Several provinces across Laos have reported solid economic progress in the first half of 2025, according to recent updates from local government offices.
Vientiane Province posted moderate growth of around 3.8 percent, supported by a balance of services, industry, and agriculture. Private investment exceeded expectations, and revenue collection reached over half of the province’s annual target.
Khammouane Province led the way with over 6 percent growth, already surpassing its full-year goal. Local authorities pointed to strong business activity and rising incomes as key drivers.
Savannakhet also showed encouraging signs, with nearly 6 percent growth. The province benefited from mining, renewable energy, and improved farming. Revenue collections were up significantly from last year.
In the northwestern province of Xayabouly, growth reached 5 percent, with local production and government income steadily increasing.
Nationally, Laos’ economy grew by about 4.5 percent, thanks to industry and a rise in foreign investment and tourism. Still, the country faces ongoing challenges, including rising living costs, poor infrastructure, and difficulties collecting taxes.
Government officials have acknowledged that while the growth is welcome, more work is needed to ensure long-term stability and development. Reforms in key areas are expected to be a priority in the months ahead.