Lao PDR Hosts Workshop to Strengthen Social Protection and Health Insurance Systems

The workshop highlighted the importance of aligning Lao PDR’s social protection system with global best practices and ensuring that it can meet the country’s development goals.

Social protection is crucial for reducing poverty, stabilizing economies, and promoting inclusive development. This was the core message of a high-level workshop hosted in Vangvieng from March 24 to 26, 2025, organized by the International Labour Organization (ILO) in collaboration with the Social and Cultural Affairs Commission of the Lao National Assembly. The workshop focused on the implementation and financing of social protection and social health insurance policies, aiming to provide key decision-makers with the tools and knowledge needed to create universal and sustainable social protection systems in the country.

The event gathered a diverse group of participants, including members of the Lao National Assembly, Presidents of Provincial Assemblies, Vice-Ministers from key government ministries, and officials from the Lao Social Security Organisation, the National Health Insurance Bureau, and other related institutions. With the support of the ILO, UN agencies, and experts from Cambodia and Vietnam, participants were provided with analytical insights and best practices to help shape social protection systems in alignment with international standards.

In his opening remarks, H.E. Khambay Damlath, Vice President of the National Assembly of Lao PDR, emphasized the pivotal role the National Assembly plays in shaping effective policies and legislation for social protection. “The National Assembly plays the crucial role of shaping policies and legislation to ensure that social protection systems are comprehensive, sustainable, and inclusive,” he stated. “Through this workshop, we are deepening our understanding of social protection financing, legal frameworks, and governance, in alignment with international standards and the country’s development priorities.”

The workshop highlighted the importance of aligning Lao PDR’s social protection system with global best practices and ensuring that it can meet the country’s development goals. One of the central points discussed was the need for increased investment in social protection, as the country currently spends only 1.6% of its GDP on social protection—significantly lower than global and regional standards. Despite the existing policies, social protection benefits often fail to reach the most vulnerable segments of the population.

Bakhodir Burkhanov, the UN Resident Coordinator in Lao PDR, stressed the need for reform to make social protection systems more inclusive. “Lao PDR spends around 1.6% of its GDP on social protection. That’s much lower than regional and global standards. And the benefits don’t necessarily reach those who need them most. By learning from regional best practices and improving financial planning, we can create laws and systems that truly Leave No One Behind,” Burkhanov said, emphasizing the importance of joint efforts to achieve the United Nations Sustainable Development Goals (SDGs).

Participants also focused on enhancing the governance and financing of the National Health Insurance (NHI) system, which has the potential to significantly improve its efficiency. Marielle Phe Goursat, ILO Programme Manager, spoke about the importance of institutional reform, saying, “The NHI is at the dawn of an important institutional change that has the potential to significantly improve its efficiency, ultimately benefiting the entire population, although it will not address the financing gaps that remain a critical challenge for ensuring the long-term sustainability of the system.”

The workshop's sessions provided critical data and analytical tools that will help national stakeholders better understand the complexities of financing social protection, enhancing the effectiveness of governance structures, and reforming the country’s social security and health insurance laws. Discussions also revolved around the key role of national parliaments in overseeing social protection programs and their ability to enact reforms to ensure that these systems meet the needs of all citizens.

A significant portion of the discussions focused on the necessary reforms to the Law on Social Security and the Law on Health Insurance. The workshop explored how these reforms could promote universal coverage, enhance financial sustainability, and improve the administrative efficiency of the health insurance system. The session also examined the alignment of Lao PDR's social protection system with international standards, providing a comprehensive approach that addresses both the country’s legal and institutional frameworks.

The ILO’s ongoing support for Lao PDR was underscored by Loveleen De, ILO Programme Manager, who reiterated the organization's commitment to helping the country develop a strong, resilient, and inclusive social protection system. “ILO remains committed to supporting Lao PDR in building a strong, resilient, and inclusive social protection system,” De remarked. “We hope that the data, results of analytical studies, and experiences shared at this workshop will be useful in strengthening legislation and implementing reforms.”

This high-level event was part of the ILO-Luxembourg Project “Building Social Protection Floors: Support for Extending Social Health Protection in Asia” and the ILO-UNDESA project “Accelerating Universal Social Protection for Achieving the SDGs and Ending Poverty through Strengthened Governance and Digital Transformation.” These projects aim to extend social protection coverage and ensure that it is financially sustainable, inclusive, and equitable, contributing to Lao PDR’s goal of eliminating poverty and achieving broader development objectives.

By fostering dialogue, collaboration, and knowledge exchange, the workshop represented a vital step in ensuring that the Lao People's Democratic Republic can build a robust and effective social protection system, supporting the health and welfare of all its citizens, particularly the most vulnerable.