2020

Data from the report

3,813

Annually

Data from the report

Millions of times

OutputNational level

17.94

2020

Data from the report

15

Annually

Data from the report

Revenue from tourism
Number of tourists (5-year cumulative figure)
21

Survey, allocate, demarcate, and issue certificates for tourism destinations

Ministry of Information,
Culture and Tourism
Ministry of Information,
Culture and Tourism

9th NSEDP
9th NSEDP

Place

OutputNational level

3

2020

Data from the report30

Annually

Data from the report

Ministry of Information,
Culture and Tourism

Billion kip

OutputNational level

120,672

2020

Data from the report

179,500

Annually

Data from the report

Ministry of Finance

9th NSEDP%

OutputNational level

15.89

2020

Data from the report

17

Annually

Data from the report

Ministry of Finance

9th NSEDPSDG 17.1.1

II

9th NSEDP

Output 2: Robust and stable macroeconomic management ensured
22

Total budget revenue

2
3

Total budget revenue to GDP ratio
23

Tax revenue
Tax revenue to GDP ratio24

Non-tax revenue
Non tax revenue to GDP ratio

25

Grant revenue
Grant revenue to GDP ratio

26

Total budget expenditures
Proportion of Total budget expenditures to GDP

27

Total budget expenditures
Total budget expenditures to GDP ratio

28

Total investment expenditure
Total investment expenditure to GDP ratio

29

Total budget deficit
Total budget deficit to GDP ratio

4
5Billion kip

OutputNational level

83,9282020

Data from the report

144,776

Annually

Data from the report

Ministry of Finance

9th NSEDPSDG 17.1.2%

OutputNational level

11.05

2020

Data from the report

14

Annually

Data from the report

Ministry of Finance

9th NSEDP

Billion kip

OutputNational level

24,0902020

Data from the report

21,977

Annually

Data from the report

Ministry of Finance

9th NSEDP%

OutputNational level

3.17

2020

Data from the report2

Annually

Data from the report

Ministry of Finance

9th NSEDP

Billion kip

OutputNational level

12,3932020

Data from the report

12,410

Annually

Data from the report

Ministry of Finance

9th NSEDP%

OutputNational level

14.22

2020

Data from the report1

Annually

Data from the report

Ministry of Finance

9th NSEDP

Billion kip

OutputNational level

150,633

2020

Data from the report

190,000

Annually

Data from the report

Ministry of Finance

9th NSEDP%

OutputNational level

19.83

2020

Data from the report

18.0

Annually

Data from the report

Ministry of Finance

9th NSEDP

Billion kip

OutputNational level

93,9052020

Data from the report

130,500

Annually

Data from the report

Ministry of Finance

9th NSEDP%

OutputNational level

12.36

2020

Data from the report

12.3

Annually

Data from the report

Ministry of Finance

9th NSEDP

Billion kip

OutputNational level

56,7272020

Data from the report

59,500

Annually

Data from the report

Ministry of Finance

9th NSEDP%

OutputNational level

7.47

2020

Data from the report

5.6

Annually

Data from the report

Ministry of Finance

9th NSEDP

Billion kip

OutputNational level

29,9602020

Data from the report

10,500

Annually

Data from the report

Ministry of Finance

9th NSEDP%

OutputNational level

-3.49

2020

Data from the report-1 or ≤ 2

Annually

Data from the report

Ministry of Finance

9th NSEDP

Billion kip

OutputNational level

1,150

2020

Data from the report

1,500

Annually

Data from the report

Ministry of Finance

9th NSEDP

-

-

30

State treasury

31

Inflation (year-on-year)%

OutputNational level

3.19

2020

Data from the report≤6

Annually

Data from the report

Bank of the Lao PDR

9th NSEDP

M2 money supply%

OutputNational level

13.48

2020

Data from the report≤ 20

Annually

Data from the report

Bank of the Lao PDR

9ະh NSEDP

The exchange rate against the USD (year-on-year)%

OutputNational level

-6.26

2020

Data from the report±5

Annually

Data from the report

Bank of the Lao PDR

9th NSEDPSDG 17.13.1

I
I

32
33

Foreign exchange reserves (each year no less than)Month

OutputNational level

4.81

2020

Data from the report3

Annually

Data from the report

Bank of the Lao PDR

9th NSEDPSDG 17.13.1

Commercial bank deposits to GDP ratio%

OutputNational level

64.43

2020

Data from the report60

Annually

Data from the report

Bank of the Lao PDR

8th NSEDP

34

Bank credits to GDP ratio%

OutputNational level

48.76

2020

Data from the report49

Annually

Data from the report

Bank of the Lao PDR

9th NSEDP

35

Capital market mobilisation to GDP ratio (cumulative balance)%

OutputNational level

2020

Data from the report

15-18

Annually

Data from the report

Bank of the Lao PDR

9th NSEDP

36

Non-performing loan (NPL) to total credit balance ratio%

OutputNational level

3.08

2020

Data from the report≤3

Annually

Data from the report

Bank of the Lao PDR

9th NSEDP

Billion kip

OutputNational level

213,874.16

2020

Data from the report

204,599

Annually

Data from the report

Ministry of Planning andInvestment

9th NSEDP%

OutputNational level

28.16

2020

Data from the report

19.4

Annually

Data from the report

Ministry of Planning andInvestment

9th NSEDP%

OutputNational level

9.54

2020

Data from the report11

Annually

Data from the report

Ministry of Planning andInvestment

9th NSEDP
9th NSEDP
9th NSEDP

Output 3: Investment quality and effectiveness enhanced
37

Fund for development
Fund for development to GDP ratio

38

Ratio of investment from the national budget to total investment

39

Ratio of Official Development Assistance (ODA) to Total Investment%

OutputNational level

16.82

2020

Data from the report

18

Annually

Data from the report

Ministry of Planning andInvestment

40

Ratio of private investment to total investment%

OutputNational level

51.32

2020

Data from the report49

Annually

Data from the report

Ministry of Planning andInvestment

114

41

Ratio of other investments to total investment

Ministry of Planning andInvestment

9th NSEDP

Data from survey

Lao Statistics Bureau

9th NSEDP%

OutputNational level

22.32

2020

Data from the report22

Annually

Data from the report%

OutputNational level

14.25

2018

Data from the report18

5 years

Output 4: Better quality, robust and regionally and internationally competitive micro, small and
42
#####
6
7

44
45

Contribution of MSMEs to GDP
Number of new MSMEs increased per year%

OutputNational level

1.04

2020

Data from the report2

Annually

Data from survey

Ministry of Industry andCommerce

Number business units awarded the national ODOP trademark increased%

OutputNational level

7.94

2020

Data from the report8

Annually

Survey of small andmedium enterprises

Ministry of Industry andCommerce

SDG 9.2.3*
8th NSEDPI

SDG 8.5.3*
8th NSEDPI

9th NSEDP

Proportion of women owning a business/enterprise%

OutputNational level

7.51

2020

Data from the report9

Annually

Data from survey

Ministry of Industry andCommerce

NumberOutputNational level

50

2020

Data from the report68

Annually

Data from the report

Ministry of Agriculture andForestry

National Accounts
Data from the census/
data from the report
Lao Social Indicator
Survey (LSIS)

9th NSEDP

Output 5: Enhanced efficiency and effectiveness of state-owned enterprises and collective economy
46

Established production groups, qualified production cooperatives and model cooperatives.

Outcome 2: Improved quality of human resources to meet development, research capacity, science and technology needs, and create value-added production and services

8
9

47

Human Property Index (HAI)48

Maternal mortality rate

49

Infant mortality rate (under 1)

Index
Per 100,000 live
birthsPer 100,000 live
births

ImpactNational level

72,8

2018

CDP assessment

66

Unspecified

OutcomeNational level

206

2015

Data from the census

110

10 years

2017

Lao Social Indicator
Survey (LSIS)

20

5 years30

ImpactNational level40

Per 100,000 live
births

ImpactSectoral level

46

2017

Lao Social Indicator
Survey (LSIS)

Lao Statistics Bureau
Lao Statistics
Bureau/Miistry of Health
Lao Statistics Bureau

5 years

Lao Social Indicator
Survey (LSIS)

Lao Statistics Bureau

LDC
9th NSEDPSDG 3.1.1
9th NSEDPSDG 3.2.3
9th NSEDPLDC
SDG 3.2.1

I
I

10

50

Under 5 mortality rate

3

11

51

Proportion of stunting among under-five children%

ImpactNational level

33

2017

Lao Social Indicator
Survey (LSIS)27

5 years

Lao Social Indicator
Survey (LSIS)

Miistry of Health/ Lao
Statistics Bureau

9th NSEDP
LDC
SDG 2.2.1

I

4

12

52

Prevalence of underweight among under-five children%

ImpactNational level

9 (21.1)

2017

Lao Social Indicator
Survey (LSIS)

15

5 years

Lao Social Indicator
Survey (LSIS)

Miistry of Health/ Lao
Statistics Bureau

9th NSEDPSDG 2.2.3

I

2019

SEA-PLM 2019:
Regional Learning
Assessment - ASLO
National Learning
Assessment Grade 9(A) Lao
language 50% /Mathematics
30% (b) Lao
language 10% /Mathematics
20% (c) Lao
language 40% /Mathematics
20%

every 2 years

SEA-PLM 2019:
Regional Learning
Assessment - ASLO
National Learning
Assessment Grade 9

Ministry of Education andSports

SDG 4.1.1

Ministry of Health

SDG 3.7.2%

Impact(A) Lao
language 34%/ Mathematics
18% (b) Lao
language 2% /National level Mathematics
8% (c) Lao
language
28.2% /
Mathematics
8%

