Lao People’s Democratic Republic makes notable progress in strengthening social protection

© Saiyadeth Sitthilath/ILO

© Saiyadeth Sitthilath/ILO

VIENTIANE, Lao People’s Democratic Republic (ILO News) – The Lao People’s Democratic Republic has made significant strides in strengthening its social protection system through the support of an ILO-UNDESA initiative.

A review of the achievements of the ILO-UNDESA Project “Accelerating Universal Social Protection for Achieving the SDGs and Ending Poverty through Strengthened Governance and Digital Transformation”, funded by the UN Peace and Development Trust Fund, took place in Vientiane on 15 May 2025.

Organised by the Ministry of Labour and Social Welfare (MLSW )and International Labour Organization (ILO), the review noted a number of key accomplishments that the project has contributed to. These include the reform of the Social Security Law, the strengthening of institutional capacities, the expansion of social protection coverage, and the enhancement of National Social Security Fund (NSSF) financing and investments.

The meeting also addressed challenges and bottlenecks to progress and discussed necessary changes to move forward with the National Social Protection Strategy 2020–25. This strategy serves as a guide for the work of all line ministries and development partners, from national to village level.

Vilayphong Sisomvang, Director-General of Planning and International Cooperation of MLSW, Ministry of Labour and Social Welfare, stated: “We are committed to making social protection a reality for all people in Lao PDR, progressively and gradually, as fiscal space becomes available and with support from all development partners and the private sector.”

© Saiyadeth Sitthilath/ILO

© Saiyadeth Sitthilath/ILO

Launched in 2023, the project has provided extensive technical assistance to the reform and strengthening of the NSSF. This included legal and financial assessments to inform amendments to the Social Security Law with a focus on strengthening governance, improving benefit adequacy and aligning provisions with international standards. A study was also carried out on diversifying NSSF investments while the capacity of the Social Security Investment Committee to develop diversification strategies and carry out risk management was strengthened.

“The Lao People’s Democratic Republic stands at a crucial moment in the development of its national social protection system as it explores necessary reforms to governance, financing and service delivery mechanisms. The ILO recognises the importance of building on the achievements made to date and is committed to supporting these efforts,” said Xiaoyan Qian, ILO Country Director for Thailand, Cambodia and the Lao People’s Democratic Republic.

Under the project, NSSF coverage in rural areas was expanded to 1,407 new members. To sustain outreach efforts after the project ends, 28 provincial and district officials were trained on conducting local awareness campaigns and supporting the national objective of increasing NSSF coverage to 50 per cent of the population by 2030.

As part of the project’s efforts to build local capacity, a pool of 28 master trainers from government organisations, social partners and civil society was created through a Training of Trainers (TOT).

© Mongkon Duangkhiew/ILO

© Mongkon Duangkhiew/ILO

Moreover, 78 provincial officials were trained to implement the National Social Protection Strategy, while 250 officials nationwide received training on monitoring the strategy and SDGs. One of the project’s notable achievements was the organization of the first-ever National Symposium on Social Protection in the country. Under the theme “Protecting Informal Workers and Rural Dwellers”, the event raised national awareness of social protection and fostered meaningful dialogue amongst over 200 stakeholders.

© Saiyadeth Sitthilath/ILO

© Saiyadeth Sitthilath/ILO

“The next two years will mark a crucial time for Lao PDR as it graduates from Least Developed Country (LDC) status while managing the impacts of recent economic crises and striving to protect its population. We want to sustain the efforts and achievements made so far to strengthen social protection by continuing to reinforce national institutions and increase government capacities at national and local levels, raise awareness among people, especially the youth and disadvantaged groups, and strengthen enforcement of policies and legislation,” Sisomvang added.