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Headlines:
Crackdown on Money Laundering
Corruption Probe Snares Inspection Officials
Inflation Eases a Little Further
School Enrollment Falls Again
PM Pushes Regional Ties at Boao
SEA Gets Smarter About Chinese Money
Call for Undocumented to Leave US
Digital Platform Unites Gov’t Services
Rescue Team to Myanmar After Quake
Dams Safe After Myanmar Earthquake
Hydropower Boom Opens Investment Doors
Infrastructure Management Plan Launch
Labor Market a Mixed Bag for Investors
China Railway Boosts Farm Trade
Australia Ties Up With Savannakhet
Disabled Women's Group Takes Crafts Global
Mining Sector Gets Growth Support
Crackdown on Money Laundering
Anti-money laundering efforts are being tightened up after Laos found itself on the FATF grey list in February. Deputy PM Saleumxay Kommasith is leading the push for tighter financial oversight, better law enforcement, and stronger regional partnerships. The government sees money laundering as linked to drug trafficking, human smuggling, and illegal gambling and as such, several agencies are being asked to work together to get Laos off the grey list.
Read more: Laotian Times
Corruption Probe Snares Inspection Officials
Four senior officials from Laos' State Inspection Authority have been locked up since February in a corruption case. The detained include a director, deputy director, and two deputy division heads. Three others are staring down the barrel of bribery charges. The scandal is forcing questions about the SIA's own transparency and alongside anti-corruption efforts that have already hit the banking and energy sectors.
Read more: Laotian Times
Inflation Eases a Little Further
Inflation fell to 11.2% in March, down from 12.7% in February and 15.5% in January. Q1 averaged 13.1% - far better than 24.9% in Q1 2024. March actually saw prices drop 0.1% from February. Food, transportation, communication, vegetables, fuel, and phones all got cheaper. A stable exchange rate, better local farming, and steady global fuel prices are being credited for the rare win.
Read more: The Star
School Enrollment Falls Again
Student numbers in have dropped for the third straight year across all levels. Primary students fell from ~742,000 to ~740,000, lower secondary from ~388,000 to ~378,000, and upper secondary from ~170,000 to ~144,000. Economic problems, poor infrastructure, lack of education funding, and worker migration are all to blame. The govt's 2025-2030 plan is expected to boost early childhood education in low-enrollment areas, help more kids finish primary school, and go some way to keeping students from dropping out.
Read more: The Star
PM Pushes Regional Ties at Boao
At the Boao Forum, PM Sonexay Siphandone called for more regional teamwork as global tensions remain fraught. He once again spoke up about the Laos-China Railway's success - freight train numbers have jumped from 2 to 18 daily, moving 19.6 million tonnes in 2024. The PM backed China's Development, Security, and Civilization Initiatives, even signing a security MOU. He was keen to focus on Laos' push to become a more important regional hub despite its landlocked nature.
Read more: The Star
SEA Gets Smarter About Chinese Money
Southeast Asian countries are changing how they deal with Chinese aid. Cambodia, Laos, and Myanmar rely heavily on Chinese cash, while Philippines and Vietnam have been a little more cautious. Indonesia, Malaysia, and Thailand play the field with multiple partners. Chinese development finance has shrunk from $9 billion in 2015 to $3 billion in 2022, with a shift towards smaller, targeted projects. SE Asian nations are showing more backbone in negotiations and demanding better quality from their Chinese partners.
Read more: Lowy Institute
Call for Undocumented to Leave US
The Lao Embassy in the US is urging citizens without legal status to come home voluntarily as deportation threats are dramatically increasing under new US immigration enforcement. It is estimated that about 4,500 Lao nationals are living illegally in the US. The United States has given Laos 60 days to address the issue, with. Tougher enforcement could mean detention for unauthorized migrants and travel restrictions on Laos.
Read more: Laotian Times
Digital Platform Unites Gov’t Services
Gov-X, a one-stop digital platform created with UNDP support was launched in August 2023. The system brings together services like digital driving license checks, the Khangpanya education platform, welfare status lookups, business registration, and document processing. The goal is to break down agency barriers and bring services directly to village level. Future plans include AI chatbots, better data protection, and possible cross-border integration.
