Passengers board a train headed for Luang Prabang.

Luang Prabang economy grows 3.9 percent in first half of 2026

Luang Prabang province’s economy grew by 3.9 percent in the first six months of this year, supported by continued growth in services, industry and agriculture, while the Laos-China railway has helped boost transport, trade and tourism in the province.
The province’s Finance Department’s report on the implementation of the socio-economic development and state budget plans for the first half of the year showed that Gross Domestic Product (GDP) reached 11,671 billion kip, equivalent to 52.7 percent of the annual target, while average per capita income was recorded at 23.9 million kip.
The services sector recorded the highest growth rate at 4.7 percent, accounting for 33.6 percent of GDP.
Industry and handicrafts grew by 3.9 percent, contributing 23.4 percent of GDP, while agriculture and forestry expanded by 3.2 percent and accounted for 42.9 percent of GDP.
Transport also recorded strong growth, with the Laos-China railway playing an increasingly important role in supporting economic activity and the movement of people and goods.
In the first six months of the year, the railway carried about 1.3 million passengers and transported 564,348 tonnes of goods into and out of the province, helping facilitate trade, investment and travel.
In the second half of the year, provincial authorities plan to improve the efficiency of state budget revenue collection, with a focus on expanding the value-added tax (VAT) base.
Businesses and service providers, including convenience stores, restaurants, hotels and guesthouses that are not yet registered in the tax system will be encouraged to enter the tax base and comply with tax regulations, while lump-sum tax collection will be phased out.
Authorities will also continue monitoring the use of APTax invoices, e-tax invoices and standard invoices to improve transparency, reduce revenue losses, and strengthen the province’s budget revenue base.
These measures are intended to support more stable state revenue and contribute to the sustainable development of Luang Prabang’s economy.

By Times Reporters
 (Latest Update September 8, 2026)