Hungary has moved forward with key development support for Laos, reviewing progress on a major wastewater treatment project in Vientiane and confirming continued scholarship support for Lao students.
On 4 February, Hungary’s Minister of Foreign Affairs and Trade, Péter Szijjártó, attended a handover ceremony at the wastewater treatment plant in Vientiane’s Kham Ngoi village.
The project, valued at USD 90 million, is a core part of efforts to improve sanitation and support the city’s long-term urban development.
The facility currently treats up to 26,000 cubic metres of wastewater per day, serving around 80,000 residents. Construction began in January 2023.
Work has now moved into a second phase, backed by an additional USD 15 million in Hungarian financing. Once completed in 2027, the upgraded system is expected to double treatment capacity to 52,000 cubic metres per day, extending coverage to about 160,000 people. The expansion will incorporate modern technology aligned with European Union standards.
Hungarian Aid Background and Future Plans
Hungary’s support extends beyond infrastructure.
Szijjártó said Hungary has implemented six major cooperation projects in Laos, including initiatives in food safety, livestock development, and the digitisation of population records.
Overall, Hungary has provided USD 213 million in interest-free loans to support development projects in the country.

During meetings with Lao Foreign Minister Thongsavanh Phomvihane, the two sides discussed a gradual shift toward a more market-oriented framework.
Under this approach, financing would move away from interest-free loans, with rates aligned to market conditions. An agreement is under consideration.
Szijjártó also proposed an agreement aimed at protecting Hungarian private companies investing in Laos. While Thongsavan welcomed the proposal, he said official talks would begin after the Lao elections in February and the formation of a new government in March.
Meanwhile, Laos continues to seek Hungarian support for the development of a national agricultural land registry system, seen as a key step toward improving land management and supporting economic development.
Hungary Scholarship Support

Human resource development remains another key pillar of cooperation. Both sides confirmed that the Stipendium Hungaricum scholarship programme has been extended until 2028, offering 150 scholarships each year for Lao students to study in Hungary, particularly in healthcare, life sciences, and modern agriculture.
Looking ahead, Hungary pledged support as Laos prepares to graduate from Least Developed Country status. This includes assistance in engaging with European Union frameworks and trade programs to support economic transition.


