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Headlines:
ASEAN Summit Supports Regional Co-op
ASEAN-China FTA Gets Upgrade
Rare Earth Mining Threatens Mekong River Basin
Protected Areas See Worst Deforestation
VN Funds Media Infrastructure in Houaphanh
Luang Prabang Airport Gets PPP Upgrade
Pakse Airport Renovation Underway
Bank of Laos in Five-Year Modernization Plan
Japan Invests in Ed, UXO, Geospace Infra
S&P Give CCC+ Rating and Positive Outlook
Green Business Forum
Cybersecurity, AI Integration, Crypto Mining
ASEAN Summit Supports Regional Co-op
Southeast Asian leaders came together in Kuala Lumpur for the 47th ASEAN Summit from October 26 through yesterday, with big plans to work through regional disagreements and improve cooperation. Lao Prime Minister Sonexay Siphandone met with leaders from Vietnam, Canada, and Brunei to discuss cooperation in transport, energy, trade, and investment. Vietnamese Foreign Minister Le Hoai Trung held separate meetings with his Lao counterparts to shore up ties and make plans for future high-level visits.
Read more: Laotian Times (Summit Overview), The Star (Bilateral Meetings), Vietnam Plus (Vietnamese Diplomacy), Khmer Times (CLV Co-op)
ASEAN-China FTA Gets Upgrade
ASEAN and China wrapped up their CAFTA 3.0 during the same ASEAN-China Summit, expanding coverage to include supply chain connectivity, digital economy rules, and plans for the green economy. The original FTA, in place since 2010, has seen bilateral trade explode from a little under 200 billion in 2008 to USD 982 billion in 2024. Malaysian Prime Minister Anwar Ibrahim described the new, improved agreement as a “milestone” for cooperation and regional partnership. The expansion comes as a result of negotiations that began in November 2022 and finished in May this year, just before US tariffs under President Trump came into effect. Chinese Premier Li Qiang took the signing as an opportunity to speak again about the importance of free trade and regional economic integration to act as a counter to rising global protectionism.
Read more: The Diplomat
Rare Earth Mining Threatens Mekong River Basin
Satellite data shows 27 rare earth mines currently operating in Laos, a problem for the Mekong River environment and the more than 50 million people who rely on its resources. Most of the mines sit near Mekong tributaries, with 15 running directly within the Mekong River Basin itself. Chinese investors are allegedly funding the operations via agreements with local officials, getting around a 2017 “ban” on rare earth mining. Recent water tests in Thailand found unsafe levels of arsenic and heavy metals in transboundary rivers. In 2024, chemical spills from Lao mining forced government intervention after high cyanide levels affected 36 villages.
Read more: Asia Financial (Mining Discovery), Mongabay (Environmental Impact)
Protected Areas See Worst Deforestation
More than half of the tree cover that was lost in Cambodia and Laos last year took place within areas that are already supposed to be protected, according to Mongabay’s analysis of data from the University of Maryland. In Cambodia, the tally was a 56% national tree cover loss totaling 93,000 hectares inside protected areas. Laos saw 64% of its 351,000 hectares of tree cover loss take place within its 1.2 million hectare protected area. Forest activists say that large-scale forest destruction remains ongoing, the result of both government-supported projects and expanding agricultural plantations in both countries.
Read more: Mongabay
VN Funds Media Infrastructure in Houaphanh
Vietnam started a project to build a digital radio and television station in Houaphanh Province with a groundbreaking party. The project has total funding of about USD 5.6 million, most of it coming from Vietnam, with some matching funds from Laos. The station will make use of a 3kW digital TV transmitter, 5kW FM transmitter, production studios, and a 75-meter antenna. Completion is expected by the end of next year.
Read more: Tuoi Tre News (Project Details), Laotian Times (Infrastructure Investment)
Luang Prabang Airport Gets PPP Upgrade
The Ministry of Public Works and Transport is leading an upgrade of Luang Prabang International Airport with a Public-Private Partnership structure in collaboration with the International Finance Corporation. The project will result in the construction of a new international terminal, expand the existing domestic terminal, add aircraft parking bays, widen access roads, and bring operations up to international standards. Operating hours could even be extended to around the clock if necessary. Four shortlisted bidders joined in a pre-bid conference on October 21: Yunnan Infrastructure Investment (China), Limak (Turkey), China Road and Bridge Corporation, and Korea Airports Corporation (South Korea).
