Laos is currently facing challenges transitioning from commodity-driven growth to a more inclusive prosperity model, reveals a new report from the Organisation for Economic Co-operation and Development (OECD).
The report, titled “Multi-dimensional Country Review (MDCR) of Lao PDR,” was launched on 6 June in Vientiane Capital. It highlights the country’s development journey, noting sustained economic growth of over 7 percent annually from 2000 to 2019, driven by strong commodity exports and substantial external financing.
The report shows that foreign direct investment (FDI) increased in Laos from USD 187.4 million in 2006 to USD 1.69 billion in 2017. During this period, extreme poverty dropped from 25 percent to 7 percent, while household income, education, and healthcare also saw significant improvements.
However, Laos now faces challenges with its current development model, worsened by the impact of COVID-19, which has increased food and energy prices. Debt-financed investments, including public-private partnerships (PPPs), have fueled growth, but slow government revenue growth hinders the country’s ability to manage its growing debt and invest in human capital.
Moreover, economic growth and investment have been unevenly distributed, with certain sectors and state-owned enterprises (SOEs) dominating opportunities. Most of the workforce is still in informal sectors, and environmental issues including deforestation and air pollution continue.
To address these challenges, the report suggests a shift towards human capital development and green sustainability. This includes reducing the debt burden to create fiscal space, reforming the tax system to boost revenue, improving access to resources and infrastructure to attract sustainable investments, and increasing investment in education, healthcare, and social services.
Additionally, the report also emphasizes the need to enhance data collection and institutional capacity for green and climate finance, along with improving coordination among government agencies and development stakeholders.
As Laos navigates this critical juncture, the adoption of comprehensive reforms outlined in the MDCR could pave the way for a more resilient and sustainable future.
https://www.tourismlaos.org/wp-content/uploads/2024/04/8-2.jpg6271200Sylivanla Vongphachanhhttps://www.tourismlaos.org/wp-content/uploads/2025/05/Lao-Simply-Beautiful-.webpSylivanla Vongphachanh2024-06-12 08:43:392024-06-10 08:45:04Human Capital, Green Sustainability: Two Priorities for Laos’ Future Economic Model
Thailand has confirmed its intention to build a sixth friendship bridge connecting the country to Laos over the Mekong River. This bridge would link Ubon Ratchathani in northeastern Thailand with Salavanh Province in Laos.
In recent discussions between Thailand’s Foreign Minister Maris Sangiampongsa and Lao Foreign Minister Saleumxay Kommasith, the potential construction of this new bridge was a key topic, as reported by Lao state media.
During the dialogue, which occurred during Maris’s visit to Laos on 30 May, both foreign ministers agreed to uphold the existing agreements between their respective countries.
The concept of a bridge between Ubon Ratchathani and Salavanh was initially proposed during Thai-Lao Joint Commission talks in November 2021.
If approved, this bridge would mark the sixth crossing between Thailand and Laos, with the fifth one nearly completed. The Fifth Lao-Thai Friendship Bridge, connecting Bolikhamxay Province in Laos to Bueng Kan Province in Thailand across the Mekong River, has recently been reported as 69 percent complete and is anticipated to be fully finished by November this year.
Other Lao-Thai bridges include those between Vientiane Capital and Nong Khai, Savannakhet and Mukdahan, Khammouane and Nakhon Phanom, and Bokeo and Chiang Rai.
https://www.tourismlaos.org/wp-content/uploads/2024/06/8-1.jpg6271200Sylivanla Vongphachanhhttps://www.tourismlaos.org/wp-content/uploads/2025/05/Lao-Simply-Beautiful-.webpSylivanla Vongphachanh2024-06-11 08:41:412024-06-10 08:43:15Thailand Interested in Building Sixth Friendship Bridge to Laos
Villages and communities across Vientiane Province came together to participate in the popular Rocket Festival, also known as “Bun Bang Fai,” building large bamboo rockets adorned with bright colors and unique designs and launching them into the sky. The festival is celebrated yearly to call for rain for successful cultivation showing the event’s deep-rooted agricultural significance.