I

13

53

Proportion of children and young people achieving at least a minimum proficiency level in (i) reading and(ii) mathematics (male/female) according to national student performance assessments:(a) in grades 2/3;(b) at the end of primary; education (grade 5)(c) at the end of lower secondary education (grade 9)

1454

The incidence of puberty (15-19 years old) per 1,000 women in that age group%

ImpactNational level

83

2017

Lao Social Indicator
Survey (LSIS)

63

every 5 years

55

Use of Basic Sanitation Services%

ImpactNational level

71

2017

LSIS / LECS / Census

85

5 years

LSIS (5 years) / LECS (5years) / Family (10 years

Miistry of Health/ Lao
Statistics Bureau

56

Use of basic water supplies%

ImpactNational level

78

2017

LSIS / LECS / Census

95

5 years

LSIS (5 years) / LECS (5years) / Family (10 years

Lao Statistics Bureau

Per 100,000 live
births

ImpactSectoral level

18

2017

Lao Social Indicator
Survey (LSIS)

5 years

Lao Social Indicator
Survey (LSIS)

Lao Statistics Bureau

SDG 3.2.2

I85

5 years/annually

Lao Social Indicator
Survey (LSIS)/ Data fromthe report

Lao Statistics
Bureau/Miistry of Health

9th NSEDPSDG 3.1.2

I95

Annually

Data from the report

Ministry of HealthOutput 1: More inclusive and better-quality healthcare services and nutrition
15

16

57

Infant mortality rate (28 days and under)

58

Birth rate attended by skilled health personels%

OutcomeNational level

72.8

2020

59

Percentage of infant mortality (28 days and under)%

OutcomeNational level

89.8

2020

%

OutcomeNational level

71 (83.9)

Administrative reportfrom the Ministry's DH2
system ...
data from theadministrative report

5

17

60

Proportion of population using clean drinking water compared to the total population (clean water
consumption rate)

6

18

61

Proportion of population using improved latrines relative to total population (latrine utilization rate)%

OutcomeNational level

73.8

2017

Lao Social Indicator
Survey (LSIS)85

5 years

62

Public health insurance coverage%

OutputNational level

94

2020

Data from the report96

Annually

115

2017

Lao Social Indicator
Survey (LSIS)

95

5 years/annually

Lao Social Indicator
Survey (LSIS)/ Data fromthe report
Lao Social Indicator
Survey (LSIS)
Data from the report

9th NSEDP

Lao Statistics
Bureau/Miistry of Health

9th NSEDPSDG 6.1.1.aII

Lao Statistics Bureau

SDG 6.2.1

II

Ministry of Health

9th NSEDP

63

Rate and declaration as a model health village%

OutputNational level

80

2020

Data from the report85

Annually

Data from the report

Ministry of Health

9th NSEDP

Output 2: Improved quality of all levels of education and conditions created for access to education to support readiness for regional and international integration and Industry 4.0
1964

Enrollment rate for 5-year-olds in preschool%

OutcomeNational level

82.70

2019-20

data from theadministrative report86

Annually

data from theadministrative report

Ministry of Education andSports65

Promotion rate from grade 5 to grade 6%

OutcomeNational level

85.10

2019-20

data from theadministrative report> 90

Annually

data from theadministrative report

Ministry of Education andSports2019-20

data from theadministrative report

Annually

data from theadministrative report

Ministry of Education andSports2019-20

data from theadministrative report> 99

Annually

data from theadministrative report
data from theadministrative report
data from theadministrative report

Ministry of Education andSports
Ministry of Education andSports
Ministry of Education andSports

9th NSEDPSDG 4.1.3*
9th NSEDPSDG 4.1.3*
9th NSEDPSDG 4.1.4*

66
20

67

21

68

22

69

23

New enrollment student rate for grade 1
Total enrollment rate for primary school (Grade 5)
Lower Secondary (Grade 4)
Primary graduation rate%

OutcomeNational level

98.50

9th NSEDP

National level%

OutcomeNational level

71.60

2019-20

Data from the report> 74

Annually%

OutcomeNational level

92.6

2019-20

data from theadministrative report> 95

Annually

0.97-1.03

Annually

data from theadministrative report

Ministry of Education andSports

9th NSEDPSDG 4.5.1.a

4Annually

Data from the report

Ministry of Education andSports

9th NSEDP
9th NSEDP

98.50

70

Gender Equality Index of the promotion rate from Grade 5 to Grade 6 and Grade 12%

OutcomeNational level

0.98

2019-2071

Dropout rate of Grade 1 students%

OutcomeNational level

6.4

2020

Data from the report

Lower secondary

9th NSEDP

Outcome%data from theadministrative report

Primary school> 98

9th NSEDPSDG 4.2.3*%

OutcomeNational level

4.3

2020

Data from the report<2

Annually

Data from the report

Ministry of Education andSports%OutcomeNational level

10.3

2019-20

Data from the report<8

Annually

Data from the report

Ministry of Education andSports

9th NSEDP%

OutcomeNational level

5,284

2019-20

Data from the report

150,000

Annually

Data from the report

Ministry of Education andSports

9th NSEDPLDC
SDG 4.3.3*% Per annum

OutcomeNational level

31.1

2019-20

Data from the report>10

Annually

Data from the report

Ministry of Education andSports

9th NSEDPSDG 4.c.1

24

72

Young people and dropouts to be trained through non-formal education and vocational training

25

73

Percentage of trained primary and secondary teachers

26

74

Percentage of graduates of lower secondary education enrolled in vocational education and training%

OutcomeNational level

3.20

2019-20

Data from the report5

Annually

Data from the report

Ministry of Education andSports

9th NSEDPSDG 4.3.4*

75

Number of students applying to the university in Science, Technology, Engineering and MathematicsSTEMຄົ ນ

OutcomeNational level

4,189

2019-20

Data from the report

12,500

Annually

Data from the report

Ministry of Education andSports

9th NSEDP

76

A large proportion of people of all genders and ages participated in aerobics, exercise and sports of citizens.

%

OutcomeNational level34

2019-20

Data from the report50

Annually

Data from the report

Ministry of Education andSports

9th NSEDP

2020

Data from the report

15

Annually

Data from the report

Ministry of Labor and Social
Welfare9th NSEDPSDG 8.5.2

2020

Data from the report

Annually

Data from the report

Ministry of Labor and Social
Welfare9th NSEDP

2020

Data from the report

Annually

Data from the report

Ministry of Labor and Social
Welfare9th NSEDP

Data from the report

Ministry of Labor and Social
Welfare9th NSEDP

Output 3: Workforce skills and productivity improved, and job diversification, security and income opportunities increased to meet the demands of socio-economic development
27

77

Unemployment rates

78

79
80

%

OutcomeNational level

Skills Development- at institutions and centers for the development of skills at various levels- training in various professions

PersonOutputNational level

Encourage labor units to develop skills in various fields

PersonOutputNational level

Number of workers who passed the National Skills Test

PersonOutputNational level

20

21580

0
702

2020

Data from the report

15,00010,0005,000
25,0001,700

Annually81

Number of workforce in working age%

OutputNational level

40.8

2017

Labor Force Survey

48.30

5 years

Data from the report82

Number of labor units established in the Occupational Safety and Health Unit

Place

OutputSectoral level

44

2020

Data from the report100

Annually

Data from the report

Ministry of Labor and Social
WelfareMinistry of Labor and Social
WelfareI

9th NSEDP
9th NSEDP

Output 4: Promoting and utilising scientific research, technology, innovation and knowledge to drive socio-economic development
28
29

83
84
85

Number of scientific researchers
Proportion of government investment in research and development of science and technology in thegovernment investment budget each year
Proportion of private investment, both domestic and foreign, into research and development (R&D) in thebudget each year

Per 10,000
population

OutcomeNational level

1.10

2010

Data from survey

8.50

Annually

Data from the report%

OutcomeNational level

1.00

2020

Data from the report

1.00

Annually

Data from the report%

OutcomeNational level

30

2020

Data from the report

35.00

Annually

Data from the report

Ministry of Technology andCommunication
Ministry of Technology andCommunication
Ministry of Technology andCommunication

9th NSEDPSDG 9.5.2
9th NSEDPSDG 9.5.1
9th NSEDP

Outcome 3: Enhanced well-being of the people
7

30

86

Poverty rate (percentage of the population living below the national poverty line by urban, rural and gender)%

ImpactNational level

18.3

2018

LECS 6

13.9

5 years

LECS 6

National Statistics
Center/Agriculture

SDG 1.2.1/
9th NSEDP

31

87

Proportion of children who are multidimensionally deprived according to national definition%

ImpactNational level

50.4

2018

Data from multidimensional deficit
analysis reporting

35.0

5 years

Data from the report

Lao Statistics Bureau

SDG 1.2

116

I

32

88

Proportion of children under 5 years of age whose births have been registered with a civil authority by age%

OutputNational level

73.0

2017

Lao Social Indicator
Survey (LSIS)

70.0

5 years

Data from the report

Lao Statistics Bureau

SDG 16.9.1

OutputNational level

964,149

2020

Data from the report

1,168,509

5 years

Data from the report

Ministry of Agriculture andForestry

9th NSEDP

Data from the report

Ministry of Agriculture andForestry

9th NSEDP

Data from the report

Ministry of Agriculture andForestry

9th NSEDP

Data from the report

Ministry of Agriculture andForestry

9th NSEDP

Data from the report

Ministry of Agriculture andForestry

9th NSEDP

Data from the report

Ministry of Agriculture andForestry

9th NSEDP

Data from the report

Ministry of Agriculture andForestry

9th NSEDP

Output 1: Poverty alleviated in rural and remote areas, and people’s livelihoods, cultural values, and media work improved
89
90
91
92
93