Read more: Laotian Times
Pakse Airport Renovation Underway
Pakse International Airport in Champasack Province is also getting a facelift and an expansion to improve its passenger facilities. The project, by the Lao Airports Authority and Ministry of Public Works and Transport, is expected to be completed within about nine months. Upgrades include expanding arrival and departure areas, the demolition of existing structures, and the installation of new electrical systems and sanitation facilities. The airport features a 2,400-meter asphalt runway that’s able to accommodate ATR 72-600 and Airbus A320 aircraft. Champasak Province was able to bring in more than 570,000 visitors in the first nine months of this year, an increase of almost a fifth over last year.
Read more: Laotian Times
Bank of Laos in Five-Year Modernization Plan
The Bank of Laos is bringing a new five-year plan (2026-2030) out to improve monetary stability and shore up the nation’s financial system by improving financial management, accountability, and oversight. Governor Bounkham Vorachit presented the strategy during the Fifth Party Congress. The plan includes more cross-border QR code payment systems integration with Thailand, Cambodia, Vietnam, South Korea, and China to support financial integration. In 2024, corruption in the banking sector resulted in losses of LAK 1.6 billion.
Read more: Laotian Times
Japan Invests in Ed, UXO, Geospace Infra
Japan has committed about USD 4.5 million to expedite UXO clearance in Champasak, Salavan, and Xekong provinces. The funding will provide advanced equipment, including transport vehicles and UXO detectors, in addition to supporting general management and impact assessments. Separately, Japan has granted ~USD 4.3 million to improve geospatial infrastructure, upgrading outdated topographic maps and creating an online geospatial data system using data from Japan’s Daichi satellite and its Michibiki positioning technology. The JICA-HUGETECH Project, which has been running since December 2020 and will wind down soon, has successfully improved engineering education at the National University of Laos by way of a Laboratory-based Education model, curriculum modernization, and by connecting students and educators with industry.
Read more: Asian News Network (UXO Clearance), The Star (Geospatial Investment), The Star (Education Project)
S&P Give CCC+ Rating and Positive Outlook
S&P Global Ratings assigned Laos a ‘CCC+’ long-term and ‘C’ short-term sovereign credit rating with a positive outlook. The positive outlook is good news, seeming reflective of the potential for fiscal and external improvements. The Lao economy is expected to grow approximately 4% this year, mostly because of gains in tourism, electricity, and mining, but growth will likely ease to closer to 3% from 2026 through 2028. Public external debt is expected to average about USD 1.2 billion over the same period. The government has made progress in stabilizing the nation’s fiscal hand, which has led to a current account surplus, but the situation remains vulnerable to balance of payments and exchange rate disruptions.
Read more: Investing.com
Green Business Forum
The Lao Green Business Forum 2025 was held on October 25, with more than 150 players from government, business, finance, academia, and development sectors coming together to promote Laos as the Green Business Hub of ASEAN. Co-organized by the XM Technovator and the Ministry of Agriculture and Forestry alongside UNEP, the event was mostly centered on how best to use natural wealth to build a resilient green economy. MAF director Xaysompheng Sengkhamyong said that his government thinks it is important to make the shift from resource extraction to regeneration. One highlight of the forum was the presentation of a prize-winning agroforestry model which integrates coffee cultivation under forest canopies.
Read more: The Star
Cybersecurity, AI Integration, Crypto Mining
Laos joined the UN Convention against Cybercrime this week, in Hanoi, with President Thongloun Sisoulith attending and Deputy Prime Minister General Vilay Lakhamphong signing on behalf of the government. The convention makes information sharing, joint investigations, and unified responses to cyber threats easier. An exchange event in Vientiane on October 23 promoted AI integration in the legal arena, with the National University of Laos saying that it plans more collaboration with Chinese institutions. The government is expected to bring a stop to energy that’s being supplied to the crypto mining sector in March next year, simply saying it’s been unprofitable.
Read more: The Star (Cybercrime Convention), Laotian Times (UN Convention Details), Xinhua (AI Integration), Table Media (Crypto Ban)
That’s all for this week, thanks for reading.
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