The National Assembly (NA) of Laos has approved a sweeping government restructuring to improve efficiency, strengthen anti-corruption measures, and attract investment. The decision reduces the number of ministries from 17 to 13, extends the retirement age for civil servants, and provides tax incentives for Smart City Development.

Government Restructuring for Efficiency
The restructuring plan, proposed by Prime Minister Sonexay Siphandone, merges key ministries. The Ministry of Planning and Investment has been integrated into the Ministry of Finance, while the Ministry of Energy and Mines was combined with the Ministry of Industry and Commerce. Similarly, the Ministry of Natural Resources and Environment merged with the Ministry of Agriculture and Forestry, forming the Ministry of Agriculture and Environment. The Ministry of Home Affairs was dissolved, with its functions distributed across various entities. Additionally, the Ministry of Information, Culture and Tourism was restructured, transferring the information sector to the Party Central Committee’s Propaganda and Training Board, renaming it the Ministry of Culture and Tourism. The government aims to complete this restructuring by May, with local administration reforms finalized by July.

Constitutional and Governance Reforms
Amendments to the Constitution were also approved, granting more power to local administrations, promoting economic autonomy, and strengthening anti-corruption measures by expanding the authority of auditing and inspection agencies. In line with these changes, the NA revised the Law on Local Governance and the Law on Civil Servants, increasing the retirement age for government employees from 60 to 65 and extending the recruitment age from 35 to 40.

Smart City Investment Incentives
To drive innovation and economic growth, the NA approved tax incentives for businesses investing in the Amata Smart & Eco City project in northern Laos. These measures aim to attract investors and support the country’s long-term development.

The Lao government believes these reforms will enhance governance, streamline administration, and create a more attractive investment climate as the nation moves toward modernization and economic progress.

Source and Photo Credit: The Laotian Times