Lao National Assembly approves ministry mergers, amendments to constitution, laws, investment incentives


Dr Xaysomphone Phomvihane says the NA’s Extraordinary Session was successful and achieved its targets. -Photo: Sangkhomxay

VIENTIANE: Some 156 members of the National Assembly (NA) on Thursday (March 20) unanimously approved the merger of four ministries with other departments in a major restructuring process, reducing the number of ministries from 17 to 13.

Approval was given in response to a proposal made by Prime Minister Sonexay Siphandone during the 2nd Extraordinary Session of the NA’s 9th legislature.

All lawmakers supported the downsized administrative structure, saying it is crucial to streamline administration and ensure more efficient public service delivery.

Speaking at the closing session of the four-day sitting on Thursday, NA President Dr Xaysomphone Phomvihane said the session had been successful and achieved its targets.

President Thongloun Sisoulith, Prime Minister Sonexay Siphandone and other Party and state leaders were present at the closing session.

Ministries merged

The changes see the merger of the Ministry of Planning and Investment with the Ministry of Finance, which retains its name. The Ministry of Energy and Mines was merged with the Ministry of Industry and Commerce, which too will retain its name. The Ministry of Natural Resources and Environment was merged with the Ministry of Agriculture and Forestry, which is now known as the Ministry of Agriculture and Environment.

The Ministry of Home Affairs was merged with and placed under the Party Central Committee’s Personnel and Organisation Committee, while the areas of governance, mapping, and religious regulation, among others, which were previously under the Ministry of Home Affairs, were transferred to the Prime Minister’s Office and other ministries whose duties are aligned.

Media organisations (information sector) will now be overseen by the Party Central Committee’s Propaganda and Training Board, meaning that the Ministry of Information, Culture and Tourism now becomes the Ministry of Culture and Tourism.

Following the changes, the current ministries are:

Ministry of Agriculture and Environment

Ministry of Industry and Commerce

Ministry of Education and Sports

Ministry of Finance

Ministry of Foreign Affairs

Ministry of Culture and Tourism

Ministry of Justice

Ministry of Labour and Social Welfare

Ministry of National Defence

Ministry of Public Works and Transport

Ministry of Public Security

Ministry of Health

Ministry of Technology and Communications

Three ministerial-equivalent bodies remain unchanged, namely the Prime Minister’s Office, State Inspection Authority, and the Bank of the Lao PDR.

The merger of the ministries must be completed by May, the Secretary of the NA, Amphayvone Lombounpheng, told a press conference held shortly after the closing. Mergers involving local administrations in line with their respective ministries must be completed by July.

The National Assembly’s approval follows a resolution that was recently passed by the Lao People’s Revolutionary Party Central Committee on the merger of the ministries.

Lawmakers also endorsed amendments to the Constitution (2025 version). Key amendments include giving more power to local administrations, pursuing the creation of an autonomous economy, and combating corruption by empowering auditing and inspection authorities.

National Assembly members also approved amendments to the Law on Local Governance to ensure it aligns with the amended Constitution.

Amendments to the Law on Civil Servants were also passed, with the most significant changes being the raising of the retirement age to 65 from 60, and extending the maximum age for the recruitment of new civil servants from 35 to 40.

Special incentives to spur development of the Amata Smart & Eco City which is underway in northern Laos were also approved, including tax breaks for investing companies. - Vientiane Times/ANN

 

 

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