Laos 20240619: Intriguing, Captivating, Enlightening

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

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Headlines:

Tourism Boost: JVs and Visa Exemptions

Persistent Trade Deficit and Economic Woes

Highest Inflation in Southeast Asia Takes Its Toll

UN HRC Chief's Visit Boosts International Cooperation

Civil Servant Salaries Set for Boost by 2025

Cross-Border QR Payments with VN to Launch in August

Hungary Strengthens Partnership with New Embassy

Lower Airfares for Bokeo-Vientiane Route

Potential National Debt Default Looms

Push for Economic Autonomy and Self-Reliance

Potash Reserves Give Strategic Leverage

Labor Shortages Worsen as Workers Seek Greener Pastures

Unraveling the Mysteries of the Plain of Jars

Tourism Boost: JVs and Visa Exemptions

The tourism sector is getting a lift from a new joint venture to develop domestic attractions and promote sustainable tourism. The government is also mulling visa exemptions for more countries to pull in more international visitors. Hopes are high that these efforts to modernize infrastructure, improve facilities, and increase tourist numbers, will support economic growth. More than a million foreign tourists visited in the first quarter of 2024, a 36% jump from the previous year.

Read more: The Star (Joint Ventures), The Star (Visa Exemptions)

Persistent Trade Deficit and Economic Woes

The country has been under the strain of a consistent trade deficit for five months straight in 2024, with a nearly $200 million gap in April and more than $150 million in May. Rising inflation and a record decline of the Kip are making matters worse. May exports hit $483 million, while imports totaled $634 million. Salt, mixed gold, diesel, and vehicles topped the trade list. The government is trying to tackle these challenges through ongoing legislative sessions.

Read more: The Star (Trade Deficit), Xinhua (Economic Challenges)

Highest Inflation in Southeast Asia Takes Its Toll

With inflation peaking at 40% last year and still hovering around 26%, the country is facing the highest price hikes in the region. The Kip's depreciation has only made things worse, pushing many to seek better wages abroad. Those who stay are getting creative to cope, with some turning to self-employment and local businesses. The government is working to attract foreign investment and boost exports, but high external debt, especially to China, is a continuing problem.

Read more: South China Morning Post

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UN HRC Chief's Visit Boosts International Cooperation

UN High Commissioner for Human Rights Volker Türk's visit has paved the way for stronger regional and international cooperation on human rights. In meetings with top officials, Türk praised the country's commitment to human rights and discussed issues like gender equality, economic rights, and cultural rights. The visit also covered socio-economic development plans, poverty reduction, unexploded ordnance, and the promotion of human rights within ASEAN.

Read more: The Star