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:
Vision 2055 Charts the Path to a Richer Future
Inflation Moderates, Economy Expands
February Elections Kick Off Political Transition
Cohesion Defines Ties with Vietnam
Rail Freight Booms on China Routes
Lao Airlines Pushes China Network
Infrastructure Push Brings Roads and Bridge Work
Power Projects Advance with Chinese Help
Hydrogen Roasted Coffee Project
US Travel Ban Kicks In
Polio Outbreak Forces VN Health Response
Vision 2055 Charts the Path to a Richer Future
President Thongloun Sisoulith put forward “Vision 2055” at the 12th National Congress of the Lao People’s Revolutionary Party on January 6. The plan sets out a long-term goal to get Laos to upper-middle-income by 2055. The 2026-2030 National Socio-Economic Development Plan has set a target of at least 6% yearly GDP growth and per capita GDP of USD 3,104 (vs ~2,100 today) by 2030. Fiscal stability has been placed front and center as a priority, with an intention to bring public debt down from 88% to below 70% of GDP and keep inflation below 5%.
Read more: Laotian Times (Vision Details), The Star (Recent Achievements)
Inflation Moderates, Economy Expands
The economy has been able to keep plowing ahead at an average pace of 4.2% yearly for the past five years, and per capita income is up to USD 2,138, according to Khamphan Pheuinhavong, Chairman of the Central Committee’s Commission for Propaganda and Training. Public debt management efforts have been successful in bringing the debt-to-GDP ratio down from 112% to 88%, and inflation has seen a drop from 22.96% in 2022 to a much more palatable, but still uncomfortable, 8.3% last year. December saw inflation ease to 5.6%, with a 0.3% month-over-month dip, the second consecutive monthly drop. Trade beat expectations with total turnover of more than USD 84 billion, exports topping USD 46 billion, and a trade surplus of USD 8 billion.
Read more: The Star (Economic Overview), Asian News Network (Inflation Details)
February Elections Kick Off Political Transition
Nationwide elections to elect members of the National Assembly and Provincial People’s Councils will be run on February 22, 2026. The National Assembly will be expanded from 164 to 175 members, and the new legislature will be installed after the 9th Legislature finishes its term on March 22. The elections come after the 12th National Congress of the Lao People’s Revolutionary Party (currently running: January 6-8), which will elect new Party leadership and define policy directions.
Read more: Laotian Times (Election Details), The Star (New Year Message)
Cohesion Defines Ties with Vietnam
Professor Boviengkham Vongdara, President of the Lao–Vietnam Friendship Association, told the Vietnam News Agency on January 6, that the term “strategic cohesion” introduced during Party General Secretary To Lam’s visit is a new phase in bilateral ties. The idea is a being floated because of a need for alignment in goals, especially in infrastructure and workforce development. Vietnam has been a traditionally solid supporter, particular by way of access to international waters through Vung Ang Port. Trade between the neighbors is expected to hit USD 5 billion annually, and Vietnam has given more than 1,600 scholarships to Lao students over the past year.
Read more: Voice of Vietnam (Cohesion), Vietnam News (Education)
Rail Freight Booms on China Routes
Freight transport from China by train saw a huge increase in 2025, on stronger trade with ASEAN. The China Railway Nanning Bureau Group says freight trains from Guangxi to Vietnam moved 37,000 TEUs, an 86% jump over 2024. Cross-border freight on the China-Laos Railway rose 18% to 5.5 million tons, and total cargo was up a quarter to almost 25 million tons and 20 million passengers. The increases have been encouraged by tariff reductions under the RCEP (Regional Comprehensive Economic Partnership) and the China-ASEAN Free Trade Area 3.0 Upgrade Protocol, which are both reducing cross-border trade costs. The China-Thailand Railway’s first phase is expected by 2028, and will keep the numbers moving up.
Read more: Yicai Global
Lao Airlines Pushes China Network
Lao Airlines has begun direct flights between Vientiane and Zhanjiang Wuchuan, becoming the first foreign airline to run international services at the newly opened Chinese airport. The route flys three times weekly using an A320-200. The carrier now connects Vientiane to 27 airports in China.
Read more: CH-Aviation
Infrastructure Push Brings Roads and Bridge Work
Vientiane Capital finished seven reinforced concrete road projects ahead of schedule this week. The projects, which started a year ago, improve connectivity in districts near the Mekong River and the Lao–China Railway, bringing together the Hatxayfong, Xaythany, and Sisattanak districts. The Nam Se Don River Bridge construction in Khong Se Don district, Salavanh, officially re-started after a hiatus of nearly a decade. The 210-meter bridge project, which started in early 2015 but came to a stop in early 2017, is a bit more than half complete and completion is expected sometime this year.
Read more: Laotian Times (Road Projects), Laotian Times (Bridge Resumption)
Power Projects Advance with Chinese Help
EDL-T, a joint venture of China Southern Power Grid and the Lao state-run Electricite du Laos, broke ground on the Thavieng-Mahaxay 230 kV power transmission and transformation project in Vientiane. EDL-T reported an 86% completion status for the Lao section of the China-Laos 500 kV power grid interconnection project and said that, to date, the company has trained more than 2,000 Lao technical staff.
Read more: Global Times
Hydrogen Roasted Coffee Project
Lao Green Hydrogen Co., Ltd. is working with local farmers to create domestically-sourced hydrogen-roasted coffee beans. The company says its will offer coffee made from green beans roasted using hydrogen to “minimize impurities and bring out unique taste characteristics,” apparently because of how cleanly hydrogen burns.
Read more: Fuel Cells Works
US Travel Ban Kicks In
The US government enacted a travel ban on people from seven countries, including Laos, effective January 1. The ban applies to both immigrants and nonimmigrants and is part of new Border Patrol Guidance. Some Americans say they’re worried that the travel ban will break up family connections and disrupt the wellbeing of the community.
Read more: Daily Mail (US Ban), WXOW (Video: Community Reaction)
Polio Outbreak Forces VN Health Response
Vietnam is redoubling polio prevention work after an outbreak in Laos, which has seen one case of acute flaccid paralysis due to vaccine-derived poliovirus type 1 (VDPV1). The WHO has suggested that Vietnam improve its efforts because of the proximity of the outbreak, just 164 kilometers from Quang Tri Province. Local authorities are being required to run risk assessments and prepare response plans. There has been little direct reporting of this latest incident in the Lao press, however.
Read more: SGGP
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.