VIENTIANE, May 28 (Xinhua) -- The Lao government is stepping up efforts to promote electric vehicles (EVs) through a range of measures aimed at accelerating the shift to EV adoption and strengthening the country's transition to clean energy.
According to a notice issued by the Prime Minister's Office on May 12, Laos will suspend imports of petrol- and diesel-powered vehicles until the end of 2026, effective June 1.
The policy aims to accelerate EV adoption, reduce fossil fuel dependence, and strengthen regulation of the automotive sector. Exemptions apply to select vehicles, including public transport, construction machinery, and project-related trucks.
To support the transition, authorities have instructed the development of a standardized EV pricing framework to prevent excessive price increases and market manipulation. Fully electric vehicles priced under 50,000 U.S. dollars will be exempt from excise tax, while higher-priced EVs and other alternative-energy vehicles remain under review.
The government also plans to expand charging infrastructure with support for private investment and tighten oversight of vehicle transactions through mandatory banking channels. Officials say these steps are intended to ensure transparency and support orderly market growth.
In parallel, the Lao government signed a memorandum of understanding in April with 27 public and private partners to promote nationwide electric vehicle adoption, as officials seek to reduce the impact of rising global fuel prices and strengthen the country's transition to clean energy. Under the agreement, partners will collaborate across four key areas, including vehicle supply, charging infrastructure, transport operations, and financing.
The initiative includes plans to develop charging and battery-swapping stations, establish a centralized digital platform to manage energy use and charging schedules, and introduce financial products to support businesses transitioning to electric fleets.
Lao authorities said the partnership will play a key role in advancing electric transport in the country. They added that the initiative is expected to reduce carbon emissions, lower fuel import costs, and improve transport efficiency through digital technologies. Officials also noted that the project could help Laos align with regional trends in sustainable development.
The Lao government has set a long-term target of a 30-percent EV penetration rate by 2030, as part of its broader clean energy transition strategy. ■