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Headlines:
Cassava Drives Export Growth
Vientiane Faces Crisis of Water
Mining License Issuance Paused for Reg Overhaul
Regional Cooperation: CN, VN, BY
Combating Malnutrition With Rice Fortification
Workers Battle Economic Pressures
New Border Procedures Over Friendship Bridge
Aviation Safety Upgrades Take Flight
Strengthening Defense and Security Co-Op
Bank of Lao Launches CFMS
Tourism Development Prioritizes Sustainability
Beer Market Grows
African Swine Fever Outbreak Triggers Controls
Creative Cities Network Opportunity Opens
Addressing the "Secret War" Legacy
Carbon Market Development Advances
Hydropower Dispute Heads to Arbitration
Cassava Drives Export Growth
Laos is aggressively expanding its cassava industry with 2024 production reaching 7.4 million tonnes from 295,000 hectares of cultivation. The country exported 2.4 million tonnes of cassava in 2024, generating USD 440 million in revenue, with cassava leading January-February 2024 exports at USD 94-95 million per month. China remains the primary market. Production centers include Xayaboury, Saravan, Xekong, Champassak, Borikhamxay, and Vientiane provinces. Despite strong production numbers, processing capacity remains limited with 22 factories producing only 1 million tonnes of tapioca annually against a domestic demand of nearly four million tonnes.
Read more: The Star (Market expansion), Laotian Times (Production details)
Vientiane Faces Crisis of Water
Vientiane's Water Supply Enterprise has issued warnings about water shortages as production capacity (348,000 cubic meters) has started to fail to meet demand (520,000 cubic meters) during the hot season (Ed: note that the article quotes these figures in square meters, which is not normally a measure of water usage - we have taken the liberty of changing the units). Officials have called on residents to implement water conservation measures, including storing water in tanks and avoiding non-essential usage like road washing and plant watering. The situation has sparked public concern, with social media users reporting water shortages lasting more than two months in some areas. The capital has faced similar challenges previously, with conservation appeals made in 2024.
Read more: The Star
Mining License Issuance Paused for Reg Overhaul
The Ministry of Energy and Mines has temporarily suspended the issuance of new mining licenses effective February 28, 2025, while working to improve mineral trade regulations. The suspension is said to be in aid of improving control, preventing illegal activities, and improving resource protection. Current license holders operating under concession agreements can still receive minerals trading licenses upon request. The measure comes in the wake of previous enforcement actions, including the 2022 closure of Lao-Xinlong Mining Company in Oudomxay Province.
Read more: Laotian Times
Regional Cooperation: CN, VN, BY
Lao Foreign Minister Thongsavanh Phomvihane will make his first official visit to China from March 12-15, meeting with Wang Yi. The visit follows China's "Two Sessions" political meetings and will focus on economic partnerships, including the ever-popular-to-discuss China-Laos Railway project. Vietnamese province Dak Lak and Laos' Attapeu province have signed a cooperation agreement covering education, agriculture, healthcare, culture, sports, and tourism sectors. Belarus and Laos are exploring opportunities for strengthening diplomatic ties through discussions between Belarus Deputy Foreign Minister Evgeny Shestakov and incoming Lao Ambassador Siphandone Oybouabouddy.
Read more: CGTN (China), Vietnam Plus (Vietnam), Belarus MFA (Belarus)
Combating Malnutrition With Rice Fortification
The Lao Government, UN World Food Programme, and Government of India have launched a USD 1 million rice fortification project to try and beat widespread micronutrient deficiencies in Laos. The two-year project will fortify rice with vitamins A, B, iron, and zinc as 40% of women of reproductive age and 44% of children under five suffer from iron deficiency anemia. The project will take advantage of India's experience in reaching 400 million people through food fortification and builds on Laos' existing experience.
Read more: The Star (Details), UN Laos (Plan), UN Laos (Significance)
Workers Battle Economic Pressures
Lao workers are under financial pressure with the minimum wage of LAK 2,500,000 (USD 117/month) proving insufficient as rising living costs and currency depreciation bite. The situation has led to higher school dropout rates, particularly in Vientiane where they have reached 13.3%, and workers taking on multiple jobs just to survive. Many are seeking opportunities abroad, especially in Thailand and South Korea. Businesses say they have difficulty raising wages above the mandated minimum thanks to general economic instability, and limited workforce skills further compound the problem. The crisis threatens long-term educational and skills development, possibly laying the foundation for a cycle of economic hardship.
Read more: Laotian Times
New Border Procedures Over Friendship Bridge
A new vehicle tracking system has been put into action at the first Lao-Thai Friendship Bridge connecting Vientiane and Nong Khai. All vehicles must fill out a tracking sheet costing LAK 10,000, along with a LAK 8,000 tax per identification document. The measure requires detailed documentation of vehicle information, owner details, and passenger data. The requirement applies to all vehicles crossing the border.
Read more: Laotian Times
Aviation Safety Upgrades Take Flight
A new partnership with PACTEC for pilot training and professional development will train 4-6 student pilots annually while introducing new training aircraft to reduce the need for overseas training. The expectations include English proficiency training for more than 700 aviation professionals to meet ICAO Level 6 standards, along with maintenance technician courses and air traffic control support. This effort builds on an ongoing partnership since 2004 that established the Civil Aviation Flight Training Centre. The next phase, extending to 2029, is expected to introduce advanced training courses.