What is Bun Bang Fai?
Held in various parts of the country, the Rocket Festival is a lively event celebrated annually in the 6th month of the lunar calendar, typically falling between May and June each year. This aligns with the agricultural cycle and reflects the meaning of this festival as a plea for a prosperous harvest season.
Rocket Festival in Laos
Rockets are traditionally made from bamboo stuffed with gunpowder, however, the festival has evolved with the times, and today’s rockets incorporate materials such as glass or metal piping. Despite this shift in materials, the rockets maintain their diverse size range, from small handheld rockets to towering structures that demand several people to lift.
But the festival’s connection to agriculture is not merely symbolic. The rockets are the villagers’ prayers for abundant rainfall, which is crucial for a successful harvest season. According to local belief, the louder and higher the rockets fly, the more likely the rain gods are to answer their prayers. This belief gives rise to friendly yet fierce competition among the villagers, each striving to create the rocket that will soar the highest and loudest.
The Celebration:
Before the festival, each village forms a committee to plan every detail, from inviting other villages to setting rules to drafting safety measures. The event also offers prizes for various contests, such as the most beautifully decorated rocket and the highest-flying rocket.
On the other hand, families and friends also gather before the festival to prepare for the event, crafting rockets of all shapes and sizes.
On the big day, the towns kick off a fierce competition as villages gather in open fields to launch their bamboo rockets. Judges score them based on height, decoration, and entertainment value. The entertainment category includes teams dressing up in wild costumes and performing all sorts of acts to entertain the crowds.
In addition to the rocket launches, the festival also features colorful parades, traditional performances, and other competitions, adding to the festive atmosphere. Additionally, during the celebrations, residents and visitors can enjoy various traditional foods.
https://www.tourismlaos.org/wp-content/uploads/2022/03/Screen-Shot-2022-03-30-at-17.25.55.png12462296Sylivanla Vongphachanhhttps://www.tourismlaos.org/wp-content/uploads/2025/05/Lao-Simply-Beautiful-.webpSylivanla Vongphachanh2024-06-10 08:40:362024-06-10 08:41:37Bamboo Rockets Light Up Vientiane’s Skies in Annual Festival
Human Capital, Green Sustainability: Two Priorities for Laos’ Future Economic Model
Laos is currently facing challenges transitioning from commodity-driven growth to a more inclusive prosperity model, reveals a new report from the Organisation for Economic Co-operation and Development (OECD).
The report, titled “Multi-dimensional Country Review (MDCR) of Lao PDR,” was launched on 6 June in Vientiane Capital. It highlights the country’s development journey, noting sustained economic growth of over 7 percent annually from 2000 to 2019, driven by strong commodity exports and substantial external financing.
The report shows that foreign direct investment (FDI) increased in Laos from USD 187.4 million in 2006 to USD 1.69 billion in 2017. During this period, extreme poverty dropped from 25 percent to 7 percent, while household income, education, and healthcare also saw significant improvements.
However, Laos now faces challenges with its current development model, worsened by the impact of COVID-19, which has increased food and energy prices. Debt-financed investments, including public-private partnerships (PPPs), have fueled growth, but slow government revenue growth hinders the country’s ability to manage its growing debt and invest in human capital.
Moreover, economic growth and investment have been unevenly distributed, with certain sectors and state-owned enterprises (SOEs) dominating opportunities. Most of the workforce is still in informal sectors, and environmental issues including deforestation and air pollution continue.
To address these challenges, the report suggests a shift towards human capital development and green sustainability. This includes reducing the debt burden to create fiscal space, reforming the tax system to boost revenue, improving access to resources and infrastructure to attract sustainable investments, and increasing investment in education, healthcare, and social services.
Additionally, the report also emphasizes the need to enhance data collection and institutional capacity for green and climate finance, along with improving coordination among government agencies and development stakeholders.
