New DPMs appointed, cabinet members replaced

The National Assembly (NA) on Monday approved the appointment of two new deputy prime ministers (DPMs) and a cabinet reshuffle, in the hope that the new appointees will be able to make a stronger contribution to resolving the nation’s economic woes.
The appointment of the Minister of Public Security General Vilay Lakhamfong and Minister of Foreign Affairs Saleumxay Kommasith as new DPMs was approved by the 3rd Ordinary Session of the NA’s 9th legislature, in response to a proposal by Prime Minister Phankham Viphavanh.
This brings the number of deputy prime ministers to five. The three existing DPMs are Minister of National Defence General Chansamone Chanyalath, Prof. Dr Kikeo Khaykhamphithoune, and Dr Sonexay Siphandone.
Assembly members also approved a cabinet reshuffle in which the Governor of the Bank of the Lao PDR, Mr Sonexay Sitphaxay was replaced by Deputy Minister of Finance Dr Bounleua

NA members give comments prior to voting.

Sinxayvoravong, while Minister of Industry and Commerce Dr Khampheng Saysompheng was replaced by the President of the State Audit Organisation, Mr Malaythong Kommasith.
Mr Sonexay and Dr Khampheng will take up posts as Ministers to the Prime Minister’s Office.
The NA also elected the Deputy Governor of Savannakhet province, Mr Viengthavisone Thepphachanh, as President of the State Audit Organisation, replacing Mr Malaythong.
Addressing the session, an NA member for Luang Prabang, Mrs Vienvilay Deelaphan, expressed her support for Mr Viengthavisone and said she hoped he would do his best to work with the relevant sectors to address the country’s financial and economic difficulties, including rising inflation and fuel prices.    
 The reshuffle comes just over a year after the current administration headed by Prime Minister Phankham Viphavanh took office. The NA’s 9th legislature approved the cabinet at its inaugural session in March last year.
The changes were made to meet the changing needs of these government bodies as Laos strives to fulfil the national agendas on addressing the drug trade and financial and economic difficulties, which have been driven by a chronic budget deficit that accumulated massive public debt.
Public and publicly-guaranteed debt increased to 88 percent of GDP in 2021, according to the World Bank.
The sharp depreciation of the kip, shrinking foreign currency reserves and the skyrocketing price of global commodities triggered by the Ukraine crisis have exacerbated Laos’ economic vulnerability.
The inflation rate in Laos climbed to its highest level in 18 years in May, with prices rising by 12.8 percent from a year ago, according to the Lao Statistics Bureau. The weak kip and the foreign currency shortfall have meant that insufficient foreign currency is available for the purchase of fuel, which has caused months of shortages.
The new appointees now inherit the challenges faced by their predecessors, as the agencies they head up are among the key state bodies mandated to address the urgent issues burdening the government.
An NA member for Luang Namtha province, Maj. Gen. Dr Vongsack Phanthavong, said he supported the new appointees, especially the two deputy prime ministers, given their outstanding performance to date. “If Your Excellencies (the two nominated DPMs) are approved by the session, Your Excellencies will supplement and help the Prime Minister in the supervision of various works, especially the implementation of the two national agendas,” he said prior to the voting process. 

By Souksakhone Vaenkeo
 (Latest Update June 21, 2022)