Government Embraces AI and Big Data to Modernize Tax Systems
The Government of Laos is accelerating its digital transformation efforts by integrating Big Data and Artificial Intelligence (AI) into public finance systems. In a move to enhance transparency, accuracy, and efficiency in revenue collection, the Ministry of Technology and Communications has signed a Memorandum of Understanding (MOU) with HINGOM VINA Corporation to jointly study the feasibility of a digital revenue management system.
The initiative aims to support the country’s transition to data-driven governance by implementing systems that can track, assess, and forecast revenue collection in real time.
One-Year Feasibility Study to Explore Build-Operate-Transfer Model
The MOU covers a one-year feasibility study to determine the technical, operational, and economic viability of the system. If successful, the project may be implemented under a Build-Operate-Transfer (BOT) model, with initial investment in infrastructure and software provided by HINGOM VINA Corporation.
The system under review would apply AI-powered analytics to streamline data management, detect anomalies, and ensure better tax compliance.
Aligning with Laos’ 2021–2025 National Development Plan
This move complements broader government efforts under the 9th National Socio-Economic Development Plan and the Tax Strategy Development Plan (2021–2025). These strategies focus on digital public finance reform, reducing reliance on external debt, and improving domestic resource mobilization.
It is also aligned with the Domestic Resource Mobilization Modernization (DRMM) Project, supported by the Asian Development Bank, which includes taxpayer service portals, e-invoicing solutions, and a data warehouse for enhanced decision-making.
Human Capacity Building Embedded in Digital Shift
Beyond technology, the project also emphasizes building local digital capacity. The partnership includes knowledge transfer mechanisms aimed at equipping Lao government personnel with the skills needed to manage and operate advanced digital infrastructure.
As part of broader reforms, the government has also initiated the creation of a national tax training center, which will institutionalize training for officials and ensure long-term sustainability of the new systems.
Toward a Transparent and Digitally-Enabled Fiscal Future
By taking bold steps to modernize its revenue systems, Laos is laying the groundwork for a more efficient, transparent, and accountable public sector. Digital tools will not only improve immediate revenue performance but will also enhance fiscal policy formulation and monitoring in the long run.
With a solid roadmap and international partnerships in place, Laos is moving toward a future where technology underpins public trust and financial sovereignty.
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