01 Dec, 2025

Laos Steps Up Debt Reforms With New Strategy, Stronger Oversight

Laos is advancing major public debt management reforms with a new medium-term strategy and tighter oversight of state-owned enterprises to strengthen fiscal stability and support economic growth, Deputy Minister of Finance Soulivath Souvannachoumkham said on 25 November.He said the government is drafting a nationwide strategy expected to guide borrowing decisions, improve risk management, and make debt levels more sustainable.Recent steps include the creation of the Public Debt Statistics Division in 2021, which has improved transparency and the accuracy of debt reporting. Oversight of state-owned enterprises, especially Electricité du Laos, has also been strengthened through closer debt monitoring, mandatory reporting, and a temporary halt on new government guarantees to limit high-risk liabilities.Economic Context and Inflation TrendsThese reforms build on progress since the first policy dialogue in October 2023, the official noted. He shared that inflation has fallen from 31.2 percent in 2023 to 4.0 percent in October 2025, the exchange rate has stabilized, and revenue collection has improved.Economic growth reached 4.3 percent in 2024 and is expected to rise to 4.8 percent by the end of  2025, supported by energy exports, recovering tourism, and stronger investor confidence.Recent government data also shows encouraging improvements in the country’s fiscal position, including the repayment of USD 2.45 billion in foreign debt between 2024 and September 2025. Reform progress in the foreign exchange sector has further supported fiscal stability. The establishment of the Lao Foreign Exchange Market has increased market transparency, encouraged greater use of the kip, and enabled more local currency settlements with neighbouring countries. These measures are aimed at reducing reliance on foreign currencies, strengthening the effectiveness of monetary policy, and improving exchange rate predictability.Despite overall improvements, household costs remain a concern. Inflation rose slightly to 4.8 percent in November, driven by higher prices for electricity, water, health care, and education, according to the Lao Statistics Bureau. Raising VAT from 7 to 10 percent has helped boost government revenue but places additional pressure on consumers.Outlook Remains Positive but Risks PersistMeanwhile, the International Monetary Fund (IMF) expects Laos’ economy to grow by 4.5 percent in 2026, supported by exports, tourism, foreign investment, and a supportive fiscal stance. Inflation is expected to rise gradually due to planned fiscal measures and electricity price adjustments.The IMF warned that external pressures and weaknesses in parts of the banking sector remain risks. It said continued reforms, stronger governance, and better oversight of state-owned enterprises will be important for long-term economic stability.

26 Nov, 2025

Laos Launches Training Center to Boost Mining, Energy Skills

On 18 November, Laos inaugurated the Lancang-Mekong Training Center and launched a specialized training program designed to address the country’s shortage of skilled workers in the mining and energy sectors.Anousack Phongsavath, Director General of the Research Institute for Energy and Mines, highlighted that the initiative is tailored to provide immediate career opportunities. By collaborating closely with companies facing labor shortages, the program ensures students acquire skills directly aligned with industry needs, guaranteeing employment for all graduates upon completion.Training First CohortThe inaugural cohort comprises 30 students from the Polytechnic College, selected through a testing process. Participants will receive full scholarships from China’s Punan Vocational College of Land and Resources, which cover tuition fees and a monthly living stipend throughout the three-year program.The curriculum follows a “1+1+1” model culminating in a High Diploma. The first year, conducted in Laos, emphasizes Chinese language proficiency and foundational knowledge of mining and energy operations. In the second year, students travel to China for advanced, specialized field training. The final year is spent back in Laos, where participants gain hands-on experience as trainees in relevant companies, refine their technical skills, and complete thesis projects.Promoting Skills and CollaborationThis joint initiative between the Research Institute for Energy and Mines, Laos’ Polytechnic College, and Punan Vocational College of Land and Resources aims to promote international collaboration in vocational education. Beyond developing technical expertise, it seeks to strengthen the capacity of Laos’ workforce, prepare highly skilled professionals for the mining and energy industries, and support sustainable development while encouraging greater student participation in the sector.Ultimately, the program is designed not only to equip students with essential technical skills but also to ensure that Laos’ workforce is ready to meet the evolving demands of its key industries.