Laos 20250122: Cooperative, Sturdy, Enduring
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Headlines:
Investment Law Overhaul For Sustainable Growth
Push for Budget Surplus Shows Promise
Hydropower Project Delivers Strong Returns
Satellite Technology Supports Carbon Credit Potential
Tourism Gets a Chinese Boost
Wind Farm Set for Vietnam Power Export
Mine Closure Following River Pollution
Japan-Laos Relations Upgrade
VN-LA QR Payments Online
Sustainable Rice Farming Goes High-Tech
Digital IDs to Combat Online Scams
US Backs Higher Education Upgrade
Flood Damage Hits Land Records
New Art Museum Opens with Mixed Reception
Investment Law Overhaul For Sustainable Growth
A new Investment Promotion Law came into effect December 2024, replacing the previous version from 2016. The update makes adjustments to promoted sectors to focus on eco-friendly initiatives, healthcare, education, digital technologies, tourism, and infrastructure development. The biggest changes include removal of rural development and policy banks from promoted sectors, the introduction of new tax incentives, and updated minimum capital requirements.
Read more: VDB-Loi
Push for Budget Surplus Shows Promise
The government is working to hit budget revenue targets for a fifth consecutive year, targeting a surplus by the end of this year. Plans include improved revenue collection through law enforcement, modernized systems, and reduced ineffective tax exemptions. Spending will prioritize using domestic revenue for debt payments while reducing borrowing. The initiatives include sustainable mining, value-added production, tight monetary policies, and promoting the usage of the Lao kip in cross-border transactions.
Read more: Laotian Times
Hydropower Project Delivers Strong Returns
The Nam Theun 2 hydropower project is going to pull in about $2 billion for the government over its 25-year concession period. Since beginning operations in 2010, the project has produced more than 83,000GWh of renewable energy and set aside $230 million to social and environmental programs through 2035. The project is Laos's largest foreign investment and is being touted as a model for sustainable hydropower development.
Read more: The Star
Satellite Technology Supports Carbon Credit Potential
Remote sensing technology is being introduced to calculate carbon stocks across nine forest areas covering 170,556 hectares in support of the country's 2050 carbon neutrality goal and global "30×30" conservation target. The project is the result of an August 2024 agreement between the Lao government, Carbon Registry Thailand, and Carbon Credit Laos. With nearly 16 million hectares of forest, the technology is going to be a real help to overseeing the nation’s natural resources.
Read more: Laotian Times
Tourism Gets a Chinese Boost
A tripartite agreement between Laos and China has set up a platform for cooperation between the Institute of Media, Culture and Tourism, Jiangsu Vocational College of Information Technology, and Pan-Mekong International Economic Development. The partnership is for educational exchanges, service quality improvements, and the development of tourism products targeting international markets, especially Chinese tourists.
Read more: The Star
Wind Farm Set for Vietnam Power Export
The 600MW Monsoon Wind Power Project in Xekong and Attapeu provinces will be wired in to Vietnam's electricity grid next month. Southeast Asia's largest wind farm will sell power to Vietnam Electricity under a 25-year agreement via a 71km transmission line. The project is expected to transmit 300MW in Q2 2025, increasing to 600MW in Q3 2025, with expansion potential to 1,000MW.
Read more: The Star
Mine Closure Following River Pollution
Authorities suspended operations at a Vietnamese-owned iron ore mine in Viengxay district after wastewater polluted the Nam Xang and Nam Poon rivers. The January 12 spillage from Tienhao Kaobang Co. discolored rivers and killed fish, affecting seven downstream communities. Officials are analyzing water samples and working with the company on impact assessment and compensation.
Read more: RFA
Japan-Laos Relations Upgrade
Prime Ministers Sonexay Siphandone and Shigeru Ishiba have established a "comprehensive strategic partnership" between Laos and Japan. The agreement includes new vice-ministerial level dialogue on foreign affairs and defense. The deal came about as a result of their first meeting since October's ASEAN summit. Japan wants to strengthen security ties in the region as they hedge against concerns of Chinese debt influence.
Read more: Japan News, Nikkei Asia
VN-LA QR Payments Online
Vietnam and Laos launched a cross-border QR payment system connecting NAPAS and LAPNet payment networks. Seven Vietnamese banks now offer cross-border QR payments through mobile banking apps, linking with LAPNet's network of 14 Laotian banks. The system processes payments in Vietnamese dong and Lao kip with real-time conversion.
Read more: Travel and Tour World
Sustainable Rice Farming Goes High-Tech
The Lao Brewery Company has brought drone technology to bear for organic foliar fertilizer application in its Sustainable Rice Farming Project. The drone project has expanded from 100 to 340 hectares, reportedly to the benefit of more than 200 farming families. The project produced 600 tonnes of paddy in 2024 and is expected to increase cultivation to 550 hectares over the 2024-25 period.
Read more: The Star
Digital IDs to Combat Online Scams
At the China-ASEAN Digital Ecosystem Cooperation Forum, experts said that there is a need for mutual recognition of digital IDs between China and ASEAN to combat online scams. UNODC estimates scam-related losses in East and Southeast Asia reached a staggering $37 billion in 2023. MYEG's Zetrix blockchain has partnered with China's Astron-Xinghuo BIF to enable digital ID verification.
Read more: Laotian Times
US Backs Higher Education Upgrade
The Ministry of Education and Sports and USAID have launched the “Laos Higher Education for Accelerated Development” project to improve education quality at five public universities. The development project is designed to improve market relevance and includes the National University of Laos, Champassak University, Savannakhet University, Souphanouvong University, and the University of Health Sciences.
Read more: The Star
Flood Damage Hits Land Records
In September last year, the worst flooding to hit Luang Namtha Province in the past 45 years has destroyed 20,000 land titles. Damages in excess of LAK 4 billion ($183,000), have been reported, particularly affecting the systematic land registration project. The Ministry of Natural Resources and Environment plans to send out technical teams to restore land records and repair meteorological infrastructure.
Read more: Laotian Times
New Art Museum Opens with Mixed Reception
Vientiane's new Lao Art Museum opened on January 5, the result of a $50 million investment. The 80-hectare complex includes information building, arts exhibition hall, observation hall, and multi-purpose building. While partially operational, construction continues with additional facilities expected by mid-February. Entry fees are LAK 100,000 for nationals and $10 for foreigners, reduced from $15 due to partial accessibility. Most of the complaints are around the delayed completion and the cost of entry.
Read more: Laotian Times
That’s all for this week, thanks for reading.
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