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Headlines:
Economic Optimism Grows as Inflation Declines
Again With The Trains
Savannakhet Wind Power Project Almost Done
Laos-China Energy Cooperation Powers Up
EDL Signs Deal for More Hydropower
Bitcoin Mining Eyed as Solution to Mounting Debt
Vang Vieng Plans USD 7 Million Hotel
Xiengkhouang Cracks Down on Illegal Gold Mining
Laos, Thailand Want $11 Billion Trade by 2027
Timor-Leste Gets 30-Day Visa-Free Travel
Russia, Laos in Joint Military Exercises
Vocational Training for 50,000
Sekong Province Awards Academic Bonus
Economic Optimism Grows as Inflation Declines
The government announced a reduction in the seven-day basic interest rate from 9.5% to 9% in September 2025, the third cut this year following March and June reductions. Inflation eased from 5.3% in July to 5% in August, a welcome improvement from the higher-than-10% that we saw in early 2025 and 40.3% (!) in 2023. Citizens are cautiously optimistic. The government continues to work on improving monetary policy to further curb inflation and build a self-reliant economy by increasing revenue and keeping a lid on expenditures.
Read more: The Star
Again With The Trains
The trains make a weekly appearance in the press, so we feel that we should continue to share, but the stories are mostly the same week to week. The Laos-China Railway continues to do very well: traffic has grown healthily, with the Lao section moving more than 2.6 million passengers and the entire line shifting almost 60 million travelers. Daily train runs have risen from 4 to 18. Laos is now connected to 19 countries. The ASEAN Express, a cross-border freight rail service connecting Malaysia, Thailand, Laos, and China, has reduced transit time from 14-21 days by sea to just nine days by rail.
Read more: Laotian Times (Impact), People.cn (Trade), The Nation Thailand (ASEAN Express)
Savannakhet Wind Power Project Almost Done
The Savan 1 Wind Power Project in Savannakhet is 85% complete and expected to begin commercial operations by year-end. Installation of 29 out of 48 wind turbines has been finished, as well as most access roads and transmission lines. The project will output 495 MW capacity with a total investment of USD 768 million. Phase one needs over USD 490 million and will provide electricity to Vietnam under a 25-year export contract. Approved in September 2024, the project is to be followed by a second phase that will add 32 more turbines (195 MW) by 2027. Another major wind project in Nong district with 1,200 MW capacity is planned for 2027.
Read more: Laotian Times
Laos-China Energy Cooperation Powers Up
Laos and China came together to talk turkey at the inaugural Laos-China Power Technology Forum in Vientiane. The forum brought together government ministries, the Laos-China Railway Company, and a handful of Chinese research institutes. A planned 500kV Laos-China Grid Interconnection Project is expected to further integrate the grid between the two countries.
Read more: The Star
EDL Signs Deal for More Hydropower
Electricité du Laos (EDL) and Nam Theun 2 Power Company Limited signed a Memorandum of Understanding for electricity from the Nam Theun 2 hydropower project. The agreement is an amendment to the existing Power Purchase Agreement, and will raise the annual electricity production from 300 to 500 GWh. The increase is indicative of rising domestic energy demand, especially in Khammouane. Separately, two former Electricite du Laos officials have been held on corruption charges related to transmission line construction. The case has ensnared the former Director General and Head of Office for Survey. The State Inspection and Anti-Corruption Authority found them guilty of embezzlement and financial irregularities involving both the 230kV Tha Vieng–Km 20 transmission line and the 115kV Nam Phai–Thong Khoun line.
Read more: Laotian Times (Hydro), Laotian Times (Corruption)
Bitcoin Mining Eyed as Solution to Mounting Debt
Bitcoin mining is being explored as a way to try to out from under mounting debts from hydropower projects. The idea is that excess electricity would be used for Bitcoin mining to generate revenue as $1.3 billion in annual debt obligations come due through 2028. Regular readers of The Memo may recall there was already a 2021 pilot program that allowed a few companies to mine and trade cryptocurrencies under oversight, but policies haven’t been reliable, and a 2023 drought brought a stop to the pilot until 2024, when crypto data centers started up again and, shockingly, reportedly used a third of the country’s power. Environmentalists remain unenthusiastic.
Read more: SCMP, Bitcoinist
Vang Vieng Plans USD 7 Million Hotel
A new “deluxe” hotel project is underway with a $7 million investment. The project is planned to feature a hotel of 11 stories in an eight-square-kilometer development to try and bag more visitors with improved tourism infrastructure. Construction is expected to take three years, and the project will be run on a build-operate-transfer model with a 50-year term.
Read more: Laotian Times
Xiengkhouang Cracks Down on Illegal Gold Mining
Xiengkhouang security officials are starting to shut down illegal gold mining at Hae Mountain in Paek district. The mining has already caused serious environmental damage, including landslides and deaths in the area, so the crackdown is probably overdue. Illegal miners are getting a reminder of the consequences of private extraction, and the public is being encouraged to squeal if they see any suspicious mining activity.
Read more: The Star
Laos, Thailand Want $11 Billion Trade by 2027
Laos and Thailand plan more infrastructure, transportation, and academic cooperation. Specific goals include reducing travel time across the Lao-Thai border and improving connectivity to local economic areas. The plan requires investments from both countries in infrastructure, including bridges and railways, and in a dig (we can’t really say “blow,” can we?) to the USD, then plans recommend greater use of local currencies for trade.
Read more: Laotian Times
Timor-Leste Gets 30-Day Visa-Free Travel
Laos and Timor-Leste now have a 30-day visa waiver for ordinary passport holders. Both countries have also signed a long-term agreement on land and property deals to set up embassies in each other’s capitals. Timor-Leste has been an ASEAN observer since November 2022 and is expected to become ASEAN’s 11th member at the upcoming 47th ASEAN Summit in October 2025, according to Malaysian Prime Minister Anwar Ibrahim.
Read more: Laotian Times
Russia, Laos in Joint Military Exercises
The Russian Ministry of Defence confirmed the launch of Laros 2025 joint military exercises, running until tomorrow. The exercises are being celebrated as the 65th anniversary of diplomatic relations and the 50th anniversary of the Lao People’s Democratic Republic. Under the motto “Shoulder to Shoulder in the Fight for Peace and Security,” the drills are on command-and-control training, counter-terrorism, and combat readiness. Equipment being used reportedly includes advanced robotics and drones with machine guns.
Read more: VietnamPlus
Vocational Training for 50,000
The Vientiane Labour and Social Welfare Department has helped more than 50,000 people find jobs by supporting them with job skills training over the past five years. The number handily beats the original target of 32,000. A job market information system was built, a public employment service was launched, and collabs with recruitment agencies have resulted in more than 1,000 workers being sent to South Korea for seasonal work. Membership in the social security scheme has risen by more than 2,200 at 172 government agencies and businesses, again beating the five-year target of 1,300.
Read more: The Star
Sekong Province Awards Academic Bonus
Sekong Province will be giving LAK 50 million (USD 2,306) and university placement support to students who are able to graduate with a “red diploma” in the upcoming academic year. Red diplomas are given for exceptional academic performance: a GPA above 3.50 and no grades lower than a “B.” Governor Bounlay Boutthi announced the plan as a way to reward high achievers and get stubbornly high dropout rates down.
Read more: Laotian Times
That’s all for this week, thanks for reading.
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