The Government of Lao PDR, Australia, and the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) have launched the Laos-Australia Investment Facilitation and Transformation for Economic Resilience (LIFT 4 Laos) program.
The AUD2.1 million program, funded through the Mekong-Australia Partnership (MAP), aims to strengthen Lao PDR's capacity to attract high-quality foreign direct investment (FDI), promote sustainable economic development, increase resilience to external shocks, and enhance regional cooperation.
Building on longstanding collaboration between ESCAP, the Australian Embassy in Lao PDR, and the Investment Promotion Department (IPD), LIFT 4 Laos will deliver a comprehensive approach that combines institutional capacity building, development of concrete investment promotion tools and investment-ready projects, establishment of effective systems for investor targeting and facilitation, and strengthened integration of Lao PDR into ASEAN's investment networks and value chains.
"Today, we celebrate not just the launch of a program, but the deepening of a vital partnership - a partnership between the Lao PDR, our esteemed development partner Australia through the Department of Foreign Affairs and Trade, and ESCAP. This collaboration is a clear indication to our shared vision and commitment to unlocking Laos's vast economic potential toward green growth and sustainability," said Bountheung Douangsavanh, Vice Minister, Lao PDR.
"Australia is proud of our enduring partnership with Laos. A key pillar of our partnership is economic, trade and investment cooperation. I am pleased Australia can further deepen our partnership in economic development through this new partnership, supported by Australia through the Mekong-Australia Partnership, with the IPD" said Benita Sommerville, Chargé d'Affaires, Australian Embassy in Lao PDR.
"Attracting high-quality investment is critical to Laos' sustainable growth, bringing in technology, skills and standards that lift productivity and create long-term jobs. It helps diversify the economy and ensures that development benefits communities, not just company balance sheets."
LIFT 4 Laos builds on a portfolio of collaboration between ESCAP and the Government of Lao PDR, including the development and implementation of the ASEAN Regional Investment Promotion Action Plan, as well as the successful organisation of the ASEAN Investment Forum 2024 also funded by Australia, which took place in Vientiane during Lao PDR's ASEAN Chairmanship.
"This partnership represents a timely and strategic effort to strengthen the country's ability to unlock high-quality investment. Attracting such investment demands targeted strategies, strong institutions and - above all - genuine collaboration." said Armida Salsiah Alisjahbana, United Nations Under-Secretary-General and Executive Secretary of ESCAP.
"The LIFT 4 Lao initiative will deliver targeted capacity building, institutional system development, and stronger regional integration. ESCAP is honored to be partnering with Government of Lao PDR and the Government of Australia to unlock the investment required to foster more resilient, inclusive, and sustainable growth."
This partnership comes at a critical time for Lao PDR. High-quality FDI offers a pathway for the country to strengthen its macroeconomic situation, not only as a source of external financing, but also as a driver of public revenue, job creation, and economic diversification.
The LIFT 4 Laos program will support Lao PDR in advancing its national development priorities by strengthening the capacity of national and provincial institutions to promote and facilitate quality investment. In addition to the IPD, the program will work closely with the provincial Boards of Investments to ensure nationwide understanding and consistent application.
A key focus will be the development of a targeted investment promotion strategy and tools tailored to Lao PDR's priority sectors, including sustainable mining and critical minerals. By fostering stronger regional cooperation and aligning with ASEAN's investment frameworks, the project will help position Lao PDR as a competitive investment destination within regional value chains.
LIFT 4 Laos supports Lao PDR's vision of a more resilient, inclusive, and sustainable economy by charting a new course for investment-one grounded in quality, sustainability, and deeper regional integration. The initiative provides a platform for high-impact collaboration across investors, development partners, and government institutions.
