Lao PDR has made major progress in tobacco control over the past few years, with the government taking important steps to strengthen public health protections. Amendments to the Law on Tobacco Control in 2021 tightened packaging and advertising restrictions and banned electronic cigarettes, placing the country among more than 40 nations that have prohibited these products to prevent a new generation of nicotine addiction.
The country took another significant step in May 2024 when the Minister of Health approved a regulation requiring plain packaging for all cigarette products. This made Lao PDR the 25th country in the world to adopt plain packaging, a measure designed to reduce the appeal of tobacco products and strengthen health warnings. The regulation was developed with support from WHO and the Secretariat of the WHO Framework Convention on Tobacco Control and included standardized cigarette pack designs and new graphic health warnings.
Despite these achievements, implementation has faced delays. The enforcement of plain packaging has reportedly been postponed by nearly a year following repeated tobacco industry requests to delay compliance. The op-ed warns that such interference weakens public health policy and highlights the need to protect tobacco control measures from industry influence in line with Article 5.3 of the WHO Framework Convention on Tobacco Control.
The article also raises concern about indirect tobacco advertising and promotion in Lao PDR, including favourable media coverage and sponsorship of educational institutions. These practices are described as inconsistent with Article 13 of the WHO Framework Convention on Tobacco Control, which calls for a comprehensive ban on tobacco advertising, promotion, and sponsorship. Even when presented as information or social responsibility, such activities can normalize the tobacco industry and undermine tobacco control efforts, especially among young people.
A major structural challenge has been the 2001 Investment License Agreement, which capped excise tax rates and granted special exemptions to the tobacco industry. This agreement limited the government’s ability to implement stronger tobacco taxes and kept cigarette prices among the lowest in ASEAN. According to estimates cited in the article, Lao PDR lost nearly US$143 million in tobacco tax revenue between 2002 and 2019, while future annual losses could reach at least US$24.5 million if the agreement’s provisions continue.
The government’s decision, announced in November 2024, not to renew the Investment License Agreement after it expires in December 2026 is presented as a critical public health and fiscal milestone. Ending the agreement would restore policy space for stronger tobacco taxation, align national policies with tobacco control obligations, and help ensure that future decisions are guided by health and development priorities rather than industry influence.
The burden of tobacco use in Lao PDR remains severe. WHO estimates that more than 27% of Lao adults used tobacco in 2022, including 45% of men and 9% of women. Tobacco use causes more than 6,700 deaths each year in the country, equal to more than 17 deaths every day, and creates an annual economic burden of 3.6 trillion kip, or about 2.3% of GDP.
Youth tobacco use is also a growing concern. In 2024, 11.3% of students aged 13 to 15 were using some form of tobacco, and nearly one in ten students reported using e-cigarettes. These figures underline the importance of strong enforcement, especially measures that prevent tobacco and nicotine products from appealing to young people.
The article points to international examples showing that strong tobacco control can deliver measurable public health and economic benefits. In the Philippines, tobacco tax reforms helped increase government revenue and expand health insurance coverage, particularly for low-income households. In Australia, plain packaging was linked to increased quit attempts and reduced smoking uptake among young people.
The op-ed urges the Government of Lao PDR to ensure that no preferential tax treatment, exemptions, or special arrangements are maintained or reintroduced for any tobacco company after the investment agreement expires. It also calls for plain packaging to be implemented and enforced without further delays and for public health and fiscal policy to remain free from tobacco industry interference.
The central message is that tobacco control is not only a health issue but also a development priority. As Lao PDR prepares for graduation from Least Developed Country status and faces lower official development assistance, stronger domestic revenue mobilisation and public health protection are becoming more important. A tobacco-free future would help protect children, reduce preventable disease, prevent families from falling into poverty because of tobacco-related illness, and support a healthier and more prosperous Lao PDR.
