Laos 20240103

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

Jan 03, 2024

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Headlines:

Redefining Human Development: Asia-Pacific's Path in a Turbulent Era

Energy and Mining Strong Through 2023

Tourism Review 2023: A Remarkable Revival

Growth Plans for 2024 to Include Infrastructure

Russian Language Education and Cultural Exchange

Government to Reassess Mining Operations

Inflation Reduction Goals for 2024

Jakarta Post Opinion: Laos Takes ASEAN Helm

Laos to Fill Thailand's Growing Labor Demand

Thai Cannabis Drinks Cross Borders into Laos

Redefining Human Development: Asia-Pacific's Path in a Turbulent Era

The 2024 Regional Human Development Report, launched in Lao PDR, reveals an urgent need for new development directions in the Asia-Pacific region. Despite past successes in poverty reduction and human development, persistent inequalities, and escalating disruptions from climate change, pandemics, and socio-political factors demand transformative approaches. The report highlights the necessity to modernize growth strategies, fostering economic growth that generates quality jobs and enhances human development. It emphasizes addressing governance and reform politics to actualize change, aligning with the region's aspirations for a more equitable, sustainable future.

Key points

The document emphasizes the need for change in Asia and the Pacific to achieve sustainable development goals.
It highlights the gap between current progress and aspirations, as well as the high levels of human insecurity in the region.
The document emphasizes the importance of putting people first, promoting equity, and revisiting economic growth strategies.
It also emphasizes the need to strengthen state capacities and improve governance.
The document provides policy suggestions for various key areas and emphasizes the importance of fostering the spirit of change through political will, collaborative leadership, and civic engagement.

Read more: UNDP Laos (Report Launch), UNDP Asia-Pacific (Report Insights), UNDP (Report [PDF])

Energy and Mining Strong Through 2023

In 2023, Laos' energy and mining sector saw a 27% increase in production, amounting to nearly 90 billion Lao kip (US$4.37 million). This growth, shared at the Ministry of Energy and Mines' annual meeting, has substantially contributed to the country's socio-economic development. The completion of five power plants, including a hydropower plant and four solar energy projects, has enhanced electricity generation and improved living conditions, with 95.27% of households now having access to electricity.

Tourism Review 2023: A Remarkable Revival

In 2023, Laos experienced a revival in its tourism sector, surpassing its target of attracting 1.4 million international visitors. The country welcomed over 2.4 million foreign tourists in just nine months, a nearly three-fold increase from the previous year. Contributors to this surge included Thailand, Vietnam, China, South Korea, and the United States. This success was helped by a series of cultural events and the opening of the Laos-China Railway, which greatly supported connectivity and improved visitor numbers. Luang Prabang, recorded a 121% increase in tourist arrivals, while Vang Vieng and Bokeo Province also reported substantial growth. Despite these triumphs, Laos faces challenges like road maintenance and tourist safety (more in the next article). Looking ahead, the “Visit Laos Year 2024” campaign aims to attract 4.6 million visitors.

Growth Plans for 2024 to Include Infrastructure

The government has declared that it is focusing on tourism and infrastructure improvements to overcome economic challenges in 2024. The often discussed "Visit Laos Year 2024" campaign of course is being held up as a tentpole of the effort. More interestingly, however, is the declaration of support for upgrades in transportation and addressing the labor shortage in hospitality. Facing issues like road conditions, labor migration for higher wages, and a depreciating currency, strong action is needed. Despite these challenges, there has been a significant slowdown in the growth of inflation and a tremendous amount of optimism around the ASEAN Chairmanship 2024.

Russian Language Education and Cultural Exchange

The "Russian Language in Asia" event held in Vientiane, focused on professional development in Russian language education. Supported by the Russian Center of Science and Culture, the Department of Russian Language of Laos, and the Center of Open Education in the Russian Language, and others, the event included lectures, masterclasses, and language proficiency tests for teachers and students. It culminated in a cultural festival featuring Russian literature, music, and cuisine. Post-event, educational materials were distributed to local institutions, reinforcing Laos-Russia educational and cultural ties. Of course, Russia has a long-standing relationship with Laos, and at one time Soviet aid constituted the majority of foreign assistance received by Laos.

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