Number of families built to meet poverty alleviation standards (5-year cumulative figure)
Number of villages lifted out of poverty
Number of districts lifted out of poverty
Number of developed families
Number of developed villages

94

Number of large villages built as rural towns

95

Number of resettlement points and occupations for people without fixed settlements and non-permanent
occupations

FamilyVillage
District
FamilyVillage
Village
Target point

OutputOutputOutputOutputOutputOutputNational level
National level
National level
National level
National level
National level

4,792
53
747
4
145

2020
2020
2020
2020
2020
2020

Data from the report
Data from the report
Data from the report
Data from the report
Data from the report
Data from the report

7,896
122
982,750
5,167
10
170

Annually
Annually
Annually
Annually
Annually
Annually

96

Build and expand radio transmitting stations at district level

Station

OutputNational level

2

2020

Data from the report36

Annually

Data from the report

97

Expand radio broadcast speakers at the village level

Village

OutputNational level

79

2020

Data from the report

2,800

Annually

Data from the report98

Expand the transition from the analogue system to the digital system

Station

OutputNational level

0

2020

Data from the report22

Annually

Data from the report

99

Cultural family

FamilyOutputNational level

17,8202020

Data from the report

130,000

Annually

Data from the report

Village

OutputNational level

175

2020

Data from the report

750

Annually

Data from the report

Explore archeological sites

Place

OutputNational level

3

2020

Data from the report

35

Annually

Data from the report

Excavate archeological sites

Place

OutputNational level

3

2020

Data from the report5

Annually

Data from the report

Register a list of ancient statues and Buddha images

Place

OutputNational level

0

2020

Data from the report5

Annually

Data from the report

100 Cultural village

Ministry of Information,
Culture and Tourism
Ministry of Information,
Culture and Tourism
Ministry of Information,
Culture and Tourism
Ministry of Information,
Culture and Tourism
Ministry of Information,
Culture and Tourism

9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP

101 Survey, data collection and registration in the cultural sector
Ministry of Information,
Culture and Tourism
Ministry of Information,
Culture and Tourism
Ministry of Information,
Culture and Tourism

9th NSEDP
9th NSEDP
9th NSEDP

Register a list of cultural, historical and natural heritage from the local level to the national level

Place

OutputNational level

1

2020

Data from the report20

Annually

Data from the report

Ministry of Information,
Culture and Tourism

Register of ancient Buddhist rituals

Place

OutputNational level

0

2020

Data from the report5

Annually

Data from the report

Ministry of Information,
Culture and Tourism

Outcome

Sectoral level

95

2020

Data from the report98

Annually

Data from the report

Ministry of Energy and
Mines/ Lao Statistics Bureau

2020

Data from the report

Annually

Data from the report

Lao Women's Union/
Ministry of Home
Affairs/Central Party
Orgnanizational Committee

SDG 5.5.2

I

2020

Data from the report≥ 30

5 years

Data from the report

National Assembly/Lao
Women's Union

9th NSEDPSDG 5.5.1

I

Lao Women's Union

9th NSEDP
9th NSEDP

9th NSEDP
9th NSEDP

Output 2: Public utility infrastructure improved and access to public services made more inclusive and equitable
102 Proportion of households that have access to electricity in all households nationwide%

9

Output 3: Equal access to socio-economic development opportunities promoted and the rights of women and children protected

8

9

33

Average proportion of women included in the leadership-management positions at various levels (Average
proportion of women included in the leadership-management positions at various levels):- Village103- District- Provincial level- Central level%

OutcomeNational/provincial
level

34

Proportion of female members of the National Assembly and members of the Provincial People's Assembly(percentage of women holding positions in the National Assembly compared to all members of the National
104 Assembly):- Proportion of female members of the National Assembly- Proportion of female members of the Provincial People's Assembly%

OutputNational/provincial
level

10.72
11.73
19.62
23.63

≥20
≥10
≥20
≥20
≥30

21.34
30.08

105 Gender Inequality Index

Index

OutputNational level

0.459

2019

Data from the report

0.430

5 years

Data from the report

106 Gender Equality Index

Index

OutputNational level

0.927

2019

Data from the report

0.984

5 years

Data from the report

Lao Women's Union

LSIS/LSB

The National Commission
for The Advancement of
Women, Mothers, andChildren (NCAWMC)

Percentage of child marriages aged 15-19
107 - girls- boys%

OutputNational level

Output 4: Promote and develop youth to improve human capital and participation in the workforce

117

23,5
5,9

2017

Data from the report93

5 years

Proportion of young people who received vocational training and created jobs in vocational fields(motorcycle mechanics, car mechanics, electrician, welder, tailor, beautician, farmer and animal husbandry)
108 of all unemployed youth (through Youth Center)- number- percentage

Output2020

Sectoral level

person per year%

Data from the report

399
N.A

Annually

Data from the report

Lao Youth Union/Ministryof Labour and Social Welfare

9th NSEDP

3,550
20

Output 5: Expand access to more efficient social protection services for the people, including workers and self-employed individuals
109

Social Security Coverage Expansion- Public Sector- Enterprise Sector- Volunteers

Unit

OutputSectoral level

30,583
2,952
23,872
3,759

2020

Data from the report

157,500
7,500
135,000
15,000

Annually

Data from the report

Ministry of Labor and Social
Welfare9th NSEDP

110

Increase the number of enterprise units covered by Social Security

Unit

OutputSectoral level

237

2020

Data from the report

1,275

Annually

Data from the report

Ministry of Labor and Social
Welfare9th NSEDP

111

Number of Blood Donations- National level- Local level

Bag

OutputSectoral level

60,35327,06133,2972020

Data from the report

364,400
151,530
211,870

Annually

Data from the report

Ministry of Labor and Social
Welfare9th NSEDP

112

Number of people that included in the welfare policy for those who contributed to the national revolutionary
cause- In 5 Priority Target Groups- General Group

PersonOutputSectoral level

2020

Data from the report

Annually

Data from the report

Ministry of Labor and Social
Welfare9th NSEDP

2019

Data from the report< 40

Annually

Data from the report

Ministry of Labor and Social
WelfareSDG 18.1.1

4,790
4,109
681

16,00015,0001,000

Output 6: Unexploded Ordnance (UXO) clearance progressively accelerated and more lives made safe from UXO

35

36- Injuries 16- Men 5 Boy 4- Women 2
National level Girl 5- Dead 9- Men 8 Boy
1
Total 25

113 Number of UXO casualties by age and sex

PersonOutput114 Number of villages surveyed Non-technical to find evidence of UXO (cluster munitions)

PersonOutputNational level

651

2020

Data from the report

2,776

Annually

Data from the report

Ministry of Labor and Social
Welfare9th NSEDP

115 Confirmed hazardous areas (HCA)

Hectares

OutputNational level

27,8172020

Data from the report

250,000

Annually

Data from the report

Ministry of Labor and Social
Welfare9th NSEDP

116 UXO cleared agricultural land, community areas and economic centres

Hectares

OutputNational level

5,372.3

2020

Data from the report

50,000

Annually

Data from the report

Ministry of Labor and Social
Welfare9th NSEDP

2020

Data from the report

5,760
250
250
750
2,010
2,500

Annually

Data from the report

Ministry of Labor and Social
Welfare9th NSEDPSDG 18.3.2​Number of UXO survivors and victims- Medical treatment
117 - Mental health rehabilitation- Vocational rehabilitation- Training and careers - Disability rights advocacy

I

PersonOutputNational level

59
20
10
0
29
0

%

OutputNational level

62

2019

Data from the report70

5 years

Data from the report

Ministry of Agriculture andForestry

9th NSEDP
Green growth
SDG 15.1.1

I

Per 100,000
population

OutputNational level

1.84

2020

Data from the report

1.43

Annually

Data from the report

Ministry of Labor and Social
WelfareSDG 11.5.1

II

Ton

OutputNational level

12.8

2020

Data from survey

30

4 years

Data from the report

Ministry of Agriculture andForestry

Green growth
GG Strategy

Hectares

OutputNational level

52,624
1,060,000

2020

Data from the report

200,000
1,800,000

Annually

Data from the report

Ministry of Agriculture andForestry

9th NSEDP

Place

OutputNational level

3

2020

Data from the report5

Annually

Data from the report

Ministry of Agriculture andForestry

9th NSEDP

Millions land titles

OutputNational level

1.5

2020

Data from the report

1.6

Annually

Data from the report

Ministry of Natural
Resources and Environment

9th NSEDP

Outcome 4: Environmental protection enhanced and disaster risks reduced
10

11

37

118 Proportion of forest cover in the whole country38

119 Number of people killed and missing from the disaster per 100,000 population (Compared to 7 million)

120 Reduce greenhouse gas emissions from deforestation

Output 1: Natural resources sustainably used and managed
Plantation and reforestation areas- Plantation- Reforestation

