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Headlines:
Build Dams, Pile Debt, Rework Deals
Wind Farm Beats Schedule, Makes History
Inflation Eases, Reserves Hold Steady
Cabinet Has a September Wishlist
Digital IDs Roll Out Nationwide
Railway Finally Runs Both Ways
Capital's Sewage Solution Nearly Ready
Schools Open, Teachers Absent
Sekong Province Posts Export Win
SCO Membership Opens New Doors
Vietnam Pushes Stuck Projects Forward
Parliamentary Ties on an Anniversary
Non-Bank Finance Hits Pause
President's Son Wins Youth Union Gig
Build Dams, Pile Debt, Rework Deals
Hydropower now generates (pun intended?) 15% of exports, but public debt has grown to close to $14 billion (roughly the size of the entire economy) with China holding most of the IOUs. Cash from selling power abroad isn't covering today's bills, forcing awkward renegotiations with EDL on power purchase agreements. Villagers downstream say they are suffering from vanishing fish stocks and erratic water levels. Officials are scrambling to add solar and diversify beyond hydro (see next story) while rising electricity bills at home are the cause of increasing public anger. It’s difficult to see a simple way out of the debt trap, as hydro export revenue can't keep pace with debt service on the pricey Chinese loans.
Read more: Yahoo News
Wind Farm Beats Schedule, Makes History
Monsoon Wind's 600 MW project has gone live four months early, becoming Asia's first cross-border renewable energy project. The facility's 133 turbines now feed directly into Vietnam's grid by way of a 27-kilometer transmission line. The project is expected to cut 1.3 million tonnes of CO2 annually and contribute more than a million dollars annually to local development programs. It's a bright spot in the country's energy portfolio, showing that maybe Lao has life beyond hydropower (see previous story).
Read more: Laotian Times (Project launch), Asian Power (Technical details)
Inflation Eases, Reserves Hold Steady
August inflation cooled to 5.0% from July's 5.3%, but housing and power costs still were up 15% year-over-year. The government claims revenue already hit 69% of its 2025 target by late August, with standing foreign reserves able to cover just under five months of imports. Agricultural exports provided rare good news as they cleared $88 million. Relief remains patchy, though, currency controls remain locked in crisis mode, and authorities continue to do their best to juggle competing pressures.
Read more: Laotian Times
Cabinet Has a September Wishlist
The government’s September agenda: stabilize prices, protect reserves, fix roads, and make everyone happy. Finance and the central bank will "manage" the kip. Industry is expected to cut costs on basics by matching supply with demand while, at the same time, trimming non-essential imports. Agriculture is being tasked with rescuing livestock producers drowning in feed shortages. Education has promised to open schools on time and, in a rare win for patience, convert long-serving volunteer teachers into civil servants (see article below). New anti-money laundering laws and railway fines round out the legislative docket.
Read more: Laotian Times
Digital IDs Roll Out Nationwide
Come October, paper documents will become relics fit for the museum as national digital ID cards come into use nationwide. Each card puts biometrics, QR codes, and barcodes into one database-linked package. Anyone 15 and up will get a 10-year card with 20-year renewals. Those who make it to the age of 60 will be given the lifetime achievement version. Getting the card requires citizens to fork over 30,000 kip (less than $1.50) at district offices or via the LaeID app. Vietnam and Japan are behind the tech build-out, which comes as a result of a 2025 mandate for full digital conversion.
Read more: Biometric Update (System specs), Laotian Times (Implementation plan)
Railway Finally Runs Both Ways
The China-Laos railway has found reverse gear, and now international freight is moving in both directions between Yuxi and Vientiane. Since December 2021, the 1,035-kilometer line has moved 65 million tonnes of product, including 15 million tonnes crossing borders. The Kunming-Vientiane express makes the journey in 10 hours. Backhaul options will give shippers more flexibility, and traffic keeps climbing. Proof that sometimes infrastructure delivers on its promise.
