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Headlines:
Put Forests at Center of ASEAN Policy
Wetlands Tackle Vientiane Floods
US Targets “Lao” Solar
Tariff Whiplash Tests ASEAN
Recovery Holds, Debt Still Bites
Russia Deal Shows Nuclear Way Forward
Vietnam, Laos in Defense Work Co-op
Team Up with VN on SOE Reform
Tourism Up, Vietnamese Arrivals Jump
Put Forests at Center of ASEAN Policy
Laos used ASOF 28 (ASEAN Senior Officials on Forestry) to make the pitch that forests need to be front and center as sources of biodiversity, growth, and climate adaptation. As the 2024 ASEAN Chair for forestry, it pushed for more regional work on forest landscape restoration, improved community-based management, and better enforcement of the rules already in the books. Some new documents were presented at the meeting, including a Forestry Law Enforcement Handbook, and officials encouraged closer collaboration with UN-REDD+ and the Asian Forest Cooperation Organisation. The main message: keep coordination tight and results measurable.
Read more: VietnamPlus
Wetlands Tackle Vientiane Floods
Chronic flooding in Vientiane is being attacked head-on with a US$6.8 million program funded by New Zealand’s MFAT called the NATURA project. The project is intended to restore the Nong Loup Ian wetland to the benefit of more than 34,000 nearby residents who will see better drainage and small business opportunities tied to restoration work. NZMFAT says it will package the model to apply the same methods in other cities that need lower-cost, scalable flood protection.
Read more: Asia Media Centre
US Targets “Lao” Solar
The US Commerce Department opened anti-dumping and anti-subsidy investigations into solar products from three countries, including Laos. A US manufacturers’ coalition is making claims that Chinese-owned companies are using plants in Laos to sell their product below market rates. US data shows 2024 imports of 1.9 GW from Laos. The US ITC’s preliminary injury ruling is set for late September, with Commerce decisions in October and December and final outcomes early next year. Boosters of the action say the cases will close loopholes; critics say that it’s just going to result in higher costs and supply disruption during a buildout phase that needs all the help it can get.
Read more: TaiyangNews (Investigation timeline), PV Magazine (Trade cases)
Tariff Whiplash Tests ASEAN
The US tariff story threw planning across ASEAN into disarray, then largely reverted back to the status quo by August 1 for most countries. Vietnam was able to bag a negotiated 20% rate, Indonesia and the Philippines 19%, while Laos, Myanmar, and Brunei are getting heavier duties, but have limited US exposure. A 40% tariff is going to be slapped on goods caught violating transshipment rules targeting Chinese-origin products relabeled in the region (see previous article). Early forecasts suggest the changes are going to result in modest GDP drags, with Thailand and Vietnam seeing the largest hits.
Read more: The Diplomat
Recovery Holds, Debt Still Bites
The ASEAN+3 Macroeconomic Research Office (AMRO) is saying it expects Laos’ recovery to hold through the rest of 2025, with inflation (blessedly) back to single digits and the kip holding relatively steady. Foreign reserves tipped USD 2.6 billion at the halfway mark of this calendar year. Growth is expected to come in at 4.4% for 2025 and 4.2% in 2026, but debt risks are still higher than they ought to be. The macro setup is still leaning on ad‑hoc debt suspension and short‑term financing, both of which can put pressure on bank liquidity that isn’t really sustainable.
Read more: AMRO
Russia Deal Shows Nuclear Way Forward
Laos and Russia agreed to a nuclear cooperation roadmap during President Thongloun Sisoulith’s recent Moscow visit, one part of seven agreements inked on energy, health, education, environment, and legal relations. The nuclear plan opens the door for applications in medicine, agriculture, research, and, of course, power generation, giving Laos options beyond hydro-power (currently more than 80% of Lao electricity). The Russians pitched nuclear as affordable and clean, Laos framed it as a hedge. Authorities continue to explore ways that Laos can meet its ambitions as a regional energy hub, with ASEAN Power Grid integration by 2045.
Read more: NEI Magazine (Roadmap details), NucNet (Plant plan)
Vietnam, Laos in Defense Work Co-op
Vietnam’s President Luong Cuong described cooperation with Laos as central to development and defense during a meeting with Lao Deputy Defense Minister Vongsone Inpanphim. The August 11 talks in Hanoi resulted in an agreement between Vietnam and Laos to once again work more closely on defense issues. Some of the anticipated improvements are to have more regular policy talks, more workforce training, and closer coordination on maritime issues in the East Sea. Both parties were keen to figure out how to fast-track negotiations on a Code of Conduct and make plans for more high‑level visits and training exchanges. They also agreed to have the annual defense ministers’ meeting of Vietnam, Laos, and Cambodia later this year in Laos. The message from both sides was to keep working together on planning active and alignment of dispute management processes.
Read more: Viet Nam News (Defense), Nhan Dan (Friendship)
Team Up with VN on SOE Reform
Hanoi and Vientiane opened a new track on state-owned enterprise reform during an August 12 meeting between Vietnam Politburo member Tran Luu Quang and Lao Deputy Prime Minister Saleumxay Kommasith. Vietnam shared its SOE restructuring ideas under Party leadership and explained how its set reform as the main driver of national growth. Laos showed interest in taking legal and governance practices from Vietnam’s Doi Moi ("socialist-oriented market economy") experience and applying them to present-day SOE reform bottlenecks.
Read more: Nhan Dan
Tourism Up, Vietnamese Arrivals Jump
Vietnamese arrivals to Laos jumped by a quarter to 589,000 in the first half of the year, making Vietnam the second‑largest source market of visitors behind Thailand. Total international arrivals were 2.35 million in 1H; the FY target is 4.3 million and more than USD 1 billion in tourism revenue. To get the numbers up even more, plans are to expand visa waivers and continue work on roads, restaurants, and hotels.
Read more: VnExpress
That’s all for this week, thanks for reading.
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