Laos 20240731: Intricate, Uncertain, Delicate
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Headlines:
Diplomatic Dance as Superpowers Spar
Parents Demand Spotlight on Human Trafficking
Hong Kong and Laos Ink a Dozen Deals
Vientiane Primps for ASEAN Summit
Drowning in Debt as Grand Projects Falter
Reaching for the Stars with New Satellite Center
Lao Entrepreneur Eyes Chinese Market at Expo
Tour Guide Skills Polished to Woo Tourists
Kip Continues Downward Spiral
Laos and Japan Pledge Closer Ties
PTT-OR Bets on Lao PDR
Rail Link Bridges Thailand and Laos
Xesap Area Gains National Park Status
Diplomatic Dance as Superpowers Spar
U.S. Secretary of State Blinken's Asia tour finale in Laos for an ASEAN meeting is the latest in a series of US efforts to counter China's regional sway. Talks with Chinese counterpart Wang Yi were centered on persistent South China Sea and Taiwan tensions. ASEAN nations, caught in the crossfire, are making an attempt at neutrality while trying to figure out how to best manage internal issues like Myanmar's crisis.
Read more: VOA News (Blinken's visit), Reuters (Regional tensions), AP News (ASEAN meeting)
Parents Demand Spotlight on Human Trafficking
Lao parents of trafficking victims are calling for state media to shine a brighter light on the problem of human trafficking. Despite government efforts and international support, economic hardship and high unemployment are leaving young Laotians vulnerable to exploitation. Parents say that increased media coverage could stem the tide. Last year saw 24 trafficking cases with 53 victims rescued.
Read more: RFA
Hong Kong and Laos Ink a Dozen Deals
Hong Kong and Laos have penned 12 agreements to further cooperation across education, trade, and economics. The pacts, fruit of a visit by Hong Kong Chief Executive John Lee, are intended to tap into Laos' logistics potential and the Laos-China Railway's regional connectivity. Focus areas include propping up Lao SMEs in banking, digital finance, and e-commerce, while exploring agricultural, tourism, and green financing opportunities. These agreements promise to fortify bilateral ties and unlock new avenues for Hong Kong investors in Southeast Asia.
Read more: Asia News Network (Cooperation), SCMP (Deals)
Vientiane Primps for ASEAN Summit
Vientiane authorities have stripped nearly 40 Chinese-language signs from businesses in a pre-ASEAN meeting makeover. The signs apparently fell foul of local regulations mandating Lao translations and specific color schemes. The cleanup also caused a re-arrangement of street vendors and the display of national flags on city lampposts.
Read more: The Star
Drowning in Debt as Grand Projects Falter
Laos remains in a financial quagmire as ambitious infrastructure projects, mostly funded by Chinese loans, fail to deliver. The nation's debt has swelled to close to $14 billion, eclipsing national GDP. Revenue dreams from hydropower dams have evaporated, leaving mounting debt and runaway inflation in their wake. With the kip in freefall and inflation soaring to 31%, Lao households bear the brunt. Without substantial debt relief, particularly from China, Laos continues to teeter on the brink of default.
Read more: ABC
Reaching for the Stars with New Satellite Center
The Ministry of Technology and Communications is shooting for the stars, partnering with Satellite Technology Co., Ltd. to form a national satellite data service and management center. The project includes a BeiDou-based ground satellite station in Vangvieng and a service unit in Xaythany district. This celestial venture is expected to improve public and private sector services, from disaster warnings to smart city management. It also hopes to cultivate homegrown space technology talent, featuring specialized centers for remote sensing, GIS, and GNSS.
Read more: Laos Post
Lao Entrepreneur Eyes Chinese Market at Expo
Soulinda Manotham, director general of Alo Technology Laos, is taking advantage of the China-South Asia Expo to expand the footprint of Lao-made products in China. Alo Technology's "Made in Laos E-Marketplace" is a showcase of Lao goods and digital transformation know-how. The Kunming-based expo serves as a launchpad for new business partnerships and improved logistics for Lao products in China.
Read more: Malaysia Sun
Tour Guide Skills Polished to Woo Tourists
More than 80 Lao tour guides have completed a government-run crash course in national history and culture. The May-to-July program honed multilingual skills and professional standards to help ensure tourist services are up to standard. As visitor numbers climb, this training is hoped to create a network for experience-sharing between guides, so that tourists get more bang for their buck.
Read more: Xinhua
Kip Continues Downward Spiral
The Lao kip's value keeps sliding despite government interventions, thanks to an insatiable appetite for foreign currencies and external economic pressures. The Bank of Laos has hiked interest rates to tame inflation, which hit 26.2% in June. Efforts include shuttering illegal currency exchange shops and promoting kip usage for domestic trade. A special task force is looking into other inflation causes and is expected to prescribe other economic stabilization remedies. The government says it remains committed to monetary policy overhauls and championing of local goods to curb imports.
Read more: The Star
Laos and Japan Pledge Closer Ties
Laos and Japan have recommitted to strengthening their relationship, with a focus on economic cooperation, infrastructure development, and cultural exchanges. Energy projects, transportation infrastructure, and investment in technology and education sectors top the agenda.
Read more: The Star
PTT-OR Bets on Lao PDR
PTT Oil and Retail Business (OR) CEO Disathat Panyarachun says he remains bullish on Laos’ economic potential, crisis notwithstanding. OR is doubling down on its coffee export business and taking advantage of its existing foothold in the country. With no Thai oil company rivals and significant Chinese investment, OR plans to pump 8 billion baht over five years into expanding its operations. This includes more PTT stations, Cafe Amazon outlets, and clean energy initiatives, shooting for long-term growth.
Read more: Nation Thailand
Rail Link Bridges Thailand and Laos
Thailand and Laos have rolled out a direct train service connecting Bangkok to Vientiane. The 654-kilometer route, offering four daily round trips, will boost tourism, streamline travel, and improve cargo transport efficiency. Officials expect to see more than 200,000 annual passengers. This development is supportive of Thailand's tourism goals and strengthens regional cooperation, potentially extending to China's Belt & Road Initiative. The service overcomes previous track gauge differences, opening new avenues for cross-border economic ties and regional integration.
Read more: The Nation Thailand (Service Details), Radio Free Asia (Regional Connectivity), NHK World (Economic Ties)
And now for something completely different.
While the focus of The Memo is on news for business, we often wrap with a less business-focused article:
Xesap Area Gains National Park Status
The Xesap area has officially been granted national park status, supporting conservation efforts and safeguarding biodiversity. Spanning more than 130,000 hectares, Xesap National Park houses a menagerie of wildlife, including several species on the brink of extinction. This green light comes as Laos doubles down on environmental preservation and sustainable development, hoping for a boost in eco-tourism and awareness of the region's natural treasures.
Read more: Laotian Times
That’s all for this week, thanks for reading.
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