Laos 20240918: Protean, Incandescent, Clever
Laos 20240918: Protean, Incandescent, Clever
Mekong Memo Laos Weekly: Business, politics, finance, trade & legal news.
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Headlines:
Mekong River Reaches Critical Levels
Laos Eyes Bid as Manufacturing Hub
Laos and Vietnam Want Trade Growth Up 15%
ASEAN Ministers Reinforce Economic Integration
Low-Interest Money to Boost Domestic Production
Former Officials Sentenced in Corruption Case
Foreign Minister Emerges as Contender for PM
New Railway Handles Over 10M Tonnes of Cargo
Laos and Vietnam Double Down on Cooperation
Tourism Potential on Display at Chinese Expo
New Udon Thani-Vang Vieng Bus Route
Improved Tourism with Tour Guide Training
Limestone Caves Reveal New Sand Fly Species
Mekong River Reaches Critical Levels
President Thongloun Sisoulith and Prime Minister Sonxay Siphandone have taken active roles in overseeing flood relief efforts in Vientiane, visiting affected areas and distributing supplies. The Mekong River overflowed, putting low-lying areas under water, while downtown Vientiane remains so far protected. Authorities are focusing on relocating residents, securing resources, and preventing theft and misinformation. Water levels are expected to recede by September 19, but the government continues round-the-clock monitoring to mitigate damage.
Read more: Laotian Times
Laos Eyes Bid as Manufacturing Hub
Laos is trying to position itself as a promising manufacturing hub for companies relocating from China on the back of rising U.S.-China trade tensions. Its location and lower production costs would seem to make it an attractive option, with Thai industrial park developer Amata leading the charge on new projects. Laos faces significant challenges, however, including a limited skilled workforce, rampant corruption, and an inefficient banking sector. The country’s heavy reliance on Chinese loans, soaring inflation, and debt distress—in excess of 125% of GDP—raise doubts about its ability to compete with regional manufacturing powerhouses like Vietnam and Thailand.
Read more: DW (Economic Hurdles), The Independent (Opportunities, Challenges)
Laos and Vietnam Want Trade Growth Up 15%
Laos and Vietnam have committed to maintaining annual trade growth rate of 10-15% by introducing measures to smooth trade and improve cross-border cooperation. Officials emphasize the importance of overcoming current challenges, particularly supply chain disruptions.
Read more: Vietnam Plus
ASEAN Ministers Reinforce Economic Integration
During the 56th ASEAN Economic Ministers’ (AEM) Meeting in Vientiane, leaders doubled down on their commitment to regional economic integration. The meeting spotlighted ASEAN growth, projected at 4.6% for 2024. Leaders emphasized sustainable development, foreign direct investment (FDI), and advancing trade agreements, while also discussing supply chain resilience, renewable energy, and digital transformation.
Read more: ASEAN (Growth and Integration), ASEAN (Joint Statement)
Low-Interest Money to Boost Domestic Production
The government is advancing plans to offer low-interest funding to support domestic businesses to reduce reliance on imports and support exports. The initiative is centered on improving production capabilities through credit availability, innovation, and better market access. Prime Minister Sonexay Siphandone suggested the establishment of a production promotion fund to aid small and medium enterprises, alongside reforms to streamline regulations and pull in more foreign investment.
Read more: Asia News Network
Former Officials Sentenced in Corruption Case
Thirteen former government officials in Luang Namtha, Laos, were sentenced for embezzling state funds and money laundering related to COVID-19 operations. The People’s Court handed life sentences to three main player, including a former deputy governor and a provincial party committee member. Others received sentences ranging from four to 20 years, with heavy fines and orders to return stolen assets. This case is a demonstration of the government’s recent crackdown on corruption, with high-ranking officials (sometimes) being held accountable for abusing their positions.
