The parliament of Laos has voted to elect Deputy Prime Minister Sonexay Siphandone as the new prime minister to succeed Phankham Viphavanh, who has stepped down citing health concerns, according to local media.
Sonexay, one of the children of former president Khamtay Siphandone, thanked the National Assembly members who backed him by a vote of 149-2 and vowed to make the utmost efforts to fulfil his new duties.
“I will raise the revolutionary spirit to a higher level,” he was quoted as saying.
Phankham, 72, had offered his resignation to the National Assembly earlier on Friday, citing health concerns.
“When the country is faced with more difficulties, I’m not able to handle this hard duty anymore,” said the outgoing premier, who had held the office for only 18 months.
Laos has been hit by economic difficulties stemming from a sharp currency depreciation and surging inflation. The World Bank said in November that the country’s public debt could surpass 100% of gross domestic product by the end of 2022 and default risk is rising.
The country of 7.5 million people has seen widespread fuel shortages this year. That, along with the drop in the value of the kip, are the main forces pushing inflation, which peaked at 30% year-on-year in September.
The government is also seeking ways to reduce the debts of state-owned enterprises including Lao State Fuel Enterprise, and to reform the troubled state utility Electricite du Laos.