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Headlines:
Renewable Energy Push Targets 11% by 2030
New Fuel Import Route Opens From Vietnam
Trade Surplus Shows Economic Progress
Growth Slows on Regional Headwinds
PM Courts US Trade Concessions
Vietnam Cooperation Speeds Up
New Rules for Enterprise Capital Contributions
Fintech for Gold Trading
International Relations Improve Across Asia
Conference Focus on Investment in Youth
Warnings on Vehicle Registrations, Scams
Renewable Energy Push Targets 11% by 2030
Laos is targeting variable renewable energy to reach 11% by 2030 as part of its power development plan, with a focus on solar and wind to support its hydropower prowess. The objective was shared at the Lao PDR Carbon Markets and Clean Energy Conference. Director General Santisouk Phimphachanh spoke about how clean energy was becoming more important for bringing investment (and, therefore, jobs), and energy security. Some of the latest projects, including the 600MW Monsoon Wind Farm and the nearly complete 1GW Northern Clean Energy Project, indicate that Laos should be able to hit the target. Australia’s Deputy Head of Mission, Benita Sommerville, shared her nation’s support via the Laos-Australia Sustainable Energy Partnership.
Read more: The Star (Renewable Targets), Borneo Bulletin (2030 Goal), Nation Thailand (Wind Farm Operations)
New Fuel Import Route Opens From Vietnam
The Lao Petroleum Authority opened a new fuel import route through the Nghi Son Special Economic Zone Port in Thanh Hoa Province, Vietnam, on October 4. The LPA imported more than 2,600 tons (approximately 3.2 million liters) of Euro 5 diesel, which complies with the latest European environmental standards. The fuel was shipped by sea to Nghi Son Port and stored at the Ang Phat Fuel Depot before being sent into Laos. The diesel is currently stored at the Ban Na Thong Fuel Depot in Sam Neua district before it gets redistributed to northern provinces.
Read more: Laotian Times
Trade Surplus Shows Economic Progress
Laos saw a trade surplus of more than $240 million in the first nine months of 2025. Exports hit $7.23 billion, imports were valued at ~$7 billion, for an overall trade volume of $14.22 billion during the period. Top exports included electrical appliances ($1.43 billion) and goldstuffs ($879 million). Top export markets were China ($2.33 billion), Vietnam ($1.51 billion), and Thailand ($1.34 billion). The biggest imports were diesel fuel ($754 million), land vehicles ($690 million), and processed chemicals ($579 million). The 2025 surplus is lower than the previous year’s figure of $1.07 billion, with total trade in 2024 at $13.51 billion.
Read more: Laotian Times
Growth Slows on Regional Headwinds
The Asian Development Bank says the economy is only going to grow by 3.7% this year, mostly thanks to services and tourism - more than 2.3 million visitors in the first half of 2025 have been good for the retail, hospitality, and transport industries. Industrial growth is expected to come in a bit lower, at 3.6%, and electricity output will rise just over 3%. Agricultural growth will be modest at 1.3%. The National Economic and Social Science Institute estimates growth at 3.9% for 2025, moving to 4% in 2026, both numbers well below the National Assembly’s target of 4.8%. Inflation, thankfully, came down from 11.1% in April to 5% in August 2025. By mid-2025, external debt was at $533 million, and revenue collection was running at 93% against targets. The Bank of the Lao PDR reduced its policy rate from 10% to 9% in August 2025, and foreign reserves were $2.7 billion.
Read more: The Star (ADB Forecast), Laotian Times (Regional Growth)
PM Courts US Trade Concessions
Prime Minister Sonexay Siphandone took a working visit to Washington, D.C. at the end of last month to try and get tariff reductions on Lao exports, increase economic cooperation, and talk up investment opportunities. During meetings with U.S. officials, including Trade Representative Jamieson Greer, they talked about ongoing trade negotiations and Laos’ readiness to expand trade and investment, with a focus on tariff waivers and reducing non-tariff barriers. The U.S. currently has a 40% reciprocal tariff on imports from Laos, one of the highest they’ve set on any country, which Laos says is (unfairly) unreflective of actual trade realities.
