Mrs Phongsamouth Anlavan shakes hands with Mr Koizumi Tsutomu at the signing ceremony in Vientiane.

Japan grants US$5.7 million to improve public transport in Luang Prabang

The Japanese government has provided a grant of about US$5.7 million (more than 122 billion kip) to support and improve public transport in Luang Prabang.
A ceremony for signing the “Exchange of Notes on Economic and Social Development Plan (Public transportation-related equipment)” was held at the Ministry of Foreign Affairs in Vientiane on February 6. The agreement was signed by the Japanese Ambassador, Mr Koizumi Tsutomu, and the Lao Deputy Minister of Foreign Affairs, Mrs Phongsamouth Anlavan.
In recent years, Luang Prabang has witnessed a significant increase in tourism, with visitor numbers reaching almost five million in 2025. However, the city’s public transportation system remains underdeveloped.
As a result, large vans, tuk-tuks, motorcycles and other vehicles have become concentrated in the narrow streets of the city’s World Heritage-designated historic centre. This has led to growing challenges, such as traffic congestion, road accidents, air pollution and noise.
To address these issues, Japan has provided 900 million Japanese yen (about US$ 5.7 million) in grant assistance to improve public transportation infrastructure in Luang Prabang. The grant will fund the purchase of mini electric buses, microbuses, a bus location system, bus stop facilities, charging stations, LED tourist information boards, and other essential equipment.
 Aligned with urban transport master plan supported by JICA, the newly procured equipment will help establish a clean, efficient, and heritage-friendly public transport system in Luang Prabang. This grant assistance directly supports the Lao Government’s priorities for sustainable urban development, green mobility, and tourism-driven economic growth.
The relationship between Japan and Laos has continued to deepen, and last year 2025, both countries agreed to elevate bilateral relations to a Comprehensive Strategic Partnership. From this perspective, Japan will continue to work closely with Laos to address its challenges and promote sustainable economic and social development of the Lao PDR.

By Times Reporters
(Latest Update February 12, 2026)