European Partners in Lao PDR (EU, Finland, France, Germany, Hungary, Ireland, Luxembourg, Switzerland) launched their Team Europe strategy for Lao PDR 2021-2025 for a total indicative budget of 550 Million Euros. This strategy, approved in November 2021, will focus on three priority areas: Green and Inclusive Economy, Human Capital, Good Governance.

Taking into account the foreseen graduation of Lao PDR from the category of Less Developed Countries (LDC) and the new strategic objectives of EU external action, future EU cooperation in Lao PDR will follow a transformative approach, moving to a partnership aiming at strengthening trade and investment between EU and Lao PDR, especially in green areas, supported by enhanced skills and improved governance.


Team Europe supported Lao PDR in the response to the COVID-19 crisis by co-financing testing capacities, medical equipment, quarantine centres, campaigns and digital solutions for continued learning. In addition, the EU contributed directly to support the Government’s response through an increase of its budget support for education and nutrition (EUR 42.9 million of budget support disbursed in 2021).

The CEGGA (Citizen Engagement for Good Governance, Accountability and Rule of Law ) project, co-financed by the EU, Germany and Switzerland, has significantly improved the environment for Non-profit associations (NPAs) in Lao PDR. For instance, key achievements include a facilitated registration process and an improved organisational capacity, enabling to attract and manage funding support. As a consequence, multiple NPAs were able to receive small grants to implement development projects in various sectors.