The economy can continue to grow for five years, averaging 4.24%, generating 342.406 billion kip in social capital income and US$7.89 billion in agricultural exports.
Prime Minister Soneksai Siphandon reported to the 10th Ordinary Session of the 9th National Assembly on November 10, 2025, that following the COVID-19 outbreak, the government has implemented various measures to address economic and financial problems and stimulate economic growth.
Such measures include promoting domestic production to replace imports and exports, organizing and implementing pilot projects in minerals, including several large-scale projects, and promoting domestic and international tourism.
The provision of loans for economic recovery, among other measures, This will lead to continued economic growth, averaging 4.24% in 2025 and projected to grow by 4.8%.
– The agricultural sector grew by an average of 2.9%, contributing to 19.4% of GDP (5-Year Plan: 2.5% and 15.3% of GDP).
– The industrial sector grew by an average of 4.7%, contributing to 32.5% of GDP (5-Year Plan: 4.1% and 32.3% of GDP).
– The service sector grew by an average of 4.5%, contributing to 36.6% of GDP (5-Year Plan: 6% and 41.3% of GDP).
– Net tax revenue grew by an average of 3.8%, contributing to 11.5% of GDP (5-Year Plan: 5.8% and 11.7% of GDP).
The main drivers of growth include food production for domestic consumption and some exports, electricity generation, and mining. Processing and Transportation Industries
However, it can be seen that the service sector and net merchandise tax are likely to be lower than expected due to adverse weather conditions, natural disasters, and the COVID-19 pandemic, which have impacted society as a whole, particularly the business sector, preventing normal operations.
Furthermore, there are several external factors impacting Laos’ economic growth, such as regional and international volatility, the economic recovery of some countries in the region that have not met targets, labor policy adjustments in neighboring countries, and currency pressures that have led to the exodus of Lao workers.
Over the past five years, 342.406 billion kip has been mobilized for the general public, representing 167% of the 5-year economic development plan. Of this amount, Domestic investment totaled 22.08 billion kip, representing 96% of the five-year economic development plan.
During the first 10 months of 2025, the budget was approved at 3.924 billion kip, representing 57% of the annual plan. ODA investment totaled 54.493 billion kip, representing 146% of the five-year plan. During the first nine months of 2025, the budget was approved at 7.092 billion kip, representing 38.77% of the annual plan.
Domestic private investment and foreign direct investment totaled 266.494 billion kip, representing 266% of the five-year plan. During the first nine months of 2025, approved investment totaled US$5.183 billion, a trend that continues to increase.
The value of agricultural exports over the past five years reached US$7.89 billion, or an average of US$1.578 billion per year. This is 31.49% higher than the target (the five-year plan is US$1.2 billion per year).
In the first 10 months of 2025, exports reached US$1.507 billion, 0.51% higher than the target (the plan approved by the Council is US$1.5 billion). Of this, exports of crops and crop products exceeded the target by US$1.204 billion, 9.47% higher than the target (the plan is US$1.1 billion).