Laos 20240522: Sustainability, Upliftment, Resurrection

Mekong Memo Laos Weekly: Business, politics, finance, trade & legal news.

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Headlines:

Economy Forecast to Grow 4.7% in 1H2024

Warnings on Cigarettes to Curb Smoking Epidemic

Chinese-Backed Miner to Compensate Villagers

US Reinforces Lao Ties

Southeast Asia Fights Surging Online Fraud

Tourism and Cross-Border Travel Boom

Laos-Thailand Railway Begins Trial Runs

E-commerce Platform to Boost Ag Sales

Lao Airlines Direct from Pakse to Guangzhou

Low Minimum Wage Fuels Labor Shortages

Harmful Pesticide Use Reduction Project

Macau Legend Finalizes Sale of Savan Legend

Vocational Restaurants Empowering Youth

Ownership Battle Over Large Buddha

Economy Forecast to Grow 4.7% in 1H2024

The economy is set to expand by nearly 5% in the first half of 2024, thanks to a resurgent tourism sector and growing services production. The government is focusing on tackling high inflation, currency depreciation, and rising costs while working to improve the business environment and attract private investment. Socio-economic development, budget plans, and measures to combat economic and financial challenges are also high on the agenda.

Read more: The Star

Warnings on Cigarettes to Curb Smoking Epidemic

In a bid to address the nation's smoking epidemic, the Ministry of Health is mandating that 75% of cigarette packages display graphic health warnings by December 2024. With smoking causing 6,700 deaths annually (15% of all deaths in Laos), the government is taking steps to reduce these preventable deaths, including higher tobacco taxes, advertising bans, and smoke-free public areas. E-cigarettes are also a growing concern, particularly among the young.

Read more: The Star (Health Warnings), Capital FM (Annual Deaths)

Chinese-Backed Miner to Compensate Villagers

A rare earth mining operation in Laos, backed by Chinese investors, has agreed to compensate villagers after polluting the Van and Xam Rivers and causing significant ecological damage. The Laos-China Rare Mineral Development Company will meet with affected residents to discuss compensation for damaged property and contaminated water. While officials have declared the water safe following cleanup efforts, some villagers remain skeptical. This rare instance of accountability in Laos is a bit of a surprise as there is often minimal oversight of foreign companies operating in the country.

Read more: Radio Free Asia

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US Reinforces Lao Ties

The United States is tightening up its relationship with Laos, recognizing the country's role in ASEAN. US Ambassador Heather Variava is spending her posting focused on capacity building, cultural preservation, and health initiatives to further the decades-old US-Laos partnership. The US also provided support for Laos's ASEAN chairmanship year, donating laptops and resources to facilitate successful summits and meetings. These efforts come at a time when the United States is keen to show commitment to ASEAN centrality, regional connectivity, and resilience in the Indo-Pacific region.

Read more: Laotian Times (Ambassador's Vision), U.S. Mission to ASEAN (Laptop Donation)