Deputy Prime Minister Saleumxay Kommasith highlights past achievements and future plans to tackle economic and financial issues.    --Photo Sangkhomxay

National agenda identifies key sectors driving economic recovery

The energy, agriculture, industry, tourism, transport and logistics, regional processing, and IT sectors will spearhead sustainable growth and fiscal resilience over the next five years, according to a government report on the 2021-2025 national agenda on economic and financial challenges.
Under the upcoming 10th National Socio-Economic Development Plan for 2026-2030, the government aims to achieve average annual economic growth of 5-6 percent, expand domestic revenue to 20 percent of GDP, and reduce public debt to less than 70 percent of GDP.
The report, presented on Wednesday at the ongoing 10th Ordinary Session of the 9th Legislature of the National Assembly by Deputy Prime Minister Saleumxay Kommasith, highlighted achievements made over the past five years and outlined directions for future development.
Total state revenue over the five-year period reached 251,910 billion kip, exceeding the National Assembly-approved plan by 16 percent and equivalent to 18.43 percent of GDP.
Domestic revenue alone is projected at 231,436 billion kip, surpassing the target by 17 percent, while revenue collection goals have been met for five consecutive years.
The agriculture sector boosted food security and exports, with average annual food production reaching 6.75 million tonnes, or 96 percent of the stated target.
Rice output averaged 3.77 million tonnes a year, up 8 percent compared to 2020. Exports of agricultural products totalled US$7.89 billion, averaging US$1.57 billion annually, exceeding the target by 31 percent. Key export goods included rubber, cassava, bananas, coffee, and maize.
Industrial production also expanded, particularly in cement, steel, and fertiliser. Domestic cement production now meets 130 percent of national demand, while fertiliser output covers half of market needs, reaching one million tonnes annually.
Land management was strengthened with 740,000 land titles issued by October 2025.
Tourism has rebounded strongly following the Covid-19 pandemic. The Visit Laos Year 2024 campaign and infrastructure improvements drew 4.12 million foreign tourists, generating US$1.42 billion, while domestic tourist numbers reached 3.9 million.
Transport and logistics also saw notable growth. The Laos-China Railway carried about 3.8 million passengers and transported 4.78 million tonnes of freight in 2024, contributing over 52 billion kip in service fees.
Use of new facilities at the Vung Ang seaport in Vietnam further strengthened Laos’ regional connectivity.
The government implemented Prime Minister’s Orders 18 and 20, expanded digital tax systems through TaxRIS and FinPass, and increased value-added tax (VAT) to 10 percent.
New revenue streams emerged from mining projects, digital asset businesses, vehicle imports, and railway freight services, with VAT revenue alone rising 30 percent in the first 10 months of 2025.
Adjustments by the Bank of the Lao PDR helped stabilise inflation at 4.5 percent in September 2025, while foreign reserves now cover more than five months of imports.
Between 2024 and September 2025, US$2.45 billion in foreign debt was repaid, easing public debt pressure. The launch of the Lao Foreign Exchange Market (LFX) improved transparency and promoted wider use of the kip, while local currency settlements with neighbouring countries reduced dependence on foreign currencies.
The report concluded that the national agenda has laid a firm foundation for future growth, enhanced self-reliance, and long-term financial stability, with lessons learnt guiding implementation of the 2026-2030 national socio-economic development plan.

By Times Reporters
(Latest Update November 13, 2025)