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Headlines:
Gov't Overhaul to Streamline Operations
Assembly Tackles Economy
AgCoTech Delivers Green Innovation
Corruption Fight Inches Forward; Miles to Go
Starry-eyed Growth Goals
New Infrastructure Projects Help Connectivity
Green Power Powers On
Tourism Goes Green, Gets Boost
New Rules for Food Imports
Investment Drive Heats Up
Health & Schools Get Boost
Land Deals Go Digital
International Cybercrime Crackdown
Payment Troubles On the Rise
Judicial Ties Bettered With Malaysian Support
Gov't Overhaul to Streamline Operations
The government has undertaken a major cabinet reorganization. Bounkham Vorachit has been tapped as the new Governor of the Bank of the Lao PDR. The restructuring merges the Ministry of Planning and Investment into the Ministry of Finance, dissolves the Ministry of Home Affairs, and creates the Ministry of Agriculture and Environment. They also folded the Energy and Mines portfolio into the Ministry of Industry and Commerce. On top of that, new appointments have been made to the Labor, Health, and Ag ministries. The changes, approved by the National Assembly Standing Committee as the current administration nears the end of its 2021-2025 term, is a good show of the government's commitment to improving national administrative efficiency.
Read more: Laotian Times
Assembly Tackles Economy
The 9th National Assembly came together June 9, and will run through June 26, with lawmakers saying they will prioritize economic recovery projects and development reforms. The session reported that Q1 2025 saw economic growth of 4.5%, with the total economic value hitting 84,207 billion kip. The growth was broad-based: agriculture at 3.1%, industry 4.7%, and services 4.7%. The assembly, led by NA President Dr. Xaysomphone Phomvihane and attended by President Thongloun Sisoulith and PM Sonexay Siphandone, is also going to tackle some of the more pressing issues facing the nation like the cost of power, reviews of land concession, and road maintenance. Lawmakers also drafted the framework for the 10th Five-Year National Socio-Economic Development Plan (next story).
Read more: The Star
AgCoTech Delivers Green Innovation
Australian startup AgCoTech is delivering on an innovative methane-reduction solution: they've distributed 50,000 specialized salt blocks to 4,000 livestock farmers since September 2023. (Congratulations, Alex!) The blocks reduce cattle methane emissions by 40% and each one last four months. The “magic” input results in the cows emitting less methane and cuts emissions by 880kg of CO₂ equivalent for every cow, every year. The company gives the blocks for free to farmers and makes money through carbon credit sales at $30-$50 a ton in international markets.
Read more: Reccessary
Corruption Fight Inches Forward; Miles to Go
Improvement has been made in Transparency International's 2024 Corruption Perceptions Index. Laos was able to score a tepid 33/100, a 5-point increase from 2023, but it is still one of Southeast Asia's lowest-ranked nations and 114th globally. The State Inspection and Anti-Corruption Authority says that it investigate 208 people for corruption last year resulting in 40 prosecutions with and estimated financial losses of more than USD 32 million. While still behind neighbors Singapore, Indonesia, and Thailand, the government is putting effort into reduce money laundering, fraud, and trafficking. Leaders are insistent that they are going to improve institutional accountability and get themselves off the FATF grey list.
Read more: Laotian Times
Starry-eyed Growth Goals
The government has inked a new five-year development plan that expects 5% annual economic growth through the end of this decade. This plan specifies sector growth targets: agriculture at 4.4%, industrial output at 5.1%, and services at 5.6%. This plan will need LAK 523,504 billion in investment and is expected to support per capita income of LAK 60.3 million by 2030. Focus areas include energy sector diversification, infrastructure development, digital economy development, education reforms, and infrastructure to better connect Laos to the region. The plan comes as inflation has eased somewhat, dropping from 15.5% in January to 8.3% in May. The country still expects to graduate from Least Developed Country status in 2026.
Read more: Laotian Times
New Infrastructure Projects Help Connectivity
More good news on the infrastructure front: the fifth Lao-Thai Friendship Bridge, connecting Borikhamxay province to Thailand’s Bueng Kan province, is on the brink of completion, with access roads and infrastructure fully finished. The 1,350-meter bridge, funded by a loan from Thailand, started construction in January 2021 and will open sometime this year. The project is going to really improve connectivity through the East-West Economic Corridor, allowing for trade routes to Vietnam and southern China. Plans also include a special economic zone at Kouy Oudom village for cargo, logistics, and transportation operations.
Read more: Asian News Network (Bridge), Fresh Plaza (Railway)
Green Power Powers On
A four-part plan to increase domestic power generation is being put into action with the completion of the Nam Ngum 3 Hydropower Plant and the construction of 12 large-scale solar projects with 650 MW capacity. A 1,000-megawatt solar project in Oudomxay Province is 60% done and is expected to be fully operational by year-end. This 2,090-hectare facility will need 800 workers and be able to generate an impressive 1.7 billion kWh annually, an amount that could power as many as 10 million households. Laos generated USD 980 million from electricity exports in 2024.
