NA plans sweeping changes to local governance

The government plans to create sub-districts (taseng) as the lowest administrative level, enabling villages to function as community-based units.
The move was one of the main changes proposed in a bid to improve local administration, and was raised for discussion during an extraordinary session of the National Assembly taking place this week.

Dr Vilayvong Bouddakham proposes amendments to local administration systems at the National Assembly on Tuesday.

The session is chaired by the Vice President of the National Assembly, Mr Khambay Damlath, with participation from Assembly members representing all constituencies.
A key focus of the proposed changes is the restructuring of local administration at the provincial, district, and sub-district designation.
Sub-districts will replace villages as the lowest administrative tier. Administrative committees at each level will include a chairperson, vice-chairperson, and members.
The changes aim to strengthen local governance, improve access to public services, and promote a legal framework tailored to Laos’ development needs.
Strengthening local self-reliance will support economic growth and improved livelihoods, contributing to the country’s long-term development goals.
The current Local Administration Law has been in effect since 2015. The revised 2025 version will consist of  21 chapters and 81 articles, including 16 newly added articles, 62 amended articles, and three unchanged articles.
Minister of Home Affairs Dr Vilayvong Bouddakham said the establishment of sub-districts would improve public service delivery, ensure that Party and government policies reach all citizens, and strengthen grassroots institutions to drive local development.
However, villages will remain important and retain their organisational structure, transitioning into community-based units.
Village regulations will be adjusted, with administrative functions shifting to sub-districts, while villages will focus on community cohesion, security, cultural preservation, and ethnic traditions. They will also support sub-districts in monitoring social stability and community affairs.
Once enacted, the revised law will provide a foundation for local governments to align their structures with practical conditions, ensuring sub-districts function at the lowest administrative level.
It will also guide ministries and relevant agencies in updating regulations, clarify responsibilities across administrative levels, and strengthen Party leadership at the grassroots level.
During the discussions, Mr Khambay addressed Article 78, which proposes dividing the local government budget into three levels: provincial, district, and sub-district.
The move to designate sub-districts as independent budgetary units aims to enhance their self-reliance and development capacity. However, Mr Khambay raised concerns about the feasibility of this provision.
“Despite extensive studies, consensus has not been reached. Many districts are already struggling with budget deficits and personnel shortages. Adding sub-districts as separate budgetary units could exacerbate these challenges,” Mr Khambay said.

By Phonepaseuth Volakhoun
 (Latest Update March 19, 2025)