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Headlines:
Beer Lao Keeps Momentum Despite Slowdown
Pharmaceutical Production Expands
Growth Forecast Trimmed on Debt Overhang
Crypto Mining Facing 2026 Shutdown
Urban Water Access Target Set for 2030
Infrastructure Rehabilitation Through 2035
Japan Provides USD 370 Million Over Six Years
Beer Lao Keeps Momentum Despite Slowdown
Lao Brewery, backed by Denmark’s Carlsberg Group, has raised its annual production capacity from 20 million liters two decades ago to 800 million liters today. As of 2024, the brewery is the largest taxpayer in the country, dropping about a quarter of a billion dollars into the state coffers every year on estimated annual revenues of USD 600 million. Managing director Henrik Andersen claims the company is selling a jaw-dropping 100 liters of drinks per person every year, a result of rising disposable income and a youthful population. Despite the Lao kip depreciating by more than half between 2022 and 2024, forcing price increases, sales volumes have remained high. Beerlao dominates the local beer market with a 90% share, and the brewery is keen to plow its profits into diversifying exports.
Read more: Business Times
Pharmaceutical Production Expands
Lao Alliance Pharmaceutical Factory No. 2 officially opened on October 17 in Simmano village, Hadxayfong district, Vientiane. The factory is a USD 150 million investment in advanced pharmaceutical manufacturing to produce safe, effective, and affordable medicines for the Lao people, with plans to focus on essential and advanced biotech medicines. Deputy Minister of Health Dr. Aphone Vixathep praised the factory as a big deal for public health, saying that he hoped that its products would both be able to serve domestic consumers, but also lead to export opportunities. The factory will create a handful of new jobs and help to develop local expertise in advanced/ pharma manufacturing.
Read more: The Star
Growth Forecast Trimmed on Debt Overhang
The Asian Development Bank has dropped the Lao GDP growth forecast for 2025 from 3.9% to 3.7% because of dogged debt worries, weak demand, and the wildcards of the ongoing disruptions to global trade. The ADB’s September report suggests that the services sector is going to remain in the driver’s seat - growing by 4.5%, with tourism staying healthy. Industrial growth is anticipated at 3.6% on the back of energy and manufacturing sectors, while agriculture is likely to muster only modest growth of 1.3%. Electricity output was up 3.2% in the first half of 2025, with a full-year growth estimate of around 6.5%.
Read more: VietnamPlus
Crypto Mining Facing 2026 Shutdown
The government plans to cut off power to cryptocurrency miners by Q1 2026, so that it can redirect electricity to industries that create more economic value, like AI data centers, metal refining, and EV manufacturing. Deputy Energy Minister Chanthaboun Soukaloun said crypto mining generates few jobs and doesn’t do anything to build supply chain capacity when compared to other opportunities. Current energy consumption by crypto miners has dropped to about 150 MW, a number that’s down 70% from its peak of 500 MW. The phase-out was originally expected this year but was postponed due to favorable hydropower output from heavy rains, which allowed for increased electricity exports to Thailand and Vietnam.
Read more: Zawya, Market Screener, TradingView, Bitcoinist, The Edge Malaysia
Urban Water Access Target Set for 2030
The Ministry of Public Works and Transport wants 90% urban water access for residents by 2030. The 2026-2030 Urban Water Supply and Sanitation Development Plan is a roadmap to providing safe, piped water while improving wastewater management and urban livability. Minister Leklai Sivilay expects that water treatment capacity will rise from 200 plants producing 758,989 cubic meters per day to 232 plants with more than 883,000 cubic per day. The plan is to reduce water losses in the bigger cities from 35% to 25% and in smaller towns from 25% to 15%. Urban wastewater treatment coverage will rise from 31 to 50 networks.
Read more: Laotian Times
Infrastructure Rehabilitation Through 2035
The government has an infrastructure development plan that runs through the year 2035 which it hopes is going to improve the nation’s ability to absorb disasters. It will improve coordination between the finance sector and other agencies involved in disaster response and infrastructure construction. The plan follows efforts to address the impact of natural disasters on the country’s infrastructure, which has been hammered repeatedly by floods and extreme weather events in recent years. It’s a long-term commitment to building infrastructure that can better withstand natural disasters and get things back up and running more quickly when damage (inevitably) occurs.
Read more: The Star (Plan), Laotian Times (Roadworks)
Japan Provides USD 370 Million Over Six Years
Japan provided more than USD 370 million for 150 development projects from 2019 to 2024, making it Lao’s biggest bilateral donor. Support that’s been provided over the years includes concessional loans, grants, and technical support to develop agricultural infrastructure, environmental management, human resources, and healthcare. Japanese Overseas Cooperation Volunteers play a role in this cooperation, helping local communities with boots on the ground. Minister of Finance Santiphab Phomvihane emphasized the importance of Japanese assistance, noting that the country was the first to receive JOCV support in 1965. He also mentioned Japan’s contributions to socio-economic development and efforts to help achieve Sustainable Development Goals and prepare for graduation from Least Developed Country status in 2026. The cooperation coincides with the 70th anniversary of diplomatic relations. The Japanese government, separately, has allocated more than USD 88,000 to build a new secondary school in Bokeo Province. The funding is part of Japan’s Grant Assistance for Grassroots Human Security Projects. Japan previously invested USD 870,000 in Bokeo - this is Japan’s 10th educational project in the province.
Read more: The Star (JOCV), Laotian Times (School Funding)
That’s all for this week, thanks for reading.
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