Bilateral relations

Australia and the Lao People's Democratic Republic (Laos) are longstanding bilateral and regional partners, with a relationship underpinned by development cooperation, business ties and people-to-people links. Diplomatic relations have existed since 1952 – one of Laos’ longest-standing diplomatic relationships. There is regular contact between Australia and Laos at the ministerial and senior officials level covering the bilateral relationship, regional cooperation and common strategic challenges. On 6 March 2024, the Australian and Lao Prime Ministers signed a Joint Declaration to elevate the bilateral relationship to a Comprehensive Partnership.

Development assistance

Australia has a long history of development cooperation with Laos. In 2024-25, Australia will provide an estimated $53.2 million in total Official Development Assistance to Laos. This includes $24.1 million in bilateral funding.

Through our development assistance, the Australian Government has supported Laos with human resource development, primary education and teacher support, water resource management, health, economic reform and trade.

Trade and investment relationship

Australian businesses have contributed to Laos' economic development over many years, including in the energy and resources, transport and logistics, and services sectors. An agreement on the promotion and protection of investment between Australia and Laos has been in place since 1995.

Two-way trade in goods and services was worth $686 million in 2023. Australia exported $105.2 million in goods and services to Laos in this period. Imports from Laos in 2023 were worth $580.6 million

Deepening our economic engagement across Southeast Asia is a high priority for Australia, including through Invested: Australia’s Southeast Asia Economic Strategy to 2040.

Australia and Laos are parties to the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) and the Regional Comprehensive Economic Partnership Agreement (RCEP).

The Australian Chamber of Commerce in Laos (AustCham Lao) was established in 2005 – the first international chamber of commerce in the country.

Since 2003, Australia has provided duty-free and quota-free access for Lao goods exported to Australia. Australia continues to support reforms that improve the business environment in Laos, particularly through our development cooperation program.

People-to-people links

People-to-people links between Laos and Australia are an important part of the relationship. These links are founded on education, tourism and culture. At the time of the 2021 national census, more than 17,000 people in the Australian community identified as having Lao ancestry. In 2023, there were 2,960 short-term arrivals from Laos, with 5,570 Australians visiting Laos during the same period. Australia is a favoured destination for Lao students studying abroad. In 2024, 1,083 Lao students were studying in Australian educational institutions including 81 Australia Awards scholars. Australia Awards have supported more than 1,400 Lao people to develop their skills and knowledge through tertiary study in Australia and contribute further to the development of Laos.

Human rights

Australia and Laos have held regular bilateral human rights dialogues since 2006. These provide a forum for open and constructive discussion of human rights issues of interest to both countries. Reinforcing the bilateral dialogue, the Australian Government provides capacity-building support to Laos under a Human Rights Technical Cooperation Program. This supports Laos' engagement with international human rights processes like the Universal Periodic Review and implementation of international human rights instruments.

Defence and Security

The Department of Home Affairs and the Australian Border Force (ABF) support Laos to strengthen its border capabilities to disrupt transnational organised crime, including human trafficking, people smuggling, and the movement of illicit drugs and precursors. Through capacity-building projects, the Department of Home Affairs and the ABF deliver English-language, passenger risk assessment and document examination training to Lao immigration, customs and drug control officials. To strengthen Laos' ability to combat security and border challenges, the Department of Home Affairs and the ABF also provide expertise and technical assistance to enhance vessel search capabilities, IT systems and immigration law awareness.

Australia and Laos signed an MOU on Defence Cooperation in September 2022, formalising existing cooperation. Areas for cooperation include visits, education and training, peacekeeping, military medicine, and humanitarian assistance and disaster relief. Australia established a resident Defence Attaché in Vientiane in October 2021.