Laos 20241030: Intangible, Conscientious, Rhythmic

Oct 30, 2024

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Headlines:

AFD Marks Three Decades of Impact

Infrastructure Push Gains Momentum

China Deepens Regional Integration

SEZs Pull Major Investment

Australian Investors Eye Opportunities

Cattle Production Gets Boost

Durian Exports Target China

Government Plans Salary Hike

Corruption Crackdown Intensifies

Tourism Numbers Rise

BRICS Membership Push

Labor Agreement with Myanmar Signed

AFD Marks Three Decades of Impact

French development agency AFD (Agence française de Développement) is celebrating 30 years of work in Laos, having invested €300 million aver 90 projects. Their 2021-2025 commitments include €27 million for agriculture, environment and private sector growth. The Nam Theun 2 dam is a flagship project, while cultural heritage preservation in Luang Prabang has helped to grow tourism in support of regional development.

Infrastructure Push Gains Momentum

Ambitious plans for a high-speed railway and expressway connecting Vientiane to Vietnam’s Vung Ang seaport face indefinite delays as the nation’s high debt—now 112% of its GDP—deters investors. Although environmental studies and planning are complete, Laos lacks funding to advance the $6 billion railway and $772 million expressway projects. With over half of its debt owed to China, Laos is exploring support from other partners, including South Korea, to achieve essential economic connectivity goals.

Read more: RFA (Funding Issues), The Star (Infrastructure Plans)

China Deepens Regional Integration

China is scaling up infrastructure in Laos to accelerate trade throughout Southeast Asia. Premier Li Qiang pledged to transform Laos from landlocked to "land-linked." With borders touching China, Cambodia, Myanmar, Thailand and Vietnam, Laos serves as an important transport hub for Chinese products.

SEZs Pull Major Investment

Vientiane's five special economic zones pulled in 39 new companies in the first nine months of 2024, drawing USD 622.59 million in capital investment and USD 224.51 million in registered capital. The performance was well in excess of of the city's annual target of 35 companies.

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