Laos 20240814: Variegated, Prescient, Judicious
Laos 20240814: Variegated, Prescient, Judicious
Mekong Memo Laos Weekly: Business, politics, finance, trade & legal news.
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Headlines:
New Forex Market to Stabilize Kip
Bullion Bank to be Established
Tourism Review for First Half of 2024
Innovation Focused IP Portal Launched
EU Remains Focused on Sustainable Agriculture
Laos-Japan Relations By Phone
China Aids Rural Education
Journalists Explore AI and Social Media
Museum Renovation to Boost Savannakhet Appeal
Bodyslam Suspended in Favor of Summit Security
New Forex Market to Stabilize Kip
The Bank of Laos is establishing a centralized foreign exchange market with 15 commercial banks. The market is expected to help stabilize the national currency, improve transaction monitoring, and provide more convenient currency exchange options for business and consumers. The launch comes in response to persistent challenges including inflation and high foreign debt. By centralizing the market, authorities say that they expect to reduce underground trading and improve their ability to gather reliable data for policy decisions.
Read more: The Star
Bullion Bank to be Established
The Lao Bullion Bank is soon to be launched, a move intended to help backstop the country's gold reserves and stabilize its currency. The Bank, a collaboration between the Lao government and PTL Holding Co., Ltd., will be a much needed plank in the nation's platform to boost financial security. The bank will serve as a reserve fund, supporting monetary and fiscal policies, improving liquidity, and potentially raising the national reserve's value to between $50 billion and $76 billion through gold mining activities. The bank's operations are scheduled to begin in September, with a full service rollout by November.
Read more: The Star (Stability), Vietnam Investment Review (Reserve fund)
Tourism Review for First Half of 2024
Laos pulled in more than 2 million tourists for the first half of this year, a 26% lift over 2023. Thailand, Vietnam, China, and South Korea are the top source markets. The Ministry of Information, Culture, and Tourism organized training for tour guides to meet ASEAN standards, and Luang Prabang was named one of the best places to visit in Southeast Asia.
Read more: The Star
Innovation Focused IP Portal Launched
The government has introduced an updated Intellectual Property Portal to streamline application processes for entrepreneurs. The website provides guidance on IP rights, to support innovation, creativity, and foreign investment. The portal will play an important role in securing intellectual property rights (a longstanding local problem) and spurring economic development by creating a more reliable business environment.
Read more: The Star
EU Remains Focused on Sustainable Agriculture
The European Union's Team Europe Partnership with Laos is working hard on sustainable trade and agricultural investment. The 550 million EUR program will reduce deforestation and support the development of sustainable land use. The collaboration also looks to addresses the usual topics of governance, development, trade, and environmental issues in support of Lao growth while remaining mindful of environmental sustainability.
Read more: EU Reporter (EU)
Laos-Japan Relations By Phone
The Prime Ministers of Laos and Japan held a phone discussing this week to discuss cooperation in economics, trade, investment, and tourism. Plans were made to mark the 70th anniversary of diplomatic relations in 2025. The Japanese PM was invited to visit Laos for the ASEAN Summits in October. The leaders also talked about the future of Lao renewable energy production.
Read more: The Star (Japan)
China Aids Rural Education
China has delivered teaching materials to Laos as part of a project to improve rural education quality. The materials are to be distributed across provinces to develop Lao human resources and improve the Laos-China friendship (ie. China’s brand value). This project is in support of Lao efforts to improve its lagging education system.
Read more: The Star
Journalists Explore AI and Social Media
The Lao Journalists' Association hosted a forum on AI and social media challenges in media. The event focused on improving technology proficiency, AI ethics, countering fake news, and sustainable development. Supported by international partners, the forum was intended to support media professionals in producing timely, creative content while trying to figure out how to thrive in a new digital landscape.
Read more: Asian News Network
Museum Renovation to Boost Savannakhet Appeal
Savannakhet Province is partnering with APA Incorporate for a big museum renovation overhaul project. The two-phase project, with a USD 215,000 budget, is expected to support local tourism development by showing off colonial-era architecture and locally indigenous artifacts. The renovated museum is hoped to serve as a centerpiece for cultural tourism in the region, preserving local heritage while pulling in the visitors (along with their tourist dollars).
Read more: Laotian Times
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:
Bodyslam Suspended in Favor of Summit Security
The Lao government says that it suspended a concert by the popular Thai band Bodyslam in order to prioritize security and readiness for upcoming ASEAN meetings in Vientiane. The event was allegedly given the kibosh due to non-compliance with legal requirements, including the law on performing arts, which demands a mix of local and foreign artists, as well as a lack of other necessary approvals. Why this decision was made at the “last minute” was not made clear. A rescheduled date is not yet available.
Read more: Laotian Times
That’s all for this week, thanks for reading.
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