Get the latest Southeast Asian business news delivered to your inbox every weekday.
Choose to receive our daily editions covering Cambodia, Myanmar, Laos, Vietnam, and Thailand individually or together: account settings.
The Memo is published each weekday for the country of your choice. Paid subscriptions receive full editions while free subscribers get top headlines and an abbreviated selection of stories.
Support us and unlock unlimited access by becoming a paid subscriber today to stay informed on emerging opportunities in Southeast Asia with just a few minutes a day.
The Mekong Memo is proudly presented by:
Horton International is your premier partner for executive search in Southeast Asia. Whether you're a small startup or a global corporation, our reliable and effective recruiting solutions are tailored to meet your unique needs. With extensive experience and offices across the region, we excel at overcoming recruitment challenges and securing top talent for your organization.
Click here to learn how Horton can make your life easier.
Headlines:
Railway Reconfigures Regional Logistics
Vietnam-Laos Ties Continue Improving
Power Grid Strategy Shifts in the Region
Economic Pressures Drive Labor Migration
Funding Cuts Disrupt HIV Services
Agriculture Pulling Foreign Investment
Potash Ambitions Meet Economic Realities
Centralized Tax System Sees Efficiency Gains
International Partnerships Grow Beyond China
Thai Princess in Conference Visit
Gold Banking Initiative Against Inflation
Coordinating on Diplomacy and Trade with Russia
Moon Bears Rescued as Bile Farm Closes
Resilience in Face of US Trade Threats
Safer New Year on Lao Roads
Railway Reconfigures Regional Logistics
The China-Laos Railway has changed the regional landscape for trade, tourism, and logistics, moving 480,000 international passengers from 112 countries and 4 million tons of cargo in its first two years. The 409 km track connects Vientiane and Kunming at speeds up to 160 km/h. The railway recently wrapped up its first cold-chain shipment of Lao bananas to Beijing. China's $40 billion regional investment through the Belt and Road Initiative is starting to reshape a more-connected Southeast Asia, setting Laos up as a link in China's growing railway web.
Read more: The Star (Passenger/Cargo Impact), The Diplomat (BRI and Region), Laotian Times (Connectivity Projects)
Vietnam-Laos Ties Continue Improving
Vietnamese and Lao leaders have pushed for a closer relationship with meetings in Hanoi and the setting of new trade targets. President Luong Cuong's state visit to Laos is expected to create new momentum for the relationship. Both sides say they want to remain focused on security, infrastructure, joint defense, trade, and legislative collaboration, while staying on target to hit a US$5 billion two-way trade goal. Talks also dealt with rising Vietnamese investment in Laos and the improvement of regional and parliamentary cooperation through multilateral forums (fora, if you’re a nit-picker).
Read more: VietnamPlus (Legislative Cooperation), VOV (State Visit), VietnamPlus (Presidential Talks), The Star(Economic/Investment Ties), VOV (Parliamentary Activities)
Power Grid Strategy Shifts in the Region
Vietnam is making big changes in its energy trade and their moves are likely to substantially impact Laos. Vietnam plans to increase power imports from Laos and China while at the same time cutting exports to neighbors in order to make sure it has enough for its ambitious self. By 2030, Vietnam's total power capacity could hit 236 GW, with a third from renewables and nuclear which would be rolled out in the next decade. In the meantime, Laos remains an important partner in securing Vietnam’s energy sustainability for the foreseeable future.
Read more: Laotian Times
Economic Pressures Drive Labor Migration
A worrying outflow of skilled workers continues, with more than 369,000 job placements domestically and abroad in the past five years. Wage increases at home have not kept pace with rising living costs, leading (some might say ‘forcing’) many to look for better pay in places like Thailand and South Korea. The minimum wage hike is not being followed by many businesses, which is making things worse. The official unemployment rate remains low, and the government seems committed to focusing on skill development and employment support.
Read more: The Star
Funding Cuts Disrupt HIV Services
Funding cuts from the United States are putting pressure on HIV programs in Laos. The disruption of the WHO-US CDC partnership and slashed funds for maternal and child health are resulting in job losses, delays to prevention campaigns, and service reductions by community organizations. Ongoing projects including community monitoring have been put on hold, while health services in general are having to deal with a reduced capacity for outreach and data collection. Agencies like the Global Fund and UNAIDS are scrambling to find replacement funding.
