VIENTIANE, June 27 (Xinhua) -- Laos' Ministry of Technology and Communications is moving forward with plans to develop a national data center and government data exchange system, marking a significant milestone in the country's digital transformation journey.

The Lao Ministry of Technology and Communications and Phongsavanh Group Company Limited have signed a memorandum of understanding (MoU) to jointly conduct a feasibility study for the development of a national data center and government data exchange system, according to the ministry's report on Friday.

Under the agreement signed on Thursday, the ministry has authorized Phounphonnakhone Company Limited, a subsidiary of Phongsavanh Group, to carry out a six-month economic and technical feasibility study. The study will assess the project's location, infrastructure design, technical specifications, and overall system architecture. It will also explore the development of a national cloud and a secure government data exchange platform.

The ministry has underscored the importance of establishing a national data center that meets international standards, along with a secure data exchange system for the public sector. This infrastructure is seen as a critical foundation for advancing Laos into a fully digital era and for realizing the nation's long-term vision, strategic goals, and development plans for digital transformation.

This initiative holds great significance for the development of Laos' digital socio-economic system, supported by favorable domestic conditions for investment, including the country's strategic location as a regional connectivity hub and its low-cost energy resources.

This partnership represents a major step forward in public-private collaboration to advance Laos' technology and communications infrastructure, positioning the country to better compete on both regional and global stages.