RELATIONS WITH THE EU
The European Union and Lao PDR
The European Union (EU) has long enjoyed a close relationship with Laos. Through substantial development assistance, support for the national reform agenda and a commitment to open markets, the EU helps Laos in its efforts to build a brighter future for its population and to play an active role regionally and internationally.
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CopyrightEUinLaos, 2024
The EU Ambassador met with the President of Laos to present his credentials.
Copyright: EU in Laos, 2024
Political Relations
The Delegation monitors political developments in Laos and reports to EU headquarters on these developments. The EU Ambassador also participates, together with the Heads of Mission of the EU Member States, in all EU diplomatic representations of official positions to the Government of Laos on political issues.
Development Cooperation & Humanitarian aid
The European Union is a key partner of Lao PDR to support its green and inclusive growth agenda
The European Union has been a key partner in Lao PDR’s development since 1997, ranking amongst the top bilateral donors focused on advancing socio-economic development in the country, especially in the areas of education, food and nutrition security, and good governance. The EU provided about EUR 250 million of development cooperation to Lao PDR in 2014-2020.
Going forward, the EU’s cooperation will seek to support the Lao PDR’s long-term Green Growth strategy and consolidate the economic partnership with Lao PDR, in line with the new EU priorities for international partnerships. It will aim to increase trade and investment in Lao PDR, especially in green sectors, supported by enhanced education and skills, and improved governance.
The EU is working as “Team Europe” with its member states active in Lao PDR (Finland, France, Germany, Hungary, Luxembourg, Netherlands) and Switzerland. Together, they have pledged an estimated allocation of EUR 475 million towards green and inclusive growth, human capital, and good governance, in support of Lao PDR’s National Socio-Economic Development Plan (NSEDP) 2021-2025.
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In line with its strategic priorities for external action, the EU will seek to increase trade and investment in Lao PDR, especially in green sectors, supported by enhanced education and skills, and improved governance.
Copyright: EU
Economic Relations, Trade and Investments
The European Union is committed to increase its trade and investment in Lao PDR, in support of green and inclusive growth
The private sector plays a significant role in fostering economic diversification, creating jobs and ultimately reducing poverty. As a fast-growing country with rapidly expanding connections to the ASEAN and China, Lao PDR offers many investment opportunities for European companies. European investors already present in Lao PDR show a good example of quality and responsible investment. They care about decent work, the environment, and making a positive impact in communities.
This is why the European Union has intensified its support to policies and reforms aimed at improving macroeconomic stability, economic diversification, trade facilitation, and a conducive business environment in Lao PDR. In close cooperation with its member states and the European Chamber of Commerce and Industry in Laos (ECCIL), the EU will strive to attract more European investment to Lao PDR. We will also provide support to private sector development and access to finance in the agriculture, forestry, ecotourism and digitalisation sectors, especially for women and youth-led enterprises. The Lao PDR will continue to benefit from the EU’s significant support for regional integration in the ASEAN.
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European Partners in Lao PDR are embarking in a Green Team Europe Initiative focused on farm-to-fork and forestry partnerships, in support of Lao PDR and EU’s green growth agendas.
Copyright: EU
Sustainable Development and Green Economy
The European Union seeks to deepen its partnership with Lao PDR in pursuing common goals to foster sustainable development
The EU Green Deal and the Lao PDR’s 2030 Green Growth strategy have a lot in common.
This is why the EU and other European partners have decided to embark on a Green Team Europe Initiative to foster sustainable development in the Lao PDR. There is a clear recognition that the Lao PDR’s abundant natural resources represent a real comparative advantage to contribute to rapid economic growth, but they must be used sustainably.
The Team Europe Green initiative will focus on two main pillars: farm-to-fork and forestry partnerships. As part of this initiative, the EU’s cooperation will support agriculture value chains (especially for products with a high potential to trade more with the EU, such as coffee and tea); forest management and wood processing; and education related to green skills.
The EU and the Lao PDR are currently negotiating a Voluntary Partnership Agreement (VPA) as part of the EU’s initiative for Forest Law Enforcement, Governance and Trade (FLEGT). FLEGT aims to reduce illegal logging by strengthening sustainable and legal forest management, improving governance and promoting trade in legally produced timber. This will open the door for the Lao PDR to export legal timber to Europe.
Cultural and Public Diplomacy
Promoting cultural diplomacy in the host country has always been a priority for the European Union. Since the onset of our cooperation in the country, we have always been eager to share the diversity of the European culture with the Lao people, meanwhile learning from Laos about its unique culture and traditions with the ultimate objective to increase our mutual understanding. The EU believes that cultural cooperation is a very strong vehicle to discuss broader issues ranging from the environment to human development.
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The EU and Laos shared richness of each other cultures on the occasion of 45 years anniversary of their relations.
Copyright: EU