Lao People’s Democratic Republic Peace Independence Unity Prosperity FIVE YEAR NATIONAL SOCIO-ECONOMIC DEVELOPMENT PLAN VIII (2016-2020) Ministry of Planning and Investment Vientiane Capital November24th2015 7th DRAFT – RTM EDIT Five Year National Socio-Economic Development Plan III (2016-2020) FOREWORD The Five-Year National Socio-Economic Development Plan VIII (2016-2020) (8th NSEDP) is a means of implementing the National Strategy on Socio-Economic Development until 2025 and Vision until 2030. The 8th NSEDP aims to: i) facilitate eligibility for graduation from the least developed country (LDC) status by 2020; ii) consolidate regional and international integration in the context of the launching of the Association of Southeast Asian Nations (ASEAN) Economic Community in 2015; iii) take further steps towards inclusive and sustainable industrialization and modernization and to enhance the well-being of the people and the prosperity of the country. The 8th NSEDP implements the People’s Revolutionary Party Resolution X. The 8th NSEDP has been designed as a results-oriented plan. The Plan’s overall objective derives from Party Resolution and Government directions, a thorough analysis of what has been achieved in the 7th NSEDP to date, the reasons for successes and the reasons for the challenges which remain. The core overall objective of the Plan is Lao PDR’s graduation from LDC status. To achieve this objective the 8th NSEDP has three outcomes, each with a set of performance targets which need to be achieved within the Plan period if the overall objective is to be achieved. The three outcomes are based on the three categories of assessment required for recognition as being eligible for graduation from LDC status. The design of the 8th NSEDP has identified 20 outputs, the performance targets of which must be achieved if the three outcomes are to be achieved. To achieve Outcome 1, seven of the output targets need to be met. For Outcome 2, seven outputs need to be met, while for Outcome 3, three outputs need to be met. Three additional cross-cutting outputs have been identified, the performance targets of which need to be achieved for the three outcomes to be reached. Broadly speaking, the core objective and three outcomes are national level measures, while the outputs are sector level. NOTE: The M&E Framework is currently in the final stages of preparation following extensive collaboration with line ministries and development partners. The final M&E Framework will be appended to the final version of the 8th NSEDP and the text of the Plan will be coordinated with the finally agreed indicators and targets of the M&E Framework: the main direction of the Plan will remain as presented in this draft of the 8th Plan. Five Year National Socio-Economic Development Plan III (2016-2020) CONTENTS PART I: 7TH NSEDP (2011-2015) – ACHIEVEMENTS AND LESSONS LEARNED .................... 2 1 TARGETS AND DIRECTIONS OF THE 7th NSEDP (2011-2015) .......................................... 2 2 KEY MACRO-ECONOMIC ACHIEVEMENTS OF THE 7th NSEDP IMPLEMENTATION 3 2.1 Economic Growth .................................................................................................................... 3 2.2 Inflation ................................................................................... Error! Bookmark not defined. 2.3 Fiscal and Monetary Policy Management ............................ Error! Bookmark not defined. 2.4 Investment ................................................................................................................................ 6 2.5 Public Investment ................................................................... Error! Bookmark not defined. 2.6 Grants and Loans ................................................................... Error! Bookmark not defined. 2.7 Domestic and Foreign Private Investment ........................... Error! Bookmark not defined. 2.8 Bank Credits ........................................................................... Error! Bookmark not defined. 2.9 Budget Balance ....................................................................... Error! Bookmark not defined. 2.10 Import-Export ........................................................................ Error! Bookmark not defined. 3 LABOR AND EMPLOYMENT ............................................................................................... 10 4 RURAL DEVELOPMENT AND POVERTY REDUCTION ................................................. 10 5 SECTOR ACHIEVEMENTS ................................................................................................... 11 5.1 Economic Sector Development ............................................................................................. 11 5.1.1 Agriculture and Forestry ........................................................................................................................ 11 5.1.2 Industry and Commerce ......................................................................................................................... 16 5.1.3 Energy and Mining ................................................................................. Error! Bookmark not defined. 5.1.4 Public Works and Transportation ........................................................................................................... 20 5.1.5 Post, telecommunication and communication ......................................... Error! Bookmark not defined. 5.1.6 Public Finance, Banking and Capital Market ......................................................................................... 22 5.1.7 Development of Specific and Special Economic Zones (SEZ) ............... Error! Bookmark not defined. 5.2 Social Development ................................................................................................................ 27 5.2.1 Education and Human Resource Development and Sports ..................... Error! Bookmark not defined. 5.2.2 Health and Nutrition................................................................................ Error! Bookmark not defined. 5.2.3 Labor and Social Welfare........................................................................ Error! Bookmark not defined. 5.2.4 Information, Culture and Tourism .......................................................... Error! Bookmark not defined. 5.2.5 Justice ..................................................................................................... Error! Bookmark not defined. 5.2.6 Population, Gender, Advancement of Women, Mothers and Children .................................................. 33 5.2.7 Adolescent and Youth development........................................................ Error! Bookmark not defined. 5.2.8 Science and Technology ......................................................................... Error! Bookmark not defined. 5.2.9 Promoting People’s Solidarity ................................................................ Error! Bookmark not defined. 5.2.10 Preventing Social Drawbacks ................................................................. Error! Bookmark not defined. 5.3 Sustainable Development, Environmental Protection and Natural Resource Management .................................................................................. Error! Bookmark not defined. 5.4 Enterprise Development ........................................................ Error! Bookmark not defined. 5.4.1 State-Owned Enterprise .......................................................................... Error! Bookmark not defined. 5.4.2 Small and Medium Enterprises (SMEs) .................................................. Error! Bookmark not defined. Five Year National Socio-Economic Development Plan III (2016-2020) 5.5 Implementation of the Millennium Development Goals (MDGs) ..... Error! Bookmark not defined. 5.5.1 MDG 1: Eradicate Extreme Poverty and Hunger .................................... Error! Bookmark not defined. 5.5.2 MDG 2: Achieve Universal Primary Education ...................................... Error! Bookmark not defined. 5.5.3 MDG 3: Promote Gender Equality and Empower Women ..................... Error! Bookmark not defined. 5.5.4 MDG 4: Reduce Child Mortality ............................................................ Error! Bookmark not defined. 5.5.5 MDG 5: Improve Maternal Health .......................................................... Error! Bookmark not defined. 5.5.6 MDG 6: Combat HIV/AIDS, Malaria and Other Diseases ..................... Error! Bookmark not defined. 5.5.7 MDG 7: Ensure Environmental Sustainability ....................................... Error! Bookmark not defined. 5.5.8 MDG 8: Develop a global partnership for development ......................... Error! Bookmark not defined. 5.5.9 MDG 9: Reduce the Impact of UXO in Lao PDR ................................... Error! Bookmark not defined. 5.6 Regional and Local Development ......................................................................................... 47 5.6.1 Northern Region ...................................................................................... Error! Bookmark not defined. 5.6.2 Central Region ........................................................................................ Error! Bookmark not defined. 5.6.3 Southern Region ...................................................................................... Error! Bookmark not defined. 5.7 Public Sector Development ................................................... Error! Bookmark not defined. 5.7.1 Legislative