Read more: Laotian Times (Strategy), Laotian Times (Solar Project)
Tourism Goes Green, Gets Boost
The Ministry of Information, Culture and Tourism has shared its vision for the future of sustainable tourism development, saying that Laos was host to 4.12 million international visitors in 2024 and benefitted from revenue in excess of a billion USD. Their strategy pushes community-based tourism, as 60% of tourism businesses currently are operating outside of the main cities. The plan takes advantage of the Lao PDR-China Railway for connectivity and also relies on digital integration and smart urban development. Women make up more than half of the tourism workforce at 55% of labor, and the plans also prioritize growth with the integration of ethnic minorities and people with disabilities. As a footnote, eight companies from around the world are currently elbowing their way into snagging a public-private partnership to renovate Luang Prabang International Airport. Proposals are due this month.
Read more: TTR Weekly (Tourism Strategy), Laotian Times (Airport)
New Rules for Food Imports
A ban on unregistered and unlabeled imported food products is coming into effect on July 1. This new regulation covers drinks, dietary supplements, and processed fish products, and requires registration with the Food and Drug Administration along with Lao-language labeling. Products will need to show registration numbers and appropriate labeling from the production phase, though temporary language stickers will be allowed during a transition phase. Enforcement will be left to provincial authorities working in coordination with the health, finance, and customs departments.
Read more: Laotian Times
Investment Drive Heats Up
As with other countries in the Mekong Region, Laos is on the lookout for investment cash. Prime Minister Sonexay Siphandone is especially looking for new money for agriculture, green energy, food processing, mining, logistics, digital tourism, and the carbon credit markets. The government has designated 21 special economic zones and last year reformed investment laws to support the FDI push. On another front, China's Commercial Aircraft Corporation is looking for a 51% controlling stake in Lao Airlines. That proposal will need to face National Assembly scrutiny over sovereignty worries. A final decision is expected within a few months.
Read more: Asian News Network (Malaysia), Lao Times (China)
Health & Schools Get Boost
The Ministry of Health has a new climate resilience goal, backed by the Green Climate Fund, to strengthen the national healthcare system against environmental challenges. The project focuses on integrating climate data into health information systems, upgrading facilities in seven provinces, and improving the management of climate-related diseases. There's also a new Maternal and Child and Nutrition Training Centre in Luang Namtha province that will try to fix persistent malnutrition challenges; at the moment, a disappointing 33% of children under five face severe malnutrition. On the education side, the Lao Front for National Development is working with educational institutions to improve workforce development, providing 95 annual scholarships through 2030.
Read more: The Star (Health), The Star (Nutrition), The Star (Education)
Land Deals Go Digital
Big change coming for land transactions: The Ministry of Natural Resources and Environment has come out with Decision No. 0506/MONRE, which will require all land-use rights transactions to be processed through proper banking channels and be settled in Lao Kip (rather than USD or other currencies). Both buyers and sellers now need to submit applications with documentation including bank details, transaction parties, dates, reference numbers, amounts, and purposes. Land title deeds will only be given out after payment verification. Installment payments are allowed; initial payments will be recorded on title deeds. For really remote rural areas, there might be exceptions for cash transactions, but if you want that, you’ll need to get local government approval.
Read more: VDB Loi
International Cybercrime Crackdown
A multinational law enforcement operation has upended cybercrime networks, resulting in 1,800 arrests and the freezing of 33,000 bank accounts associated with USD 20 million in fraud. The focus of the action was on criminal enterprises in Cambodia, Laos, Myanmar, and Philippines. The targets reportedly ran schemes including online shopping fraud, telephone scams, and investment fraud using deepfake technology. The criminals were reported to have ranged from 14 to 81 years of age. These "scam compounds" often use human trafficking victims as forced labor, taking advantage of weak legal enforcement and porous borders.
Read more: Laotian Times
Payment Troubles On the Rise
A recent payment survey shows deteriorating payment conditions across Asia-Pacific, with average payment terms now running to 65 days. The survey shows that almost half of companies are dealing with payment delays, and ultra-long payment delays rose from 23% in 2023 to 40% last year. Business sentiment is still weak: 57% of companies expect more payment deterioration and a third are expecting worsening business conditions in 2025. Companies in China, India, Thailand, and Malaysia reported the highest rates of ultra-long payment delays; Taiwan and Singapore showed the most pessimistic business outlooks. This new reality is pushing companies to improve credit management and focus on cost control.
Read more: Laotian Times
Judicial Ties Bettered With Malaysian Support
President Thongloun Sisoulith welcomed Malaysian Chief Justice Tun Tengku Maimun Tuan Mat during her official visit from June 3-6, 2025 in a trip intended to improve judicial cooperation. The visit supports preparations to set up a Lawyers' Association and possible membership in the ASEAN Law Association. The visit also comes ahead of the 60th anniversary of diplomatic relations between the two countries next year.
Read more: The Star
That’s all for this week, thanks for reading.
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