Laos 20240821: Maculated, Filigreed, Quotidian
Laos 20240821: Maculated, Filigreed, Quotidian
Mekong Memo Laos Weekly: Business, politics, finance, trade & legal news.
Get the latest Southeast Asian business news delivered to your inbox every weekday.
Choose to receive our daily editions covering Cambodia, Myanmar, Laos, Vietnam, and Thailand individually or together: account settings.
The Memo is published each weekday for the country of your choice. Paid subscriptions receive full editions while free subscribers get top headlines and an abbreviated selection of stories.
Support us and unlock unlimited access by becoming a paid subscriber today to stay informed on emerging opportunities in Southeast Asia with just a few minutes a day.
The Mekong Memo is proudly presented by:
Horton International is your premier partner for executive search in Southeast Asia. Whether you're a small startup or a global corporation, our reliable and effective recruiting solutions are tailored to meet your unique needs. With extensive experience and offices across the region, we excel at overcoming recruitment challenges and securing top talent for your organization.
Click here to learn how Horton can make your life easier.
Headlines:
Regional Co-op for Southeast Asian Security
Constitutional Overhaul Aligns with Party Agenda
Trade Deficit Streak Hits Seven Months
Rail Link to Bangkok Nears Completion
Vietnam Deepens Economic Footprint
China Expands Renewables with 1 GW Project
Record International Traffic at Laos-China Border
Fraud Network Dismantled in Crackdown
Vehicle Registrations Spike in Vientiane
Laos and Russia in Military Cooperation Tie-up
Digital Media and AI on 74th Mass Media Day
Top 10 for Natural Beauty and Adventure
Regional Co-op for Southeast Asian Security
The Cambodia-Laos-Vietnam Development Triangle Area, established in 1999, is a great example of Southeast Asian regionalism, promoting economic growth, and addressing shared challenges. An upcoming summit in Cambodia is expected to build on past successes, with a focus on improving the livelihoods of the regions poorest citizens in underdeveloped border regions. The development triangle area plays an important role in narrowing the development gap between ASEAN nations while also improving communication and collaboration on transnational issues.
Read more: Khmer Times
Constitutional Overhaul Aligns with Party Agenda
A process to amend the constitution, the first since 2015, is underway to address modern challenges. The review, led by a party-guided committee, focuses on potential reforms in governance, local administration, and human rights. Proposed changes are expected to closely align with ruling party development goals, with approval anticipated by late 2025. An expected outcome of the rewrite is a solidification of centralized control.
Read more: ConstitutionNet
Trade Deficit Streak Hits Seven Months
July marked the seventh consecutive month of trade imbalance, with a deficit of USD 154 million. Total trade volume reached USD 1.22 billion, with imports outpacing exports USD 687 million to USD 533 million. Main imports were diesel fuel and mechanical equipment, mostly from regional neighbors. Despite recent efforts, a trade balance appears to remain elusive.
Read more: The Star (Trade imbalance), Laotian Times (Ongoing challenges)
Rail Link to Bangkok Nears Completion
The China-Laos Railway is on track for full connectivity to Bangkok, a giant step forward for regional infrastructure. Recent completion of a cross-border railway bridge will allow a 12-hour trip from Bangkok to Vientiane, with plans to extend into China by 2028. Already handling over 38 million passenger trips, the railway is quickly going to grow trade, tourism, and cultural exchanges across the region.
Read more: Asia Times (Connectivity Progress), China Daily (Passenger Growth)
Vietnam Deepens Economic Footprint
Vietnam’s investment in Laos has reached USD 5.5 billion, covering 256 projects in sectors including energy, mining, and infrastructure. The economic partnership includes projects such as the Vientiane-Hanoi Expressway and the Vientiane-Tha Khek-Tan Ap-Vung Ang Railway. Laos is working hard to balance its economic reliance on China by improving ties with Vietnam, a shift to keep an eye on as both countries manage regional and global geopolitical challenges together.
