Laos 20240925: Luminous, Significant, Taut
Laos 20240925: Luminous, Significant, Taut
Mekong Memo Laos Weekly: Business, politics, finance, trade & legal news.
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Headlines:
ASEAN Economic Ministers Push for FDI
RCEP Support Unit to Grow Regional Trade
UK Offers Duty-Free Access to Lao Products
ASEAN Tackles Mekong River Water Security
Laos Wants to Become Manufacturing Hub
Sustainable Farming Initiative Launched
Animal Husbandry Boost for Rural Employment
LTMS Power Project Faces Hurdles
Electric Motorcycle Charging Innovation
Joint Tourist Visa Program Launched
Vang Vieng Emerges as Tourism Hotspot
Teacher Shortage Strains Education System
ASEAN Economic Ministers Push for FDI
ASEAN economic ministers met in Laos to boost foreign investment and regional growth. The bloc's economy grew 4.1% in 2023, with expectations of 4.6% for 2024. Trade barriers were addressed, promoting paperless transactions and special considerations for some commodities. The CLMV countries (Cambodia, Laos, Myanmar, Vietnam) reported trade worth $768 billion in 2023, accounting for 21.8% of ASEAN's total. Ministers adopted action plans to strengthen economic ties and improving regional integration.
Read more: Asian News Network (Growth Projections), Tribune (Trade Barriers), The Star (CLMV Trade)
RCEP Support Unit to Grow Regional Trade
The Regional Comprehensive Economic Partnership (RCEP) will launch its Support Unit in 2024, an important step for the world's largest trade agreement. The unit will ensure effective implementation of the RCEP Agreement and facilitate membership expansion. India is, at the same time, urging a review of its trade agreement with ASEAN to address imbalances faced by local businesses, particularly regarding tariff liberalization. The review is expected to improve market access and update the agreement by 2025.
Read more: Antara News (RCEP unit), Financial Express (India-ASEAN review)
UK Offers Duty-Free Access to Lao Products
Lao food and drink producers are set to benefit from duty-free exports to the UK under the Developing Countries Trading Scheme. The initiative could save Laos approximately £1.3 million annually on exports like coffee and chili sauce. The UK government is providing marketing support to help Lao producers thrive internationally. This scheme is expected to boost economic growth and enhance consumer choice in the UK while improving trade relations with Laos.
Read more: The Star
ASEAN Tackles Mekong River Water Security
ASEAN and the Mekong River Commission addressed important water security issues in a recent dialogue. The discussions centered on climate change, disasters, and food security in the Mekong Basin. A full cooperation mechanism was established to improve resilience and promote sustainable development. Laos called for ASEAN's help in managing water resources, saying there was a dire need to balance economic needs with environmental sustainability. Thailand and Laos also agreed to improve cooperation in natural disaster response and water resource management.
Read more: Vietnam Plus (Cooperation Mechanism), Bangkok Post (Laos Request), Vietnam Plus (Thailand-Laos Cooperation)
Laos Wants to Become Manufacturing Hub
Laos is positioning itself as a potential manufacturing hub for Chinese companies. Thai developer Amata has launched industrial projects to attract foreign investors. The country's location and lower costs present opportunities for manufacturers. Challenges include high debt, inflation, and limited workforce skills. Experts suggest Laos must improve its economic stability and skills training, while managing international loans effectively if it is going to to succeed in its manufacturing aspirations.
Read more: Cambodia Investment Review
Sustainable Farming Initiative Launched
The Lao government has launched a project to protect biodiversity and reduce poverty through sustainable farming practices. The initiative is focused on three districts in Khammuan province, centered on better income and food security. By promoting eco-friendly agriculture, the project is expected to reduce pressure on natural ecosystems while addressing environmental degradation driven by poverty. It will raise local awareness about biodiversity and forest restoration, impacting twelve villages through income-generating activities.
Read more: The Star
Animal Husbandry Boost for Rural Employment
The Lao National Chamber of Commerce and Industry has partnered with the International Labour Organization to promote employment in rural areas through animal husbandry. By integrating local producers into supply chains, the project should unlock economic potential, allowing farmers to directly benefit from their participation in the economy.
Read more: Daijiworld
LTMS Power Project Faces Hurdles
Singapore's plan to expand electricity imports through the LTMS power project is facing headwinds. Delays in the second phase and reliance on non-renewable sources are holding back progress. Some of the battles include regional grid connectivity, regulatory alignment, and infrastructure upgrades. Countries like Thailand prioritize national energy security, complicating collaborative efforts.
Read more: The Star
Electric Motorcycle Charging Innovation
Graphion Energy has introduced a 10-minute charging technology for electric motorcycles in Laos, hoping to catch a win as the country shifts to eco-friendly transport. The innovation addresses battery range concerns and facilitates the conversion from gasoline to electric bikes. Graphion plans to implement free charging stations and educate communities on sustainability. In partnership with the Ministry of Energy and Mines, they project to have 30% of vehicles electric by 2030, supporting the country's clean energy adoption goals.
Read more: Laotian Times
Joint Tourist Visa Program Launched
Thailand has introduced a new joint tourist visa program with Cambodia, Laos, Myanmar, Vietnam, and Malaysia, facilitating seamless travel. The program includes a proposed extension for the Destination Thailand Visa, allowing stays of up to 180 days. An Electronic Travel Authorization system will simplify the visa application process. The program targets remote workers and requires a minimum bank balance for eligibility.
Read more: Travel and Tour World
Vang Vieng Emerges as Tourism Hotspot
Vang Vieng, once known primarily as a party town, is rebranding itself as a destination for adventure activities and serene landscapes. The town offers tubing on the Nam Song River, surrounded by limestone cliffs, and features turquoise lagoons and unique viewpoints. Accessible by a modern railway, Vang Vieng attracts all kinds of travelers with a blend of local culture and outdoor experiences. The best time to visit is from November to March, when the weather is pleasant for exploring the countryside.
Read more: Travel and Leisure Asia
Teacher Shortage Strains Education System
Laos is dealing with a serious shortage of more than 500 teachers in Savannakhet province alone. The crisis is attributed to soaring living costs, the weakening national currency, and government debt. Many teachers have recently retired, while volunteer educators are leaving due to inflation and poor job prospects. The government plans further cuts to state positions, exacerbating the deficit that has been growing since 2017. Nationwide, the teacher shortage reached 2,778 last year.
Read more: Radio Free Asia
That’s all for this week, thanks for reading.
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