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Laos Shakes Up Cabinet in Sweeping Reform, Names New Central Bank Chief

This Week

Laos has carried out a sweeping government reshuffle, replacing or reassigning nine ministers along with the governor of the central bank. 

The move follows a series of structural reforms aimed at consolidating ministries and streamlining state functions. Two ministers have also retired as part of the transition.

The reshuffle was approved by the Standing Committee of the National Assembly during an extraordinary session held on 6 June. The proposal, submitted by Prime Minister Sonexay Siphandone, was confirmed by National Assembly Vice President Sounthone Sayachack during a press briefing on the same day.

Bounkham Vorachit Appointed Governor of the Bank of the Lao PDR

One of the most notable appointments is Bounkham Vorachit, who has now been named Governor of the Bank of the Lao PDR. Previously serving as Minister of Natural Resources, Bounkham has become the ninth person to hold the central bank’s top position, replacing Vetthana Dalaloy, who had been Acting Governor since 2 July last year.

Vetthana stepped into the role in 2024 following a previous reshuffle that saw then-Governor Bounleua Sinxayvoravong transferred to a new post as Deputy Governor of Luang Prabang Province. Bounleua had served as central bank governor from 21 June, 2022 to 2 July, 2024.

Other Key Changes

The cabinet overhaul also includes significant changes in the education sector, with Thongsalith Mangnomek appointed as the new Minister of Education and Sports.Thongsalith, who previously led the Administration Office of the Lao People’s Revolutionary Party Central Committee, takes over from Phouth Simmalavong, who has retired. 

Meanwhile, Phet Phomphiphak, the outgoing Minister of Planning and Investment, has transitioned to an unspecified role within the Party Central Committee’s Administration Office.

Another key structural reform has been the merger of the Ministry of Planning and Investment with the Ministry of Finance, which now operates under the unified name of the Ministry of Finance. Santiphab Phomvihane continues in his role as minister.

In another major change, the Ministry of Home Affairs has been dissolved entirely. Its former minister, Vilayvong Bouddakham, has been reassigned to the Organisation and Personnel Committee of the Party Central Committee.

Restructuring has also affected the energy and labor portfolios. Phoxay Sayasone, formerly Minister of Energy and Mines, now heads the Ministry of Labour and Social Welfare. His previous ministry has been absorbed into the Ministry of Industry and Commerce, which remains under the leadership of Malaythong Kommasith. The Ministry of Labour, previously led by Baykham Khattiya, is now under Phoxay’s direction, while Baykham has been appointed Minister of Health following the retirement of Bounfeng Phoummalaysith.

In the agricultural sector, Linkham Duangsavanh, formerly Minister of Agriculture and Forestry, has been named head of the newly established Ministry of Agriculture and Environment. This ministry was formed through the merger of the agriculture and environment portfolios.

This extensive reshuffle comes as the current administration approaches the end of its five-year term (2021–2025), paving the way for the next government. 

It also sets the tone ahead of the 9th Ordinary Session of the 9th Legislature of the National Assembly, scheduled to begin on 9 June.  During this session, lawmakers are expected to assess progress on the 2025 socio-economic development plan, outline remaining priorities for the final year of the term, and begin discussions on the draft plan for 2026 to 2030.

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