Press Releases
Grant Aid to the Lao People's Democratic Republic: Signing and Exchange of Notes on “the Economic and Social Development Programme”
February 6, 2026
On February 6 (same day local time), in Vientiane, the capital of the Lao People's Democratic Republic (Lao PDR), H.E. Mr. KOIZUMI Tsutomu, Ambassador Extraordinary and Plenipotentiary of Japan to the Lao People's Democratic Republic, and H.E Mrs. Phongsamouth ANLAVAN, Deputy Minister of Foreign Affairs of the Lao People's Democratic Republic, signed and exchanged notes for "the Economic and Social Development Programme" (project up to 900 million yen).
- Luang Prabang, a historic city in northern Lao PDR, was inscribed as a UNESCO World Heritage Site in 1995. Rapid population growth and increasing tourist arrivals in recent years have intensified transportation demand, while the absence of a public transportation system has led to traffic congestion, road accidents, and air and noise pollution, causing serious impacts on the daily lives of local residents.
- This programme aims to address traffic congestion and contribute to the sustainable tourism development of Luang Prabang by introducing an environmentally friendly and safety‑conscious public transportation system in the city center. The system will incorporate electric buses and an AI‑based bus location system manufactured by Japanese companies.
- In 2025, the bilateral relationship between Japan and the Lao PDR was elevated to a “Comprehensive Strategic Partnership.” This programme intends to promote cooperation in the tourism sector and to continue providing strong support for the Lao PDR's autonomous and quality economic growth under this Partnership.
(Reference) Basic Data on the Lao People's Democratic Republic
The country covers 240,000 square kilometers (about the same size as Japan's main island of Honshu) with a population of approximately 7.77 million people, and its gross national income (GNI) per capita is US$2,000 (2024, World Bank).