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| Chief Executive Officer of the Lao Bullion Bank, Dr Chanthone Sitthixay (left), and Deputy Minister of Finance, Mr Soulivath Souvannachoumkham (right), display the signed MoU documents, in the presence of senior officials from both sides, on April 2. |
Govt moves to create investment fund to strengthen economic stability
The government has taken the breakthrough steps towards the establishment of a national investment fund, marking a shift to more structured and professional management of national wealth to strengthen macroeconomic resilience and unlock state asset value.
The initiative was formalised on Thursday, the 2nd of April 2026 at the Suphattra Hotel, Vientiane with the signing of a Memorandum of Understanding between the Ministry of Finance and the Lao Bullion Bank to conduct a feasibility study on the fund’s establishment.
The signing ceremony was honored by the presence of the Deputy Prime Minister and Minister of Finance, H.E. Santiphab Phomvihane, and attended by senior government officials, including Deputy Minister of Finance Mr Soulivath Souvannachoumkham; Deputy Minister of Industry and Commerce Dr Chansaveng Bounyong; Deputy Minister and Deputy Chair of the Investment Promotion and Management Committee, Ms Phonevanh Outhavong; and Deputy Governor of the Bank of the Lao PDR (BOL) Mr Soulysak Thamnuvong, the executive management of the Lao Bullion Bank (LBB) along with representatives from other relevant entities and various distinguished guests.
The proposed fund is part of a broader plan to establish the National Sovereign Wealth Fund (SWF) which is also currently recognized as the Lao Investment Authority (LIA).
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| Director General of the Public Debt Management Department at the Ministry of Finance, Mr Vileth Kinnavong. | Chief Executive Officer of the Lao Bullion Bank, Dr Chanthone Sitthixay. |
The move marks a crucial step and a historic milestone that reflects the government’s intention to transition from conventional asset management towards a more systematic, transparent, and performance-oriented approach to national wealth management.
Under the proposal, the fund aims to enhance the management of state assets such as gold reserves, gold ore, gold bullion, national reserves, and other strategically important assets, with the aim of improving efficiency, ensuring transparency, and generating maximum sustainable returns while reinforcing economic stability.
Speaking at the signing ceremony, Director General of the Public Debt Management Department at the Ministry of Finance, Mr Vileth Kinnavong, stated that the LIA concept draws on international best practices from established sovereign wealth funds such as Singapore’s Temasek and Malaysia’s Khazanah Nasional.
The fund would operate through two main mechanisms: a Strategic Development Fund (SDF), focused on managing and generating returns from state-owned assets and strategic investments; and a Strategic Stabilization Fund (SSF), aimed at supporting liquidity management, reserve accumulation, and maintaining financial and monetary stability.
Chief Executive Officer of the Lao Bullion Bank, Dr Chanthone Sitthixay, further elaborated that initiative is envisioned to play a key role in transforming national assets into productive capital and supporting broader socio-economic development.
He noted that the fund could enable the utilization of gold as a financial guarantee for bond issuance to attract foreign investment, while helping to ease debt servicing pressures and improve government liquidity.
The initiative is also expected to strengthen investors’ confidence by promoting transparent and internationally compliant asset management practices, while helping to maintain the stability of the Lao kip.
In accordance to the implementation plan, the preparatory phase including the development of institutional structures, legal frameworks, and regulatory systems, is expected to take between eight and twelve months.
The creation of LIA is seen as a significant step in enabling Laos to integrate more deeply into international financial markets with progressively greater creditability.
The project reflects the government’s broader vision to strengthen the country’s wealth and economy by utilizing strategic key assets into productive and resilient capital sustainably and progressively.
By Times Reporters
(Latest UpdateApril 20, 2026)