12

121

13

122 Upgrade the protected areas to a national park

123 Number of land titles issued (increased from 1.5 to 3.1 millions)118

Number of provinces

OutputNational/provi
ncial/district
level

13

2020

Data from the report5

Annually

Data from the report

Ministry of Natural
Resources and Environment

Green growth
8th NSEDP

125 Number of stations measuring air quality with 2.5 Micron

Station

OutputNational level

5

2020

Data from the report9

Annually

Data from the report

Ministry of Natural
Resources and Environment

9th NSEDP

126 Develop a priority catchment management plan

NumberOutputNational level

0

2020

Data from the report

14

Annually

Data from the report

Ministry of Natural
Resources and Environment

SDG 6.5.1

US $ million

OutputNational level

33.5

2019

Data from the report>95

5 years

Data from the survey

Ministry of Agriculture andForestry

9th NSEDP

Number of provinces

OutputNational level

0

2020

Data from the report

18

Annually

Data from the report

Ministry of Natural
Resources and Environment

SDG 6.4.4*%

OutputNational level

0

2020

Data from the report

14

Annually

Data from the report%

OutputNational level

60

2020

Data from the report80

Annually

Data from the report

131 Number of meteorological stations (cumulative figure)

Station

OutputNational level

58

2020

Data from the report45

Annually

Data from the report

Ministry of Natural
Resources and Environment

9th NSEDP

132 Number of hydrological stations (cumulative figure)

Station

OutputNational level

105

2020

Data from the report25

Annually

Data from the report

Ministry of Natural
Resources and Environment

9th NSEDP

Village district

OutputNational level

0
0

2020

Data from the report

50
100

Annually

Data from the report

Ministry of Labor and Social
Welfare9th NSEDP

NumberOutputNational level

2020

Data from the report

Annually

Data from the report

Ministry of Labor and Social
Welfare9th NSEDP

NumberOutputNational level

2020

Data from the report

Annually

Data from the report

Ministry of Labor and Social
Welfare11.b.0SENDAI
Framework for
Disaster Risk
Reduction

9th NSEDP

124

39

Develop land management plans, comprehensive management of natural resources and environment at theprovincial level throughout the country

I

Output 2: Green growth promoted and actions taken towards climate change mitigation
14

15

127 Sales value of forest carbon credits

40

128 Provide information on the risks of climate change

16

129 Rates of clean energy use in transportation (Vehicle Statistics 2017)

17

130

Proportion of waste disposal services in Vientiane Capital, 3 capitals and 4 cities along the Mekong
subregion in general waste and infectious and hazardous waste

Ministry of Posts,
Telecommunications andCommunications
Ministry of Posts,
Telecommunications andCommunications

I

9th NSEDP

9th NSEDP

Output 3: Capacities for disaster prevention, management and recovery enhanced

Disaster Risk Management Committee revised and established in accordance with Decree No. 239 / PM
dated 18/05/2020- Number of districts that revised the Committee on Disaster Risk Management- Number of villages that established the Disaster Risk Management Committee
Establish provincial and district central disaster management funds
Central level
134
Provinicial level
District level
133

41

135

Develop provincial, district and village disaster risk reduction strategies
Central level
Provinicial level
District level

0
0
0

2
0
0

1
18
56

10
20
80

Outcome 5: Engagement in regional and international cooperation and integration is enhanced with robust infrastructure and effective utilisation of national potential and geographic advantages
136 Total trade integration rate to gross domestic product (Country rate of openness)%

OutputNational level

137 Increased foreign direct investment (FDI)%

OutputNational level

60.11

2020

Data from survey> 70

5 years

Data from survey

Ministry of Industry andCommerce

70
60
100

5 years andannually

Data from thereport/Data from thesurveyMinistry of Technology andCommunication

5 years

Data from the survey

Ministry of Technology andCommunication

SDG 4.4.1

II

Annually

Data from the report

Ministry of Technology andCommunication

9th NSEDPSDG 9.c.1

I

Output 1: Infrastructures improved for national, regional and international connectivity to facilitate production, services, trade and investment
Percentage of Telecommunication and Communication (ICT) usage per capita:- Computers- Internet
138- Wired and wireless landlines- Mobile phones- Wired and wireless high speed internet%

42

Percentage of population aged 15-24 using computer and internet, classified by ICT ability, sex and housing
to the total population of that age group:- Percentage of computer use (female)139- Percentage of Internet use (female)- Percentage of computer use (male)- Percentage of Internet use (male)%

OutputNational level

43

140

%

OutputNational level

Proportion of coverage area of ​mobile signal receiving station - 3G - 4G - 5G
- 3G
- 4G
- 5G

OutputNational level

119

36
51
45
…..
37

30
79
45
76

81
53
0

2017Data from survey/Data from report

70

2017

Data from survey

2020

Data from the report

100
90
50

141 Establish a National Internet Reserve Center
142

Number of central and local offices that use the modern office system (e-office) in the party-stateorganization

NumberOutputNational level
National level

2020

Data from the report92Annually

Data from the report

NumberOutput2020

Data from the report45

Annually

Data from the report

143 Number of government offices using teleconferencing and email systems

NumberOutputNational level

32
34

2020

Data from the report68

Annually

Data from the report

144 Public and private sectors turning to Lao satellites for work

NumberOutputNational level

8

2020

Data from the report

18

Annually

Data from the report

Ministry of Technology andCommunication
Ministry of Technology andCommunication
Ministry of Technology andCommunication
Ministry of Technology andCommunication

9th NSEDP
9th NSEDP
9th NSEDP
9th NSEDP

Output 2: Regional and international trade and investment cooperation and integration enhanced and expanded
An increase in the number of passengers in the interconnection network with countries in the region in all
forms of transportation per year
- land145- water- air- railways%

OutputNational level

78,305
3,847.3
3,292.8
30.2

2020

Data from the report

7
5
12
7

Annually

Data from the report

Ministry of Public Works
and Transport

9th NSEDP

An increase in the quantity of goods in the interconnection network with countries in the region in all formsof transportation per year
- land146- water- air- railways%

OutputNational level

6,443
2,651
5.5
10.12

2020

Data from the report

7
5
12
10

Annually

Data from the report

Ministry of Public Works
and Transport

9th NSEDP

147 Proportion of export value under trade privileges%

OutputNational level

22

2020

Data from the report25

Annually

Data from the report

Ministry of Industry andCommerce

8th NSEDP- North

%Output5.98

2020

From provincial reports
across the country

6.65

Annually

National Accounts

Lao Statistics Bureau

8th NSEDP- Centre%

Output3.71

2020

From provincial reports
across the country

6.25

Annually

National Accounts

Lao Statistics Bureau

8th NSEDP- South

%Output4.88

2020

From provincial reports
across the country

6.31

Annually

National Accounts

Lao Statistics Bureau

8th NSEDP- NorthUS $Output

1,746

2020

From provincial reports
across the country

2,164

Annually

National Accounts

Lao Statistics Bureau

8th NSEDP- Centre

US $Output

3,167

2020

From provincial reports
across the country

7,010

Annually

National Accounts

Lao Statistics Bureau

8th NSEDP- SouthUS $Output

1,985

2020

From provincial reports
across the country

2,670

Annually

National Accounts

Lao Statistics Bureau

8th NSEDP

Output 3: Robust regional and local development based on the potential of each region
148 GDP growth rate for each region year on year:
Regional/
Provincial
level
Regional/
Provincial
level
Regional/
Provinciallevel

149 GDP per capita in each region
Regional/
Provincial
level
Regional/
Provincial
level
Regional/
Provincial
level

Output 4: Urban areas and Special Economic Zones developed into production, investment, trade and tourism bases for regional and international integration

150

Number of cities along the Greater Mekong Subregion (GMS)- To complete the implementation of urban development projects- To have a standardized waste disposal site
- To have an appropriate wastewater treatment system

City

OutputNational level

2
2
2

2020

Data from the report444Annually

Data from the report

Ministry of Public Works
and Transport

9th NSEDP

151

Number of capitals- To complete the implementation of urban development projects- To have a standardized waste disposal site
- To have an appropriate wastewater treatment system

CapitalOutputNational level

1
1
1

2020

Data from the report333Annually

Data from the report

Ministry of Public Works
and Transport

9th NSEDP

2019

Data from the report2030

Annually

Data from the report

Ministry of Home Affairs

9th NSEDP

2020

Data from the report

15

Annually

Data from the report

Ministry of Home Affairs

9th NSEDP

2020

Data from the report

Annually

Data from the report

Ministry of Home Affairs

9th NSEDP

Outcome 6: Public governance and administration is improved, and society is equal, fair, and protected by the rule of law

152

Proportion of the public administration structure that has been streamlined according to the Sam Sang
Directive:- Departments and divisions at ministries -other agencies- Departments and divisions at ministries- Sections, units and divisions at the local administrative level

153 Proportion of One Door Service in the local level
154 Proportion of population accessing justice process (access to justice and government services)%

OutputNational level%

OutputNational level

OutputNational level

120

43

Output 1: Enhanced efficiency of public governance and administration and deepened implementation of the Sam Sang Directive

155

Sam Sang Directive:- To establish the province as a strategic unit
- To establish the district as a comprehensive unit
- To establish the village as a development unit

156 Number of municipality / city which is the local authority in the city

44

Ratio

OutputNational level

2019

Data from the report

2/3 (66.6%)
1/3 (33.3%)
2/3 (66.6%)

Annually

Data from the report

Ministry of Home Affairs

9th NSEDP

9th NSEDP

NumberOutputNational level

2019

Data from the report8

Annually

Data from the report

Ministry of Home Affairs

157 Proportion of the essential basic services required of the governing party as online services%

OutputNational level

2020

Data from the report50

Annually

Data from the report

Ministry of Home Affairs

9th NSEDP

158 Number of the essential basic services required of the governing party as online services

NumberOutputNational level

Annually

Data from the report

Ministry of Home Affairs

SDG 16.6.2

Annually

Data from the report

Ministry of Technology andCommunication

9th NSEDP

Annually

Data from the report

Office of the Supreme
People's Prosecutor

9th NSEDP

Annually

Data from the report

People's Supreme Court

9th NSEDP

9th NSEDP%

Data from the report

National level

Output 2: Improved and harmonised coordination mechanisms and regulations within the public sector to increase efficiency
159 Management within both central and local government organizations that use digital systems

4

OutputNational level

2020

Data from the report

OutputNational level

2020

Data from the report80

Output 3: Ensure political stability, peace and order, unity, democracy, justice and civilisation within the society

160

The quality of monitoring, respecting the implementation of the law and ordering the accused to bepromoted to the court to be upgraded- Proportion of resolved cases- Proportion of court judgements according to the statement of the prosecutor

