Advanced search

Vientiane > Lao - Luxembourg Development Cooperation > Development strategies and frameworks of Lao PDR >

Development strategies and frameworks of Lao PDR

Vision 2030

The main objective of the Lao PDR Government is the development towards a Upper Middle Income Country ( World Bank definition ) characterized by inclusive, stable and sustainable economic growth while at the same time pursuing social development including environmental protection and human development enhanced to Least Developed Country ( UN definition ) graduation criterias and the achievement of off-track Millennium Development Goals (MDG). The provision and use of services are geographically balanced and distributed equitably between social groups.


National Socio-Economic Development Plan (NSEDP)

Luxembourg’s Development Cooperation as well as EU programs are closely aligned to the Government of Lao PDR’s 8th NSEDP, which covers the period from 2016-2020 and has been elaborated in the context of the 10-year plan to 2025, the 2030 Vision and the 2030 Agenda for Sustainable Development. The plan was approved by the National Assembly of Laos in April 2016.

Indicators for the monitoring and the evaluation of the NSDEP are generated according to the Government of Lao PDR’s Sustainable Development Goals (SDGs). Priorities of the program are the graduation from Least Developed Country status and sustainable long-term transformations by considering social, economic and environmental circumstances and tendencies:

“More specifically, the 8th NSEDP aims to:

  • Facilitate eligibility for graduation from Least Developed Country status by 2020;
  • Consolidate regional and international integration in the context of the launching of the ASEAN Economic Community in 2015; and
  • Take further steps towards industrialization and modernization and to enhance the well-being of the people and the prosperity of the country in order to achieve upper-middle-income country status by 2030.

The 8th NSEDP has been designed taking into consideration the 2030 Agenda for Sustainable Development and the SDGs; and it addresses the trends which will lead to a longer term transformation: 

  • recent falls in commodity prices suggest that over-reliance on the mining sector should be avoided;
  • government prioritizes energy (hydro) over mining, but the prospect for the energy sector is also insecure with enormous potential competition from Myanmar which will be selling power to the same markets as does Lao PDR;
  •  the ASEAN Economic Community or AEC  and transition from GMS to ASEAN presents opportunities and threats;
  • the emergence of new players – South-South and the increasing relevance to Lao PDR of its major South-south partners Vietnam, Thailand, China, Malaysia and India)  and new development banks (Asian Infrastructure Investment Bank, BRICS, South-south Exchange Trust Fund and One Belt One Road, as examples, could present new opportunities for Lao PDR.

The government has also taken great care to ensure that the preparation of the 8th NSEDP is evidence based and lessons learned from implementing the earlier 7th NSEDP have been identified along with remaining challenges.  The latter challenges included:

  1. adequately stimulating the non-resource sector and making the private sector a cornerstone of future development;
  2. increasing the competitiveness of small and medium enterprises (SMEs) for them to be a foundation of the growth and employment as well as for poverty reduction;
  3. developing entrepreneurs and improving the business climate within the framework of maximizing the benefits of WTO membership and preparing for integration into ASEAN Economic Community;
  4. further development of infrastructure for SMEs and human resources, enabling the people, farmers and entrepreneurs to access business, economic, social and cultural services;
  5. assessing the impact of land concessions and land lease on agriculture sector in order to manage concessions more effectively;
  6. continue implementation of the Millennium Development Goals and adapt Sustainable Development Goals to the Lao development context and integrate them into the Plan;
  7. protect the environment by focusing on environmentally friendly investments."

 (Source: )

The 8th NSDEP is available as PDF.


Vientiane Declaration on Aid Effectiveness

The Vientiane Declaration on Aid Effectiveness was signed at the ninth Round Table Meeting in November 2006 by the Government of Lao PDR and 22 development partners, with further three countries signing at a later date. The Vientiane Declaration on Aid Effectiveness is based on five key principles:

  1. Increased country ownership;
  2. Better alignment with national policies;
  3. Harmonization and simplification of development procedures;
  4. Results based management;
  5. Mutual accountability for progress.

Further information:


Busan Partnership Document

The Busan Partnership agreement was elaborated in the context of the fourth High Level Forum on Aid Effectiveness in Busan, Korea in November 2011. The document sets out principles, commitments and actions that build a foundation for efficient cooperation in support of international development.

The Document is available as PDF.


Mexico High-Level Meeting Communique

The first High-Level Meeting of the Global Partnership for Effective Development Cooperation took part in Mexico City the 15th and 16th April 2014 and marks a major milestone in the global fight against poverty.

Over 1500 development leaders joined Enrique Peña Nieto, President of Mexico, UN Secretary-General Ban Ki-moon and OECD Secretary-General Angel Gurría in Mexico City to:

  • Review global progress in making development co-operation more effective
  • Agree on actions to boost progress
  • Anchor effective development co-operation in the post-2015 global development agenda

Further information:


Vientiane Declaration on Partnership for Effective Development Cooperation

The Vientiane Declaration on Partnership for Effective Development Cooperation aims at establishing an inclusive partnership which draws on the support from civil society organizations, the private sector, south-south cooperation partners and mobilization of additional domestic resources to foster an effective contribution to the implementation of the 8th NSEDP. The implementation of the Vientiane Declaration II will be monitored on the basis of an action plan to be drafted after its endorsement.

The document is available as PDF.


Further information

  • Criteria for LDC graduation:

  • Round Table Implementation Meeting set to take stock of Lao PDR’s development progress:

  • Agriculture Development strategy to 2025 and vision to the year 2030 (PDF):

  • Industrial Development Strategies 2016-2030

  • Lao People’s Democratic Republic Country Strategic Plan (2017–2021

  • Legal Sector Master Plan Project: