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Headlines:
Corruption Scandal Exposes Millions in Losses
HRW Calls Australia to Press on Rights Abuses
COMAC Takes 49% Stake in Lao Airlines
Mineral Sector Revenue Bests Targets
NA: Roads, Education, Agriculture Top the Agenda
Education System Overhaul Planned by 2028
Roadway Infrastructure Push
Ag Ministry Looks to Mech, Tech, and Infra
Renewable Energy and Carbon Credits
International Partnerships: JP, AU, EU
Chinese Influence Seen as Increasingly Negative
Gov’t Raises Cash via Bond Issuance, WB Loan
Corruption Scandal Exposes Millions in Losses
The State Inspection Authority is reporting wild levels of state corruption between 2021 and 2025, fingering 334 players in financial misconduct that’s resulted in losses of LAK 642.93 billion (~$30 million), along with THB 68.95 million ($2.1M), CNY 7.80 million (~$1M), USD 66.8 million, and VND 1.5 billion (~$57k). SIA President Khamphanh Phommathat says 213 state officials, 44 state enterprise employees, and 77 private sector individuals were involved, and 86 have already been put forward for prosecution. Authorities have recovered some of the losses, but how much is not clear.
Read more: The Star
HRW Calls Australia to Press on Rights Abuses
Australian officials are being asked to raise human rights concerns. Human Rights Watch claims the Lao government has a history of arbitrary arrests, enforced disappearances, and extrajudicial killings. This December will be the 13-year anniversary of the disappearance of Lao community activist Sombath Somphone. The government has made agreements with neighboring countries to forcibly return exiled dissidents, deals that HRW labels “transnational repression.” HRW wants Laos to ratify the International Convention for the Protection of All Persons from Enforced Disappearance. Unsurprisingly, the government denies allegations of abducting critics and dissidents.
Read more: Human Rights Watch
COMAC Takes 49% Stake in Lao Airlines
The government sold 49% of Lao Airlines to Chinese aircraft manufacturer COMAC in a partnership that’s supposed to reform state-owned enterprises, improve efficiency, and help to stem the financial bleeding. A report from Laotian Times claims that COMAC at first was looking for a controlling stake, but the government struck a deal that allows them to keep overall control. In early 2025, Lao Airlines began operation of four C909 regional jets, the first carrier outside of mainland China to do so. The fleet is currently made up of those four planes, plus four A320-family birds, and seven ATR turboprops.
Read more: Aviation Business News
Mineral Sector Revenue Bests Targets
The mineral sector has generated about $1.67 billion so far this year, a figure that puts the year-to-date income at 104% of the full-year target. Projected total output by year-end is just over $2 billion. Over three years, pilot projects have brought in more than $5 billion. Even as the sector seems to be booming, the government has increased oversight of mineral projects, placing new regulations in March for gold mining and river-sand extraction. A suspension on new mineral development projects is ongoing as the government assesses current operations.
Read more: Laotian Times
NA: Roads, Education, Agriculture Top the Agenda
During the 10th Ordinary Session of the 9th National Assembly, members proposed their best ideas about how to solve some of the nation’s most pressing socio-economic challenges. Suayphet Thongsombath, brought up the deterioration of Road No. 6. Dongphet Phayon wants a speedy response to the teacher shortage. Bounluan Somsihapanya suggested that surplus government money should be divvied up, with 70% to local authorities and 30% retained by the central government, in order to improve local governance. Hongkham Sayakhom says that more work against corruption is needed to keep the budget in line.
Read more: Laotian Times
Education System Overhaul Planned by 2028
The government is expected to give the national education system a makeover by shifting to a 6+3+3 grade structure starting in the 2028-2029 academic year. The reform will extend primary schooling from five to six years, followed by three years each of lower and upper secondary education, replacing the existing 5+4+3 model. For some reason, this is believed to be critical for improving education quality. The Ministry of Education and Sports will run a feasibility study to prepare for the change, which will require curriculum development, teacher training, and new educational equipment. The change is intended to improve learning outcomes and bring local standards into line with regional and international norms.