Read more: Railway Pro (Service expansion), CGTN (Economic impact)
Capital's Sewage Solution Nearly Ready
Vientiane's new wastewater treatment plant is almost finished and should be fully running by early next year. The facility is expected to treat 52,000 cubic meters daily, hopefully resulting in cleaner canals and fewer nose-holding moments downtown. Hungarian contractors are managing the $61.24 million project, funded by (surprise!) a Hungarian loan. The goal is to get half of all wastewater treated by the end of this decade, support property values, and maybe make the capital a little more livable.
Read more: Laotian Times
Schools Open, Teachers Absent
The academic year kicked off with a teacher shortage so severe that the PM was forced to beg for public help. The Education Ministry's solution was to finally hire long-serving volunteer teachers as civil servants and to send soldiers to rural classrooms. In Xepon district, only 9 of 109 schools are fully staffed. Officials are trying to talk up improved facilities, meal programs, and the benefits of vocational training to try and reduce the number of dropouts. It’s hard to make the math add up, though - there are simply not enough teachers, and too many empty classrooms.
Read more: Laotian Times
Sekong Province Posts Export Win
One province has got something right: Sekong logged $121.16 million in first-half exports, led by power, cassava flour, rubber, coffee, and coal. Thailand and Vietnam were the recipients of almost nine-tenths of the goods, and imports stayed minimal at $4.17 million, mostly capital investment of machinery for new projects. Local authorities pumped money into processing upgrades and support for small businesses; they say the next targets are ginseng, crafts, and anything with better margins than raw commodities.
Read more: Laotian Times
SCO Membership Opens New Doors
Scoring dialogue partner status at the Shanghai Cooperation Organisation summit in Tianjin has given Laos another forum for trade and security talks. Among other things, President Thongloun used the sidelines to back the Cambodia-Thailand ceasefire, asking both sides to stick to July's Putrajaya deal.
Read more: Xinhua (SCO entry), Khmer Times (Regional diplomacy)
Vietnam Pushes Stuck Projects Forward
It seems that Vietnam wants its projects moving. Now. Vietnamese PM Pham Minh Chinh cornered President Thongloun in Tianjin, China this week at the aforementioned SCO summit to try and unblock stalled projects and reduce trade barriers. On the agenda are bigger tariff breaks, upgraded border crossings, and more collaboration on minerals, telecoms, and digital infrastructure. Both sides promised coordination at ASEAN and UN forums, Hanoi praised macroeconomic progress, and Vientiane promised to show up for Vietnam's 80th National Day celebrations.
Read more: Viet Nam News (Bilateral push), Nhan Dan (Cooperation details)
Parliamentary Ties on an Anniversary
Vietnam's National Assembly celebrated 50 years of parliamentary cooperation with Laos by promising more joint sessions on laws, budgets, and project oversight. They're also publishing a commemorative book (riveting, we’re sure). Officials in Vientiane celebrated Vietnam's 80th National Day by reporting on nearly $6 billion in registered investment and their plans to get to $5 billion in bilateral trade by the end of this year. Lao leaders praised Vietnam's development model, in a perhaps not-so-subtle hint about which path they plan to follow.
Read more: Viet Nam News (Parliamentary cooperation), VietnamPlus (Anniversary celebration)
Non-Bank Finance Hits Pause
The central bank has suspended the opening of new branches for non-bank financial institutions starting in September, claiming it needs time to write proper regulations. The freeze covers microfinance, guarantee firms, leasing companies, pawnshops, and payment providers under last December's Law 66. Existing operations will be allowed to continue while lenders prepare for new capital requirements and tighter risk controls. It seems like the plan to grow first, regulate later didn't work out so well.
Read more: VDB Loi
President's Son Wins Youth Union Gig
In a shocking development that absolutely no one saw coming, Thongly Sisoulith, son of President Thongloun, has landed the top job at the Revolutionary Youth Union. The appointment comes after months of government restructuring that reduced the number of ministries from 17 to 13 while somehow finding room for the next generation of familiar surnames. The Union's 2026-2030 plan promises to mobilize the country’s youth for national development, starting with this inspiring example of meritocracy in action.
Read more: Laotian Times
That’s all for this week, thanks for reading.
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