161 Court decision-judgment ratio

%

95
95
%

OutputNational level

83

2020

Data from the report85

162 Implementation rate of previously pending court judgements and new court judgements%

OutputSectoral level

2020

Data from the report80

Annually

Data from the report

Ministry of Justice/ Officeof the Prosecutor/ People's
Supreme Court

163 Proportion of judgments that have been completed and closed

2020

Data from the report20

Annually

Data from the report

Ministry of Justice

9th NSEDP%

OutputNational level

Number of staff, law graduates who have been trained in law and justice to become judges, prosecutors and164
lawyers each year

PersonOutputNational level

84

2020

Data from the report500

Annually

Data from the report

Ministry of Justice

9th NSEDP

165 Number of people accessing law services through legal aid offices across the country

PersonOutputNational level

197,946

2019

Data from the report

200,000

Annually

Data from the report

Ministry of Justice

9th NSEDP

166 Number of disputes entered through the Village Mediation Committee throughout the country

Case

OutputNational level

2,534

2019

Data from the report<15,000

Annually

Data from the report

Ministry of Justice

9th NSEDP

45

167 Proportion of all cases in force%

OutputNational level

22

2020

Data from the report

52

AnnuallyI

168 Completed the collection of census statistics of at least once in the last 10 years

Book

OutputNational level

1

2015

Data from survey

Ministry of JusticeLao Statistics
Bureau/Ministry of Public
Security

SDG 16.3.3

46

Data from the report
Data from thereport/Data from thesurveySDG 17.19.2.aI

121

Annually/10 years

Macroeconomic Targets of the 9th National Socio-Economic Development Plan (2021-2025)
No
1

2

Unit

Plan 2021

Plan 2022

Plan 2023

Plan 2024

Plan 2025

Targets for
5 Year

Note

3

4

5

6

7

8

9

10

I Economic Growth
Population

Milliion

7.31

7.41

7.51

7.61

7.71

7.51

GDP current price (Kip)

Billion Kip

182,603

195,961

209,781

225,584

242,763

1,056,692

GDP current price (USD)

Billion USD

18.5

18.9

19.9

20.9

22.3

100.5

GDP Growth

%

4.0

4.6

4.9

5.3

5.4

4.82

- ​Agriculture

%

2.3

2.4

2.5

2.7

2.8

2.5

-​​ Industry

%

3.4

4.1

4.2

4.5

4.6

4.1

-​​ Service

%

4.9

5.5

6.1

6.6

6.7

6.0

- Customs and tax revenue

%

5.0

6.0

6.0

6.0

6.0

5.8

100.0

100.0

100.0

100.0

100.0

GDP Structure- ​Agriculture

%

16.4

16.1

15.8

15.5

15.3

-​​ Industry

%

32.9

32.9

32.8

32.5

32.3

-​​ Service

%

39.7

39.8

40.1

40.5

40.7

- Customs and tax revenue

%

11.0

11.2

11.3

11.5

11.7

GDP per capita

USD/person

2,536

2,554

2,646

2,743

2,887

GDP per capita

Million Kip/Person

25.0

26.4

27.9

29.6

31.5

GNI per capita

USD/person

2,004

2,019

2,092

2,169

2,282

122

Unit

Plan 2021

Plan 2022

Plan 2023

Plan 2024

Plan 2025

Targets for
5 Year

Note

3

4

5

6

7

8

9

10

Billion Kip

27,62929,42333,88440,51548,048

179,500-​​ Domestic Revenue

Billion Kip

25,20926,96331,38437,98545,548167,090-​​ GrantBillion Kip

2,420

2,460

2,500

2,530

2,500

12,410Total ExpenditureBillion Kip

31,58333,71335,881

41,68147,142

190,000

Deficit

Billion Kip-3,954-4,290-1,997-1,166906-10,500

%

-2.2

-2.2

-1.0

-0.5

0.4

-1.0

No
1

2

s Revenue and Expenditure
Total Revenue

Deficit/GDP
III Monetary Sector
Inflation%

6

Exchange Rate
Kip/USD%±5

Money Supply (M2)

%

≤ 20

External Reserve

Months of Importat least 3 months

Deposits in commercial banks/GDP%

60

Credit to the economy/GDP%

49

Capital market mobilisation/GDP

%

15-18

Billion Kip

IV Total Investment
Total Investment/GDP
National Budget

Billion Kip

31,10034,52739,817

46,94452,211

204,599

17.0%

17.6%

19.0%

20.8%

21.5%

19.4%

3,900

3,950

4,000

4,900

6,200

22,950

123

No
1

2

Unit

Plan 2021

Plan 2022

Plan 2023

Plan 2024

Plan 2025

Targets for
5 Year

Note

3

4

5

6

7

8

9

10

12.5%

11.4%

10.0%

10.4%

11.9%

11%

7,200

6,750

7,140

7,760

8,494

37,344

23.2%

19.6%

17.9%

16.5%

16.3%

18%

20,00020,00020,00020,00020,000100,000

64.3%

57.9%

50.2%

42.6%

38.3%

49%

-

3,827

8,677

14,284

17,51744,305

11.1%

21.8%

30.4%

33.6%

22%

% of total Investment
Official Development Assistance (ODA)

Billion Kip% of total Investment
Domestic and Foreign Private Investment

Billion Kip% of total Investment
Other Investments

Billion Kip% of total Investment

124

Compilation of Large-Scale and Priority Projects to Support the
9th Five-Year National Socio-Economic Development Plan (2021-2025)

Project Name

Number/ project
periodGRAND TOTAL

486

Sources offunding

Outcome 1: Continuous quality, stable and sustainable economic growth achieved (171 projects)
Sub-total

171

I.

Agriculture-Forestry (19 projects):
1. Food Security and Commodity Production Program for Domestic Consumption andExport (14 projects)
State Budget Program- Newly Proposed Project (10 projects)
1 Crop and Commodity Production Project
2 Livestock, fish and aquaculture promotion project
3 Agricultural land management and development project4 Irrigation-Irrigation Development Project
5 Project to promote techniques and organize production patterns
Project to upgrade technical infrastructure (machinery, mills, mills, sawmills, lanterns, wholesale6
retail markets, cold storage, fertilizer factories, feed mills, slaughterhouses ...)
Agricultural Business Unit Promotion Project (organization method, business plan, accounting,
7
access to credit, inputs and markets ..)8 Project on development of phytosanitary standards and market integration
9 Experimental research project on agriculture, forestry and rural development
10 Project to set policies and legislation to promote the production of food and agricultural products
ODA projects (3 projects)- ODA Ongoing Projects (3 projects):
Irrigation system construction project in Phongbok district, Khammouane province (including
1
culverts)
Economic Corridor Projects (4 projects)- Newly proposed Project (4 projects)
1 Green Clean Agriculture Development Cooperation Project (vegetable cultivation and tree planting)Modern Industrial and Agricultural Development Zone Project in Vientiane Capital in collaboration
2
with Xuan Yao Lao Co., Ltd. and AVIC INTL
Project to establish a cooperation center for the development of standards for production and3 quarantine of plants and animals, plant products and animal products of the People's Republic ofChina in Lao PDR
4 Lao PDR Export Cattle Promotion Project
2. Human Resource Development Program in Agriculture, Forestry and Rural Development(5 projects)
State Budget Program- Newly proposed Project (5 projects)
1 Project to upgrade the skills of employees in the field
2 Project to promote promoters, skilled workers and agribusinesses
3 Project to upgrade and improve the curriculum in the College of Agriculture and Forestry
4 Homeschooling program, model families
Development project of agricultural knowledge and information network system between
5
government, business, and agricultural producers
II.
Energy and Mining (113 projects)- Ongoing projects (20 projects):

125

20
15
10
10
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
1
1
ODA
4
4

5
5
5
State budget
State budget
State budget
State budget
State budget
113
20

Project Name

Number/ project
periodSources offunding

1

Sepon gold mining, processing and refining project can produce 250,000 ounces of gold per year

FDI

2

FDI

2

19 hydropower projects- Newly proposed Project (93 projects)
26 hydropower projects
19 mining and processing projects (for example: coal mining project for Sekong power plant, Kalisalt mining project in Phongbok district, Khammouane province)
Construction of 48 projects of 500kv, 230 kv and 115 kv transmission lines
Commerce (23 projects)
1. Promote the development of industry and production related to the market (6 projects)
State Budget Program- Newly proposed Project (6 projects)
Project to promote and develop the processing industry to grow in a balanced, green andsustainable way.
Project to promote, develop, conserve, conserve and protect handicrafts.

3

Trade Promotion and Development Project.

State budget

4

Commodity Production Promotion Project.

State budget

5

Regional Industry and Trade Promotion and Development Project (Region)

State budget

6

Cooperation project under the Lao-China Economic Corridor Development Master Plan.

State budget

1
2
3
III.

1

2. Creating a conducive environment and strengthening the business sector (13 projects)
ODA projects (3 projects)- ODA Ongoing Projects (3 projects):
1 Lao PDR Competitiveness and Trade Promotion (LCT) Project2 Export Competitiveness Promotion Project in the three Northern Provinces (ECL).
3 Access to Finance for Small and Medium Enterprises (MSME A2F-ERS)
State Budget Program- Newly proposed Project (10 projects)
1 Project to promote the development of infrastructure for the processing industry.
2 The project to create a database and develop the industry into a modern system.
3 The project creates an enabling environment for the business sector.
4 Trade Facilitation Program.
5 Project to strengthen the business sector.
6 Project for promotion and development of micro-enterprises, small and medium enterprises.
7 Consumer Promotion and Protection Program.
8 Trade Competitiveness Promotion Program.
9 Factory management and adjustment project.
10 Enterprise Management Project.
3. Promote and develop trade to keep up with the current situation (4 projects).
State Budget Program- Newly proposed Project (4 projects)
1 Project to create a database and develop trade into a modern system.
2 Trade Network Management and Development Project.
3 Research, research, forecasting and price management projects.
4 Import and Export Management Project.
IV. Posts, Telecommunications and Communications (12 projects)
1. Development and application of ICT innovations (5 projects).
- Newly proposed Project (5 projects)
1 Digital Economy Innovation Promotion Project.

