Based on the development needs of upgrading the economy and standardizing state-owned asset management, Laos continues to deepen the track of state-owned enterprise reform, breaking through the bureau with audit supervision, and promoting the state-owned economy to move towards a new stage of transparency, standardization, and sustainability.

Sign an agreement to deepen audit cooperation

Laos has recently made significant breakthroughs in the field of state-owned enterprise reform. Recently, the State owned Enterprise Reform Commission of Laos and the National Audit Office officially signed a cooperation agreement in Vientiane, aiming to expand the coverage of state-owned enterprise audits, enhance the transparency of corporate financial disclosure, and lay a solid foundation for the long-term and stable development of state-owned enterprises and the establishment of government credibility. This agreement was jointly signed by representatives of the State owned Enterprise Reform Commission, Jiqiao Zhantabili, and Deputy Director of the National Audit Office, Benle Tiewensa. State owned enterprise reform commissioners, department heads, and members of the board of directors of state-owned enterprises from various ministries and commissions attended the signing ceremony. According to the agreement, both parties will establish a normalized official cooperation mechanism, carry out regular supervision and verification of state-owned enterprises and special audits, ensure transparency and efficient promotion of various businesses, optimize information sharing models, and eliminate data duplication and statistical problems.

Jiqiao Zhantabuli stated that state-owned enterprise reform is the core focus of Laos' efforts to build a stable, efficient, and sustainable market-oriented economy. He emphasized that improving the financial accounting management system is a key measure to enhance the transparency of enterprise operations, implement responsibility supervision, and strengthen social credibility. A standardized audit system and financial standards are important guarantees for the high-quality development of state-owned enterprises. The lack of a sound audit and financial system will seriously constrain the process of high-quality development of state-owned enterprises.

Sort out the current situation and identify the shortcomings of reform

According to statistics, there are currently 168 state-owned enterprises in Laos, with equity structures divided into three categories: 102 are wholly state-owned enterprises, 13 are state-owned enterprises with absolute control, holding 51% -99% of the shares, and the remaining 53 are state-owned enterprises with less than 51% of the shares. According to data from the Reform Commission, the operational performance of state-owned enterprises in Laos was significant in 2024, with a total revenue of 171.36 trillion kip and a net profit of 3.65 trillion kip for the year, doubling the year-on-year growth rate from 2023, with an increase of 108%.

Jiqiao admitted that the financial accounting work of state-owned enterprises in Laos has gradually moved away from the extensive mode and towards standardization and normalization, but the existing shortcomings are still prominent. At present, among the 168 state-owned enterprises in China, only 72 have issued formal audit reports, accounting for less than 43%. More than half of the enterprises have not completed audit filing, highlighting the urgency of strengthening the supervision of state-owned enterprise audits. He stated that deepening regular cooperation with the National Audit Office can effectively rectify the chaos of state-owned enterprise fund loss and inefficient borrowing, and comprehensively build a foundation for transparent and standardized development of state-owned enterprise operations.

System layout promotes long-term reform

At the level of institutional mechanism construction, the Laotian government has completed the transfer of state-owned enterprise management functions, smoothly transferring the jurisdiction of the original Ministry of Finance to the State owned Enterprise Reform Commission, and at the same time recruiting professional talents to enrich the reform work team. At present, the organizational system of state-owned enterprise reform has been fully extended to various ministries and local provinces and cities, with dedicated office offices established in the General Office of the Party Central Committee, and the organizational guarantee system is becoming increasingly perfect. At the same time, Laos has completed the ten-year strategic plan for state-owned enterprise reform from 2026 to 2035 and the corresponding five-year implementation plan. Special laws and regulations have been introduced to provide institutional support for state-owned enterprise audit supervision and reform implementation. The assessment standards for the appointment of state-owned enterprise chairman and general manager are also being strengthened and improved. Keywords:Foreign construction news network,Southeast Asia engineering information network,Overseas engineering construction,Foreign engineering construction news

The Laotian government has focused on four strategic areas and identified four key state-owned enterprises, namely State Power Company, National Fuel Company, Lao Airlines, and Rural Development Bank, as priority reform targets, concentrating resources to improve quality and efficiency. Jiqiao stated that this round of reform aims to cultivate specialized and modern high-quality state-owned enterprises, fully leverage the functions of state-owned enterprises, and assist in national economic construction. In the future, Laos will continue to deepen reforms, strive to build an independent and stable national economic system by 2035, promote transparent and standardized operation of local state-owned enterprises, and have comprehensive strength to connect with the capital market and go public. The implementation of this audit cooperation is an important measure for Laos to cultivate the concept of transparent and responsible development of enterprises, and to lay a solid foundation for building a modern and sustainable state-owned economic system.Editor/Gong Ziwei