Party Secretary General and President Thongloun Sisoulith.

President calls for speedier reform of state enterprises

Party Secretary General and President Thongloun Sisoulith has ordered intensified action to reform the operations of state enterprises, transforming them from loss-making concerns to key drivers of economic growth.
Addressing a meeting of the State Enterprise Reform Committee in Vientiane on Wednesday, the leader said reform is “an essential and urgent task”.
He instructed the committee to formulate short-term, medium-term, and long-term reform plans, aimed at making deep-seated changes in these businesses within the next five years.
The committee, chaired by the Deputy Prime Minister in charge of economic affairs Saleumxay Kommasith, is now under the direct supervision of the Politburo - the top decision-making body. It is hoped the change in oversight will reinforce the reform drive and result in significant progress.
The move came after a previous reform body overseen by other departments made unsatisfactorily slow progress, leading to more losses and the accumulation of large amounts of debt, the president said.
Figures recorded in 2024 showed that just 78 enterprises (of which 49 are fully state-owned) out of 168 state enterprises made a profit that year.  
Of the total 168 state enterprises, 102 are fully state-owned, and 13 are joint ventures with the state owning a majority share, while the state holds a less than 51 percent share in the remaining 53 enterprises.
In 2024 alone, the fully-state-owned enterprises made a loss of more than 2,358 billion kip combined, the committee’s Vice Chairman Dr Kikeo Chanthabouly told the one-day meeting.    
“Overall, however, losses are declining, signalling a positive trajectory,” he said, referring to the outcomes of ongoing reform efforts.
Giving advice on further reform, President Thongloun underlined the need for effective spending by state enterprises, noting that many of them have spent lavishly and ineffectively, while continuing to record substantial losses.
He also referred to public complaints over claimed irregularities in the operation of state businesses.
“Members of the public have claimed that while many state enterprises have made losses, their executives, however, are rich,” he said, adding that no inspections had been carried out to hold failed executives accountable for their actions.
He called for the recruitment of professionally qualified executives and staff to run state companies through a merit-based selection process, while weeding out nepotism in the recruitment of new employees.
The president also stressed the need for regular inspections and evaluations of state enterprises to ensure their operations are effective and efficient and comply with their business plans - something that many executives have failed to do in the past.
He underscored the need to ensure transparency and downsize the organisational structure of these businesses, noting that several are cumbersome and employ an unnecessary number of people.   
“Reform must really be carried out; state enterprises must be modernised, enabling them to compete both domestically and externally,” the president said.
Chaired by Mr Saleumxay Kommasith, the meeting reviewed progress made in the reform and outlined future plans.

By Times Reporters
(Latest Update December 18, 2025)