Lao - Luxembourg Development Cooperation

1. Key Dates of Development Cooperation between Laos and Luxembourg

  • 1997: First diplomatic relations at the margins of the United Nations General Assembly and a first intervention in the health sector
  • 2000: General Cooperation agreement signed in Vientiane
  • 2003: ICP I (Indicative Development Programme) covering the period from 2003 to 2006 with a total budget of 18 million EUR
  • 2007: ICP II (2007-2010) with a budget of 35 million EUR
  • 2011: ICP III (2011-2015) with a budget of 50 million EUR
  • 2015: ICP IV (2016-2010) signed in Luxembourg with a budget of 60 million EUR
  • 2017: Signature of the increase of ICP IV to EUR 75 million
  • 2019: Signature of an additional budget increase of the ICP IV to EUR 86 million
  • 2021: Signature of an additional budget increase of the ICP IV to EUR 99 million and extension of ICP IV until the end of 2022.
  • 2021: Signature of the 5th Indicative Cooperation programme (ICP V 2023-2027) for EUR 95 million

2. Indicative Cooperation Programme

The Indicative Cooperation Programmes in support to Lao PDR constitute the main framework regulating Luxembourg's bilateral cooperation strategies. The first ICP between Lao PDR and Luxembourg was signed in 2003, initiating annually exchange meetings on strategic orientations of cooperation on minister level. The ICP is oriented along Luxembourg’s general development cooperation strategy, The Road to 2030, as well as the national socio-economic development plans (NSEDP) and sectoral strategies of the Lao PDR. The fifth ICP (2023-2027) has been signed in July 2021 by Luxembourg’s Minister for Development Cooperation, Mr. Franz Fayot, and the Laotian Deputy Prime Minister and Minister for Planning and Investment, Mr. Sonexay Siphandone.

Luxembourg’s fifth ICP is also closely aligned with the Team Europe Strategy 2021-2025, the European Partners combined efforts and cooperation priorities with the Lao PDR.

The ICP V is available in English here (PDF)

3. Priority areas and objectives

Based on previous indicative cooperation programmes, Luxembourg’s recognized expertise and comparative advantage, ICP V largely maintains its geographical focus in Vientiane province, Bolikhamxay, Khammouane and Bokeo.

The targeted sectors of Luxembourg's Development Cooperation in Laos are:

·         Rural development

·         Health and nutrition

·         Technical Vocational Education and training (TVET)

·         The Rule of Law, Access to Justice and Good Governance

The overall objective of ICP V is to support Lao PDR in the strengthening of an enabling inclusive governance environment for the sustainable development of human capital ensuring enhanced access to opportunities for individual well-being and improved income for all, with a specific focus on youth and women.” The overall objective of the implemented programs and projects is poverty reduction along with the support of the Lao Government's intention of graduating from Least Developed Country (LDC) by 2026.

Geographically, activities are concentrated on less developed areas where the most vulnerable groups in the country are localized. Priority intervention provinces are Bokéo, Bolikhamxay, Khammouane, Vientiane Province and Vientiane Capital.

A special focus will be placed on individual and institutional capacity strengthening as well as the young population of Lao PDR. In addition to the bi- and multilateral components, Luxembourg supports regional programmes in land governance, social protection and, water and river basin management. The budget of ICP V is in line to the previous one of ICP IV and stands at 95 million Euros, over a five-year period (2023-2027).

Key implementation actors of ICP V programmes and projects include LuxDev – the Luxembourg Development Cooperation Agency, United Nations agencies, Non-governmental and civil-society organisations, as well as actors from the academic and private sectors.


4. Projects

An overview of bilateral and multilateral projects, programme support, regional cooperation, cooperation through NGOs and humanitarian affairs can be found in the following Document (PDF):


Overview of the Laos Luxembourg Development Cooperation (October 2022)

Lux-Development in Laos


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