On this World No Tobacco Day, we commend the Government of Lao PDR for its bold and sustained leadership in tobacco control. The past few years have marked a pivotal period for tobacco control in Lao PDR. In 2021, amendments to the Law on Tobacco Control strengthened packaging and advertising restrictions and banned electronic cigarettes, placing Lao PDR among more than 40 countries that have banned these products to prevent a new generation of nicotine addiction. Building on this progress, in May 2024, the Minister of Health approved a regulation mandating plain packaging for all cigarette products, making Lao PDR the 25th country worldwide to adopt this life‑saving measure. Developed with support from WHO and the Secretariat of the WHO Framework Convention on Tobacco Control, the regulation introduced standardized designs for cigarette packs along with new graphic health warnings. Following this, orientation sessions were conducted with stakeholders across sectors to facilitate implementation, with a compliance deadline of August 2025.
Despite this progress, implementation has not been without challenges. Since the adoption of the plain packaging regulation, enforcement has been delayed by nearly a year, following repeated requests from the tobacco industry to postpone compliance. Such efforts weaken this important public health measure and underscore the importance of safeguarding tobacco control from tobacco industry interference, in line with Article 5.3 of the WHO Framework Convention on Tobacco Control.
Tobacco industry interference also persists through indirect advertising and promotion, including favorable media coverage and sponsorship of educational institutions. Such practices are inconsistent with Article 13 of the WHO Framework Convention on Tobacco Control, which requires a comprehensive ban on all forms of tobacco advertising, promotion and sponsorship, including indirect and corporate social responsibility activities. They also run counter to Article 5.3, which obliges governments to protect public health policy from tobacco industry influence. Even when framed as information or sponsorship, these activities function as marketing, normalize the tobacco industry’s presence, and risk undermining tobacco control—particularly among young people. Continued vigilance and enforcement are therefore essential.
Tobacco industry interference has also taken a structural form through constraints on tobacco taxation. The 2001 Investment License Agreement (ILA) has capped excise tax rates and granted special exemptions, preventing the government from implementing stronger tobacco tax policies and keeping Lao cigarette prices among the lowest in ASEAN. This has undermined public health efforts and prevented the collection of significant resources which could be directed to health, education, and social protection. The Southeast Asia Tobacco Control Alliance estimates that the government missed almost US$143 million in foregone tax revenue from tobacco between 2002 and 2019, while a 2024 World Bank analysis projects future annual losses of at least US$24.5 million if the ILA’s provisions continue.
We strongly commend the government’s decisive and forward-looking decision, announced in November 2024, not to renew the ILA beyond its expiry in December 2026. This marks a critical step toward restoring policy space for effective tobacco taxation and safeguarding public health. It also reflects a clear commitment to align national policies with national laws on investment promotion and on tobacco control, and Lao PDR’s obligations under the WHO Framework Convention on Tobacco Control. Maintaining this course will protect these gains and ensure that future policy decisions remain firmly guided by public health and development priorities, free from undue influence.
These policy choices and implementation timelines matter because the burden that tobacco places on society is substantial. The WHO estimates that over 27% of Lao adults used tobacco in 2022 (45% of men and 9% of women). Each year, tobacco use claims over 6,700 lives in Lao PDR—more than 17 people every day—and imposes an economic burden of 3.6 trillion kip annually, equivalent to 2.3% of GDP. Among youth aged 13–15 in 2024, 11.3% were using some form of tobacco, with nearly one in ten students reporting e-cigarette use.
Experience from other countries shows that strong tobacco control measures which prioritize public health can deliver measurable benefits. In the Philippines, major tobacco tax reforms from 2012 removed structural advantages for the tobacco industry and applied excise taxes more consistently, contributing to increased government revenue and in turn, the expansion of health insurance coverage, particularly for low‑income households. In Australia, the implementation of plain packaging was associated with increased attempts to quit tobacco, as well as reduced smoking uptake among young people.
To fully realize the benefits of recent tobacco control milestones, we respectfully urge the Government to ensure that:
- No preferential tax treatment, exemptions, or special arrangements are maintained or reintroduced for any tobacco company after the ILA expires;
- Plain packaging is implemented and enforced as adopted, without further extensions or delays; and
- Public health and fiscal policy remain strictly free from tobacco industry interference, in line with Article 5.3 of the WHO Framework Convention on Tobacco Control.
Tobacco control is not only a health issue—it is a development imperative. As Lao PDR prepares for graduation from Least Developed Country status and navigates lower official development assistance flows, strengthening domestic resource mobilization and protecting public health are more important than ever.
We reaffirm our commitment to support the Government of Lao PDR in implementing its tobacco control agenda. No Lao child should have to grow up inhaling smoke, and no Lao family should be impoverished by tobacco-induced disease. Together, we can build a healthier, more prosperous future for all.Authors: Bakhodir Burkhanov, United Nations Resident Coordinator to Lao PDR, Dr Timothy Armstrong, WHO Representative to Lao PDR, Martine Thérer, UNDP Lao PDR Resident Representative, and Khwima Nthara, World Bank Country Manager for the Lao PDR.