Vientiane, 31 January 2025 - Following a review of the successful delivery of development assistance to Lao PDR in 2021-2024, the European Union (EU) has approved a new €45 million allocation for 2025-2027. The announcement of further support of €45 million, which will pave the way for the European Union to support the 10th National Socio-Economic Development Plan (NSEDP), was made by EU Ambassador, H.E. Mr. Mark Gallagher during a meeting with H.E. Mr. Phet Phomphiphak, Minister of Planning and Investment.

The Team Europe Strategy for Lao PDR (2021–2025) represents a collaborative effort by the EU, its Member States, and Switzerland to support sustainable development in the country with an estimated €600 million already having been committed to support the 9th NSEDP and focusing on three key priority areas:

1. Green and Inclusive Economy – Promoting sustainable agriculture, rural development, and responsible management of natural resources.
2. Human Capital – Enhancing education, including technical and vocational education and training (TVET), and improving healthcare services.
3. Good Governance – Strengthening public financial management, the rule of law, and citizen engagement.

These priorities remain highly relevant, particularly in the context of Lao PDR's planned graduation from Least Developed Country (LDC) status and preparations for its 10th NSEDP. Investing in a green and inclusive economy will help preserve and reinforce the country's comparative advantages in key sectors, while increased investment in education and vocational training is crucial to harness Lao PDR's demographic dividend and drive human capital development. Strengthening public financial management remains key to enhancing revenue collection and ensuring efficient and transparent public spending.

The €45 million package of support will be earmarked to further support socio-economic development in Lao PDR over 2025-2027. This entire contribution is in the form of grants, reinforcing the EU's commitment through its Global Gateway initiative to fostering sustainable growth and prosperity in the country. Global Gateway adopts a 360-degree approach, which ensures that investments in infrastructure are accompanied by corresponding investments in the enabling environment, regulatory frameworks, skills and education, employment and youth.

 “The EU remains committed to the 2030 Agenda and the Sustainable Development Goals (SDG). Through Global Gateway, we are bridging the investment gap, supporting economic recovery, and advancing the green and digital transitions. Despite global challenges, from geopolitical tensions to the climate crisis, the EU remains a strong and reliable partner, committed to long-term cooperation with Lao PDR and the wider region,” said Ambassador Gallagher.

Contact details:

For more information, please contact the EU Delegation to Lao PDR at [email protected] or tel: +856 (21) 255 575