Lao People's Democratic Republic and ADB
In the Spotlight
This report summarizes outcomes of collaboration between ADB and implementing agencies of Bhutan, Lao People’s Democratic Republic, the Philippines, and Viet Nam to address gaps in the production of agricultural and rural statistics.
ADB has approved a $37 million loan, with an additional $10 million in cofinancing, to support government efforts to improve urban services in Houayxay and Luang Namtha, two towns located along a Greater Mekong Subregion (GMS) main economic corridor.
ADB and the Government of Lao People’s Democratic Republic (Lao PDR) have signed a $23 million loan agreement for subprogram 1 of the Health Sector Governance Program to improve delivery of health services, particularly for the poor, women and children.
Cooperation in the Greater Mekong Subregion is helping countries in the area make progress towards the new global Sustainable Development Goals.
The economy of the Lao People’s Democratic Republic continues to grow vigorously. An investment boom, based on natural resources and fueled by mining and exports of hydropower, has seen gross national income double since 2006. Economic growth moderated in 2014, but is still buoyant, supported by external demand and foreign direct investment. Annual average headline inflation dropped substantially in 2014, due to reduced domestic demand and a sharp decline in global oil prices. Yet the Lao PDR remains highly vulnerable to external economic shocks.
ADB assistance in the Lao PDR is consistent with the rapidly evolving development needs of a lower middle-income country.
Projects in Lao People's Democratic Republic
- Sustainable Natural Resource Management and Productivity Enhancement Project
- Strengthening Urban Water Supply Regulation
- Vientiane Sustainable Urban Transport Project
- Lao People's Democratic Republic: Northern Greater Mekong Subregion Transport Network Improvement Project
- Second Private Sector and Small and Medium-Sized Enterprises Development Program - Subprogram 2