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Headlines:
Southeast Asia's Largest Wind Farm Completed
ASEAN Ministers Reject US Tariff Retaliation
China's Debt Domination Creates Economic Crisis
Government Targets Health Improvements
Cash Banned for Land Sales in AML Push
Army in Myanmar Earthquake Relief Mission
ADB Forecasts Improved Economic Growth
PM Highlights China-Laos Partnership
Bureaucratic Reforms for Efficiency Improvement
New Coal Plant to Export Electricity to Cambodia
EU Supports Higher Education Reform Initiative
Delegation Reinforces China-Laos Relations
Chinese Aircraft in First Lao Commercial Flight
China-Laos Q1 Rail Freight Traffic Booms
WFP Expands Humanitarian Programs
Southeast Asia's Largest Wind Farm Completed
The Monsoon Wind Project, Southeast Asia's largest wind farm and first cross-border power project, has wrapped up construction in Sekong and Attapeu provinces. The $950 million project is made up of 133 turbines with a 600 MW capacity. ACEN holds a 24% stake, partnering with Mitsubishi Corp and SMP Construction. The project, backed by $692 million in ADB financing, will begin partial operations (300 MW) in Q2 2025 and reach full capacity (600 MW) by Q3 2025. It is expected to supply power to both Laos and Vietnam while obviating the need to release 823,600 metric tons of CO2 emissions yearly. The wind farm complements Laos' hydropower generation by operating during different seasonal patterns.
Read more: Construction Review Online
ASEAN Ministers Reject US Tariff Retaliation
ASEAN economic ministers have unanimously decided against retaliatory measures in response to recent US tariffs. The US, ASEAN's largest foreign direct investment source in 2024, had slapped tariffs ranging from 32-49% on six ASEAN members (subject to a 90-day suspension period). Ministers preferred to maintain diplomatic channels and support the multilateral trading system through WTO frameworks. The meeting also spent some time on regional economic issues, including upgrades to the ASEAN Trade-In-Goods Agreement and development of an ASEAN Digital Economy Framework Agreement.
Read more: Laotian Times
China's Debt Domination Creates Economic Crisis
Public debt is in excess of 100% of GDP, with China holding nearly half of Lao sovereign external debt. The big numbers are primarily a result of overinvestment in hydropower infrastructure, largely financed by Chinese policy banks. Debt servicing now eats up more than half of government revenues, while the state utility Électricité du Laos faces is burdened by overcapacity. The Lao kip has depreciated by 50% against the US dollar since 2022, causing increased food insecurity and fomenting labor migration. Economic growth is expected to stagnate at 2.5% annually by 2029. Despite providing debt deferrals, China continues to expand its infrastructural and geopolitical influence.
Read more: Lowy Institute
Government Targets Health Improvements
Laos has announced plans to work on health initiatives at the 58th UN Commission on Population and Development. The country will add sexual and reproductive health to its 10th National Socio-Economic Development Plan (2026-2030) and run its first digital Population and Housing Census in 2025. Other pillars of the plan include the establishment of a Population Policy Coordination Committee, a new midwifery strategy, and better approaches for maternal, child, and adolescent health. The government is also keen to end child marriage, reduce early pregnancy, improve civil registration systems, and reduce gender-based violence.
Read more: The Star
Cash Banned for Land Sales in AML Push
The government has set a new regulation in place requiring all land transaction payments to be processed electronically through the Bank of Laos system, exclusively in Lao Kip. Taking effect from May 26, the rule mandates online banking transactions with complete documentation, including land ownership transfer forms and banking details. Rural residents and impoverished households must also get additional local authority licenses. The policy is intended to improve transaction transparency, reduce cash and foreign currency usage, as well as combat money laundering.
Read more: Laotian Times
Army in Myanmar Earthquake Relief Mission
The Lao People's Army has wrapped up its humanitarian mission in response to Myanmar's devastating 7.7-magnitude earthquake of March 28, 2025. A 33-member team was sent to Mandalay and delivered LAK 29 million in medical supplies and LAK 252 million in provisions including shelter materials and food. The team supported search and rescue operations as well as medical treatment. Laos' total contribution reportedly was LAK 4.5 billion (~USD 200,000).
Read more: Laotian Times
ADB Forecasts Improved Economic Growth
The Asian Development Bank is saying that the Lao economy should grow by 3.9% in 2025 and 4.0% in 2026, driven by logistics and tourism. The projections are lower than those in the broader developing Asia Pacific region (expected 4.9% growth). Lao inflation is expected to drop from 23.3% in 2024 to 13.5% in 2025, despite public debt concerns. Renewable energy and mining investments are supportive of support industrial growth, and tighter monetary policy is helping to bring much needed stability to the kip.
