Under the Party’s leadership: Economic growth and rising living standards

Lao people throughout the country eagerly await the 12th National Party Congress of the Lao People’s Revolutionary Party, taking place from January 6-8.

Under the wise and dependable leadership of the Party, the Lao PDR has continued to enjoy political and social stability, paving the way for steady development.
Over recent years, the economy has grown progressively, and the living standards of the multiethnic Lao people have continuously improved.
During the 2021-2025 period, key sectors such as energy, agriculture, industry, tourism, information technology, logistics, and proved to be important drivers of sustainable economic growth.
Thanks to unprecedented development in these areas, total state revenue over the five-year period climbed to 251,910 billion kip, exceeding the National Assembly’s target figure by 16 percent—an encouraging achievement reflecting improved economic management and production capacity.
Tourism has also played a vital role in Laos’ growing prosperity. Under the “Visit Laos Year 2024” campaign, the country welcomed 4.12 million foreign visitors, generating US$1.42 billion in revenue. This was not only a boost to the national economy but also helped create jobs and income for people across the country.
Despite these achievements, Laos continues to face constraining economic challenges. Overcoming them will require strong political determination, concerted action, and continued efforts to implement sound policies that address Laos’ special circumstances.
A firm political path and consistent renovation policy
Over past decades, the Party has firmly pursued the path to socialism amid complex global changes. The Party views Marxism-Leninism, Kaysone Phomvihane Thought, its own long-held principles, and the aspirations of all ethnic Lao people as the ideological basis for the formulation and successful implementation of policies.
Since 1986, the Party has followed a policy of renovation, expanding international cooperation while promoting investment and tourism. This has played a crucial role in poverty reduction and in preparing Laos for graduation from Least Developed Country status in the near future.
Infrastructure: A key driver of connectivity
In recent years, upgraded infrastructure has significantly contributed to Laos’ development. New roads, expressways, airports, urban development projects, and special economic zones have strengthened connectivity both within the country and across the region.
Among these achievements, the Laos-China Railway stands out as the most transformative venture. In 2024 alone, the railway carried 3.8 million passengers and transported 4.78 million tonnes of freight, generating over 52 billion kip in service fees. It has helped turn Laos into an emerging regional logistics hub, enhancing trade efficiency and economic integration.
In addition, access to international markets has improved through the use of new facilities at Vietnam’s Vung Ang seaport, opening up further opportunities for trade and transport and strengthening regional links.
12th National Party Congress: A historic milestone
The 12th National Party Congress of the Lao People’s Revolutionary Party will open on Tuesday, marking the start of a decisive time in the country’s history. The Congress will review the achievements made in implementing the resolution of the 11th Party Congress during the 2021-2025 period under the leadership of the Party Central Committee.
Over three days, the Congress will outline a plan of action and elect a new Party leadership to guide the country’s development in the next five years (2026-2030).
As the Party’s most influential convocation, the National Party Congress has deep political and social significance. It makes decisions around strategic, fundamental, and long-term issues related to the revolution and national development. The Congress will also elect a new Party Central Committee to represent the aspirations of the Party and all Lao citizens.
Vision and expectations for the future
This Congress is particularly significant as the Party will adopt a “third-issue political programme” for the first time in 50 years, after previously leading by setting guidelines at each congress.
In this political programme, the Party will define directions, goals, and 11 major policies.
In particular, the Party will spell out the national development path until the year 2055, which is the 100th anniversary of the Party’s founding. The main aim is for Laos to become an upper-middle-income country, moving closer to becoming a high-income country in the future.
In political terms, expectations focus on strengthening the Party’s leadership, ensuring effective state administration, and steadily improving living standards across the country.
Economically, the emphasis is on building an independent and self-reliant economy, promoting fast, green, and sustainable development, and ensuring stable macroeconomic conditions.
The development plan spells out six key goals, with a special emphasis on quality economic growth, improved investment efficiency, the development of micro, small, and medium-sized enterprises, and enhancing the effectiveness of state-owned enterprises and the people’s collective economy.
Other important goals are to train the country’s workforce in modern technological skills, narrow the urban-rural development gap, reduce poverty levels, protect natural resources, address climate change, strengthen regional and international links, and ensure efficient governance.
All of these aspirations reflect the revolutionary spirit, confidence, and high expectations of the entire Party and people, laying a solid foundation for national development and steady progress on the road to socialism.

By Khonesavanh Latsaphao
(Latest Update January 5, 2026)