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Headlines:
Economy on the Upswing
The Laos-China Railway is a Game Changer
New Digital Levy Takes Hold
InDrive Shut Down
Japan & Laos Upgrade for A Better Tomorrow
Vietnam & Laos Closer Than Ever
Lao Farm Exports Diversify
Tourism So Far Remains Sustainable
Amari Vientiane is The New Player in Town
Heart Help from China
The Big Hydropower Plan
New Work Opportunities in Singapore
Online Scammers Target Laos
Surrogacy = Trafficking: Laos Cracks Down
Economy on the Upswing
The economy seems to have finally turned a corner as inflation dropped to 8.3% in May, the first single-digit rate since May 2022. That's a big deal. The government has also already pulled in 93% of its half-year revenue target, and exports shot up more than 16% to $662 million, leaving the country with a trade surplus in excess of $14 million. Foreign reserves now cover five months of imports, and a wave of tourism has kicked in: foreign arrivals jumped more than a fifth. The government’s still gunning for 4.8% growth this year, pushing for more domestic production and more reductions on imports. They also say that they’re working on long-term planning documents through 2040.
Read more: The Star (Recovery Trends), Laotian Times (Trade Surplus), The Star (Inflation Data)
The Laos-China Railway is a Game Changer
Sometimes we wonder if we spill too much ink on the Laos-China Railway in the Mekong Memo, but almost every week the story gets re-reported on by the wider media and it really has been a game-changer for regional trade. By May this year, it had hauled more than 60 million tons of cargo. Transport costs are down 40%, and shipment times in some cases have been cut from three weeks to just 9 days. The number of cross-border products traded has risen from 500 to 3,000, a figure that has helped rocket Lao exports to China to $4.56 billion in 2024, a 21.4% increase. The railway also pulled in $5.7 billion in investments over 12 special economic zones and allowed for nearly 50 million passenger trips.
Read more: ASEAN Briefing (Trade Impact), Bangkok Post (Regional Connectivity)
New Digital Levy Takes Hold
The Ministry of Technology and Communications has set enforcement guidelines on digital service providers: they now have to contribute 1% of gross revenue to the Digital Telecommunications Development Fund. The rule, effective since July last year, applies to telecommunications, internet providers, postal businesses, and digital service companies. Companies are required to report July-December 2024 and January-May 2025 periods by June 30. After that, it's monthly. Ambitiously, this fund is supposed to support all of: telecom infrastructure development, national security, remote connectivity, digital governance, workforce development, and affordable education and health services.
Read more: Laotian Times
InDrive Shut Down
InDrive, that much celebrated ride-hailing app, just got slapped down nationwide with a block in the wake of alleged regulatory non-compliance. They reportedly failed to maintain an official office, get the necessary enterprise registration and transportation permits, as well as decided not to meet their tax obligations. The National Internet Regulatory Commission told telecoms providers to block the app starting May 28. If you try to use a VPN, apparently your account will get suspended (although the article makes it seems like that might be an issue from the InDrive side). The shutdown has hit drivers' wallets hard, left passengers with fewer options, and is happening at a time that regulators seem to be moving towards tighter internet monitoring and digital platform regulation.
Read more: Laotian Times
Japan & Laos Upgrade for A Better Tomorrow
Japan and Laos have raised the status of their diplomatic relationship to a Comprehensive Strategic Partnership. The change came during Prime Minister Ishiba Shigeru's meeting with President Thongloun Sisoulith, to celebrate 70 years of diplomatic relations. They were able to hammer out a few agreements, like extending visa-free stays for Japanese passport holders from 15 to 30 days, acceleration of tax convention implementation, and improved investment cooperation. Japan also promised support through the Asia Zero Emission Community initiative to help with decarbonization efforts. This partnership builds on 60 years of Japanese volunteer missions – more than a thousand volunteers and 4,500 experts who've been supporting legal, justice, and public service sectors over the years.
Read more: Asian News Network (Strategic Partnership), Japan Kantei (Summit Details)
Vietnam & Laos Closer Than Ever
Vietnam and Laos are really also firming up their solidarity. Bilateral trade hit $2.2 billion in 2024 and then absolutely exploded to $1.3 billion in just the first four months of 2025 – that's a 109.3% growth. The inauguration of Vung Ang Port Wharf No. 3 will allow landlocked Laos crucial sea access. High-level exchanges between the Communist Party of Vietnam and Lao People's Revolutionary Party are working towards hammering out cooperation agreements for 2026-2030. And in a surprise move, Vietnam plans to add Lao as a foreign language in schools nationwide, starting with border areas. The idea is to strengthen cultural understanding and facilitate more academic exchanges.