126

93
FDI
FDI
FDI
23
6
6
6
State budget
State budget

13
3
3
ODA
ODA
ODA
10
10
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget4
4
4State budget
State budget
State budget
State budget
12
55Project Name
2
3
4
5

1
2
3
4
5
6
7
V.

1
2
3

Project to encourage and support SMEs to run digital business (Digital Business Transformation).
Project to promote the development of digital commerce and exchange systems
for SMEs.
Promoting start-up fund project
Project to create a digital learning model for the community
2. Modernization of postal development (7 Newly proposed projects).
- Newly proposed Projects (7 projects)
Project to improve the licensing and management of entrepreneurial information.
Roadshow Business Investment Promotion Project (Roadshow).
Pilot project to deliver organic agricultural products to the market through the post office.
Project to create a low-cost and sustainable universal mail service model.
Expansion of the postal network into agricultural and handicraft communities.
Project to upgrade public and private postal service database portals.
The platform connects stores between postal operators, buyers and sellers.
Culture and tourism (3 projects).
Economic Corridor Projects (3 projects)- Newly proposed Project (3 projects)
Project to build shelters along the Lao-China Economic Development Corridor to serve tourism
services Take the R3 tour in Luang Namtha, Bokeo, Luang Prabang and Vientiane provinces(including hotels, restaurants, spas and Relaxing massage, souvenir shop, tourist information
center, clean bathroom for men and women Disabled, parking)Establish a tourism vocational training center
Personnel training program on management and use of information equipment, list creation And 3
media services

Number/ project
periodSources offunding

7
7

3
3
3

Outcome 2: Improved quality of human resources to meet development, research capacity, science andtechnology needs, and create value-added production and services (59 projects)
Sub-total

59

I. Health
ODA project- Ongoing projects
Project for Sustainable Development and Quality Assurance of Healthcare Professionals in Lao
1
PDR (Grant from JICA)
2

Xaysetha and Champassak Provincial Hall Renovation Project (JICA Grant)

3
4
5

The project to build a 400-bed university building in Dong Phosy with a loan from EDCF
Southern Province's Hospital Construction Project, Ministry of Health from EDCF
Savannakhet Provincial Construction Project from EDCF
- Newly proposed project

1

2
3
4

Xaysomboun Provincial Hospital Upgrading Project
Health Administration Project, College of Health Sciences School, Specialist Medical Training,
Provision of Equipment and Vehicles for the School and School in Saravane Province,
Construction of a New Building in Xayaburi Province, and Construction of a New Medical
Building in Luang Prabang Province.
Access to health and nutrition services
Quality Health Care Program

127

13
13
5
ODA
(Grant)ODA(Grant)
ODA
ODA
ODA
8
20202022

ODA

ODA
ODA
ODA

Project Name

5

Construction of Faculty of Medicine in the University of Health Sciences Project6

Health Information Center Construction Project7

Institute of Traditional Medicine Construction Project8

Northern Part Hospital Construction Project in Oudomxay Province

II. Education
State Budget Program- Newly proposed project1 High school dormitory construction project
2 Laboratory construction project3 School construction and renovation projects throughout the country
4 Sanitation Facility Reserve Project
ODA project- Ongoing projects
1 Fundraising Program for Vocational Education and Training (VEFF) (KFW) (2018-2023)
2 Vocational Training and Employment Training Program (VTESS) (SDC) 2019-2022
3 Vocational Education Development Project in Lao PDR (VELA-TC) (GIZ) 2019-2022
4 Secondary Higher Education Empowerment Project (SSHEP) (ADB) 2017-2023
Project to help solve the problem of covid 19 in the education sector of Lao PDR (COVID-19)
5(GPE) 2020-2021
6 Comprehensive Education for Employment Development Program (EESDP) (ADB) 2020-2025
Quality Improvement and Enhancement Program for Basic Education in Lao PDR (BEQUAL) (227month contract extension) 2015-2022 (Australia and EU)- Newly Proposed Project
1
2

3
4
5
6

Project to Improve 8 Teachers Colleges in Lao PDR (2020-2026) (JICA Grant)
Project for improving the provision of experimental equipment and facilities for the Department ofEngineering, National University of Laos (project for improving the facility and laboratory
equipment in the faculty of engineering, National University of Laos) (JICA grant).
Project for Strengthening Human Resource Development for Engineering and Technology for
Industrial Development in Lao PDR (Project for Strengthening Human Resource Development ofEngineering and Technology for Industry Development in Lao PDR) (JICA grant)
Project for Strengthening Capacity of Mathematic Teaching Learning to primary Teacher (JICA
grant).
Project for Enforcing Laos-Japan Human Resource Development Institute as Knowledge Hub for
Human Resource Development (JICA grant).
Lunch program under the auspices of the United States Department of Agriculture in the
McGovern-Dole International Food for Education and Child Nutrition Program (2020-2025)(World Food Program (WFP) and USDA FAS)

128

Number/ project
periodSources offunding
The project
has nosource offunding
The project
has nosource offunding
The project
has nosource offunding
The project
has nosource offunding23
4
4State budget
State budget
State budget
State budget
19
7
ODA
ODA
ODA
ODA
ODA
ODA
ODA
12
ODA
(Grant)ODA(Grant)ODA(Grant)ODA(Grant)ODA(Grant)ODA

Project Name

Number/ project
period789International Cooperation Fund for Phase III Education (GPE III) (World Bank and JICA)
UNFPA Program on Reproductive Health, Gender and Sex Education 8 (2020-2026) (UNFPA)
Education Management and Strengthening Project (EU)Lao PDR Higher Education System to Internationalization Strategy “OPEN-ing Lao Higher
10
Education System to Internationalization” ERASMUS + and EU

ODA
ODA
ODA
ODA
Sources offundingremainuncertain
Sources offundingremainuncertain

11 Construction of Institute of Technology (KOICA) Project

12 Chao Anuvong Stadium Improvement Project (JICA)
III. Labor and social welfareState Budget Program- Newly proposed project
Skills development projects for the target group of people from outside the labor force and the1 unemployed who have entered the labor market according to the economic situation, 15,000 millionkip.
2 National, regional and international skill competition project, 15,500 million kip.
Project for construction and development of skills development infrastructure in Attapeu,
3
Savannakhet, Oudomxay, Xayabouly and Champassak provinces, 16,600 million Kip.
Project to supply equipment and machinery for vocational training for institutes and skills
4 development centers in Bokeo, Oudomxay, Savannakhet, Attapeu and Vientiane Capital 6,000
million Kip.
5 Project to improve and develop the labor market information system, 5,550 million Kip.
6 Labor Force Survey, monitoring and forecasting changes in the labor market, 5,500 million Kip.
ODA project- Newly proposed project
Data collection and accounting project for Lao workers working in the economic sector across the1
country, worth 40,000 million Kip (loan from ADB).
IV. Science and technology
State Budget Program- Newly proposed project
1 Project to create and improve laws of the science and technology sector
2 Project to create and improve subordinate laws of the science and technology sector
3 10-year Strategic Plan for the Development of Science and Technology Personnel (2021-2030)
Research project on the quality of products and priority products to encourage, promote and4 strengthen the quality in accordance with national, regional and international standards to be able toexport throughout the country.
Introduction of Intellectual Property Into the Commodity Production Process for the Registration of
5 Local Beans, Deposits, Deposits and the Establishment of Trade and Cooperative Weirs inChampassak and Sekong Provinces
6 Project to promote the use of solar energy to provide clean water to rural communities
Research project on mulberry cultivation, mulberry raising, mulberry propagation and sustainable7
production promotion
8

Soil and water nutrient inspection project in agricultural areas in 08 provinces (Vientiane Capital,
Vientiane, Xieng Khouang, Xaysomboun, Khammouane, Savannakhet, Champassak and Saravan)

9 Research and Intellectual Property Registration of Rice Project throughout the country
10 Mulberry plantation and mulberry nursery project

129

Sources offunding7
6
6State budget
State budget
State budget
State budget
State budget
State budget
1
1
ODA (Loan)
16
10
102021-25 State budget
2021-25 State budget
2021-22 State budget
2021-23 State budget

2021-22 State budget
2022-23 State budget
2021-23 State budget
2022-24 State budget
2021
State budget
2021-23 State budgetProject Name

1
2

1
2
3
4

ODA project- Newly proposed project
Lao-China Hitechpart High-Tech Development Zone Cooperation Project
Project to establish a Center for Scientific Research and Technology Research for Lao PDR (LAONFEC)
Private investment projects- Newly proposed project
Project to establish an information technology security consulting service center
Disaster Recovery Site project to improve the security and quality of digital data center services
CA System Development Program for Electronic Signature Services (CA Service Provider)
Software Park Development Project

