Prime Minister Sonexay Siphandone addresses the National Conference on Investment Promotion and Management.

PM calls for skills, simpler rules to spur investment

Prime Minister Sonexay Siphandone has stressed the need for more skilled workers, simpler investment procedures, and stronger trade links to support private investment and economic growth in Laos.
He cited these priorities when addressing the National Conference on Investment Promotion and Management, held in Vientiane on August 11-12, where he outlined key measures to make the investment environment more efficient and competitive.
Prime Minister Sonexay said it was essential to improve the investment climate as Laos looks to source more private investment to support the National Socio-Economic Development Plan for 2026-2030.
The plan requires 636,178 billion kip in total investment over the five-year period, with domestic and foreign private investment expected to account for 409,470 billion kip, or 64.4 percent of the total.
“This means we need to accelerate improvements to the domestic investment environment to make it convenient, transparent, predictable and competitive in cost,” Dr Sonexay said.
He said Laos must also change its approach to investment by shifting “from quantity to quality”.
Investment should create added value, provide skilled and professional jobs, transfer technology and innovation, promote digitalisation, and strengthen links between Lao businesses and foreign investors, he said.
To meet these targets, he identified three key areas for urgent action: development of a skilled workforce, simplified investment procedures, and improvement of trade, infrastructure and logistics services.
The first priority is to address labour shortages and build a skilled, professional and disciplined workforce.
The shortage of skilled workers remains a challenge for investors and industry, while worker migration has made it harder for businesses to find qualified staff.
The second priority is to make investment procedures simpler and faster.
In the remaining months of this year, the government plans to move towards a one-stop investment service so that investors do not have to deal with several agencies to obtain approvals and permits.
Another goal is to connect government agencies through digital databases, establish clear processing times, and define the responsibilities of each agency.
Prime Minister Sonexay said that, going forward, all parties must break new ground in thinking, in order to overhaul investment promotion and management, making it swifter, more timely, and firmly grounded in quality, transparency and professionalism.
The third priority is to improve non-tariff measures, infrastructure, and state services to reduce the cost of doing business.
The government plans to upgrade the National Single Window, improve links between road and rail transport, expand dry ports, and strengthen logistics services.
Unnecessary procedures and paperwork will be reduced while more use will be made of digital systems and e-commerce.
These measures are intended to help Laos make better use of its growing regional connectivity and improve the competitiveness of businesses involved in trade and investment.
Beyond these priorities, the Prime Minister outlined eight broader areas to strengthen the investment environment.
These include improving access to credit for small and medium-sized enterprises, maintaining financial and monetary stability, upgrading trade and customs systems, and developing digital land and business services.
Other goals are to strengthen links between foreign investors and Lao businesses, improve investor support after projects are approved, promote formal business activities, and strengthen the Investment Promotion and Management Committee at the central and provincial levels.
According to a report by the Standing Deputy Prime Minister, who serves as Chairman of the Investment Promotion and Management Committee, 34 controlled and concession investment projects worth US$8.5 billion were approved during the first seven months of 2026, an increase of 68 percent compared with the same period last year.
Actual capital inflows exceeded US$1 billion during the period.
Despite rising investment, Prime Minister Sonexay said investors are hampered by complex procedures, changing policies, limited finance, labour shortages, high transport costs, and land issues. He called for stronger project oversight and more green investment.
The conference agreed to accelerate revisions to the 2024 Law on Investment Promotion and related regulations to bring them in line with the new investment management structure.
The Investment Promotion and Management Committee will serve as the main coordinating body for investment promotion and management, while the relevant sectors will remain responsible for technical approvals and oversight after an investment is approved.

By Times Reporters
 (Latest Update August 13, 2026)