Australian Ambassador Megan Jones (centre) and guests stand for the Lao and Australian national anthems during the reception. --Photo Australian Embassy

Australia pledges continued support for Laos’ “inclusive, sustainable” graduation from LDC

Marking Australia Day in Vientiane, Ambassador Megan Jones pledged her country’s continued support for Laos’ inclusive and sustainable transition from Least Developed Country (LDC) status.
Laos is scheduled to graduate from this development category, as assessed by the United Nations, during the course of 2026, with the next three years to be a transition period.

Speaking to the media at a reception held at the Australian Embassy last  Thursday, when she warmly welcomed hundreds of Lao government officials, foreign diplomats, businesspeople, and other invited guests, Ms Jones reflected on the longstanding Laos-Australia ties and expressed forward-looking optimism.
“We are really proud to be a longstanding and trusted development partner of Laos,” she said.
“We have a really long history of supporting Laos’ socio-economic development and we’ll continue to walk that journey with Laos as it moves to and through LDC graduation.”

A primary focus of Australia’s support is to strengthen national systems and ensure sustainable service delivery. The Ambassador said Australia is working directly with the Lao government, specifically the Ministry of Industry and Commerce and the Bank of the Lao PDR, to strengthen the investment environment and improve trade potential.
To bolster Australian engagement with Laos, Canberra is implementing the “Invested: Australia’s Southeast Asia Economic Strategy to 2040”, part of its broader economic strategy with Southeast Asia. This initiative aims to strengthen two-way trade and investment links.The Ambassador highlighted Laos’ development potential, particularly in sectors such as agri-business, clean energy, resources, and education.
Future enhancements can be built on existing success stories. An Australian company, Costa, has planted blueberries on more than 70 hectares in Laos’ southern Champassak province, employing over 200 people, most of whom are Lao. The company has a bold plan to expand further. Linfox, a leading logistics service provider, has also been active in Laos.
In the health sector, Australia is actively assisting Laos’ progress towards universal health coverage. This builds on a deep history of cooperation, including over 30 years of partnership in basic education and 70 years of providing scholarships to Lao nationals.Education remains a cornerstone of the bilateral relationship, with over 2,600 Australian alumni currently contributing to Lao society.
“We have walked with Laos to help strengthen all of the areas that Laos needs,” she said.
Moving forward, Ms Jones added, “We will continue to prioritise areas like economic reform, sustainable development and social inclusion in the scholarships that we give.”
The Ambassador said a specific goal to ensure Laos’ graduation process is inclusive is to provide more opportunities for women, people with disabilities, and marginalised groups. These supports are framed within the Comprehensive Partnership signed by the prime ministers of both nations in 2024. As the two countries approach their 75th anniversary of diplomatic relations next year, the partnership is expanding across key pillars, including human capital development, trade and investment, climate change, water, energy, and defence.
The Ambassador expressed optimism that these combined efforts will help ensure that “no communities are left behind” as Laos enters a new chapter of economic growth.

By Souksakhone Vaenkeo
(Latest Update February 10, 2026)