Prime Minister Sonexay Siphandone chairs the government meeting.

Govt moves to stabilise economy, accelerate development 

The government has set out a number of key priorities for September aimed at strengthening the economy, improving infrastructure, and reinforcing national stability, following a two-day monthly meeting of the government with provincial leaders.
The meeting took place on Monday and Tuesday this week and was chaired by Prime Minister Sonexay Siphandone.
Ministers, provincial governors and sector representatives were instructed to take stronger action to tackle ongoing economic challenges, address inflation, and maintain macroeconomic stability.
To this end, the government reaffirmed the implementation of key measures aimed at stabilising currency exchange rates and ensuring sufficient foreign currency reserves.
Officials were told to reduce the production costs of essential goods such as rice, pork, eggs, and fish, while balancing supply and demand, curbing non-essential imports, and solving problems around the supply of animal feed for livestock farmers.
The meeting also stressed the need to speed up road construction and maintenance to ease transport difficulties and strengthen links between provinces.
As the rainy season continues unabated, officials were told to closely monitor water levels in reservoirs and dams, repair roads and bridges damaged by flooding, and issuing timely public warnings to minimise the damage caused by storms.
The Ministry of Education and Sports was instructed to ensure the smooth start of the new school year and continue efforts to address the shortage of teachers. Provincial authorities were told to appoint volunteer teachers as civil servants to meet staffing needs, especially in remote areas.
The government also discussed support for returning migrant workers. Relevant ministries were asked to gather accurate data, provide skills training, and create job opportunities to help these workers integrate into the local workforce.
The meeting approved in principle several draft laws and decrees, which are now being revised in line with feedback from cabinet members.
These include a master plan for the development of Nakasang, Don Det, Don Khone and surrounding areas from 2025 to 2035, as well as legislation to prevent money laundering and the financing of terrorism and weapons of mass destruction; the seizure of terrorism-related assets; health impact assessments; and penalties for railway law violations.
In addition, the Ministry of Culture and Tourism was assigned to work with other ministries and tourism operators to reach consensus on the draft decree on the Tourism Fund. The agreed draft will be circulated for further input before submission to higher authorities for approval.
Looking ahead, the government urged all sectors to prepare for important upcoming political events, including the central and provincial Party congresses, and official visits abroad by Party and state leaders.
Despite the continuing impact of global economic pressures and natural disasters, the government reported encouraging progress in August.
Inflation has dropped to 5 percent, and foreign currency reserves remain stable, covering almost five months of imports. Budget revenue reached nearly 47 trillion kip, or 69 percent of the target for 2025, while debt repayments were made on schedule.
In agriculture, rice has been grown on 740,000 hectares of land, amounting to 97 percent of the seasonal target, while other rainy season crops were planted on 107,000 hectares. Exports of cash crops generated more than US$88 million, with livestock exports bringing in US$1.16 million.
Tourism also continued to boom, with 2.35 million foreign visitors coming to Laos during the first eight months of this year, an increase of 12 percent compared to the same period in 2024. Domestic tourism grew even faster, with more than 2.46 million local visitors—up 46 percent year-on-year.
In foreign affairs, the government reported successful diplomatic engagements, including a high-level visit to Russia and hosting delegations from friendly nations and international organisations.
With clear priorities set for September, the government is determined to build on recent achievements to drive further growth, strengthen national resilience, and improve the lives of the Lao people.

By Bounfaeng Phaymanivong
(Latest Update August 28, 2025)