Laos 20240807: Nebulous, Plethora, Quintessential
Laos 20240807: Nebulous, Plethora, Quintessential
Mekong Memo Laos Weekly: Business, politics, finance, trade & legal news.
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Headlines:
Railway Drives Tourism, Infrastructure Lags
Export Growth Can't Outpace Spending Habit
Digital Push for Trade and Citizenship
Green Economy Framework to Save the Planet
Satellite Tech for Carbon Credits
Cross-Border Collab For Skill Development
Wage Hike Considered As Costs Continue to Rise
Lao Drivers Take the Wheel on China-Laos Railway
Data Centers Boost Disaster Preparedness
Hong Kong Expands Ties with ASEAN
Lonely Planet Ranks Luang Prabang Near the Top
Railway Drives Tourism, Infrastructure Lags
The China-Laos Railway connecting Kunming to Vientiane is giving Laos' tourism industry an overhaul, though some wonder if the country's infrastructure can keep pace. Tourist flow has increased, helping the economy during recent time of currency depreciation and inflation. Vientiane's cultural attractions, Vang Vieng's natural beauty, and Luang Prabang's UNESCO-listed heritage are now more accessible. As Laos rolls out the welcome mat, local businesses hope their plumbing systems are up to the challenge.
Read more: Travel and Tour World (Tourism Impact), The Star (Infrastructure Delays)
Export Growth Can't Outpace Spending Habit
Laos faced a USD 133 million trade deficit in June, a milestone of six consecutive months of economic imbalance. Total trade reached USD 1.227 billion, up 10% from May. Exports grew 13% to USD 547 million, with curry salt, mixed gold, and paper leading the charge. China, Vietnam, Thailand, the US, and Switzerland were top export destinations. Imports hit USD 680 million, led by diesel oil, vehicles, and machinery. As the government scrambles to boost exports, one wonders if they've considered exporting their trade deficit.
Read more: Laotian Times (Trade Deficit), Vietnam Plus (Export Markets)
Digital Push for Trade and Citizenship
Laos is grabbing the digital bull by the horns and embracing new solutions to streamline trade and improve governance, assuming the internet cooperates. The Ministry of Industry and Commerce launched an Electronic Certificate of Origin system, simplifying export processes. Prime Minister Sonexay Siphandone also announced plans for a digital national database for citizen registration and identity card issuance. As Laos races into the digital age, citizens hope that internet speeds can keep up with government ambitions.
Read more: Laotian Times (Trade Digitization), The Star (Citizenship Records)
Green Economy Framework to Save the Planet
Laos and the United Kingdom signed a Memorandum of Understanding on a Green Economy Framework during the ASEAN Foreign Ministers' Meeting. The agreement promotes decarbonization and supports “climate-resilient economic activities.” While it reaffirms both countries' climate commitments, skeptics wonder if this will translate into tangible action or remain a feel-good document gathering dust in government offices.
Read more: Laotian Times
Satellite Tech for Carbon Credits
In a first for Southeast Asia, the Lao government is turning to AI and satellites to try and prevent fraudulent carbon credit data. The agreement is between Carbon Credit Laos and Carbon Registry Thailand to use satellite technology for carbon credit calculations. The project covers 170,559 hectares, with potential for expansion across the entirety of Laos' 16 million hectares of forests.
Read more: Vietnam Plus
Cross-Border Collab For Skill Development
Laos and Cambodia are joining forces to develop digital talent. The Institute of Information and Communication Technology in Laos and the Cambodia Academy of Digital Technology signed an agreement to exchange experts, researchers, and students to develop digital skills through educational cooperation, training, and information exchange.
Read more: Laos Post
Wage Hike Considered As Costs Continue to Rise
The Ministry of Labour and Social Welfare is mulling over a pay rise for low-income workers, as living costs spiral upwards. The government, businesses, and trade unions are working together to address low minimum wages, especially in manufacturing. As discussions continue, workers cross their fingers that the proposed increase will amount to more than just rounding up to the nearest kip.
Read more: The Star
Lao Drivers Take the Wheel on China-Laos Railway
The Lao-China Railway awarded driver certificates to 14 Lao nationals, the first time Lao citizens have been certified to operate trains on this international route. The certification follows a training program that began in June 2022 with 66 participants. This achievement is all part of the successful partnership between Laos and China in training skilled railway professionals. Future plans include developing more Lao experts in railway operations and upgrading the overall quality of the whole railway system.
Read more: Laotian Times (Train drivers), China Daily (Railway Cooperation)
Data Centers Boost Disaster Preparedness
Vietnam and Laos are cooperating in their disaster management capabilities through the construction of data and communication centers. The Vietnam Academy of Science and Technology and the Lao Ministry of Technology and Communications are working together on projects for natural disaster monitoring and data storage. A joint lab for earthquake data and communication has been set up already, with equipment and training provided to Lao officers. The partnership is expected to improve climate-risk-based decision-making.
Read more: W.Media (Disaster Preparedness), Vietnam News (Cooperation)
Hong Kong Expands Ties with ASEAN
Hong Kong has signed a flurry of agreements with Laos, Cambodia, and Vietnam, with 55 memoranda covering everything from trade and investment to tourism and aviation. As the city works to strengthen its regional presence, some see it as a strategic pivot in response to recent political and economic challenges. Whether this diplomatic blitz will translate into tangible benefits remains to be seen, but for now, Hong Kong seems determined to make new friends across all of Southeast Asia.
Read more: Human Resources Online
And now for something completely different.
While the focus of The Memo is on news for business, we often wrap with a less business-focused article:
Lonely Planet Ranks Luang Prabang Near the Top
Lonely Planet has named Luang Prabang as one of Southeast Asia’s top destinations for 2024, especially spotlighting its rich Buddhist culture, historic temples, and (still, for the time being) serene atmosphere. The biggest attractions called out include the daily almsgiving ceremony, Wat Xieng Thong, and the beautiful Kuang Si Waterfalls. The city’s blend of spiritual heritage and natural beauty has driven a big rise in tourism recently, with a near fourfold rise in visitors during the Lao New Year festivities this year. As part of Visit Lao Year 2024, Luang Prabang is looking to pull in 1.7 million visitors and USD 900 million in revenue.
Read more: Laotian Times
That’s all for this week, thanks for reading.
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