Read more: Eurasia Review (Strategic collaboration), Laotian Times (Investment expansion)
China Expands Renewables with 1 GW Project
China General Nuclear Power Corporation (CGN) is building out its renewable energy operations in Laos, adding 1 GW of new capacity through wind and solar projects. This includes a 580 MW wind and solar power plant in Luang Namtha and a 420 MW solar plant in Oudomxay. The projects will expand regional energy connectivity, particularly with China's Yunnan province, and is expected to reduce Laos' dependence on hydropower and electricity imports.
Read more: Energy News
Record International Traffic at Laos-China Border
Mohan Port on the Laos-China border has seen a big rise in international passenger traffic, processing more than one and a half million travelers so far this year, a new record. The number of daily passengers has more than doubled, with a greater than 150% increase in foreign travelers, mostly from Laos, Thailand, and Malaysia. The Laos-China Railway has also been a big reason for this growth, supporting regional development and tourism.
Read more: Laotian Times
Fraud Network Dismantled in Crackdown
Authorities in the Golden Triangle Special Economic Zone have brought down a large telecommunications fraud network, arresting 771 individuals from 15 countries. The operation, one of the most significant anti-fraud actions in the region, uncovered extensive equipment used in online scams. The detainees, including nationals from Laos, Myanmar, and China, have been handed over to their respective authorities for further processing. This crackdown is part of efforts to combat transnational crime in the area, although enforcement has been somewhat lax at times.
Read more: Laotian Times
Vehicle Registrations Spike in Vientiane
The number of registered vehicles in Vientiane has grown beyond the city's population, unsurprisingly leading to evermore severe traffic congestion, pollution, and increased road accidents. As of 2023, Vientiane accounted for 43% of the 2.7 million vehicles registered across Laos, with motorcycles being the most common. The government is launching a USD 99 million Bus Rapid Transit (BRT) system, featuring electric buses, to help alleviate these issues and improve urban transportation infrastructure.
Read more: Laotian Times
Laos and Russia in Military Cooperation Tie-up
Laos and Russia have signed an updated bilateral agreement to improve military cooperation, a reaffirmation of a long-standing partnership. The agreement was formalized during the Army 2024 Military Technical Forum in Russia by Laos’ Deputy Prime Minister and Minister of National Defence, General Chansamone Chanyalath, and Russia’s Minister of Defence, Andrei Belousov. The cooperation is centered on command staff development, military technical expertise, and unexploded ordnance clearance.
Read more: The Star
Digital Media and AI on 74th Mass Media Day
Laos celebrated its 74th Mass Media Day by discussing challenges in digital media and the use and integration of artificial intelligence into the media landscape. Officials talked on the role of the media in shaping public opinion and the need for responsible use of AI in journalism. Discussions centered around taking advantage of technological changes while keeping ethical standards high, with government officials especially keen to train and develop media professionals to keep pace with digital advancements.
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:
Top 10 for Natural Beauty and Adventure
Anyone who has visited Laos knows that it is a gem of Southeast Asia, offering travelers natural beauty, a rich culture, and adventure. This article from Lonely Planet covers some of the top spots to visit including Luang Namtha for jungle exploration, the stunning karst landscapes of Vang Vieng, and the mysterious Plain of Jars. For a more remote experience, they suggest a visit to Phongsali’s ethnic hill tribes or the wartime history of the Vieng Xai Caves. Whether it’s trekking, river journeys, or exploring historical sites, Laos has something for every traveler seeking an off-the-beaten-path experience.
Read more: Lonely Planet
That’s all for this week, thanks for reading.
Your voice matters to us. Feel we're missing something? Have additional sources to suggest? Don't hold back— hit reply and help us get better.
If you value the Mekong Memo, please consider buying (or gifting!) a paid subscription, sharing it on social media or forwarding this email to someone who might enjoy it. Please also “like” this newsletter by clicking the ❤️ below (or sometimes above, depending on the platform), which helps us get visibility on the Substack network.