Read more: GovInsider
Rescue Team to Myanmar After Quake
A 33-member emergency team from Laos headed to Myanmar on March 31 to help with earthquake rescue work. The team, led by Col. Pattana Bouttichak, includes engineers and military medics with rescue gear and medical supplies. The March 28 quake killed more than 2,000 people, injured nearly 4,000, and has left at least 270 missing.
Read more: Vietnam Investment Review
Dams Safe After Myanmar Earthquake
Lao energy officials have confirmed the country's hydropower dams weren't damaged by the recent Myanmar quake. Dam operators found all facilities in good shape with no quake impacts. The earthquake has had the most dramatic impact on Myanmar's Naypyidaw, Sagaing, and Kyaukse areas.
Read more: The Star
Hydropower Boom Opens Investment Doors
The hydropower sector keeps growing with 7,000+ MW capacity generating ~37,000 GWh yearly. The country continues to want to be Southeast Asia's main power supplier and could reach 26,000 MW total capacity. Investment opportunities exist in new dam building, fixing old infrastructure, transmission networks, and cross-border electricity trading through BOT deals. The 2020 Investment Promotion Law offers perks like tax breaks and import duty exemptions. Current export power markets are primarily Thailand, Vietnam, Cambodia, and Malaysia.
Read more: ASEAN Briefing
Infrastructure Management Plan Launch
Laos unveiled an Infrastructure Asset Management Roadmap on March 27, developed with help from the United Nations. The roadmap should improve infrastructure management and creates a framework for managing assets like roads, schools, and hospitals, with cross-government teamwork and private sector involvement. Main objectives are stronger institutional frameworks, more resources, and better asset management practices.
Read more: UN Laos
Labor Market a Mixed Bag for Investors
The current job market offers both pros and cons for investors. With more than 3 million workers and a shockingly low 1.18% unemployment rate, the country has cheap labor but faces challenges. There's a serious skilled worker shortage, and nearly four fifths of citizens work in the informal economy. Only 4% of workers have university degrees. Best investment bets include manufacturing, infrastructure, tourism, agriculture, and tech services, backed by government incentives for foreign investors.
Read more: ASEAN Briefing
China Railway Boosts Farm Trade
The China-Laos Railway has completely changed farm trade since December 2021, with the system handling more than 56 million tons of freight, including 13 million tons of cross-border cargo. Tech innovations like 5G, BeiDou positioning, and AI have cut import clearance times by 60% and export times by 90%. The railway has moved 12,000+ tons of fruit imports and boosted exports of durians, mangosteens, bananas, and rubber.
Read more: Fresh Plaza
Australia Ties Up With Savannakhet
Australian Ambassador Megan Jones led a team to Savannakhet province to reinforce economic partnerships. The team explored investments in the Savan-Xeno Special Economic Zone, particularly in logistics, farming, green energy, and natural resources. The group, including Australia's Business Champion for Laos Charles Olsson, also had the opportunity to meet with Vice Governor Lingthong Sengtavan. The visit fits with Australia's Southeast Asia Economic Strategy-2040, which is intended to boost food production and increase the availability of rural jobs.
Read more: The Star
Disabled Women's Group Takes Crafts Global
The Women With Disability Association, started in 2021 by Chanhpheng Sivila, is helping disabled women in Laos through handicraft training. With support from Japan's International Cooperation Agency, they've trained nearly 30 disabled students from Oudomxay and Bokeo Provinces in weaving, pottery, ceramics, and paper crafts. The program combines skill training with basic education while helping to find and create paths to international markets.
Read more: Laotian Times
Mining Sector Gets Growth Support
A recent forum led by the Energy and Mines Ministry is part of a dedicated push to support the Lao mining sector. Minister Phoxay Sayasone ordered government departments and state companies to push forward with mining operations despite normal economic challenges. The push is required if the sector will push back rising costs and manage market volatility while making mining a pillar of Loa economic growth.
Read more: MENAFN
That’s all for this week, thanks for reading.
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