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Friday, June 27, 2025
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Lao National Assembly Session Concludes 9th Ordinary Session with Approval of New, Revised Legislations

This Week

The final day of the 9th National Assembly session closed with the approval of a total of ten laws, including five newly drafted and five revised. 

Throughout the 14 days session from 9 to 26 June, members of the Assembly thoroughly reviewed the proposed laws, examining each article to ensure they are complete, consistent, and practical for enforcement by relevant authorities.

The five newly adopted laws focus on key areas of governance and social welfare. These include the Law on Civil Servants of the People’s Prosecutor’s Office, the Law on Social Work, the Law on Cultivation, the Law on General Education, and the Law on Cybersecurity. 

Meanwhile, the five amended laws were introduced to update and strengthen existing legal frameworks. The revisions covered the Law on Medicines and Medical Products, the Law on Irrigation, the Law on Income Tax, the Law on Advertising, and the Law on the People’s Assembly which includes updates to judicial procedures.

According to the Assembly, these amendments are essential for aligning national legislation with current socio-economic conditions and improving regulatory enforcement.

Government Restructuring

Previously, the National Assembly approved a significant cabinet reshuffle to enhance government efficiency by reducing ministries from 17 to 13. 

The reform involved reassigning or replacing nine ministers and appointing Bounkham Vorachit as the new Governor of the Bank of Laos

Major mergers included the Ministry of Planning and Investment combining with Finance under Santiphab Phomvihane, and the Ministry of Agriculture and Forestry with the Ministry of Natural Resources and Environment, creating the new Ministry of Agriculture and Environment, led by Linkham Douangsavanh. The Ministry of Energy and Mines was integrated into the Ministry of Industry and Commerce. 

The Ministry of Home Affairs was dissolved, with its responsibilities transferred to the Prime Minister’s Office, where four ministers, Khamjane Vongphosy, Buakhong Nammavong, Sonexay Sitphaxay, and Sinava Souphanouvong, now serve directly.

Other notable appointments included Thongsalith Mangnomek as Minister of Education and Sports, Baykham Khattiya as Minister of Health, and Bounkham Vorachit as the new Governor of the Bank of the Laos, moving from her previous role as Minister of Natural Resources and Environment.

Several ministers retained their positions, ensuring continuity in key areas. These include Suansavanh Viyaket in Information, Culture and Tourism, Khamlieng Outhakaisone in National Defence, Vilay Lakhamfong in Public Security, Boviengkham Vongdara in Technology and Communications, Phaivi Siboualipha in Justice, and Thongsavanh Phomvihane in Foreign Affairs. Leklay Sivilay succeeded Gnampasong Meuangmany as Minister of Public Works and Transport.

Economic Priorities and Performance

The National Assembly placed strong focus on economic recovery and inflation control, targeting single-digit inflation by the end of 2025. To achieve this, the government is working to stabilize the kip, increase domestic production, and restructure Électricité du Laos (EDL)’s debt. Supporting measures include stricter market regulations, electricity tariff reviews, and improved debt management.

According to the Assembly report, recent data showed positive signs: inflation dropped to 11.76 percent  in the first five months of 2025, compared to 24.77 percent during the same period in 2024. GDP grew by 4.5 percent, with contributions from agriculture (3.3 percent), industry (4.6 percent), services (4.7 percent), and tax revenue (4.4 percent).

To meet the 4.8 percent GDP target, the Assembly highlighted agriculture as a key sector to boost food security and reduce imports. 

Lawmakers also stressed the need for infrastructure investment, especially in road repairs, to improve logistics, lower transport costs, and support growth in tourism and trade.repairs for both national and rural routes. These improvements are expected to enhance logistics efficiency, reduce transportation costs, and boost both tourism and trade sectors, contributing to broader economic recovery.

Social and Regulatory Reforms

The Assembly session also tackled a wide range of pressing social issues, including combating drug abuse, eliminating illegal trade and human trafficking networks, resolving labor shortages across various sectors, enhancing education system quality, reducing traffic accidents, and shutting down illegal entertainment venues that violate national regulations.

The session called for strict measures against non-compliant mining projects and halted approvals for new exploration except construction materials. 

The government committed to improved tax collection and targeted support for vulnerable groups as part of economic recovery efforts.

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