Australia Reaffirms Partnership with Laos to Boost Economic Resilience and Sustainable Development

Ambassador Jones welcomed the Deputy Prime Minister's update on Laos' economic outlook and reform agenda, including the Government's intention to elevate poverty reduction and rural development as national priorities. She noted that Australia's development partnership is closely aligned with these goals by supporting more resilient livelihoods, stronger institutions and sustainable, inclusive economic growth. The Ambassador reaffirmed Australia's longstanding partnership with the Lao PDR and highlighted Australia's estimated AUD64.4 million Official Development Assistance (ODA) programme for Laos in 2026-27, comprising bilateral, regional and global investments. Australia's support spans key sectors including public financial management, agriculture, education, health, energy, climate resilience and governance, helping create the conditions for sustainable development and high-quality private sector investment. Ambassador Jones highlighted Australia's long-standing partnership with the Ministry of Finance to strengthen public financial management, including support for fiscal and budget reforms, official development assistance coordination and institutional capacity building. These efforts are helping improve economic governance, strengthen public service delivery, and build investor confidence. The Ambassador also thanked the Deputy Prime Minister and the Ministry of Finance for their continued support for Australia's development cooperation programme and Australian businesses investing in Laos, recognising the important role of responsible investment in supporting sustainable economic growth and job creation. The meeting highlighted Australia's broader regional engagement through the Mekong-Australia Partnership and Invested: Southeast Asia Economic Strategy to 2040, which are deepening economic cooperation, strengthening regional resilience and supporting sustainable growth across Southeast Asia. Deputy Prime Minister Santiphab expressed his appreciation to the Australian Government and the Australian people for their longstanding partnership and continued support for the Lao PDR's development priorities. Both parties reaffirmed their shared commitment to deepening cooperation to support a more resilient, inclusive and prosperous future for the Lao PDR. The Lao Government has set ambitious targets under its draft National Agenda on Rural Development and Poverty Reduction, aiming to lift more than 100,000 households out of poverty, reduce the national poverty rate from 14.78 percent to a single-digit level, eliminate poverty in more than 1,000 villages, and remove more than 25 districts from the country’s poverty list. President Thongloun Sisoulith, General Secretary of the Party Central Committee, has called on inspection agencies at all levels to strengthen the quality, methods, and effectiveness of their work to ensure greater accountability and reinforce the fight against corruption. The First Extraordinary Session of the 10th National Assembly opened in Vientiane on July 6, with National Assembly President Xaysomphone Phomvihane presiding over the five-day session. President of the Republic of the Union of Myanmar Min Aung Hlaing, accompanied by his spouse and a high-level delegation, visited Luang Prabang Province on July 5 as part of his state visit to the Lao PDR from July 3–5, 2026. National Assembly President Saysomphone Phomvihane held talks with President Min Aung Hlaing of Myanmar on July 3 in Vientiane during the Myanmar leader’s state visit to the Lao PDR from July 3–5, reaffirming the two countries’ commitment to deepening parliamentary cooperation and expanding bilateral relations.