The EU and Lao PDR strengthen their partnership for a new phase of development
Vientiane, 24 September 2026 – The European Union and the Lao People’s Democratic Republic reviewed progress in their cooperation and discussed the future direction of their partnership, as Lao PDR moves beyond Least Developed Country (LDC) status.
The discussions took place at the 12th Lao–EU Joint Committee Working Group on Cooperation, held at the Ministry of Finance. The meeting was opened by H.E. Mr Soulivath Souvannachoumkham, Deputy Minister of Finance, and H.E. Mr Mark Gallagher, the EU Ambassador to the Lao PDR. The meeting brought together several EU Member States, and a wide range of government agencies such as the Ministry of Foreign Affairs, Ministry of Finance, Ministry of Education and Sports, Ministry of Industry and Commerce, Ministry of Agriculture and Environment, Ministry of Justice, Ministry of Public Works and Transport, Central Committee for Organisation and Personnel, as well as National Commission for the Advancement of Women, Mother and Children.
The meeting took stock of cooperation under the current Team Europe Strategy 2021–2027, covering the three shared priorities of a greener and more inclusive economy, education and skills, and good governance. European partners have mobilised an indicative 825 euros million for Lao PDR under the joint strategy.
Deputy Minister of Finance emphasised “the Government of the Lao PDR considers this Working Group as an important platform for both sides to review the progress of our cooperation, exchange views on emerging challenges and opportunities, and identify practical ways to further strengthen our partnership.”
The working session was co-chaired by Dr Vongkhamheng Vongthachack, Director General of the International Finance and Cooperation Department of the Ministry of Finance, and Mr Ovidiu Mic, Head of Unit of for South at Southeast Asia at the European Commission’s Directorate-General for International Partnerships (DG INTPA).
As Lao PDR enters a new phase following LDC graduation, discussions focused increasingly on how the partnership can support sustainable investment, private-sector development, trade, jobs and connectivity, alongside continued support to human capital and good governance. This includes future opportunities under the EU’s Global Gateway strategy.
Looking ahead, both sides discussed the priorities that could shape the partnership over the coming years, including green and digital transformation, energy and connectivity, skills and human capital, sustainable agriculture and forestry, governance, and stronger engagement with the private sector. The discussions also highlighted the importance of regional cooperation with ASEAN in connecting Lao PDR to regional markets, expertise and investment.
Mr Ovidiu Mic highlighted that “as Lao PDR’s needs evolve, so must our partnership. The EU will remain a reliable partner, while broadening our engagement to sustainable investment, private sector development, competitiveness, trade and jobs.”
The Lao PDR and EU reaffirmed their commitment to a long-term partnership that evolves with the country’s development needs, combining policy dialogue, technical cooperation and investment to support sustainable, inclusive growth and new opportunities for people and businesses.
@EUinLaos
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