Number/ project
period2
22021-25

Sources offundingODA2022-25ODA

4
42021-252024-252022-252021-23

FDI
FDI
FDI
FDI

Outcome 3: Enhanced well-being of the people (63 projects)
Sub-total
ODA project- Ongoing projects
1 Poverty Alleviation Infrastructure Project in Rural Laos, Series 1
2 Local Development Program (Luxembourg)
3 Non-technical survey project in 2,776 villages, valued at US $ 4,164,000;
Technical survey project to determine the remaining UXO area of ​250,000 hectares, an average of
4
50,000 hectares per year, worth $ 48,132,000 United States
UXO clearance project for 50,000 hectares, an average of 10,000 hectares per year, valued at US $5210,000,000
6 Assistance program for 5,750 UXO victims, valued at US $ 1,025,000
7 Operational Improvement Project of the National Training Center (Ban E Lai), US $ 100,000
8 UXO Advent and Danger Campaign in 9 provinces with UXO stockpiles, valued at US $ 5,000,000
9 Humanitarian UXO Clearance Strengthening Project, US $ 7,000,000
10 Unexploded ordnance clearance project
11 Adolescent Socio-Economic Opportunity Project (UNDP)- ODA project
1 Poverty Alleviation Infrastructure Project in Rural Laos, Series 2
Career promotion program for the elderly, worth 1.2 billion Kip (200 million Kip joint venture2
project and 1000 million Kip from foreign aid).
State Budget Program- Newly proposed project
1 Rural Infrastructure Development Project (Public Infrastructure, Access Road to Production Areas)
2 Project on allocation of production sites and occupations generates income for the people
Village Development Project, Build a big village into a rural town according to standard in Decree3
348/Gov.
Integrated agricultural production promotion project to ensure food and nutrition and generate
4
income for people of all ethnic groups
5 UXO survey and clearance project in provinces without foreign aid projects, 5,000 million Kip
Project to disseminate the law on social security (revised version), public relations and create
6
advertising media to make society more aware and understand social security, 10,000 million kip
The project to develop and improve the database system, mechanisms and tools for information
7 technology to facilitate the target to have access to information sources and services of the Social
Security that are diverse and modern, 24,000 million kip
8 Expansion of social security services at the district level throughout the country, 6,000 million Kip

130

63
13
11
ODA
ODA
ODA
ODA
ODA
ODA
ODA
ODA
ODA
ODA
ODA
2
ODA
ODA
13
13
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budgetProject Name
Project to improve the system for collecting contributions and payment of various types ofsubsidies to be accurate, prompt and timely, 5,000 million Kip
10 The project promotes the elimination of child labor, which is a serious and dangerous form of labor
Project to help children, victims, victims and the underprivileged at the Social Development Center11
850 million Kip
12 National Strategy and Action Plan for the Elderly, 1,000 million kip
Vocational training and employment promotion project for people with disabilities, 2,500 million
13
kip
Economic Corridor Projects- Newly proposed project
1 Project on construction of a production plant and storage facility
2 Lao-China Railway Corridor Organic Agriculture Market Project3 Lao-China Railway Agricultural Technical Improvement Project4 Training program for groups and cooperatives
Lao Women Union
State Budget Program- Ongoing projects

Number/ project
period9

Sources offunding
State budget
State budget
State budget
State budget
State budget

4
4

33
28
8
Government

1

Project to promote & upgrade professional knowledge & skills development for women

2
3
4
5
6
7
8

Project to improve and expand the network of counseling for women and children
Women Union's Cabinet work Upgrading Project
Project to promote cooperation with regional and international women's organizations
Project to monitor the work of women's unions
Gender Mainstreaming and Women's Development ProjectThe 3 Creation Task Program is linked to the 3 Good Competitions
Leading Women's Role Promotion Project- Newly proposed project1

Women's Empowerment-Management Project.

2

The project promotes women as members of the National Assembly and local people's assemblies.

3

Step-by-step strengthening the work of the Women's Union.

4

Women's Union Empowerment Project 3.

5

Vocational training program for disadvantaged women in rural areas.

6

Project to strengthen the management of village women's savings groups in a sustainable manner.

7

Small and Medium Business Awareness Project.

89Project to strengthen inter-sectoral coordination mechanisms on women's empowerment - Men andchild rights
Training project on the application of gender statistics into the functional, local and level databases
Nation10 Research project on the status and status of women.
11 Project to promote and protect the rights of women to have their names on land titles.

131

contribution
fundState budget
State budget
State budget
State budget
State budget
State budget
State budget
20
20222025
20222025
20222025
20222025
20222025
20222025
20222025
20222025
20222025
20222025
20222025

State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budgetNumber/ project
periodProject evaluation, summary of lessons learned from the 3 good, 3 creative and women's
2022development work of the Lao Women's Union.
2025
Project to improve, renovate and repair the work place of the previous generation of women leaders2022and the Women's Union Heritage Room.
2025
Preservation and promotion of handicrafts, training in handicrafts unique to Lao women of all
2022ethnic groups to become a pioneer.
2025
Dissemination of constitutions, laws and international conventions related to the development and2022protection of the rights of women and children.
2025
2022Project to Prevent, Prevent and Combat Violence against Women and Children.
2025
The project strengthens the implementation of international obligations related to the protection and2022promotion of the rights of women and children.
2025
Project to support and evaluate the 8th Five-Year National Development Plan for Women (202120222025) and the ninth Five-Year National Development Plan for Women (2026-2030), strategy and2025
vision.
The project monitors the implementation of indicators of sustainable development goals and2022programs.
2025
2022Project to empower women journalists to combat and respond to fake news.
2025
ODA project5- Ongoing projects
4
Strategic Supporting Project to Achieve the 5th Goal of Sustainable Development of Lao PDR in
2022
Saravane, Houaphanh, Xaysomboun Provinces (Budget from UNDP)
Project Name

12
13
14
15
16
17
18
19
20

1
2

Cooperation Program on Empowerment of Women and Gender Equality (UNFPA budget).

2021

3
4

Strengthening Deposit-Taking Microfinance Institutions for Women and Family Development
Cooperation with UNICEF (Child Protection Plan)- Newly proposed project
Project on the Prevention and Elimination of Violence against Women to Integrate Gender Equality
into Lao PDR Development Plan (Funded by KOICA)

120212024

1

Sources offunding
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget

ODA
Awaiting
ODA
approval
ODA
ODA
ODA

Outcome 4: Environmental protection enhanced and disaster risks reduced (19 projects)
Sub-total

1
2
3
4
5
6
7
8
9
10
11
12
13

19

State Budget Program- Ongoing projects
Protected Areas Management, National Parks and World Heritage
Protection Forest Management Project
Production Forest Management Project
Village forest management and non-timber forest products project
Tree planting and reforestation promotion project
Aquatic, Wildlife and Biodiversity Management ProjectGreenhouse gas reduction project from deforestation
Forest Inspection and Forest Resources Project
Natural Disaster Risk Reduction Project
Sustainable Consumption and Production ProjectLand management projects are being modernized across the country.
Integrated Water Resources Management Project
Climate change adaptation project

132

16
15
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budgetProject Name
14 The project integrates land use planning, natural resource management and environment.
15 Project on waste management and reduction of plastics.
- Newly proposed project
1 Land Development and Environment Master Plan Project
ODA project- Ongoing projects
1 Green Climate Fund (Green Climate Fund - Global Green Growth Institute)
2 Disaster Risk Management Project (World Bank)- Newly proposed project
1 Electric Vehicle Pilot Project (Global Green Growth Institute)

Number/ project
periodSources offunding
State budget
State budget

1
State budget
3
2
ODA
ODA
1
ODA

Outcome 5: Engagement in regional and international cooperation and integration is enhanced withrobust infrastructure and effective utilisation of national potential and geographic advantages(134 projects)
Sub-total

134

I. Connectivity
State Budget Program- Newly proposed projects

91
24
24

1

Construction of three ports projects (Xieng Kok, Pak Bang and Khok Chong)State budget2

Ongoing project to build Vang Tao checkpoint.

State budget

3

Ban Vang checkpoint construction project, Phuen district, Vientiane province.

State budget

4International Airport Construction Project at Tonpheung, Bokeo Province.

State budget

5
6
7
8
9
10
11
12
13
14
15

Construction project of Pak Hok International Checkpoint (Tai Chang) Lao-Viet-Oudomxay
Province (Road 2E) connecting Luang Prabang-Boten Expressway
Lan Touy International Checkpoint (Lao-China) - Bountai District, Phongsaly Province - Nafo
Railway Station, Oudomxay Province (or Hanatia, Luang Namtha Province)
Vientiane-Hanoi Highway Construction Project
Vientiane-Pakse Highway Construction Project
National Highway No. 13 South Improvement Project from Main 21 to Main 71
National Highway 2E and 2W upgrade project
Road No. 6 construction project from Phu Lao to Hang Long, Houaphanh province
Construction project to upgrade Road No. 12 from Thakhek to Naphao checkpoint on the LaoVietnam border
Project to upgrade Road No. 8 from Ban Lao to Nam Phao (Keo Phuea) on the Lao-Vietnam borderwith a length of 132 km
National Highway Rehabilitation Project 18A (AH132) but the main road junction 48 intersects
Route 13 south. Pathoumphone, Champassak Province - Intersection Samakkhixay connects toRoad 18B, Attapeu province
Upgrading Road No. 17 from Xieng Kok (Lao-Myanmar Friendship Bridge) to Oudomxay ProvinceState budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget

16 5th Friendship Bridge Construction Project (Paksan-Buengkan)

State budget

17 Mekong River Crossing Project, Chomphet District, Luang Prabang ProvinceState budget

18 6th Friendship Bridge (Saravan-Ubon)
Construction of the second Mekong River bridge on the north and south side of the Pakse19
Phonethong river bridge
20 Construction of 12 bridges along Road No. 20 in Champassak and Saravan provinces
Construction of a two-story paved road bypassing Pakse and the construction of the new Sedon
21
BridgeState budget