Read more: Laotian Times
PM Highlights China-Laos Partnership
During the 2025 Boao Forum for Asia in Hainan Province, Lao Prime Minister Sonexay Siphandone spoke glowingly of the China-Laos partnership through the Belt and Road Initiative. The PM highlighted the relationship's foundation on the "Four Good" principles as well as the China-Laos Community of Shared Future concept. He specifically pointed to the China-Laos Railway as a cornerstone project indicative of successful cooperation.
Read more: CGTN
Bureaucratic Reforms for Efficiency Improvement
A major bureaucratic overhaul is underway to improve efficiency and reduce costs. The reforms include the merging of several ministries: Planning and Investment with Finance, Energy and Mines with Industry and Commerce, and Natural Resources and Environment with Agriculture and Forestry. The Ministry of Home Affairs will be completely dissolved. With about 170,000 civil servants (a number equal to 2.2% of the population) and salary expenditure at 6.3% of GDP, the restructuring will to create a leaner government while being supportive of national debt and inflation challenges. The reform requires constitutional amendments which will possibly including the reintroduction of sub-district administrative levels.
Read more: Fulcrum
New Coal Plant to Export Electricity to Cambodia
Phonesack Group Co., Ltd is undertaking a USD 4 billion investment to build an 1,800-megawatt coal-fired thermal power plant in Xekong Province. The project will export power to Cambodia through Electricite Du Cambodge (EDC). China Western Power Corporation will supply equipment, and Vietnam's MB Bank is providing financial support. Construction will be done in two phases, with the first phase starting January 2028 and full completion by January 2030. The project includes a 500-kilovolt, 253-kilometer transmission line and uses advanced combustion technology meeting international standards.
Read more: Laotian Times
EU Supports Higher Education Reform Initiative
Four major Lao public universities are undertaking a reform project with EU Erasmus+ program support, involving nine partners including the Ministry of Education and Sports. The REAL reform project is targeting 17 undergraduate programs at the National University of Laos, Souphanouvong University, Savannakhet University, and Champassak University. The will modernize higher education through outcome-based education, quality assurance systems, better teaching methods, and improved graduate employability. European partners include universities from the Netherlands, Spain, and France.
Read more: Laotian Times
Delegation Reinforces China-Laos Relations
A Chinese delegation, headed by Yang Wanming, President of the Chinese People's Association for Friendship with Foreign Countries, undertook a four-day visit to Laos. During the visit, the delegation met with Sinlavong Khoutphaythoune, President of the Lao Front for National Construction. The visit included participation in a seminar on poverty alleviation and development, with both sides saying they were committed to a China-Laos community focused on shared future development.
Read more: MENAFN
Chinese Aircraft in First Lao Commercial Flight
China's COMAC C909 aircraft has completed its first commercial flight in Laos, running between Vientiane and Pakse. The aircraft, delivered to Lao Airlines on March 30, 2025, is a sign of China's expanding aviation presence in Southeast Asia. The C909, with a range of 2,225 to 3,700 km, is currently being used on 688 routes in 159 cities globally, with 162 units delivered so far to international customers. The aircraft delivery is a further push in China's Belt and Road initiative and Laos is being celebrated as an early adopter of Chinese aviation technology in the region.
Read more: Bastille Post
China-Laos Q1 Rail Freight Traffic Booms
The China-Laos Railway recorded heady freight numbers in Q1 2025, with cross-border freight traffic reaching breaching 1.5 million tons, a 9.2% y-o-y increase. The value of transported goods rose 17.5% to 4.19 billion yuan ($570 million). Since beginning operations, the railway, which connects Kunming to Vientiane as part of the Belt and Road Initiative, has allowed more than 12 million tons of cross-border trade.
Read more: Bastille Post
WFP Expands Humanitarian Programs
The World Food Programme's March 2025 operations in Laos featured several projects. A new rice fortification program, funded by India, was launched in partnership with the Ministry of Health to combat malnutrition. WFP continued infrastructure development with kitchen construction in 74 schools, while providing agricultural support via seed and tool distribution in Attapeu, Sekong, and Salavan provinces. The WFP ran assessments for rice banks in 130 villages and 168 village nutrition schools in six provinces. Operations reached 66,392 people, distributed 156 metric tons of food, and identified a funding need of US$1.36 million for April-September 2025.
Read more: ReliefWeb
That’s all for this week, thanks for reading.
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