Prime Minister Sonexay Siphandone.

PM highlights five years of growth, sets priorities for next development phase

All Lao people across the country warmly welcome the 12th National Party Congress of the Lao People’s Revolutionary Party.

Over the past five years under Party leadership, the government has sought to revitalise and stabilise the economy through coordinated measures aimed at expanding production and services.
Prime Minister Sonexay Siphandone highlighted these goals when addressing the 12th National Party Congress on January 6, noting that the nation’s progress under the 9th National Socio-Economic Development Plan (NSEDP) for 2021-2025 has laid a solid foundation for future growth.
Despite global economic instability, Laos recorded average annual GDP growth of 4.24 percent, surpassing the target of 4 percent. GDP per capita reached US$2,138, while Gross National Income per capita stood at US$1,985.
Growth was evident across all key sectors. Agriculture expanded by 2.9 percent, contributing 19.4 percent of GDP; industry grew by 4.7 percent, accounting for 32.5 percent; and services increased by 4.5 percent, representing 36.6 percent of GDP. The customs and tax sector also performed well, with a 3.8 percent increase contributing 11.5 percent of GDP.
Rice harvests yielded 18.9 million tonnes over five years, averaging 3.7 million tonnes a year, while commercial crop production averaged 9.5 million tonnes annually. Production of rice, meat, eggs, and fish largely met the nation’s needs. Exports of agricultural and forestry products totalled US$7.8 billion, exceeding the target by 31 percent.
The energy and industry sectors also recorded strong gains.
The value of electricity generated climbed to 262,848 billion kip, mineral production yielded 179,755 billion kip, and the value of commodity circulation hit 410,269 billion kip.
Some 60.3 million tonnes of freight was transported, and nearly 485 passenger trips were recorded. The value of foreign trade was valued at US$84.4 billion. Exports soared to US$46.4 billion, averaging 15.2 percent growth per year, while imports totalled US$37.9 billion, growing by 13.5 percent annually. This resulted in a trade surplus of US$8.4 billion.
Looking forward, the 10th NSEDP for 2026-2030 will guide Laos towards graduation from Least Developed Country status while also meeting the Sustainable Development Goals.
Building on the resolution adopted by the 12th National Party Congress, the 10-Year Development Strategy for 2026-2035 and the Vision to 2055, the development plan will focus on “four breakthroughs” in governance, human resource development, industrial growth, and environmental protection.
Prime Minister Sonexay said legal and regulatory reforms will be strengthened to improve governance, promote business, and encourage investment. The government will manage the economy cautiously, avoiding excessive debt while supporting macroeconomic stability and market efficiency.
Priority will be given to fast, continuous, and high-quality economic growth, strengthened national self-reliance, and human resource development to cultivate skilled professionals capable of advancing science, technology, and innovation.
Societal development also remains central to government policy. Efforts will continue to improve living standards, reduce poverty, and narrow the development gap between urban and rural areas.
Environmental protection and green development will be integrated into economic strategies. Foreign relations will be pursued to enhance international trust and cooperation, while the rule of law will be reinforced to maintain political stability, social harmony, and national unity.
Key targets for 2030 under the 10th NSEDP include annual economic growth of at least 6 percent, GDP per capita of US$3,104, inflation to remain below 5 percent, public debt to be less than 70 percent of GDP, and for forests to cover 70 percent of the country’s land area.
Sectoral targets include 4.1 percent growth in agriculture, 5.7 percent in industry, and 7.1 percent in services. Total investment is projected at 636,178 billion kip, with contributions from the government’s budget, official development assistance, and private and foreign direct investment.
Other targets include annual rice production of 4 million tonnes, an agro-forestry export value of US$1.9 billion, and electricity generation of 327,317 million kWh.
With tourism booming, the government hopes to attract 22 million foreign visitors to Laos over the next five years, generating US$8 billion in revenue.
Investments in education, healthcare, digital transformation, and public administration are expected to improve governance efficiency and elevate living standards.
Prime Minister Sonexay said successful implementation of the 10th NSEDP will ensure that economic growth translates into tangible social benefits, strengthens national stability, and positions Laos for sustainable development in the decade ahead.
The National Party Congress, the highest decision-making forum of the Lao People’s Revolutionary Party, continues until Thursday, adopting key policy documents, major reform orientations, and electing a new leadership body to guide the country’s development.
Party Secretary General Thongloun Sisoulith, who is presiding over the congress, reaffirmed the Party’s commitment to building an independent and self-reliant economy, enhancing people’s quality of life, preserving Laos’ unique culture, and developing human resources to meet future challenges.
He also emphasised the need for proactive foreign relations, debt management, governance reform, digitalisation, and sustainable use of natural resources to ensure long-term economic stability.
The next five years will not only consolidate the achievements of the past five but also lay the groundwork for the following 10 and 30 years.
By 2055, when the Party will celebrate its 100th anniversary, Laos aims to become an upper-middle-income developing country, reflecting the Party’s vision for sustainable, inclusive, and resilient growth.

By Khonesavanh Latsaphao
(Latest Update January 8, 2026)