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Headlines:
Defense Cooperation
Growth Forecast Nudged Lower
Storm Damage Toll Coming Due
New Fuel Import Route Boosts Energy Security
Inter-Provincial Ties with Vietnam
Diplomacy Day Call for Next Gen Leaders
Human Rights Groups Push for Reform
State Enterprise Oversight Moves to Committee
Export Growth Ops in Coffee, Tea, and Durian
International Partnerships: BY, KP
Defense Cooperation
Vietnam and Laos signed a new defense cooperation agreement that will support training, exercises, and human resource development. The agreement builds on the already-agreed-upon Defence (sic) Cooperation Protocol for 2025-2029, with both nations expected to continue annual meetings and joint exercises with each other and with Cambodia. A search and rescue exercise is expected to wrap up today, following a training program that started on October 6. Vietnam’s Ministry of National Defence says it will be right beside Laos in celebrating the 50th anniversary of the Lao People’s Democratic Republic throughout this year.
Read more: Voice of Vietnam (MoU Details), Cambodianess (Trilateral Partnership)
Growth Forecast Nudged Lower
The Asian Development Bank revised Laos’ 2025 GDP growth forecast down a touch from 3.9% to 3.7%, on debt vulnerabilities, weak demand, and trade issues - especially the 40% US tariff. Services are likely to continue to be the main engine, pushing 4.5% and supported by good tourism numbers. Industrial growth is expected at 3.6%, supported by energy and manufacturing, and agriculture is expected to deliver a modest 1.3%. Inflation pressures have come down - overall inflation ran at a 4.5% pace in August from 11.1% in April. The Bank of Laos dropped its policy rate to 9% in August, and foreign reserves increased to US$2.7 billion.
Read more: The Star (ADB Forecast)
Storm Damage Toll Coming Due
Prime Minister Sonexay Siphandone called for a nationwide effort to recover from storm Bualoi’s devastation. As of October 11, the storm caused flooding in ten provinces, resulting in four deaths. The PM also warned that he is telling his Ministries to take practical measures to protect the economy and raise overall living standards.
Read more: The Star (Storm Impact), Meyka (Economic Reforms)
New Fuel Import Route Boosts Energy Security
The Lao State Fuel Company opened a new fuel import route through Vietnam’s Nghi Son Port to improve energy security and keep the fuel supply to northern Laos stable. The route connects Nghi Son Special Economic Zone Port in Thanh Hoa province to Laos via Nam Kang and Nam Soi International Checkpoints, with fuel stored at the Nathong depot in Huaphan province. The first shipment delivered more than 2,600 tonnes (about 3.2 million liters) of Euro 5 diesel fuel. The new option helps diversify fuel supply sources, reducing reliance on existing partners, primarily Thailand, Vietnam, Malaysia, and Singapore.
Read more: Bernama (Energy Security), The Star (Route)
Inter-Provincial Ties with Vietnam
Vietnam’s Lai Chau province held talks with Oudomxay province, with Chairman Le Van Luong proposing better friendship exchanges and the exchange of experiences on administrative restructuring. Oudomxay Governor Vongsavanh Saynhavong praised cultural similarities as opportunities for cooperation. A separate visit on October 9 saw an Oudomxay team visit Dien Bien province to swap stories about their experience with the two-tier local administration model. Dien Bien began running this type of government in July, reducing communes and wards by two-thirds and getting rid of the district level completely to improve efficiency and reduce costs.
Read more: Vietnam Plus (Lai Chau Partnership), Vietnam Plus (Administrative Model), Voice of Vietnam (Dien Bien Visit)
Diplomacy Day Call for Next Gen Leaders
President Thongloun Sisoulith said there’s a need for a new generation of diplomats to work through modern and complex international challenges. The president said that there continued to be a need to marry political and economic diplomacy to support the national objective of graduating from Least Developed Country status by 2026. Laos currently has diplomatic relations with 151 nations, runs 41 diplomatic missions abroad, and trades directly with more than 60 countries. Separately, Chinese Vice President Han Zheng met with Lao Vice President Pany Yathotou in Beijing during the Global Leaders’ Meeting on Women, where they talked about a willingness to work towards a shared future.
Read more: Laotian Times (Diplomacy Day), Xinhua (China Meeting)
Human Rights Groups Push for Reform
The International Federation for Human Rights (FIDH) and the Lao Movement for Human Rights (LMHR) want to see the UN Committee on Economic, Social and Cultural Rights (CESCR) recommendations put into action as soon as possible. The CESCR released its Concluding Observations on September 26, after reviewing Laos on September 18-19. The biggest concerns include human rights defenders facing intimidation, arrests, and repression, insufficient protection measures and investigations into violations against activists, as well as a shortfall of legal obligations for businesses that should be doing human rights due diligence. While the government accepted some infrastructure-related recommendations from the report, it pushed back on most of the others related to human rights issues..
Read more: FIDH
State Enterprise Oversight Moves to Committee
The Ministry of Finance has transferred oversight for state-owned and mixed-ownership enterprises to the State Enterprise Reform Committee as of October 8. The committee will now manage all proposals and operational issues related to state-funded enterprises. This change comes after a government reorganization in June, which included reshuffling nine ministers and reducing the total number of ministries from 17 to 13.
Read more: Laotian Times
Export Growth Ops in Coffee, Tea, and Durian
Laos says that more than 310,000 families are involved in coffee and tea cultivation, and together they generate more than USD 102 million in export revenue annually. A new 25-year durian cultivation project has come about to improve exports to China, and a pilot site covering six hectares is set to launch in Huay Kham village, Vientiane. The project is a collaboration between NAFRI and EK Farmland Co., Ltd., with Laos planning to export 400 tons of premium durian by 2026 to China, using the China-Laos Railway.
Read more: Laotian Times (Barista Competition), Fresh Plaza (Durian Project)
International Partnerships: BY, KP
Belarusian Ambassador Vladimir Borovikov visited Vientiane with the 8th session of the Belarus-Laos military technology commission and talked about improving manufacturing partnerships in defense. Borovikov’s negotiations included product standardization and certification with Laos’ Industry and Trade Ministry. A meeting with the Ministry of Public Security ended with agreements to improve cooperation with Belarusian law enforcement. North Korean leader Kim Jong Un held talks with President Thongloun Sisoulith on October 10 in Pyongyang, following a ceremony welcoming Thongloun for the 80th anniversary of the Workers’ Party of Korea.
Read more: Belta (Belarus Cooperation), Khmer Times (DPRK Meeting)
That’s all for this week, thanks for reading.
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