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Headlines:
Vietnam and Laos Agree to Connectivity Plans
Hanoi Cements Ties Via Aid
VN/KH Industrial Supply Chain Work
China Promises More Cooperation with Vientiane
Energy: Cross-Border Cooperation
IMF Expects Some Stability
Inflation Up on Utility and Service Costs
Bonds, Industrial Parks, and Ag
Migrant Workers Remit Hundreds of Millions
International Relations: IN, BY, KH
Vietnam and Laos Agree to Connectivity Plans
Vietnam’s Party General Secretary Tô Lâm wrapped up a state visit to Laos yesterday, attending the country’s 50th National Day celebrations and co-chairing meetings with Lao leaders. The visit resulted in cooperation documents that will set frameworks for how to work together on trade, infrastructure, tourism, and economic development. Both nations promised that they’d push bilateral trade toward a $5 billion target in the near term and $10 billion in the longer-term, mostly by prioritizing infrastructure projects like the Hanoi-Vientiane Expressway.
Read more: Vietnam News (Visit Summary), Voice of Vietnam (Cooperation Details), Nhan Dan (Strategic Cohesion), VietnamNet (Party Summit), Vietnam Plus (National Day)
Hanoi Cements Ties Via Aid
Vietnam also opened the Laos-Vietnam Friendship Park in Vientiane yesterday. The park is a 30,000 square meter “cultural and spiritual” gift celebrating Laos’ 50th National Day. The park cost more than $13 million, funded partly by the Lao government but mainly through non-refundable aid from Vietnam. The same day saw a groundbreaking ceremony for a new public security command center in Vientiane, as the current 1960s-era facility is falling apart and is no longer up to delivering on operational requirements.
Read more: Vietnam News (Friendship Park), Nhan Dan (Security Center)
VN/KH Industrial Supply Chain Work
Finally, on the VN/LA front for this week: Vietnam and Laos also signed an agreement to set up a “multidimensional cooperation model” between enterprises to improve production and trade efficiency in value and supply chains. The agreement calls for support of SMEs, logistics connectivity, and innovation and technology development. The Vietnam Institute of Strategy and Policy for Industry and Trade and the Institute of Industry, Commerce and Energy of Laos will be working to bring the details of the agreement to life, reporting progress to their respective ministers.
Read more: Vietnam News (MoU Details), Vietnam Plus (Committee Meeting), Nhan Dan (Strategic Cohesion), Voice of Vietnam (PM Meeting)
China Promises More Cooperation with Vientiane
Xi Jinping celebrated ongoing cooperation with Laos on the 50th anniversary of the Lao PDR early this morning, sharing satisfaction with the country’s progress under the leadership of the Lao People’s Revolutionary Party. Next year is the 65th anniversary of China-Laos diplomatic ties, and Xi wants to make sure everyone knows that China is committed to good relations and regional development. The Ministry of Foreign Affairs of Laos took the opportunity to reaffirm that it was a believer in the one-China principle, recognizing Taiwan as part of China. Bilateral trade between Laos and China stood at $8.2 billion last year.
Read more: China Daily (Xi Statement), Biz Chosun (North Korea)
Energy: Cross-Border Cooperation
Laos and Cambodia agreed to further their energy partnership. Cambodia says that it’s thankful for Laos’ electricity supply and confirmed that it remains committed to new joint ventures. A completed 500-kilovolt transmission line from Champasack to the Cambodian border has substantially improved power transfer efficiency, and imports are expected to reach 6,000 megawatts by 2030. Electricité du Cambodge and Electricité du Laos signed a technical cooperation memorandum on November 25 that will allow for (among other things) more information sharing and employee swaps.
Read more: The Star (Cambodia Cooperation), VnEconomy (Coal Deal), Khmer Times (Technical MoU), Vietnam News (VN Imports), The Investor (Transmission Line)
IMF Expects Some Stability
The International Monetary Fund thinks the Lao economy will grow 4.5% in 2026 because of good news in exports, tourism, foreign direct investment, and a favorable fiscal environment. The projection comes following 4.3% growth in 2024 and an expected 4.8% once the books close on FY2025. Inflation has blessedly dropped from a staggering 31.2% in 2023 to 4-5% now (also see next story). The government repaid $2.45 billion in debt between 2024 and September 2025. The IMF continues to warn about ongoing risks including geopolitical shakeups, general market volatility, natural disasters, and domestic banks with weak profitability and poor liquidity. The fund is telling Laos that it needs to make more biting structural challenges if it wants sustained long-term growth. They’re suggesting better governance, improved transparency, regulatory reforms to improve anti-corruption measures, and a restructuring of SOEs.
Read more: Vietnam Plus (IMF Forecast), Laotian Times (Debt Reforms), Nhan Dan (Development Path)
Inflation Up on Utility and Service Costs
Inflation is up slightly to 4.8% in November from 4.3% in October on rising costs in electricity, water, healthcare, and education. Electricity prices more than doubled, and water bills are up ~40%, resulting in an overall 18% rise in housing, water, electricity, and cooking fuel costs. Healthcare and medicine costs climbed 13.5%, and education prices rose 11.6%, because of an 18.8% hike in tuition fees. Overall, clothing and footwear prices rose 9%, but women’s clothing was up 23.8%. Some categories, like food and non-alcoholic beverages, saw a 1.8% decrease month-on-month.
Read more: Laotian Times
Bonds, Industrial Parks, and Ag
Clifford Chance advised Laos on its issuance of $300 million 11.25% notes that will come due in 2030, and are listed on the Singapore Exchange. Thailand’s Amata says it is going to pick up 200 square kilometers of land in northern Laos to expand an industrial park to support companies relocating from China. Udumji Farm signed an MoU with Borikhamxai Province to secure 150 hectares for agricultural development; they plan to expand that to 6,000 hectares.
Read more: Legal Desire (Bond Issuance), Nikkei Asia (Industrial Park), Venture Square (Farm Project), AgTech Navigator (Vinaseed)
Migrant Workers Remit Hundreds of Millions
Lao migrant workers sent home an estimated $366 million in H1 2025, with only $32.5 million of that moving through formal banking channels. Between 2021 and 2025, 350,567 Lao citizens have worked abroad, as overseas employment is seen as a huge economic opportunity. Deputy Director Vanny Keovongxay said that unsafe working conditions and exploitation of migrants remain issues, and the ministry is working to improve coordination with partner governments to support Lao workers in Thailand, Japan, and South Korea.
Read more: Laotian Times
International Relations: IN, BY, KH
India’s External Affairs Minister sent greetings to Laos on its National Day and said that India looks forward to continued bilateral ties and the development of ties. India is working on cultural cooperation through restoration efforts at the Vat Phou World Heritage site and has provided approximately $1 million to support food support programs. Belarus President Lukashenko congratulated President Sisoulith on the anniversary, sharing plans to launch new projects in industrial modernization and agriculture. Cambodia’s Foreign Minister Prak Sokhonn co-chaired the Joint Commission for Bilateral Cooperation in Vientiane from November 26-29, 2025, as the two countries worked on the Comprehensive and Long-Lasting Strategic Partnership that they set up in 2019. Laos and Cambodia have also come to an agreement on double taxation. The agreement removes double taxation and should bring down investment costs for projects in both countries.
Read more: ANI News (India), SB.BY (Belarus), Khmer Times (Cambodia), Kiri Post (Tax Agreement)
That’s all for this week, thanks for reading.
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