Laos’s Cabinet approved 12 draft laws and proposals during its August 24-25 meeting, as the government reported average inflation of 7.6 percent and reviewed economic, social and disaster-related challenges for the second half of 2026.
The drafts cover government administration, public procurement, alcohol control, civil law, health insurance, social security, civil aviation, cybersecurity and national security, along with a draft mineral development policy and development proposals for Phongsaly and Houaphanh provinces. The Cabinet instructed ministries to revise the drafts before submitting them to the National Assembly, and asked officials to consider merging the proposed health insurance and social security laws into a single piece of legislation.
Economy and revenue
The Cabinet also reviewed government revenue collection, fuel supplies and inflation as part of its monthly meeting, as Laos works to maintain macroeconomic stability.
State revenue collection has reached 72 percent of its annual target, the government reported, while budget expenditure stands at 48 percent of the yearly plan. The Cabinet said it will prioritize revenue collection, domestic production, fuel stability, and the promotion of electric vehicles and clean energy going forward.
Separate figures showed Laos’ economy grew 5 percent in the first half of 2026, easing from 5.5 percent in the first quarter to 4.6 percent in the second. The government aims to maintain its 6 percent growth target for the full year.
Tourism and services led growth, with nearly 2.6 million international visitors, up 9.9 percent year-on-year. Revenue reached LAK 44,956 billion (USD 2.01 billion), while economic output totalled LAK 199,987 billion (USD 8.92 billion).
Second Half of 2026
The government also reviewed flood and landslide impacts in eight provinces and called for faster recovery, including repairs to damaged and cut-off roads and stronger preparations for further flooding. Authorities were also instructed to closely monitor dam safety and reservoir water levels.
For upcoming September, the Cabinet planned to intensify action against cybercrime, drug trafficking, robbery, and road accidents. It will also accelerate implementation of the 2026–27 school year, strengthen healthcare and food safety, and expand telecommunications and internet access in remote areas.
The government also plans to promote digital administration, including wider use of the G-Chat system, while improving enforcement of court decisions and management of seized assets.
