Laos 20240515: Impasse, Symbiosis, Stewardship

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

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Headlines:

Lao State Hollowed Out By Debt Crisis

President Touches Down in Russia

Crackdown on Illegal Foreign Currency Exchanges

Chinese Delegation Drops By for a Chat

Renewables Deal Inked with EA Thailand

New E-Commerce Platform for Ag Sales

Tighter Reins on Commercial Land Deals

VN-Laos Trade Sees Q1 Double-Digit Bump

Health Sector Shines at UN Meeting

Chinese Nationals Plugging Tourism Biz Gaps

OCK Eyes New Horizons in Laos

Eco-Friendly Initiatives Rolling Out

DP World Snaps Up Dry Port Operator

Hin Nam No Park Shoots for UNESCO Status

Lao State Hollowed Out By Debt Crisis

The government is fessing up: nearly half of the country's mining companies are falling short of industry standards or skirting regulations, but a lack of skilled technicians means little has been done about it. It's a problem that's plaguing the entire Lao state, which has been forced to slash its workforce due to a sky-high national debt and a financial crisis that's now in its second year. The result? A once-weak bureaucracy has been gutted. For decades, the Lao state didn't need to be particularly competent, as it collected little tax and provided few services. But as the economy and population have grown, managing things has become a tangled mess, and the state has reacted badly, choosing to rack up a national debt that's now over 125% of GDP. Must read article.

Read more: The Diplomat

President Touches Down in Russia

During a sit-down at the Kremlin, Lao President Thongloun Sisoulith and Russian President Vladimir Putin chewed the fat about their 30-year partnership, zeroing in on trade, defense, and education. They talked up the need for more joint efforts and celebrated the history of cooperation, with President Thongloun attending the Victory Day parade in Moscow.

Read more: Asia News Network

Crackdown on Illegal Foreign Currency Exchanges

The Ministry of Information, Culture, and Tourism is wagging its finger at tourists, warning them against using unauthorized foreign currency exchanges. This measure comes on the heels of the Prime Minister's directive on foreign currency management, particularly within the tourism sector. Tourists are being told to conduct all transactions in the local currency (LAK) through the official banking system to avoid penalties. How effectively this mandate will be enforced is still up in the air, but forewarned is forearmed.

Read more: VnExpress International

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Chinese Delegation Drops By for a Chat

A delegation from the Communist Party of China, led by Zhao Shitong, assistant minister of the International Department of the Communist Party of China, swung by Laos for some face time with top officials of the Lao People's Revolutionary Party. Meetings included Vice President Bounthong Chitmany, Khamphanh Pheuyavong, head of the Propaganda and Training Board of the LPRP Central Committee, and Thongsavanh Phomvihane, head of the LPRP Central Committee's Commission for External Relations. The visit, which went down from May 9-12, was with an eye to improve party relations and figuring out how to work better together on inter-governmental fronts.

Read more: Khmer Times