133

State budget
State budget
State budgetProject Name

Number/ project
periodSources offunding

22 Tonpheung Port Development and Services Project with an initial investment of $ 50 million

State budget

23 Mekong and tributary riverbank construction projects, island development projects along the borderState budget

Highway construction project from Vientiane-Xaysomboun and Xiengkhouang-Houaphanhprovinces
Private equity projects- Newly proposed project1 Road construction project No. 12.
2 Vang Vieng-Luang Prabang Highway Construction Project
3 Luang Prabang-Oudomxay Highway Construction Project
4 Oudomxay-Boten Highway Construction Project
5 Luang Namtha-Houayxai Highway Construction Project in Bokeo Province
6 Thabok Natery Development Project (Luang Namtha Province)
7 Main Land Development Project 20 (Bolikhamxay Province)
8 Huay Xai Port Development Project (Bokeo Province)
9 Luang Prabang Port Development Project (Luang Prabang Province)
10 Thabok Oudomxay Development Project (Oudomxay Province)
ODA project- Ongoing projects
1 Phase 2 Road Project (World Bank) (Ongoing)- Newly proposed project
1 ASEAN + 3 (ADB) Border Financial Transaction Promotion Project2 Bridge Management and Maintenance Capacity Development Project (JICA)
24

3

State budget
10
10
FDI / TICA
FDI
FDI
FDI
FDI
FDI
FDI
FDI
FDI
FDI
4
1
ODA
3
ODA
ODA

Project for Technical Support on Continues Improvement of Vientiane International Airport (JICA)

Economic Corridor Projects- Newly proposed project
Construction of a road connecting the station to the border checkpoint to serve freight and1
passenger services (7 projects)
Construction of roads to support transportation and passengers to economic points, tourist
2
attractions and agricultural, industrial and other areas related to economic stimulus (33 projects)
The project to improve and develop water transport routes as an alternative transportation method,
3 related to upgrading personnel to be able to compete with international and neighboring countries,
especially waterways (13 projects)
II. Trade integration and cooperation
State Budget Program- Newly proposed project
1 Project to promote bilateral trade negotiations.
Project to promote trade negotiation for ASEAN Economic Community (AEC) and the World
2
Health Organization (WHO).
3 Sub-regional cooperation promotion project.
The project promotes the integration of standards and quality of industrial products and production
4
networks with regional and international.
5 Export Promotion Negotiation Program.
Project to promote and develop cross-border trade and cross-border trade services related to6logistics in the era of integration.
ODA project- Ongoing projects
1 Promoting the use of modern technology for quality infrastructure planning and monitoring (ADB)
2 CLV Cooperation Framework
III. Regional and local development

134

ODA
53
53

8
6
6
State budget
State budget
State budget
State budget
State budget
State budget
2
2
ODA
ODA
3

Project Name

Number/ project
period2
2

Sources offunding

State Budget Program- Newly proposed project
Construction of landslide protection near Xebangfai in Ban Nawang, Phongbok District,1
2021-22 State budget
Khammouane Province (That Toum Phawang)
Construction of landslide protection near Xebangfai village, Pakdan village, Xebangfai district,22021-23 State budget
Phongbok district, Khammouane province
ODA project1- Ongoing projects
1
1 Mekong River Development Project in Champassak Province
2017-23ODA
IV. Urban development
5
ODA project1- ODA Ongoing Project1
1 Project for Capacity Development on Urban development Control and Promotion (funded by JICA).
ODAState Budget Program4- Ongoing projects
3
Wastewater and Wastewater Treatment Promotion Project to Improve the Urban Environment
1State budget(Vientiane Capital and Pakse)
2 Vientiane Capital Bus Station ProjectState budget
3 Continuing Urban Development Project in Vientiane Province.
State budget- Newly proposed project1
Project to build a tourist attraction on the banks of the Mekong River as a continuous walkway and
1State budget
to make the Vientiane Canal a multi-hour tourist attraction in Vientiane Capital
V. Development of Special Economic Zones
4
Private Investment Projects
4- Newly proposed project
4
1 AMATA SMART CITY in Luang Namtha and Oudomxay Provinces
FDI
2 Smart City Construction Project in Phongpan Village, Naxaithong District, Vientiane Capital
FDI
Inland Container Depot (ICD) Development Project in Xaysetha Development Specific Economic
3
FDI
Zone, Vientiane Capital
4 Thabok Construction Project in Vang Tao-Phonethong Area, Champassak Province
FDI
VI. Development and application of ICT innovations
8
State Budget Program8- Newly proposed project8
1 Project to improve the online ICT licensing system to be able to serve the whole country.
State budget
2 Project to improve the inspection of ICT equipment standards.
State budget
3 ICT Services Inspection Project.
State budget
4 Digital Park / ICT Park construction project in Vientiane Capital.
State budget
5 Innovation Center and Digital Consulting Project.
State budget
6 Digital camp project.
State budget
7 Digital Index Creation Project.
State budget
8 Free Internet program.
State budget
VII. Develop telecommunication, ICT and digital infrastructure
15
State Budget Program15- Newly proposed project15
1 IPv6 technical upgrade and pilot project with local and international internet service providers.
State budget
2 Technical and Security Improvement Project for Internet Code Management System .LA and Laos.
State budget
3 Feasibility study project and establishment of a National Internet Center sub-center.
State budget
4 Project to create a backup registry system at the National Internet Center in the north and south.
State budget
Project to improve the web hosting system (Hosting) to be more secure and able to accommodate
5
State budget
the growth of users.

135

Project Name
6
7
8
9
10
11
12
13
14
15

Number/ project
periodProject to improve the ICT equipment storage system (Colocation) to be able to accommodate thegrowth of consumption.
Modernized Cloud expansion project.
National Data Exchange Center Project.
Government network improvement and expansion project
Project to develop high-speed information network to reduce poverty and support the digital
corridor economic corridor.
Sub-Regional Interconnection High Speed ​Internet Center (CLMV) Infrastructure Development
Project.
Project to build a connection point for telecommunication transmission lines in and out of foreigncountries
Procurement and installation of electricity system for Dongphosy Secondary Information Center
Project to renovate Dongphosy Center into a secondary center
The project explores market share structure and demarcation of the telecommunications market
along with the promotion of fair competition.

Sources offunding
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget
State budget

Outcome 6: Public governance and administration is improved, and society is equal, fair, and protectedby the rule of law (40 projects)
Sub-total

40

National Survey and Data Collection Project to Serve the National Socio-Economic Development
1
Plan
I. Public Administration and Legal Strengthening
ODA Project- Ongoing projects
Public Sector Management and Improvement Project to Promote Participatory Development
1
Projects (Switzerland)
Project to Promote the Implementation of the 5th Sustainable Development Goal (Gender Equality)
2(UNDP)
3 Promoting Community Involvement via Radio (UNDP)
4 National Assembly and Provincial Council Role Promotion Project (UNDP)
5 Strengthening Project (Upgrading Training Institute) as a State Audit Education Institution.
6 Project for developing and strengthening the rule of law in the legal sector (JICA grant).
II. Commerce➢ Increase the efficiency of macro-management, decentralization and leadership of businessorganizations and business units under the Ministry.
State Budget Program- Newly proposed project
Project to promote and develop experts and researchers in the field of development and promotion
1of industry and commerce.
2 Scientific-scientific research and development project of the College of Commerce.
3 Khang Oc Enterprise Improvement and Development Project.
4 Promotion and Services Project of the Lao National Chamber of Commerce and Industry.
III. Posts, Telecommunications and Communications➢ Increase the efficiency of macro-management, decentralization and leadership ofbusiness organizations and business units under the Ministry.
State Budget Program- Newly proposed project
1 ICT Institute E-Learning Development Project.
2

Project to develop the use of electronic technology in teaching and learning at the Institute

136

1
6
6
6
ODA
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4
4
4
4
State budget
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345

ICT Science Laboratory Project of the Institute of Information and Communication Technology.
Lao-India Software Excellence and Training Center Development Project for High Quality IT in
Laos
Project to build an incubator for business start-ups (Start up).

7

Human Resource Development and Start-up Project in collaboration with local and international
strategic partners.
Lao PDR ICT Level Survey and Data Collection Project (Phase II)

8

Economic Research and Promotion Project for Digital Economy Transformation

6

Number/ project
periodPTSD Nationwide Telecommunication and Internet Reinforcement Project, Phase 1, 2 and 3➢ Develop a modern public administration system
State Budget Program- Newly proposed project
Project to improve and develop the Government data exchange system to exchange and centralize
1public information.
2 Public Information Center Improvement and Integration Project (G-Cloud)Project to improve and develop the internal network and ICT system of the Ministry of Post and3
Telecommunications to be a model of a modern ministry.
4 Project to improve and expand the video conference system at the central and local levels.
5 Project to improve and expand the government email system at the central and local levels.
6 Project to build an electronic information center in the province.
7 Project to develop, improve and maintain e-office system.
Project to develop and expand the use of modern office systems (e-Office) for ministries and8government offices throughout the country.
Project to develop the Lao language document system (Phetsarath Office) and share public
9
documents (G-Share, G-Drive).
Project to modernize the public service system with digital system (e-Services and Single Sign-On)
10
to the central and local level.
Project to develop and expand the use of government communication systems (Government
11
Chatting Application).
Project to expand the use of G-Web Platform throughout the public sector at the central and local
12levels.
13 Government Open Data Platform Integrated Development Project.
14 E-gov security and anti-virus program.
15 The Smart City Development Study Project uses an electronic public administration system.
Project to develop and create a public reporting system (Dashboard) to be modernized (digital) via
16
mobile phones.
17 Font Lao Development Project and Electronic Lao Contents.
18 Modern Government Indicator Development Project (e-Gov Index)
19 Public e-Signature (CA) Development and Expansion Project.
20 BlockChain research projects into government work.
IV. Statistics
State Budget Program
National Survey and Data Collection Project to Serve the National Socio-Economic Development
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Plan

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