Laos 20231220

Mekong Memo Laos Weekly: Business, politics, finance, trade & legal news.

Dec 20, 2023

∙ Paid

Get the latest Southeast Asian business news delivered to your inbox every weekday with the Mekong Memo.

Choose to receive our free daily editions covering Cambodia, Myanmar, Laos, Vietnam, and Thailand individually or together: account settings.

The Memo is published each weekday for the country of your choice. Paid subscriptions receive full editions while free subscribers get top headlines.

Support us and unlock unlimited access by becoming a paid subscriber today to stay informed on emerging opportunities in Southeast Asia.

The Mekong Memo is proudly presented by:

Horton International offers reliable, effective solutions to recruiting and resourcing challenges for a diverse range of organizations, from small, privately held start-ups to leading Global corporations. With offices and experience throughout Southeast Asia, Horton International is your first choice for executive search in the region.

Click here to learn more.

Here is your Mekong Memo Laos for the week of December 20, 2023. Click on the link of our sponsor above, pay for a subscription, share with a friend or hit that reply button and tell us what you think.

Headlines:

Persistent Economic Challenges for 2024

Japan Summit Highlights Cooperation and Concerns

Seamless Tourism Vision for Mekong Region

Tourism in the Pandemic's Aftermath

Thailand-Laos-China HSR Project Set for 2028

Chinese Tourism Projects Transforming Laos' Landscape

Laos and Yunnan Partnership for Growth Expands

Eco-Friendly Urban Transport Initiative Embraced

ADB: Strengthening Food and Climate Security

Major Ivory Market Growing Amid Chinese Ban

Cultural Diplomacy Takes Center Stage

Persistent Economic Challenges for 2024

According to this article, the Lao economic situation remains challenging, with no quick resolution in sight due to structural issues inherent in its communist governance. Despite efforts by Prime Minister Sonexay Siphandone, who assumed office in December 2022, economic woes persist. The government's repeated measures to tackle inflation and economic crisis have yet to yield significant improvements. The problems are deep-rooted, involving administrative and fiscal issues, high national debt, poor revenue collection, and inefficient public expenditure. The government's narrative suggests that these issues are manageable with better central bank policies, but the reality points to the need for long-standing structural challenges that require more than short-term fixes.

Japan Summit Highlights Cooperation and Concerns

In a recent summit, Japanese Prime Minister Kishida met with Lao Prime Minister Sonexay, to enhancing bilateral relations and address regional issues. Kishida emphasized Japan's commitment to ASEAN, specifically Laos, in maintaining a rules-based international order and human dignity. He highlighted Japan's longstanding support in Laotian development across sectors and expressed interest in further cooperation in energy transition and decarbonization. The leaders also discussed regional affairs, including ASEAN's role in Myanmar's crisis, responses to North Korea, Russia's actions in Ukraine, and the Israel-Gaza situation. Both leaders agreed to continue their collaborative efforts on these each of these fronts.

Seamless Tourism Vision for Mekong Region

Regional leaders from Thailand, Vietnam, Laos, and Cambodia have proposed a collaborative effort to promote seamless tourism among their nations. This initiative, discussed during a summit in Tokyo, would eliminate the need for individual visas for travelers moving between these countries. The concept, specifically praised by Thai Prime Minister Srettha Thavisin, is hoped to stimulate regional tourism as the region struggles to recover after the pandemic. The proposal aligns with the "Visit Laos Year 2024" campaign, which seeks to attract more than 2.7 million international tourists (next article). This proposed international collaboration could involve a joint visa system or other measures to facilitate easier border crossings, improving the tourism experience and appeal across these Southeast Asian countries.

Read more: Laotian Times (Collaboration), Nation Thailand (Enhancement)

Tourism in the Pandemic's Aftermath

The Covid-19 pandemic severely impacted Laos' tourism industry, with a marked decline in both domestic and international travel. A recent World Bank report describes a drastic drop in domestic tourism from nearly 3 million in 2018 to 1.5 million in 2020, and an 83% decrease in international tourism in 2020 compared to the year prior. The pandemic led to widespread business closures and unemployment, particularly affecting women in tourism-related sectors. Despite the challenges, the industry is showing signs of recovery, with initiatives like the "Visit Laos 2024" campaign aiming to attract 2.4 million foreign visitors expected to generate substantial revenue.

Thailand-Laos-China HSR Project Set for 2028

The Nong Khai-Vientiane section of the Thai-Laos-China high-speed rail (HSR) project is expected to be completed by 2028. This 7.3-kilometer stretch, costing an estimated THB 3 billion (US$86 million), is currently in the feasibility study phase. Challenges such as land expropriation issues and UNESCO assessments have caused delays, but the project promises to significantly improve cargo and passenger movements between Thailand, Laos, and China.

Keep reading with a 7-day free trial

Subscribe to The Mekong Memo to keep reading this post and get 7 days of free access to the full post archives.