A woman (left) buys goods at a Vientiane market.

National Assembly President calls for overhaul of economic management amid public hardship

The President of the National Assembly, Dr Xaysomphone Phomvihane, has urged the government and relevant sectors to urgently address several pressing issues to strengthen the national economy and improve the wellbeing of the people.
Dr Xaysomphone made the call on Wednesday during a debate in the ongoing 9th Ordinary Session of the 9th National Assembly. Despite the country achieving a growth rate of 4.5 percent and a decline in inflation during the first half of 2025, Dr Xaysomphone noted that the lives of civil servants, military and police personnel, and the general public remain difficult.
Rising costs of essential commodities continue to impact daily life, dampening morale and productivity. “If left unaddressed, these hardships could undermine the effectiveness of state institutions,” he warned.
The National Assembly has proposed a series of comprehensive measures to ensure the successful implementation of the socio-economic development plan, the state budget, and the monetary plan for the first six months of 2025. It has outlined strategic directions for the latter half of the year to ensure that national targets are met.
Among the concerns raised by authorities are underperformance in certain economic sectors, delays in budget expenditure implementation, and slow progress in the import substitution policy. Several goals related to the cultural and social sectors, including poverty eradication, have not been achieved.
To address these issues, the National Assembly urged the government to strengthen budget revenue collection to align with GDP growth, targeting revenues equivalent to 12 percent to 20 percent or more of GDP. This includes the full and lawful collection of revenues from taxes, leases, investment agreements, mineral exports, state enterprises, tourism, digital commerce, and other service sectors.
Dr Xaysomphone also stressed the need to boost the agricultural sector, which remains weak and unable to meet domestic demand. Emphasis was placed on reducing reliance on imported fertilisers and animal feed, which drive up production costs.
He recommended promoting agricultural cooperatives and small-to-medium production groups, improving technical skills and introducing modern farming practices, and identifying products suitable for import substitution and export.
Efforts should also focus on designating and enforcing cultivation and breeding zones, upgrading irrigation systems for dry season farming, and reassessing current land allocations to ensure suitability and productivity.
Additionally, measures should be introduced to limit the import of goods that can be produced domestically, particularly luxury items.
Support for micro, small and medium-sized enterprises (MSMEs) was highlighted as being critical, especially facilitating their access to business credit in order to stimulate local production.
On infrastructure, the National Assembly proposed immediate repairs to severely damaged roads - especially National Road 13 North and routes in the northern region - and strict oversight of construction quality.
It called for stricter enforcement of truck weight limits and the establishment of more weighing stations, and recommended that a portion of fines collected from overloaded vehicles be allocated to local authorities for road maintenance.
The National Assembly also sought a review of the electricity pricing structure, citing its negative impact on households and small businesses. Lowering electricity costs will help sustain local production and prevent business closures.
In the context of natural resources, it recommended a halt on new mineral exploration and extraction projects, with a shift in focus towards reviewing and evaluating existing projects, particularly those with environmental or contractual issues.
Legal enforcement should be strengthened against non-compliant or environmentally harmful projects, and the revenue collection mechanism for these projects should be re-evaluated to ensure contributions to the state budget are fulfilled.
The National Assembly also stressed the need to address rising school dropout rates and improve the quality of education and public healthcare to meet the demands of a modernising society. It recommended increased budget allocations for these sectors and urged tighter regulation of entertainment venues and beauty salons, particularly those offering cosmetic procedures that pose health risks.
The proposals reflect the National Assembly’s commitment to supporting the government in addressing critical challenges, ensuring sustainable economic growth, and improving the quality of life for all citizens.

By Bounfaeng Phaymanivong
 (Latest Update June 13, 2025)