Lao President Thongloun Sisoulith has ordered a swift and comprehensive reform of state-owned enterprises (SOEs) after figures revealed that all SOEs combined incurred losses exceeding 2.358 billion kip in 2024.
These figures were reported at a meeting of the State Enterprise Reform Committee on Wednesday. The President emphasized that reform is a “necessary and urgent task” to transform these loss-making enterprises into key drivers of the economy.
According to Dr. Khikeo Chanthaburi, Vice Chairman of the Committee, only 78 out of 168 SOEs were profitable in 2024, of which only 49 are wholly state-owned.
Of the 168 SOEs, the state owns 102, holds a majority stake in 13, and holds less than 51 percent of the remaining 53. However, Dr. Khikeo stated that the overall deficit is declining, showing positive trends from continued reform efforts.
The reform committee has been placed under the direct supervision of the Politburo, the party’s highest decision-making body, chaired by Deputy Prime Minister Salumzai Kommasith. This change comes after the previous reform committee made unsatisfactory progress.
The President criticized several state-owned enterprises (SOEs) for wasteful and inefficient spending while remaining underfunded. He also cited public complaints that “SOEs lack funding, but their executives are wealthy.”
The President stated that there was a lack of oversight to punish failing executives and called for the selection of qualified executives based on merit, not discrimination.
The President instructed the committee to implement short-term, medium-term, and long-term reform plans to achieve profound changes within the next five years.
He emphasized the need for regular monitoring and evaluation to ensure transparency and reduce the size of oversized organizational structures. “Reforms must be implemented decisively. SOEs must be modernized to be competitive both domestically and internationally,” the President stated.
The meeting reviewed past reform progress and planned future actions to ensure that SOEs become a true driving force of the national economy.