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Headlines:
Rail Revives Farm Exports
Central Bank Slashes Rate to 9%
Vietnam and Laos Have a $5B Trade Target
Hydropower to Fuel Crypto Mining Revival
US Tariffs Put 60,000 Jobs at Risk
Packages to America Stop Cold
PepsiCo Locks in 15-Year Partnership
Online Gambling Gets Green Light
Rail Revives Farm Exports
The China-Laos Railway is changing the nature of the ag business with new freight routes and much faster customs clearance with China at the border. Fruit exports jumped 63% to 171,000 tons as farmers are able to benefit from predictable train slots that they can plan for with harvest schedules. Villages close to stations are adding storage facilities and processing centers, and SMEs are working to grow their own production capacity, now that they’re confident they can get cargo space. The Vientiane-Luang Prabang journey time has been reduced from 12 hours by road to two by rail, completely changing tourism and commerce.
Read more: Xinhua (local gains), Travel and Tour World (community impact)
Central Bank Slashes Rate to 9%
The Bank of Lao PDR cut its benchmark rate to 9% on August 22, the third reduction this year. Inflation cooled to 5% in July from last year's peak near 40%, giving officials room to ease up on borrowing costs for businesses and households. Risks remain from volatile oil prices and US rate moves.
Read more: The Hans India
Vietnam and Laos Have a $5B Trade Target
Vietnam's Vice President visited Vientiane in a bid to push for $5 billion in bilateral trade and tighter economic links. Both sides promised that they’d keep supply chains moving and increase the number of youth exchanges. They also took a moment to celebrate UNESCO's recognition of their shared Hin Namno National Park.
Read more: Asian News Network
Hydropower to Fuel Crypto Mining Revival
Plans to use excess hydroelectric power for cryptocurrency mining are being dusted off again as prices continue to rise. The Ministry of Technology laid out rules for electricity allocation and compliance after reviewing pilot programs. The pitch is to generate revenue during the wet season power glut without tapping the budget and keeping the grid stable. It’s going to be interesting to see where this story goes next.
Read more: Laotian Times
US Tariffs Put 60,000 Jobs at Risk
New American tariffs of 10-40% threaten to devastate smaller economies; Laos is facing a 40% hit to exports. The duties endanger 60,000 jobs in commodities and garments - brutal news for a nation where a quarter of the population lives in poverty. Eyes are looking to China as an escape hatch for exports.
Read more: Council on Foreign Relations
Packages to America Stop Cold
Lao Post has put a stop to parcel service to the United States as of August 25 after Washington ended duty-free exemptions. Letters are still moving, but small businesses and individuals trying to send e-commerce packages or gifts need to find and use more expensive alternatives. The postal service promises updates as new guidelines come to light.
Read more: Laotian Times
PepsiCo Locks in 15-Year Partnership
Lao Brewery and PepsiCo shook hands on a 15-year deal, building on five decades of partnership. The agreement brings together PepsiCo's brands with LBC's distribution prowess, rolling out snacks alongside beverages in a unified sales approach. An LBC manager just became the first Lao national to win PepsiCo's Chairman's Ring of Honor.
Read more: Laotian Times
Online Gambling Gets Green Light
Regulatory updates are opening the door for offshore gambling operators with foreign players in their sights - think Philippine Offshore Gaming Operators (POGO) -style operations. The Ministry of Planning tweaked casino tax and transparency rules while still keeping locals forbidden from all gambling. Chinese investors currently dominate the scene in the Golden Triangle special zones, but online growth will depend on stricter KYC compliance and cross-border payment systems that actually work.
Read more: iGaming Today
That’s all for this week, thanks for reading.
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