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Headlines:
Poverty Free Milestone Achieved in Luang Prabang
Inflation Rate Shows Steady Decline
New Foreign Currency Regulations
China-Laos-Thailand Railway Continues to Deliver
Lao-Japanese Diplomatic Relations Hit 70-Years
Brewery Launches Nation's First Biomass Facility
Record Wind Power Project Energized in Sekong
China-Laos Power Transmission Project Underway
Blueberry Farming with Foreign Investment
Party Leaders Chart Political and Economic Course
Government Begins 2025 Census Effort
Poverty Free Milestone Achieved in Luang Prabang
Luang Prabang City is reporting that it has officially achieved poverty-free status with more than 98% of its population (16,355 families across 113 villages) rising above poverty levels. The milestone is being credited to infrastructure development, improved transportation, and tourism growth which drew more than 2 million visitors last year, generating USD 560 million in revenue. The assessment of what constitutes “poverty” considered multiple criteria including stable employment, permanent housing, access to education, healthcare services, and basic utilities. The achievement is a feather in the government’s cap as its national poverty reduction effort lifted 31,232 families out of poverty last year, with eight districts successfully eradicating poverty.
Read more: Laotian Times (Poverty-Free Status), The Star (National Poverty Reduction)
Inflation Rate Shows Steady Decline
The nation’s inflation rate eased somewhat to 12.7% in February 2025 from 15.5% in January, according to the National Statistics Bureau. Major price reductions were observed in healthcare and medicine (-22.7%), accommodation/utilities (-21.8%), education (-20.7%), household appliances (-20.3%), restaurant/hotel services (-19.0%), and food/non-alcoholic beverages (-10.8%). The decline is credited to stable agricultural product supply, improved exchange rate stability, and increased consumer access to imported goods. This trend will certainly be supportive of the government's 2025 economic growth target of 4.8%, building on 2024's 4.6% GDP performance.
Read more: Laotian Times (Inflation Drop), The Star (2025 Growth Targets)
New Foreign Currency Regulations
The Bank of Laos has announced new rules for foreign currency deposit accounts, that will come into effect April 5. Account holders must now provide proof of legitimate foreign currency sources when opening accounts and will be slapped with a 0.5% transfer fee (USD 1-50 per transaction). Individual account holders can transfer up to USD 1,000 without documentation (businesses have higher limits). The measures are expected to support stabilization of the exchange rate, promote usage of the kip, and improve financial oversight in response to the country's recent addition to the Financial Action Task Force (FATF) grey list. The grey list identifies jurisdictions requiring increased monitoring for money laundering, terrorist financing, and nuclear weapons proliferation risks.
Read more: Laotian Times (Currency Rules), The Star (Grey List Addition), Compliance Week (FinCEN Announcement)
China-Laos-Thailand Railway Continues to Deliver
The China-Laos-Thailand Railway project has been a godsend, delivering economic benefits through improved trade efficiency and logistics infrastructure development, particularly in Thailand's Nong Khai province. The railway has helped to grow tourism across Laos, but particularly in cities including Vientiane, Luang Prabang, and Luang Namtha. The rail system is supporting further urban development and creating employment opportunities in transportation and hospitality sectors.
Read more: Asian News Network
Lao-Japanese Diplomatic Relations Hit 70-Years
Prime Ministers Sonexay Siphandone of Laos and Ishiba Shigeru of Japan popped the champagne on 70th years of diplomatic relations between their nations, starting March 5, 1955. The relationship was recently reclassified to a “Comprehensive Strategic Partnership” in January. Both leaders spoke warmly about their commitment to cooperation across sectors including infrastructure, agriculture, education, healthcare, climate change initiatives, disaster risk reduction, UXO clearance, and youth exchanges. The partnership continues to promote regional peace, support Laos' economic development, and advance UN SDGs.
Read more: Asian News Network
Brewery Launches Nation's First Biomass Facility
Lao Brewery Company (LBC) has launched Laos' first biomass facility in partnership with VN Green Energy Company, a major step toward sustainable operations. The facility will provide green steam energy to LBC's Vientiane brewery, with a target to power 80% of the plant with renewable energy as they work towards their net-zero emissions goals. The company's sustainability initiatives have also been extended to a Sustainable Rice Farming Project and a Zero Packaging Waste program which has achieved a 97% bottle collection rate. As Laos' largest taxpayer (LAK 5.1 trillion in 2024), LBC's green initiatives are an important part of Carlsberg Group's global sustainability plans.
Read more: Media Outreach
Record Wind Power Project Energized in Sekong
Powerchina has successfully energized Laos' 600 MW Monsoon Wind Power Project in Sekong Province. The project includes a 500 kV booster station, a 27-kilometer 500 kV transmission line, four 115 kV booster stations, and a 34-kilometer 115 kV transmission line. As the first wind power project in Laos and the largest single-unit wind power project in Southeast Asia, it is a big achievement in cross-border energy cooperation. The team completed grid site acceptance and energization in just 11 days, with the 115 kV booster station energized four days ahead of schedule.
Read more: Wind Insider
China-Laos Power Transmission Project Underway
Construction has started on a 183-kilometer power transmission line connecting China's Yunnan Province to Oudomxay, Laos. The 500 kV transmission project, scheduled for completion in 2026, will allow for a bi-directional power exchange capacity of 1.5 million kilowatts and support an annual clean electricity transmission of 3 billion kilowatt-hours. The infrastructure initiative was incorporated into China's 14th Five-Year Plan.
Read more: CGTN
Blueberry Farming with Foreign Investment
Costa Group has formed a blueberry farming initiative on the Bolaven Plateau, beginning with 17 hectares and expecting to expand to 200 hectares by 2028. The project, located in Paksong, currently employs 65 local workers and is hoped to create 2,000 jobs when it’s at full capacity. The company says that it plans an intermediate expansion to 50 hectares by 2026. The venture has received support from stakeholders including the Laotian Minister of Industry and Commerce and Champasak Province Governor, with diplomatic backing from the Australian Government. Costa Group brings 30 years of blueberry cultivation expertise to the project.
Read more: Fresh Plaza
Party Leaders Chart Political and Economic Course
The Central Committee of the Lao People's Revolutionary Party held a two-day meeting to chart the nation's development course. Led by Party Secretary General and President Thongloun Sisoulith, the committee focused on governance reforms, constitutional revisions, and economic strategies. Plans afoot include an update to the 2015 Constitution, amendments to the Local Government Law, and the development of solar panel infrastructure. The meeting also evaluated foreign relations achievements and looked at plans for international cooperation to try and pull in more foreign investment. The gathering comes in advance of the 12th Party Congress which will be held in early 2026.
Read more: The Star
Government Begins 2025 Census Effort
Laos has begun its 5th Population and Housing Census, with a transition to digital data collection in order to add comprehensive demographic information to the statistics collected. Led by Deputy Prime Minister Dr. Kikeo Khaykhamphithoune as Census Steering Committee Chair, with support from Minister of Planning and Investment Dr. Phet Phomphiphak, the census will collect data on migration, education, employment, housing, and vulnerable populations. The initiative is supported by UNFPA and will be delivered by the Lao Statistics Bureau to inform national development plans and support evidence-based policymaking. Field operations are scheduled for October 2025.
Read more: The Star
That’s all for this week, thanks for reading.
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