Laos 20241218: Indignant, Resonant, Rational
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Headlines:
Growth Plans Meet Economic Reality
Vietnamese Ties Get Economic Boost
Food Crisis Hits Low-Income Families Hard
ADB Commits $50 Million for Water and Sanitation
Chinese Firm Bets Big on Pomelos
Tourism Takes Hit from Bootleg Booze
South Korea Partners on Water Management
Defense Academies Strengthen Bond
Digital Border Fees Streamline Payments
Ag Expo Advances Sustainable Farming
Forests Lose Out to Plantation Expansion
Urban Forum Drives City Development
Growth Plans Meet Economic Reality
The government is playing hardball on inflation and exchange rates while trying to juice up the business environment. Tourism infrastructure is getting priority as officials shoot for 4.6% GDP growth next year. There’s a new push to cut red tape and streamline regulations might actually work this time - everyone seems serious about attracting investment.
Read more: Daiji World (government plans), The Star (business reforms)
Vietnamese Ties Get Economic Boost
Both Vietnam and Laos are doubling down on trade and infrastructure cooperation. The latest talks produced real commitments on agriculture and tourism projects. The 11th ministerial consultation wrapped with plans to finish some of the main construction work that has been promised and it looks like the traditional friendship is paying off with actual action on the ground.
Read more: VOV (cooperation details), Vietnam News (political talks)
Food Crisis Hits Low-Income Families Hard
The World Bank says food inflation is crushing poor households, with children taking the biggest hit. Northern Lao provinces are particularly struggling with food shortages and import dependency. The inflation and exchange rate mess the nation has been suffering since mid-2022 isn't helping. The World Bank is calling for better safety nets and agricultural support, in addition to a serious look at nutrition programs.
Read more: World Bank
ADB Commits $50 Million for Water and Sanitation
The Asian Development Bank (ADB) has approved a $50.3 million financing package, including $2 million in technical assistance from the Japan Fund, to build out climate-resilient water supply and sanitation services. The project is expected to benefit 70,000 people by rehabilitating infrastructure, improving regulations, and building capacity. Target areas include Bokeo, Houaphan, Salavan, Xaisomboun, and Xiengkhouang provinces.
Read more: Smart Water Magazine
Chinese Firm Bets Big on Pomelos
A Chinese company, Oudomxay Jiangge Cement, has signed a $600 million deal to develop pomelo cultivation and processing in Laos. The project will cover 10,000 hectares in Oudomxay Province, producing 200,000 tonnes annually, output valued at $150 million.
Read more: Laotian Times
Tourism Takes Hit from Bootleg Booze
Six international tourists, aged 19 to 28, have died from methanol poisoning after consuming counterfeit alcohol at a hostel in Vang Vieng. The incident raises concerns over unregulated alcohol markets, which are widespread in Southeast Asia. While the government has banned implicated liquor brands, the incident threatens the country’s growing tourism sector. Experts suggest backpackers may temporarily avoid free-shot parties but are unlikely to abandon the region long-term.
Read more: DW
South Korea Partners on Water Management
Laos and South Korea have launched a $5.6 million initiative to modernize water management and increase agricultural productivity in Vientiane. Upgrades include advanced irrigation systems, solar-powered energy solutions, and centralized water management. A pilot program will integrate renewable energy to reduce costs and address sector debt. Local farmers should benefit from a newly formed Water User Association to maintain infrastructure.
Read more: Laotian Times
Defense Academies Strengthen Bond
The Vietnam National Defence Academy and Laos' Kaysone Phomvihane National Defence Academy celebrated 15 years of partnership in Vientiane. The collaboration is primarily on military education, joint training, and research. Both academies play important roles in their countries' defense strategies, and have long been useful in building up military expertise and strengthening bilateral ties.
Read more: VietnamPlus
Digital Border Fees Streamline Payments
As of September 1, the government has been charging a digital border fee of LAK 10,000 (USD 0.46) for all tourists at international checkpoints, processed through their “Easy Pass” system. The fee supports the tourism fund and improves payment transparency. Exemptions apply to certain groups, including children, monks, and diplomats. The system eliminates paper receipts, improving accuracy and convenience, and is currently implemented at seven border crossings.
Read more: Laotian Times
Ag Expo Advances Sustainable Farming
The Lao Agri Expo is showing local progress in agriculture, with the sector growing 4.1% in the first nine months of 2024, above the 2.6% target. The event centered on promoting modern techniques, sustainable practices, and value-added production. Annual projections include 3.6 million tonnes of paddy rice and $1.2 billion in exports. The livestock sector is also healthy, housing 6.12 million animals.
Read more: The Star
Forests Lose Out to Plantation Expansion
The growth of banana and durian plantations, mostly fueled by Chinese and Vietnamese investment and facilitated by the Laos-China Railway, led to the loss of more than 136,500 hectares of forest in 2023. Deforestation and soil contamination have grown, diminishing biodiversity and negatively impacting communities. While plantations boost agricultural exports, weak enforcement of environmental laws and corruption exacerbate land grabbing and forest loss.
Read more: Earth Journalism Network
Urban Forum Drives City Development
The Third Lao National Urban Forum, hosted in Vientiane, focused on sustainable urban growth under the theme “SDG Localisation and Partnering with Youth. Discussions addressed flood risk management, smart cities, waste management, and climate challenges. Youth engagement and multi-stakeholder partnerships were mentioned as vital for inclusive and innovative urban planning. With Laos' urban population expected to reach half the population by 2030, the forum is a helpful platform to discuss opportunities while making plans to deal with challenges.
Read more: The Star
That’s all for this week, thanks for reading.
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