As Laos navigates this critical juncture, the adoption of comprehensive reforms outlined in the MDCR could pave the way for a more resilient and sustainable future.
Source: https://laotiantimes.com/2024/06/06/human-capital-green-sustainability-two-priorities-for-laos-future-economic-model/
Thailand Interested in Building Sixth Friendship Bridge to Laos
Thailand has confirmed its intention to build a sixth friendship bridge connecting the country to Laos over the Mekong River. This bridge would link Ubon Ratchathani in northeastern Thailand with Salavanh Province in Laos.
In recent discussions between Thailand’s Foreign Minister Maris Sangiampongsa and Lao Foreign Minister Saleumxay Kommasith, the potential construction of this new bridge was a key topic, as reported by Lao state media.
During the dialogue, which occurred during Maris’s visit to Laos on 30 May, both foreign ministers agreed to uphold the existing agreements between their respective countries.
The concept of a bridge between Ubon Ratchathani and Salavanh was initially proposed during Thai-Lao Joint Commission talks in November 2021.
If approved, this bridge would mark the sixth crossing between Thailand and Laos, with the fifth one nearly completed. The Fifth Lao-Thai Friendship Bridge, connecting Bolikhamxay Province in Laos to Bueng Kan Province in Thailand across the Mekong River, has recently been reported as 69 percent complete and is anticipated to be fully finished by November this year.
Other Lao-Thai bridges include those between Vientiane Capital and Nong Khai, Savannakhet and Mukdahan, Khammouane and Nakhon Phanom, and Bokeo and Chiang Rai.
Source: https://laotiantimes.com/2024/06/06/thailand-interested-in-building-sixth-friendship-bridge-to-laos/
Bamboo Rockets Light Up Vientiane’s Skies in Annual Festival
Villages and communities across Vientiane Province came together to participate in the popular Rocket Festival, also known as “Bun Bang Fai,” building large bamboo rockets adorned with bright colors and unique designs and launching them into the sky. The festival is celebrated yearly to call for rain for successful cultivation showing the event’s deep-rooted agricultural significance.
What is Bun Bang Fai?
Held in various parts of the country, the Rocket Festival is a lively event celebrated annually in the 6th month of the lunar calendar, typically falling between May and June each year. This aligns with the agricultural cycle and reflects the meaning of this festival as a plea for a prosperous harvest season.
Rockets are traditionally made from bamboo stuffed with gunpowder, however, the festival has evolved with the times, and today’s rockets incorporate materials such as glass or metal piping. Despite this shift in materials, the rockets maintain their diverse size range, from small handheld rockets to towering structures that demand several people to lift.
But the festival’s connection to agriculture is not merely symbolic. The rockets are the villagers’ prayers for abundant rainfall, which is crucial for a successful harvest season. According to local belief, the louder and higher the rockets fly, the more likely the rain gods are to answer their prayers. This belief gives rise to friendly yet fierce competition among the villagers, each striving to create the rocket that will soar the highest and loudest.
The Celebration:
Before the festival, each village forms a committee to plan every detail, from inviting other villages to setting rules to drafting safety measures. The event also offers prizes for various contests, such as the most beautifully decorated rocket and the highest-flying rocket.
On the other hand, families and friends also gather before the festival to prepare for the event, crafting rockets of all shapes and sizes.
On the big day, the towns kick off a fierce competition as villages gather in open fields to launch their bamboo rockets. Judges score them based on height, decoration, and entertainment value. The entertainment category includes teams dressing up in wild costumes and performing all sorts of acts to entertain the crowds.
In addition to the rocket launches, the festival also features colorful parades, traditional performances, and other competitions, adding to the festive atmosphere. Additionally, during the celebrations, residents and visitors can enjoy various traditional foods.
Source: https://laotiantimes.com/2024/06/04/bamboo-rockets-light-up-vientianes-skies-in-annual-festival/