Mr. Sonexay SIPHANDONE – Prime Minister
Leveraging the strategic location at the heart of ASEAN, Lao PDR is a land‑linked nation with growing potentials and opportunities for investment, trade, and connectivity. In recent years, the Lao PDR’s economy has grown continuously, with an average GDP growth of 4.24% during 2021-2025. The macroeconomic has improved, especially with the revenue collection exceeding targets, public debt and inflation rates declining, the exchange rate basically stable, and foreign exchange reserves increasing. In addition, there have been amendments to the legislation to regulate the socio-economic development, and infrastructure linkages have been improved and developed, such as the Lao-China railway, Lao-Vietnam railway, Vientiane-Vung Vieng highway, Lao-Vietnam highway and others.
The Government has undertaken bold reforms to strengthen the business environment involving streamlining institutions and procedures, modernizing regulations, and embracing digital transformation. These reforms reflect our determination to make Laos more competitive, transparent, and investor‑friendly as we are committed to attracting quality domestic and foreign investment that supports our national development priorities in each period.
Looking ahead, Laos aims to position itself as a hub for regional connectivity and green growth. With our strategic location, youthful workforce, and commitment to strategic economic reform to strengthen independent and self-reliant economy. The Government of the Lao PDR recognizes both foreign and domestic investment as a vital driver of the country’s socio‑economic development. In line with this vision, the Government has set ambitious targets under the Five‑Year National Socio‑Economic Development Plan (2026–2035) to attract investment totaling LAK 636,178 billion (approximately USD 28.9 billion), accounts for 24% of GDP, and accounts for 64.4% of total investment.
Lao PDR welcome investors that bring innovation, create decent jobs, and contribute to rural development, poverty reduction and sustainable growth in our potential renewable energy, agriculture, tourism, and manufacturing integrated into regional and global production chain offer significant opportunities to harness potentials in abundant natural resources, renowned for its cultural heritage and pristine environment. These advantages support the country’s vision of advancing socio-economic development along a green, inclusive, and sustainable pathway.