Mr Sommad Pholsena comments on the government’s report on the first day of the 9th Ordinary Session of the 9th Legislature of the National Assembly on Monday.

NA calls for urgent action to put development plan back on track

The Standing Committee of the National Assembly has urged the government to speed up efforts in the second half of this year to meet national development targets, warning that progress remains too slow in several key sectors.
Vice President of the National Assembly, Mr Sommad Pholsena, said urgent steps are needed to address the two main national agendas  tackling economic hardship and drug-related issues, which have yet to show clear improvement.
Speaking at the opening of the 9th Ordinary Session of the Assembly’s 9th Legislature, Mr Sommad highlighted serious concerns over rising drug crimes, weak infrastructure, low state revenue, and slow progress in education, healthcare and agriculture.
He noted that while the economy recorded growth of 4.5 percent, this growth is unsustainable because it depends heavily on raw material exports and natural resource extraction, leading to environmental and social impacts.
Mr Sommad warned that unless stronger and faster action is taken, Laos risks falling short of the targets set in the 9th National Socio-Economic Development Plan for 2021–2025, especially in the areas of economic stability, social progress, and poverty reduction.
To put development efforts back on track, the Assembly proposed several urgent measures.
These include accelerating the implementation of key Party resolutions, lowering inflation to single digit figures, and stabilising exchange rates and the price of food, fuel, electricity and other essential supplies.
The government was urged to resolve the chronic teacher shortage by offering allowances to volunteer teachers, promoting skills development, and improving healthcare and insurance systems.
Faster progress was also requested on vaccination programmes and the planned merger between the health insurance and social security systems, alongside renewed support for village health volunteers.
In response to the growing drug problem, the National Assembly called for tougher enforcement, preventive measures, and stronger regulation of entertainment venues linked to drug abuse.
To reduce import dependency, Assembly members proposed improved support for domestic production, especially in agriculture. This includes upgrading irrigation systems and providing credit for the production of seeds, fertiliser and equipment.
From January to April this year, only 302 businesses received loans through banks and microfinance institutions working with the Small and Medium Enterprise Promotion Fund, totalling 143.65 billion kip, according to a report delivered by Prime Minister Sonexay Siphandone.
Infrastructure repairs, particularly of roads, should be carried out before the rainy season gets into full spate, while riverbanks also need reinforcement, and more must be done to regulate overloaded trucks.
To strengthen the financial system, the National Assembly recommended digitalising revenue collection, improving use of the budget, and identifying new income sources such as mining, land tax, tourism, and online trade.
Delays and repeated extensions of investment projects, especially in the mining sector, were cited as another concern, with resource fees, export taxes and profit taxes still not fully collected. The value of state reserves has not improved.
Stronger regulation of foreign exchange was also recommended, with at least 70 percent of export earnings to be channelled through the banking system to build foreign exchange reserves and ease the trade deficit.
Additional proposals included fair pricing of electricity, greater promotion of clean energy, improved management of natural resources, and faster land titling to boost state income.
Mr Sommad said tougher enforcement of regulations is also needed, particularly in reducing unnecessary tax exemptions and acting on audit and inspection findings to ensure transparency and discipline.
The National Assembly stressed that the final two years of the current development plan are critical, and that stronger action is required if Laos is to achieve its national goals.

By Times Reporters
 (Latest Update June 10, 2025)