Read more: Laotian Times (Training programs), Asian Aviation (Equipment agreements)
Strengthening Defense and Security Co-Op
Vietnam and Laos have expanded defense cooperation in a meeting between Vietnam's Minister of National Defence and Laos' Deputy Defence Minister. The countries agreed to improve defense cooperation, border security management, human resource training, defense industry collaboration, and support Laos in building UN peacekeeping capabilities. A coordinated effort between China, Thailand, Myanmar, and Laos has reportedly found success dismantling telecom fraud operations along the Thai-Myanmar border. Chinese Foreign Minister Wang Yi announced the elimination of fraud parks near the China-Myanmar border, resulting in the liberation of roughly 7,000 workers who were involved in forced online scam operations.
Read more: VOV (Defense meeting), The Star (Anti-fraud operation)
Bank of Lao Launches CFMS
The Bank of the Lao PDR has introduced a new Capital Flow Management System (CFMS) for monitoring and managing cross-border capital flows in real-time. The system is intended to track trade and investment activities while meeting ISO 27001 standards and regulatory requirements..
Read more: Vietnam Plus
Tourism Development Prioritizes Sustainability
Luang Prabang has secured the 2025 Green Destinations Top 100 Story Award, placing third in "Destination Management" as the first destination in the CLMV region to be given this recognition. The award acknowledges the town's achievements in sustainable tourism development and crisis recovery. The next objective is to get Green Destination Certification, which takes criteria including destination management, nature preservation, environmental sustainability, cultural heritage, social well-being, and business communication into account. Laos is also working to set up Khammouane province as an ecotourism and adventure tourism destination, with a specific focus on drawing Thai tourists and investors.
Read more: Asian News Network (Luang Prabang Award), Travel and Tour World (Khammouane Development)
Beer Market Grows
The Lao beer market, currently valued at US$ 590.84 million, is expected to reach US$ 844.60 million by 2033, a CAGR of 4.05%. BeerLao is the big dog, with more than 90% market share, and a per capita consumption at 6.5 liters (2024). The market is mostly driven by male consumers (70%) aged 18-35 (60%), with 65% of consumption in urban areas. The craft beer segment is seeing strong growth (+20% YoY), alongside trends in premium and low-alcohol options. Export value stands at US$ 18 million (2024), primarily to China, Thailand, and US, while imports reached US$ 10.5 million (2023) from China, France, and Thailand.
Read more: Globe Newswire (Market analysis), The Star (Industry leader)
African Swine Fever Outbreak Triggers Controls
An African swine fever outbreak has been confirmed in Vanghai village, Xaysomboun province, leading to immediate containment measures. Officials have designated Vanghai village as a "red zone," putting strict prohibitions on pig movement, slaughter, and sales. The highly contagious virus affects all pig breeds but not humans and currently has no vaccine or treatment. Authorities have set up surveillance across 24 villages in Thathom district and neighboring areas in Borikhamxay province. Control measures include mandatory disinfection of affected areas and proper disposal of deceased animals. The outbreak poses a big risk to local pig production and farmer livelihoods.
Read more: The Star
Creative Cities Network Opportunity Opens
UNESCO Bangkok is launching a feasibility study to evaluate potential Lao cities for inclusion in the UNESCO Creative Cities Network. The study will identify 3-5 candidate cities by analyzing their cultural and creative assets, with the expectation that they will develop strategies for creating more creative environments. Currently, Laos has no representation in the UCCN's 350 member cities. The project includes organizing a seminar in Vientiane to present findings and set up collaborative networks to leverage cultural and creative industries for urban development.
Read more: Funds for NGOs (Call for applications)
Addressing the "Secret War" Legacy
Between 1964 and 1973, the U.S. conducted wild bombing campaigns in Laos, dropping 2 million tons of bombs, making it the most heavily bombed country per capita in history. Today, about 1,800 square kilometers of Laotian land still requires clearance of unexploded ordnance. Organizations like Legacies of War and Mine Action Group are actively working on UXO removal in Xiangkhoang and Khammouan provinces. ARTICLE22, a social-impact jewelry company, transforms bomb scrap metal into jewelry. The bombing campaign's impact remains particularly visible along the Ho Chi Minh trail, with ongoing challenges in land clearance and development.
Read more: CGTN America (with video)
Carbon Market Development Advances
The Ministry of Energy and Mines is developing carbon market opportunities in the energy sector, in line with the country's third Nationally Determined Contribution. The ministry is working with partners including the Global Green Growth Institute, Australian Department of Foreign Affairs and Trade, Carbon Registry Thailand, and Carbon Credit Lao. A recent workshop outlined plans for establishing carbon trading frameworks, developing renewable energy projects, and bringing national policies in line with international standards.
Read more: Asian News Network
Hydropower Dispute Heads to Arbitration
A Chinese state-owned power company has begun arbitration proceedings at the Singapore International Arbitration Centre against a Lao electric utility, asking for US$555 million in unpaid revenue related to a Belt and Road hydropower project. The case, involving Power Construction Corp. of China subsidiary Nam Ou Power and Electricite du Laos, is an escalation in disagreements over financial obligations for infrastructure development in the Mekong region. The dispute is an expression of emerging tensions in China-Laos infrastructure cooperation and is a development to watch in regional energy sector relations.
Read more: Global Arbitration Review (Arbitration Case), Market Screener (Dispute)
That’s all for this week, thanks for reading.
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