Nurse greeting patients at a clinic in Lao PDR.
In the face of a myriad of challenges, including COVID-19 and other disease outbreaks, Lao PDR has been able to achieve and maintain significantly improved health indices. However, the country faces future risks that could impede progress, including increased cross-border exchanges, climate change and noncommunicable diseases (NCDs) related to changing lifestyles. NCDs are estimated to account for 60% of total deaths in Lao PDR and have become the major disease burden for those over 40.
The greatest challenge emerging during COVID-19 recovery is health financing. Lao PDR has sustained robust economic growth since 2010 and aims to graduate from Least Developed Country status by 2026. Consequently, many institutional donors have planned to gradually phase out support as national contributions increase.
However, a high debt burden and inflation have left government fiscal space extremely limited – with reductions in budget across all sectors including health since 2020. GDP growth slowed from 5.5% in 2019 to 0.5% in 2020 and 3.8% in 2022. Inflation rose from less than 2% in February 2021 to 38.46% in November 2022.
With demographic, epidemiological and economic transitions underway, strengthening health system resilience to meet current and future health needs requires smart and strategic investments.
Results
- Key health strategies, policies and plans have been developed and updated, including the Health Sector Reform Strategy, the Health Financing Strategy, the NHI Strategy, the Digital Health Strategy and the in-progress HRH Development Strategy.
- Sector-wide coordination mechanisms have been established and remain active.
- A substantial evidence base for health financing and access to health services has been developed, via annual National Health Accounts Report since 2011, and analyses of financial protection and catastrophic health expenditure. These allow rational analysis and determination of costs, budget allocations, and adjustment of provider payment rates under NHI.
- An integrated health management system has been established, integrating the information systems of almost all public health programmes.
- Regulatory systems for medicines and medical products, and HRH, have been strengthened, including enhancing registration for medicines and implementing a health workforce licensing and registration system.
- Tobacco control legislation has been developed and implemented, in alignment with the WHO Framework Convention on Tobacco Control, including Lao PDR becoming one of the few countries to ban electronic smoking devices.
Our partners
The Government of the Republic of Korea through the Ministry of Health and Welfare and the Korea Foundation for International Healthcare (KOFIH)
The Government of Luxembourg through Luxembourg Aid and Development
The Government of the United States of America through USAID
The European Union
Gavi, the Vaccine Alliance
The Global Fund to Fight AIDS, Tuberculosis and Malaria
UHC2030