ECONOMIC DEVELOPMENT PLAN (2016–2020)

1 8th FIVE-YEAR NATIONAL SOCIO- ECONOMIC DEVELOPMENT PLAN (2016 2020)(Officially approved at the VIIIth National Assembly s Inaugural Session, 20 23 April 2016, Vientiane)Ministry of Planning and Investment June 2016 Lao People s Democratic RepublicPeace Independence Unity ProsperityMinistry of Planning and Investment June 20168th FIVE-YEAR NATIONAL SOCIO- ECONOMIC DEVELOPMENT PLAN (2016 2020)(Officially approved at the VIIIth National Assembly s Inaugural Session, 20 23 April 2016, Vientiane)FOREWORDThe 8th Five-Year National Socio- ECONOMIC DEVELOPMENT Plan (2016 2020) 8th NSEDP is a mean to implement the resolutions of the 10th Party Conference that also emphasizes the areas from the previous plan implementation that still need to be achieved.

2 The Plan also reflects the Socio- ECONOMIC DEVELOPMENT Strategy until 2025 and Vision 2030 with an aim to build a new foundation for graduating from LDC status by 2020 to become an upper-middle-income country by 2030. Therefore, the 8th NSEDP is an important tool central to the assurance of the national defence and DEVELOPMENT of the party s new , the 8th NSEDP is a result of the Government s breakthrough in mindset. It is an outcome-based plan that resulted from close research and, thus, it is constructed with the clear DEVELOPMENT outcomes and outputs corresponding to the sector and provincial DEVELOPMENT plans that should be able to ensure harmonization in the Plan performance within provided sources of funding, including a government budget, grants and loans, domestic and foregin private investments, and investments in the financial system.

3 The Plan has also complemented the monitoring and evaluation framework to keep track of implementation progress, which can be a reference for all stakeholders to support, monitor and evaluate the implementation within their domain in each period, especially to support reporting on the progress of the annual, mid-term and end-of-term implementation by achievements, weaknesses, pending issues and challenges that need to be improved and adjusted under the updated Capital, 1 June 2016Dr. Souphanh Keomixay Minister of Planning and InvestmentContentsFOREWORD iiPART I 7th FIVE-YEAR SOCIO- ECONOMIC DEVELOPMENT PLAN (2011 2015) IMPLEMENTATION REPORT 21.

4 TARGETS AND DIRECTIONS OF THE 7th NSEDP (2011 2015) 22. INTERNATIONAL AND DOMESTIC CONTEXT Global and Regional Context Domestic Context 33. KEY MACROECONOMIC ACHIEVEMENTS OF THE 7th NSEDP IMPLEMENTATION Macroeconomic Achievements ECONOMIC Growth Inflation Fiscal and Monetary Policy Management Money Supply (M2) Foreign Currency Reserves Macro balance Investment for DEVELOPMENT State Budget Balance Import Export Labour and Employment Rural DEVELOPMENT and Poverty Reduction Sector Achievements ECONOMIC Sector DEVELOPMENT Social DEVELOPMENT Sustainable DEVELOPMENT , Environmental Protection and Natural Resource Management Enterprise DEVELOPMENT Implementation of the Millennium DEVELOPMENT Goals (MDGs)

5 Regional and Local DEVELOPMENT Public Sector DEVELOPMENT Implementation of Building province as a strategic unit, district as a strong comprehensive unit and village as a DEVELOPMENT unit National Defence Security International and Regional Cooperation Summary of Sector Achievements and Challenges Summary of Achievements Outstanding Issues 7th NSEDP Lessons Learnt to be Applied to 8th NSEDP Design 76 PART II 81 8th NSEDP (2016 2020) 814.

6 CONTEXT OF 8th NSEDP Favourable Environment Regional and International Context Domestic Context Anticipated Challenges Regional and International Context Domestic Context Population Policy Issues Sustainable DEVELOPMENT LDC Graduation 855. LONG-TERM PLANS: VISION 2030, STRATEGY 2025 AND MAIN DIRECTIONS FOR 2016 2020 Vision 2030 Ten-year Socio-economicDevelopment Strategy (2016 2025) Key Government Direction for the 8th NSEDP (2016 2020) 876.

7 OVERALL OBJECTIVE, OUTCOMES AND OUTPUTS OF THE 8TH NSEDP Overall objective and objective-Level Performance Indicators and Targets Outcomes of the 8th NSEDP (2016 2020) Summary of Outputs Required to Achieve Each Outcome Outcome 1 Outputs Outcome 1, Output 1: Ensuring Sustained and Inclusive ECONOMIC Growth Outcome 1, Output 2: Macroeconomic Stability Outcome1, Output 3: DEVELOPMENT Planning and Budgeting are Aligned Outcome1, Output4: BalancedRegional and Local DEVELOPMENT Outcome1, Output5: Improved Public/Private Labour Force Capacity Outcome1, Output6: Develop Entrepreneurs, technical experts and professionals Outcome 1, Output7.

8 Regional and International Cooperation and Integration Outcome 2 Outputs Outcome 2, Output 1: Improved Living Standards through Poverty Reduction using the 3-Builds Directions Outcome2, Output2: Food security Ensured and Malnutrition Reduced Outcome 2, Output 3: Universal Access to Quality Education: Outcome 2, Output 4 Universal Access to QUALITY Health Care Services Outcome2, Output 5: Improvement of and Access to Social Protection Outcome 2, Output 6: Protection of national Traditions and Cultures Outcome 2, Output 7: Maintain Political Stability, Social Peace, Order, Justice and Transparency Outcome 3 Outputs Outcome 3, Output 1: Environmental Protection and Sustainable Natural Resources Management Outcome 3, Output 2: Prepare to Cope with the Disaster Risks and Impacts from Climate Change Outcome 3, Output 3.

9 Reducing the Instability of Agricultural Production Caused by Disaster Impact Priority Cross-Cutting Outputs Enhance Effectiveness ofthe Public Governance and Administration Promote Local Innovation and Utilization of Science, Technology and Telecommunications and Management and Application of ICT Promote and Develop Women, Juveniles and Young People 153 PART III: 8th NSEDP IMPLEMENTATING MEASURES 1647.

10 POLICIES 1648. IMPLEMENTING MEASURES OF THE 8th NSEDP (2016 2020) Macroeconomic Framework Financing Plan Revenue and Expenditure Management Production Transit Services and Logistics Science and Technology Application Promotion of Small and Medium-Sized Enterprises Capacity Building 1689. ROLL-OUT OF 8th NSEDP 16910. 8th NSEDP MONITORING AND EVALUATION Key Elements of The 8th Nsedp M&E System Monitoring and Evaluation 170 ANNEXES174 184186187 Annex 1: 8th NSEDP Logical Framework Annex 2: 7th NSEDP Achievement Figures Annex 3: Main Targets Main Targets Of The 8Th NSEDP (2016-2020) Annex 4: Poverty Rate, Poverty Gap And Severity Index, Gini Coefficient Annex 5: Glossary Of Terms 189 LIST OF TABLEST able 1:Comparison between GDP Growth Rate of each Fiscal Year with the 7th NSEDP Targets (2011 2015) 4 Table 2: Gross Domestic Product (GDP) per Capita 5 Table 3.