10 Jan, 2026

Laos Sets Digital Transformation as Key Driver of Modernization

Laos has placed digital transformation at the centre of its national development agenda, identifying it as a key driver of modernization, productivity, and sustainable economic growth.Speaking on National Digital Day on 10 January, Minister of Technology and Communications Santisuk Simmalavong said digital transformation is no longer optional for Laos, but a necessary and long-term national mission.He said the government must proactively advance digitalisation across all socio-economic sectors to improve production efficiency, enhance service quality, and support the country’s transition toward industrialization and modernization in line with the Party’s reform path.According to Santisuk, digital transformation will enable Laos to better absorb scientific and technological advances, apply innovation more effectively, and promote green and sustainable development as the country enters a new phase of growth.Connectivity Expands NationwideHighlighting recent progress, Santisuk said Laos has expanded its fibre-optic network to more than 36,000 kilometres nationwide.He noted that 4G coverage now reaches 76 percent of villages, while 5G services operate in 59 major cities. These developments have increased internet usage to approximately 63 percent of the population.Digital Government Reform AdvancesOn public sector reform, Santisuk said authorities have completed integration of the government intranet network (G-Net), which now connects all ministries and provinces.The government has also rolled out the electronic office system (e-Office) to improve efficiency, coordination, and transparency across state institutions.He added that the establishment of the National Digital Transformation Committee, chaired by the Prime Minister, has strengthened leadership and coordination for digital reform from the central level to local administrations.Looking ahead, Laos is drafting a national artificial intelligence strategy and has established the Lao Digital Park with the support of the Republic of Korea to support startups, attract investment, and develop a high-skilled workforce with a focus on environmentally friendly innovation.

05 Jan, 2026

Laos Targets Upper-Middle-Income Status by 2055

Laos has set a long-term goal to become an upper-middle-income country and move closer to high-income status by 2055, according to a strategic roadmap unveiled at the 12th National Congress of the Lao People’s Revolutionary Party (LPRP).President Thongloun Sisoulith presented the vision at the opening session of the congress on 6 January. The three-day meeting, the Party’s 12th since its first congress in 1955 in Houaphanh Province, sets out national priorities aimed at strengthening economic foundations and navigating both domestic and global challenges.The roadmap, known as Vision 2055, places strong emphasis on modernisation, including the use of advanced technologies such as artificial intelligence in governance and production. Planned reforms focus on improving transparency, strengthening accountability in the civil service, and giving greater authority to local administrations, as Laos seeks to build a more self-reliant and competitive economy.Laos is currently classified by the World Bank as a lower-middle-income country and remains a Least Developed Country (LDC), with the government targeting graduation from LDC status in 2026.To support the long-term vision, the 2026-2030 National Socio-Economic Development Plan sets out key economic targets. Authorities aim for average GDP growth of at least 6 percent per year, with GDP per capita expected to reach USD 3,104 by 2030 and gross national income per capita projected at USD 2,914. Prime Minister Sonexay Siphandone noted that average GDP growth over the past five years reached 4.24 percent, slightly above the original target, with growth in 2025 estimated at 4.2 percent.Fiscal stability also features prominently in the plan. The government aims to reduce public debt from about 88 percent of GDP in 2025 to below 70 percent during the next five-year period, while keeping inflation under 5 percent, compared to an average of 7.7 percent in 2025. Budget revenue is projected to reach LAK 554.4 trillion (approximately USD 25.6 billion), or about 20.95 percent of GDP, supported by a broader tax base including land, building, and environmental taxes.Total investment is expected to reach LAK 636.2 trillion (about USD 29.4 billion), equivalent to at least 24 percent of GDP. The plan prioritises private sector growth and investment in key industries, alongside the development of renewable energy sources such as solar, wind, and nuclear power, as Laos works toward its long-term development goals.