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Representatives from Laos, the United Nations and other development partners meet in Vientiane on Thursday.

Laos prepares for graduation from LDC status

Lao government delegations and United Nations representatives convened in Vientiane on Thursday to discuss the challenges, opportunities, and preparations surrounding Laos’ graduation from Least Developed Country (LDC) status in 2026 and beyond.
They discussed key actions for Laos’ successful and sustainable graduation from LDC status for building an inclusive, resilient future for the people of Laos.

Minister of Foreign Affairs Mr Thongsavanh Phomvihane.

The Ministry of Foreign Affairs organised a National Steering Committee for the LDC graduation meeting, to guide the implementation of the UN Plan of Action for Least Developed Countries.
Minister of Foreign Affairs Mr Thongsavanh Phomvihane chaired the meeting.
The United Nations was represented at the meeting by the Under Secretary-General and High Representative for Least Developed Countries, Landlocked Developing Countries and Small Island Developing States, Ms Rabab Fatima.
The meeting featured presentations on Laos’ progress and a draft assessment of the country’s readiness to graduate from Least Developed Country status in 2026.
A press release from the Ministry of Foreign Affairs stated that Laos first met two of the three criteria for graduating from Least Developed Country status during the United Nations Committee for Development Policy’s 2018 assessment.
In the subsequent 2021 review, the country fulfilled all three criteria for the second time, officially meeting the requirements for graduation.
In a third assessment conducted in 2024, Laos was again able to fulfil all three criteria, putting the country on track to graduate from LDC status in 2026.
However, the impact of the Covid-19 pandemic, and economic and other crises occurring in the region and the world have affected Laos and the overall global development situation.
It has hindered development in various areas and has become a challenge to economic recovery, especially as Laos prepares to graduate from LDC status.
At the end of 2023, the Lao government, in collaboration with UN agencies and development partners, finalised the country’s Smooth Transition Strategy for LDC graduation in 2026 and beyond.
The strategy aims to ensure a sustainable and high-quality transition, helping Laos to avoid reversal to Least Developed Country status in the future.
Laos is also drafting a readiness assessment for graduation from LDC status in 2026, and still needs support and assistance from the United Nations and other international organisations and development partners.
The Lao government recognises that graduating from Least Developed Country status will bring inevitable challenges, including the loss of certain trade preferences, reduced access to grants and concessional loans, and a decline in Official Development Assistance (ODA) and financial support for participation in international forums.
At the same time, Laos is expected to face higher financial obligations, as its ceiling rate for contributions to the United Nations and other international organisations will increase following its graduation from LDC status.
In response to these anticipated challenges, the Lao government and its people remain committed to strengthening self-reliance in the years ahead.

Key priorities include developing economic infrastructure, investing in quality human resources, and boosting domestic production capacity and efficiency to enhance Laos’ competitiveness at both the regional and international levels.

By Times Reporters
 (Latest Update
April 25, 2025)

 

 






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