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Development assistance in Laos

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Australia’s development partnership with Laos

2025-26 bilateral allocation [budget estimate]

$26.1 million

2025-26 total Australian ODA [budget estimate]

$55.1 million

2024-25 bilateral allocation [budget estimate]

$24.1 million

2024-25 total Australian ODA [budget estimate]

$53.2 million

2023-24 total Australian ODA [actual]

$60.9 million

Australia and the Lao People's Democratic Republic (Laos) are longstanding bilateral and regional partners. Diplomatic relations have existed since 1952 – Laos’ longest unbroken diplomatic partnership.  In March 2024, Australia and Laos elevated the relationship to a Comprehensive Partnership, further deepening people-to-people links and expanding cooperation in key sectors. 

Joint Objectives of the Australia–Laos Development Partnership

The overarching goal for the Australia–Laos development partnership is a stable, prosperous and resilient Laos. The three development partnership objectives reflect the principles and priorities set out in the Laos-Australia Comprehensive Partnership. 

The Development Partnership Plan 2024-2029 (DPP) translates into action the development priorities Australia shares with Laos. The plan outlines how we will work to deliver our partnership and joint outcomes. 

Objective 1:  Building human capital

Australia remains committed to investing in human capital development to support sustainable and inclusive growth.  Australia will assist Laos to build the critical foundations upon which secondary and tertiary education, skilled employment and economic development is built. Australia will also continue to build leadership capacity, people-to-people and institutional linkages, and strengthen Laos’ capacity to effectively engage in the region and beyond. Australia will also support Laos respond to emerging infectious and non-infectious disease threats. 

Objective 2: Resilient, inclusive economic growth

Australia will carefully target its investments to support economic growth and resilience in Laos. Australia’s economic programs will work across all key Lao economic ministries to support economic and fiscal reforms, improve high-quality investment, increase trade, promote private sector development and enhance transport policy and planning. 

Objective 3: Climate change resilience, adaptation and mitigation

Australia will expand its engagement with Laos on climate change, including to strengthen climate resilience and improve energy, food and water security. We will assist Laos to develop the policies and regulations required to participate in international carbon markets and enhance Laos’ ability to attract and access climate financing. To assist Laos’ efforts to reduce its vulnerability to the impacts of climate change, Australia is investing in climate resilient agriculture, Laos’ key economic sector.

Climate Change

Laos is highly vulnerable to the impacts of climate change and its communities face significant climate related hazards and livelihood vulnerability. Australia will collaborate with Laos in the sectors that have significant impacts on lives and livelihoods. We will support Laos to improve policy and regulatory frameworks for the energy sector, and the uptake of renewable energy technologies; work with Laos to attract and access climate financing; and support enhanced climate resilience in agriculture and water management, as both sectors face significant adaptation challenges.

Gender Equality, Disability and Social Inclusion

Australia has strong engagement and advocacy on GEDSI issues in Laos. We will continue to address inequality by promoting social inclusion, promoting women’s leadership and empowerment and enhancing the voices and rights of vulnerable and disadvantaged groups in all our programs. Our policy dialogue will continue to promote the participation and rights of women, people with disability and disadvantaged groups.

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