16 Jan, 2026

Laos Targets 6 Percent Economic Growth in 2026 Amid Reforms, Election Preparations

The Lao government has set a target of at least six percent economic growth in 2026, supported by fiscal reforms, major infrastructure projects, and preparations for national elections, officials said.Government Spokesperson Sonexay Sitphaxay announced the target on 13 January following the Second Enlarged Government Meeting held from 12 to 13 January.A key pillar of the 2026 agenda is strengthening public finances. Authorities aim to raise state revenue to at least 20 percent of gross domestic product through reforms to modernize tax and revenue collection systems.Officials said the measures are intended to close tax gaps, improve compliance, and increase efficiency.Inflation control remains a priority after consumer prices declined from a peak of 31.23 percent in 2023 to 23.13 percent in 2024 and 7.7 percent in 2025.The government is implementing policies to stabilize the exchange rate, strengthen the Lao kip, and expand the use of local currency in regional trade.Infrastructure and Energy DevelopmentAlongside fiscal measures, the government is emphasizing infrastructure development as a long-term driver of growth and regional integration.Several large-scale projects have been approved or are moving into early implementation stages.Among them is Phase I of the Laos–Vietnam railway, a 147-kilometer section linking Thakhek district to the Laos–Vietnam border in Khammouane Province under a build-operate-transfer model.The project is expected to complement existing rail connections with China and Thailand. Plans are also underway for a second railway bridge across the Mekong River linking Vientiane Capital with Thailand’s Nong Khai Province.Energy development remains another core pillar of the growth strategy, supporting both domestic demand and power exports to neighboring countries.The sector continues to attract investment in clean energy and cross-border transmission. Reflecting this push, Laos inaugurated a 1,000-megawatt solar power plant in Oudomxay Province in mid-December 2025, the largest such facility in the country to date.The government is also preparing for elections to the 10th National Assembly scheduled for 22 February, while continuing efforts to graduate from least developed country status in 2026.Under the 10th Five-Year National Socio-Economic Development Plan for 2026–2030, authorities are targeting average annual economic growth of at least six percent, with gross domestic product per capita projected to reach USD 3,104 by 2030.

12 Jan, 2026

Laos-China Railway Enables Record-Breaking Journey from Singapore to Portugal

The world’s longest train journey now runs from Singapore to Portugal, covering nearly 19,000 kilometers across 13 countries and linking Southeast Asia to Western Europe entirely by rail.The Laos-China Railway (LCR) is a key player in this achievement, linking Southeast Asia and China’s extensive rail network. The Route in a NutshellThe journey begins in Singapore and travels north through Malaysia and Thailand before entering Laos. From Laos’ Vientiane, passengers board the LCR to Kunming, China, passing through the UNESCO World Heritage city of Luang Prabang. The route then continues across China to Beijing, follows the Trans-Siberian Railway through Mongolia and Russia, to Moscow, and proceeds westward through Europe, passing through Belarus, Poland, Germany, France, and Spain, before reaching the final destination of Lisbon, Portugal.Traveling back-to-back, the entire journey takes approximately 21 days, with the longest single leg being the seven-day, 7,622-kilometer Moscow-Beijing segment.Laos-China Railway: The Crucial ConnectionInaugurated in December 2021, the 420-kilometer Laos-China Railway has transformed Laos from a “landlocked” to a “land-linked” nation. The railway has already carried over 62 million passengers on the Vientiane-Kunming route and more than 12 million passengers within Laos.Most significantly, the LCR provides the critical overland connection between Southeast Asia and China’s extensive rail network, enabling seamless travel from Singapore all the way to Europe. Without this railway linking Vientiane to Kunming, the Singapore-to-Portugal route would not be possible.Currently, a 15-kilometer bus connection near Vientiane links the LCR with the Laos-Thailand Railway. However, construction of a new railway bridge across the Mekong River between Vientiane and Nong Khai will soon create a direct rail link, further enhancing connectivity as part of Laos’ transformation into a regional transportation hub under China’s Belt and Road Initiative.Challenges and the FutureWhile this route represents a unique route in global rail connectivity, geopolitical tensions present challenges. Since 2022, the suspension of rail services has blocked direct train travel across Russia’s western borders, requiring travelers to make alternative arrangements.