Party to highlight 2021–2025 achievements as it convenes 12th Congress

The Lao People’s Revolutionary Party (LPRP) will convene its 12th National Congress on Tuesday, with one of the key agendas being to highlight achievements made over the past five years under the guidance of the current Party leadership.
These accomplishments are outlined in the draft political report to be presented at the congress, which reviews progress in implementing the resolution of the 11th National Party Congress. The resolution set out the country’s development direction for the 2021–2025 period.
Despite numerous challenges, Laos has recorded notable achievements over the past five years.
Benefiting from political stability conducive to socio-economic development, Laos is expected to achieve average annual economic growth of 4.24 percent during the 2021–2025 period, exceeding the target of 4 percent, Prime Minister Sonexay Siphandone told the National Assembly in November.
The growth reflects the country’s recovery and resilience amid domestic and global turbulence. Key drivers have included agriculture, electricity generation, mining, processing industries, transport, and tourism.
These outcomes are the result of efforts to implement the 9th Five-Year National Socio-Economic Development Plan (2021–2025), which serves as a key instrument for translating the 11th Party Congress resolution into action.
Over the five-year period, the agricultural sector grew by an average of 2.9 percent, accounting for 19.4 percent of GDP. The industrial sector expanded by 4.7 percent, contributing 32.5 percent of GDP, while the services sector grew by 4.5 percent and accounted for 36.6 percent of GDP.
Major infrastructure projects, including the Laos–China Railway and the establishment of three dry ports in Vientiane as well as Savannakhet and Champasak provinces, have strengthened regional connectivity and boosted logistics, trade, investment, and tourism.
On the fiscal front, improved revenue collection through the modernisation of tax and customs systems has helped reduce the budget deficit and improve the efficiency of public spending. As a result, debt servicing has improved, with public debt declining from 116 percent of GDP in 2022 to 88 percent in 2025.
Progress has also been made in poverty reduction, with the proportion of people living below the poverty line falling from 18.3 percent in 2019 to 15 percent in 2025.
Efforts to strengthen governance have gained momentum through structural reforms, including the reduction of ministries from 17 to 13 to enhance efficiency. The number of central government departments was cut from 158 to 124, while provincial departments declined from 574 to 502.
The government has continued to improve the business environment. Over the past five years, 14 new one-stop service centres have been established, bringing the nationwide total to 75.
However, implementation of the 9th National Socio-Economic Development Plan has faced significant challenges, including domestic financial constraints, the lingering impacts of the Covid-19 pandemic, natural disasters, and global economic volatility.
Although economic growth has been maintained, its quality and sustainability remain limited, as expansion is still largely driven by unprocessed natural resources with low value-added and limited job creation, according to a Ministry of Finance report.
While the economy has grown, people’s real incomes remain low, and commercial production and productivity are insufficient and undiversified, Deputy Minister of Finance Mrs Phonevanh Outhavong told a seminar in Vientiane in October.
Inflation, though declining, remains high, along with currency depreciation, which has weakened purchasing power. Average inflation over the five-year period is projected at 17.81 percent, well above the target of less than 6 percent, while kip depreciation is expected to average 15.15 percent, exceeding the target range of ±5 percent.
Mrs Phonevanh stressed the need to streamline investment approval processes and accelerate the cross-border movement of goods.
Other challenges requiring decisive action include rising dropout rates in primary and lower secondary schools, a persistent shortage of teachers, and increasing labour migration abroad, which has exacerbated domestic labour shortages.
Building on the achievements and lessons of the 11th National Party Congress and the implementation of its resolution, the upcoming 12th Congress is scheduled to discuss and adopt a new resolution that will chart the country’s development direction for the next five years—providing crucial guidance as Laos aims to graduate from least developed country status by 2026.

By Times Reporters
(Latest Update January 5, 2026)