Read more: Laotian Times
Roadway Infrastructure Push
The government is focusing on infrastructure development, particularly road upgrades and damage repairs, to support transportation and tourism (and therefore growth, natch). Vice President Sommad Pholsena highlighted the need for urgent budget resources to improve public travel and better enforcement measures against overweight trucks. Minister of Public Works and Transport Leklay Sivilay said his ministry was going to prioritize the repair of heavily damaged highways, with construction expected to start next year. A new weight-based toll for mineral transport trucks comes into force on January 1, 2026. Fees will be up to USD 1.5 per ton for trips on routes of 10 km or more. Savannakhet authorities approved a plan for the rehabilitation of a 79-kilometer strip of National Road No. 13 South.
Read more: Social News (Infra Plans), Laotian Times (Weight Tolls), Laotian Times (Road Rehab)
Ag Ministry Looks to Mech, Tech, and Infra
The Ministry of Agriculture and Forestry has set out plans to boost agricultural production and processing. Minister Linkham Douangsavanh said there’s been steady growth in agriculture and forestry, but challenges include limited mechanization, low employment of technology, insufficient irrigation, high production costs, weak supply chains, and underdeveloped infrastructure.
Read more: The Star (Production Targets)
Renewable Energy and Carbon Credits
Électricité du Laos Generation Public Company signed an agreement with South Korean firm CS Tech Co., Ltd. to develop floating solar farms and carbon credit initiatives. The partnership will mean the installation of floating solar panels on the surface of hydropower reservoirs. The plan should both increase energy output without using additional land use AND reduce water evaporation. This agreement follows on the heels of EDL-Gen’s previous deals to increase renewable energy capacity, including an August deal to build out a 15-megawatt solar project.
Read more: Laotian Times
International Partnerships: JP, AU, EU
Japan’s Princess Aiko began her first official overseas trip on November 17 in honor of the 70th anniversary of Japan-Laos diplomatic ties. Between 2019 and 2024, Japan provided more than $370 million in grants, funding more than 150 projects through JICA. Australia is pushing forward with support for development, trade, climate action, and security. The AUS partnership includes the launch of the LIFT 4 Laos project to bring foreign direct investment and cooperation on the Wolbachia mosquito project that’s working to control the spread of dengue fever. Finally, the EU took part in a sustainable tourism dialogue in Luang Prabang this week.
Read more: NHK (Japan Visit), Asian News Network (Australia Partnership), EEAS (EU Dialogue)
Chinese Influence Seen as Increasingly Negative
The local perception of a rising Chinese presence is getting more negative, and residents are beginning to associate it with crime and rising wealth disparity. The Laos-China Railway, completed in 2021 as part of the Belt and Road Initiative, has helpfully been supportive of tourism, but many are concerned that most of the benefits don’t flow to local operators. More than half of the national public debt is owed to China, and although the money needs to be owed to someone, economic difficulties, including a devalued currency, inflation, and high youth unemployment, are, if not being blamed on China, certainly shading its reputation. Unfinished real estate projects and slow development in Boten are also claimed as being illustrative of challenges that have come as a result of past Chinese investments.
Read more: Straits Times
Gov’t Raises Cash via Bond Issuance, WB Loan
Laos was able to sell $300 million in senior unsecured notes due 2030. The notes, issued under US SEC Rule 144A and Regulation S, are listed on Singapore Exchange. This transaction is Lao’s return to international capital markets, where it’s been largely absent since 2019 and is expected to be used to refinance existing government debts and fund government operations. Separately, the World Bank approved a USD 17.5 million loan on November 8 to improve public financial management. The project will involve staff training on integrated financial management systems to improve budget preparation and reporting..
Read more: Legal Desire (Bond Issuance), Mirage News (World Bank Loan)
That’s all for this week, thanks for reading.
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