Read more: UNAIDS
Agriculture Pulling Foreign Investment
The ag sector is benefiting from new investments. The Costa Group of Australia launched a 17-hectare blueberry farm in Bolaven Plateau using polytunnels and modern water management, with growth planned to 200 hectares and jobs for locals. The national agriculture policy is working towards improved food security and market competitiveness by the use of technology, mechanization, and more efficient supply chains. Opportunities for investment are said to especially be found in rice, coffee, maize, livestock, and climate-resilient techniques, though infrastructure and labor limits remain a stumbling block.
Read more: ASEAN Briefing (Investment/Policy), Austrade (Blueberry Venture)
Potash Ambitions Meet Economic Realities
Laos wants to become one of Asia's largest potash producers by extracting from large potassium chloride reserves and using its newfound railway links for export. The country's financial difficulties are, however, limiting opportunities for mining expansion. Only a few companies are actively mining, which is holding back growth and diversification dreams.
Read more: GIS Reports
Centralized Tax System Sees Efficiency Gains
The Ministry of Finance has rolled out a Smart Customs platform, which digitizes customs data, connects to the central bank's payment networks, and reduces paperwork. The centralized system is designed to speed up processing and improve coordination, and so far seems to be working. A good sign for further progress toward digital government in Laos.
Read more: The Star
International Partnerships Grow Beyond China
Officials are keen to keep strong economic links with China but are also making efforts to diversify. Analysts expect a possible tilt further toward China if US engagement decreases, but ties are also being shored up with Japan, Australia, India, Europe, and neighbors like Thailand and Vietnam. Laos is paying attention to multilateral gatherings and climate-security cooperation, trying to figure out how to balance its partners during stormy geopolitical weather.
Read more: Laotian Times
Thai Princess in Conference Visit
Thai Princess Maha Chakri Sirindhorn will visit Laos for a medical academic conference, celebrating 25 years of health professional training and 75 years of diplomatic ties. The visit is indicative of longstanding and ongoing co-op in the health space and is being used to showcase international collaboration since 1950.
Read more: The Star
Gold Banking Initiative Against Inflation
A new partnership between Lao Bullion Bank and KPV Gold is finding a place for household gold reserves in the formal banking system. Customers are able to deposit gold, earn 2% interest, and buy standardized gold products, with promotional offers in place to draw new customers. This platform is designed to improve monetary stability and help curb inflation risks while standardizing gold transactions under law.
Read more: The Star
Coordinating on Diplomacy and Trade with Russia
Deputy prime ministers of Laos and Russia have shaken hands in advance of the Lao president's planned visit to Moscow. Discussions were mostly about the usual suspects of trade, transport, and better collaboration, with an emphasis on Laos' role in supporting dialogue between Russia and ASEAN while Laos was chair of the group (2024). Ministries from both countries participated in the talks, leading to optimism that the visit to Moscow will be a success.
Read more: Government.ru
Moon Bears Rescued as Bile Farm Closes
Local authorities and the Free the Bears NGO were able to shut down a bear bile farm in Vientiane, rescuing two male and one female moon bears. The rescue is the first of its kind since a 2007 wildlife law was put in place, but the regulations unfortunately have a legacy of legal loopholes. The bears are headed for quarantine and sanctuary, good news towards better wildlife protection in a country that needs it.
Read more: Mongabay
Resilience in Face of US Trade Threats
ASEAN+3's economies are so far showing impressive strength despite tariffs averaging 26% on being slapped (or threatened to be slapped) on exports to the United States. The region's export dependence on the US, once 24% in 2000, now sits at 15%. Growth is being helped by strong domestic demand, rising regional trade, and a push for efficiency through reform and the increasing use of digital platforms.
Read more: Laotian Times (Regional Resilience)
Safer New Year on Lao Roads
During the weeklong Lao New Year festival, the country recorded 26 road deaths, a welcome drop from 33 last year. Police registered more than 300 accidents, with thousands of injuries and vehicles damaged. Drunk driving and speeding remain the biggest safety risks. Champasak, Vientiane province, and Vientiane capital reported the highest incident counts. This time of year is always perilous on the roads in the region - it’s good to see that some progress is being made.
Read more: The Star
That’s all for this week, thanks for reading.
Your voice matters to us. Feel we're missing something? Have additional sources to suggest? Don't hold back— hit reply and help us get better.
If you value the Mekong Memo, please consider buying (or gifting!) a paid subscription, sharing it on social media or forwarding this email to someone who might enjoy it. Please also “like” this newsletter by clicking the ❤️ below (or sometimes above, depending on the platform), which helps us get visibility on the Substack network.