Read more: Laotian Times
Vietnam Cooperation Speeds Up
Registered Vietnamese investment in Laos is at $322 million YTD, a sixfold increase over the same period last year. Vietnamese companies are involved in 274 projects that have a total of $5.82 billion in registered capital. The Vietnamese government expects two major projects for Laos to finish by the end of the year, while three ongoing projects are expected to wrap up between 2027 and 2029. The Ministry of Construction is evaluating the feasibility of a railway line from Vientiane to Thanh Thuy, Vietnam. The Vietnamese-funded Vang Vieng District Hospital Expansion Project broke ground on October 2, 2025, with a $3 million budget. Work is starting on a two-storey building with outpatient, emergency, obstetrics, paediatrics, and surgical departments, as well as a 43-bed inpatient ward, which should be finished between 2025 and 2026.
Read more: CEO Insights Asia (Investment Progress), Nhan Dan (Hospital Project), VOV (Tech Cooperation), Viet Nam News (Science Cooperation)
New Rules for Enterprise Capital Contributions
On September 9, the Ministry of Industry and Commerce issued Decision No. 2025/IC, giving new guidelines for investors’ capital contributions under the Enterprise Law. Registered capital needs to be fully contributed within one year of company registration. Local and foreign investors are required to transfer cash contributions to the company’s bank account by the deadline, along with supporting documents and approvals from the Bank of the Lao PDR which are needed for foreign contributors. In-kind contributions are limited to 50% of registered capital unless specifically allowed by law and require asset ownership transfer and BOL approval.
Read more: VDB Loi
Fintech for Gold Trading
Lao Bullion Bank Co, Ltd. partnered with Banque pour le Commerce Exterieur Lao Public to launch a gold trading payment service via the LBB PLUS application integrated with BCEL One on October 3, 2025, in Vientiane. The service allows BCEL One customers to buy and sell gold through the LBB PLUS app, allowing for payments directly from their BCEL accounts. CEO Dr. Chanthone Sitthixay said that the service marries gold security with Laos’ digital banking systems to make gold investments more accessible to everyone.
Read more: The Star
International Relations Improve Across Asia
North Korean leader Kim Jong Un held talks with his Laotian counterpart Thongloun Sisoulith in Pyongyang yesterday, committing to improved cooperation during their first summit meeting. The discussions came alongside Thongloun’s visit to celebrate the anniversary of the Lao ruling party. Chinese Premier Li Qiang is leading a government delegation to North Korea to celebrate the 80th anniversary of the Workers’ Party of Korea on October 9-11, 2025, and Vietnamese top leader To Lam will be joining him. Vice President Pany Yathotou met Singapore’s Ambassador to Laos, Sudesh Maniar, on October 6, giving thanks for help improving relations in politics, trade, and education. Singapore provided support valued at more than half a million dollars for the ASEAN Summits as well as some humanitarian aid after the floods of September, last year. Australia’s Business Champion for Laos, Charles Olsson, visited from September 30 to October 3, 2025, engaging in talks with government and business leaders to build new partnerships in agriculture, mining, and sustainable growth.
Read more: NK News (Kim Summit), ANI News (DPRK Anniversary), Laotian Times (Singapore Relations), The Star (Australia Trade)
Conference Focus on Investment in Youth
Laos committed to more investment in education, employment, and youth empowerment to take advantage of its “demographic dividend” (plenty of youngsters!) for sustainable growth during the second National Conference on Population and Development in Vientiane on October 1. The conference, themed “Educate, Employ, Empower and Engage,” was chaired by Deputy Prime Minister Prof Dr Kikeo Khaykhamphithoune. Dr Kikeo said there was a need for urgency to invest in human capital, recognizing that nearly 50% of Laos’s population is under the age of 25. The conference wrapped up with nine recommendations and 25 focus areas to be included in Laos’s upcoming National Socio-Economic Development Plan for 2026–2030.
Read more: The Star
Warnings on Vehicle Registrations, Scams
Savannakhet Provincial Customs announced a tax compliance program for owners of illegally imported or undocumented vehicles, which will run from October 6 to November 30. Failure to come into compliance is threatened with “legal consequences,” but it isn’t clear what that’s not already the case. The Ministry of Public Security gave a nationwide warning on September 30 regarding the increase in online scams. Scammers often impersonate trusted contacts and use AI to mimic voices and faces. Southeast Asia’s fraud networks siphon tens of billions of dollars from victims worldwide.
Read more: Laotian Times (Vehicle Tax), Laotian Times (Scam Warning), The Diplomat (Fraud Networks)
That’s all for this week, thanks for reading.
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