Read more: Vietnam Plus (Economic Cooperation), Vietnam Net (Language Program), Vietnam News (Political Relations)
Lao Farm Exports Diversify
Laos just delivered its first mango export to China. They shipped 90 tonnes, following a 2023 bilateral agreement, with Chinese market demand expected to weigh in at 1,500 tonnes. Overall, agricultural production hit 11.09 million tonnes in 2024, a 14% increase. Agricultural and forestry exports totaled $1,214 million in the first nine months of 2024. On the caffeine front, the Lao Green Coffee Competition 2025 just wrapped up in Bolaven Plateau, showing off some real quality improvements. Nambeng Coffee Cooperative won the Arabica category, and Bolaven Story Coffee was top of the charts for their Robusta product.
Read more: The Star (Mango Exports), Laotian Times (Coffee Competition)
Tourism So Far Remains Sustainable
Laos saw 4.12 million international visitors last year, a group that delivered more than $1 billion in revenue. A lot of the credit for the numbers goes to afore-(and often-) mentioned Lao-China Railway and the "Visit Laos Year 2024" campaign. Officials are getting ready to host the Mekong Tourism Forum 2025 in Luang Prabang, with a push for sustainable development through community-based projects and cultural preservation. The main priorities include ecotourism development, women's empowerment in tourism, better regional connectivity throughout ASEAN, and multi-country travel circuits.
Read more: Travel and Tour World (Forum Preparation), Travel Daily Media (Tourism Strategy)
Amari Vientiane is The New Player in Town
Thailand’s ONYX Hospitality Group is growing its footprint into Laos with the opening of the Amari Vientiane. Amari wants to take a piece of Vientiane's growing MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism segment. The new property, with sxxx keys is part of their broader regional expansion strategy, which also includes new properties in Thailand and Sri Lanka. This expansion shows a lot of confidence in the Lao tourism sector and its potential as a business events destination in the Asia-Pacific region.
Read more: Travel and Tour World
Heart Help from China
Mahosot Hospital has struck a partnership with China's Fuwai Cardiovascular Hospital in Yunnan Province through a new MoU. This hookup is expected to help improve cardiovascular care capacity in Laos, especially for kids needing pediatric cardiac surgery and heart transplants. The agreement covers staff training, equipment procurement, and research initiatives.
Read more: The Star
The Big Hydropower Plan
Lao’s hydropower sector is forecast to generate 16 GW by 2035, with an annual growth rate of 3.8% between 2024 and 2035, according to Fitch Solutions. The country right is home to 88 hydropower plants with just over 10 GW of capacity. Twenty one more projects are under construction. Government backing through power purchase agreements, regulatory frameworks, and backing (and purchase agreements) from neighbors like Thailand and Vietnam are really fueling this expansion. Laos is dead set on becoming the "Battery of Southeast Asia" via hydropower exports. It’s not all smooth sailing, though, environmental concerns and a need to balance domestic needs with export commitments remain challenges.
Read more: Asian Power
New Work Opportunities in Singapore
Singapore has added Laos, Bhutan, and Cambodia to its non-traditional source countries for foreign workers, effective June 1, 2025. This change applies to work permit roles in construction, marine shipyard, process industries, manufacturing, and the services sectors. Singapore wants to tackle labor shortages while developing a more skilled workforce and has also extended the maximum employment age for work permit holders from 60 to 63 years. The Singapore Manufacturing Federation says the change will help reduce operational disruptions in important sectors like precision engineering, electronics manufacturing, and aerospace. Any effect on the labor market in the new countries is yet to be seen.
Read more: Laotian Times
Online Scammers Target Laos
Sophisticated digital fraud operations are going after Lao social media users. The operators are impersonating legitimate media outlets and national institutions including Lao Airlines and Lao Telecommunication with fake Facebook pages. The scammers build credibility by reposting authentic content before switching up to fraudulent activities including counterfeit product sales and phishing attempts. This scheme is taking advantage of a quickly changing digital landscape, where almost 5 million internet users and 4.25 million social media accounts exist in a population with very low rates of digital literacy. Public awareness campaigns and page verification are being promoted as defensive measures.
Read more: Laotian Times
Surrogacy = Trafficking: Laos Cracks Down
The government has sent out a warning: surrogacy services are now categorized as human trafficking under Article 215 of the Criminal Code. Violators (both recruiters and surrogate participants) face up to 19 years imprisonment and fines reaching 400 million kip. The Anti-Human Trafficking Department is monitoring social media for illegal recruitment promising high wages and comprehensive care. No private hospitals are currently authorized for surrogacy services. Authorities have set up reporting channels through hotline 1300 and WhatsApp. A final interesting point of note: children born through illegal surrogacy are considered trafficking victims.
Read more: Asian News Network
That’s all for this week, thanks for reading.
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