Lao PDR fact sheet

Lao PDR is expected to graduate from Least Developed Country (LDC) status in 2026. The economy continues to expand, with GDP growth projected between 5-6% in 2026. However, it is still an economy driven by consumption rather than productivity. For instance, agriculture employs 70% of the workforce but contributes only 16.8% to the GDP. Similarly, while 97% of households have access to electricity, its use in production and enterprise is minimal.

Human development outcomes reflect these structural gaps. Rural poverty affects 18.3% of households, 33% of children are stunted, and maternal mortality stands at 112 per 100,000 births. Only 61.8% continue into lower education, and just 37.1% reach upper secondary, with many turning to migration in search of work. Health risks compound these socioeconomic pressures. Although most households have access to improved water sources, 72.3% of drinking water is contaminated with E. coli, revealing a gap between infrastructure coverage and service quality.

SNV has worked in Lao PDR since 1993, collaborating with partners to develop and tailor approaches that promote sustainable and equitable development. Today, SNV contributes to advancing equitable livelihoods and resilient agri-food, water, and energy systems, particularly in areas with high rural poverty, limited employment opportunities, and health vulnerabilities—in alignment with the government’s 10th National Socio-Economic Development Plan (NSEDP) and Vision 2030.

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