Lao govt moves to stabilise economy, tighten controls after April review


VIENTIANE: The government is stepping up efforts to stabilise the economy and tighten regulation in key sectors after reviewing April’s socio-economic performance and setting detailed priorities for May at its latest cabinet meeting.

The two-day monthly meeting, held on April 27-28 at the Prime Minister’s Office, was chaired by Prime Minister Sonexay Siphandone (pic).

Deputy prime ministers, cabinet members and the Chairman of Vientiane Administration Committee attended in person, while Chairman and Vice Chairman of the Provincial Administration Committee took part via video link. The outcomes were presented at a press briefing on Wednesday by Deputy Minister and Deputy Head of the Prime Minister’s Office, Khampha Phimmasone.

The government said political stability and social order remained intact, while macroeconomic conditions showed signs of improvement.

State revenue exceeded 27 trillion kip, equivalent to 33 per cent of the target for 2026, while expenditure hit 11 trillion kip, or 14 per cent of the total planned for the year.

Inflation was reported at 9.7 per cent, with foreign exchange reserves covering 5.2 months of imports. Authorities said both domestic and external debt obligations were serviced in line with contractual commitments.

In the energy sector, the government highlighted the opening of the 500kV Laos-China transmission line and ongoing efforts to promote clean energy and electric vehicle use.

In addition, more than 20,000 workers completed skills training in 44 trades and professions, with most finding employment at home and abroad.

The meeting also addressed fuel shortages, saying supply has returned to normal, while mitigation measures were undertaken to tackle PM2.5 air pollution, forest fires, and hailstorm damage in Vientiane.

Looking ahead, the government outlined key priorities for May, including stricter enforcement of a Prime Minister’s Order on the seizure of weapons and explosives, alongside intensified action against online scams.

The relevant agencies were instructed to prepare draft documents for the Party Central Committee’s third plenary session, focusing on rural development and poverty reduction.

The meeting also called for reduced imports and stronger export-oriented production, as well as tighter management of agricultural land to prevent forest encroachment.

Environmental measures include preparations for a nationwide tree planting campaign and consideration of a “Forest Fire Cessation Week”.

Authorities were instructed to compile a national master plan targeting 30 percent electric vehicle usage by 2030.

The government also ordered strict enforcement of a Prime Minister’s Order on illegal mining and the unauthorised trade and export of minerals, warning that any officials involved would face disciplinary action.

Infrastructure improve-ments were also highlighted, with Vientiane and provincial authorities told to clear drainage systems ahead of the rainy season to reduce flood risks.

On monetary policy, the government reaffirmed its commitment to maintaining a market-based exchange rate within plus or minus 1 percent of the reference rate, while centralising government deposits at the Bank of the Lao PDR.

The meeting approved in principle a capital market development strategy for 2026-2035, with a vision to 2045, and a draft decree on an HIV/AIDS Prevention and Control Fund. A draft decree on the withdrawal of land use rights will undergo further consultation before finalisation.

In closing, the prime minister urged ministries and government agencies to carry out the May agenda diligently, with appropriately assigned personnel and set timelines. - Vientiane Times/ANN

 

 

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Laos , government , economy

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