Read more: The Star
Foreign Minister Emerges as Contender for PM
Foreign Minister Saleumxay Kommasith has emerged as a top contender for the prime minister role as the country looks toward leadership changes ahead of the 2026 National Congress. Saleumxay, an adroit diplomat with strong political ties, has gained prominence through his handling of Laos' ASEAN Chairmanship. As the country battles with economic crises, his rise is a challenge to the influence of powerful political families like the Siphandones. The upcoming leadership reshuffle could reshape Laos’ political landscape for years to come. A story to watch.
Read more: Eurasia Review
New Railway Handles Over 10M Tonnes of Cargo
Since its launch in December 2021, the China-Laos Railway has moved more than 10 million tonnes of goods, valued at 40.77 billion yuan (~$5.74 billion USD). The tally of types of goods transported has ballooned from 500 to more than 3,000. In the first eight months of 2024 alone, the railway handled 3.58 million tonnes, a 22.8% year-on-year increase. The railway connects Kunming in China with Vientiane, Laos as part of China’s Belt and Road Initiative.
Read more: Xinhua
Laos and Vietnam Double Down on Cooperation
In recent high-level meetings, Laos and Vietnam reaffirmed their commitment to maintaining and improving their close party and state relations. Leaders from both countries spoke about the importance of improved political, economic, and security cooperation, particularly in areas of trade, investment, education, and infrastructure. The two governments also agreed to deepen their partnership with Cambodia and further develop economic ties, focused on cross-border cooperation and regional stability.
Read more: VOV World (Cooperation), Vietnam News (Joint Statement), The Star (Reaffirming Ties)
Tourism Potential on Display at Chinese Expo
A Lao delegation, led by Deputy Minister Dalany Phommavongsa, took part in the 16th China International Tourism Industry Expo to promote "Visit Laos Year 2024." Centered on promoting cultural heritage, eco-tourism, and adventure opportunities, the delegation worked to build stronger international tourism ties and expand its market reach. Discussions included sustainable tourism, infrastructure improvements, and an improved Laotian tourism profile. The event was successful in providing new networking opportunities for Lao tourism companies to identify potential partnerships and business opportunities.
Read more: Travel and Tour World
New Udon Thani-Vang Vieng Bus Route
Thailand and Laos have announced the launch of a new international bus route connecting Udon Thani in Thailand with Vang Vieng in Laos, starting in November. The will provide a direct link to the Laos-China railway. Five more routes are under consideration, including connections from Chiang Mai to Boten and Bangkok to Savannakhet. The program includes plans to upgrade services and expand e-ticket systems to improving travel convenience.
Read more: Laotian Times
Improved Tourism with Tour Guide Training
To support growing tourism, Laos has launched a national tour guide training course, running from September to November 2024. This course will attempt to address the shortage of skilled guides and is intended to improve service quality in the tourism industry. Participants will be taught ethical standards, customer service, and cultural respect, with a focus on helping to promote historical and religious sites. The program aligns with the government's visa-free entry and extended stay initiatives, designed to attract more tourists during "Visit Laos Year 2024."
Read more: The Star
And now for something completely different.
While the focus of The Memo is on news for business, we often wrap up with a less business-focused article. We suspect that few of you are deeply interested in the latest in disease vector news, but this detailed report caught our eye and we thought it was interesting enough to share with you as we close out this week’s edition of The Memo. Enjoy the rest of your week!
Limestone Caves Reveal New Sand Fly Species
A new study has been published on the discovery of two new sand fly species, Sergentomyia dvoraki and Sergentomyia marolii, in the karstic limestone caves of Laos. Researchers identified 20 sand fly species through a combination of morphological and molecular methods, making special note of high species diversity and abundance. The research is indicative of a surprising (to us, at least!) ecological complexity of sand fly habitats, with species richness across different cave locations and seasons. These findings add to the limited knowledge of medically important sand fly species in Southeast Asia, particularly regarding their role as potential vectors.
Read more: Parasites & Vectors
That’s all for this week, thanks for reading.
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