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President Xaysomphone Phomvihane Dies at 70
Xaysomphone Phomvihane, son of founding leader Kaysone Phomvihane and president of the National Assembly since 2021, died August 8 at 11.18am from vasculitis, five months after lawmakers re-elected him to lead the 10th legislature. He was 70, but at least one reported his age to be 69. Vientiane told entertainment venues to close for five days and declared national mourning from August 9 to 13, with a funeral at the That Luang esplanade. Vietnam's National Assembly Chairman Tran Thanh Man flew in to lay a wreath in person. That was a respectful demonstration, but also is a nod to how closely Vietnamese lawmakers have worked with Xaysomphone on energy and transportation. He also served as Savannakhet governor, finance minister and ASEAN Inter-Parliamentary Assembly chair. No successor has been named.
Read more: Phnom Penh Post (Politburo role), Vietnam News (Vung Ang Port), Laotian Times (birth), Vovworld, Laotian Times (tributes)
Railway Debt Eats an Eighth of the Budget
Annual repayments on the $5.9 billion Kunming-Vientiane railway were $1.7 billion in 2025, up from $370 million in 2016, and now consume about an eighth of the national budget. Education and health between them only get about 4 percent. Debt service to Chinese creditors this year is taking almost 90 percent of foreign exchange reserves, and unsurprisingly, the IMF classifies that sort of performance as “debt-distressed.” Beijing hasn’t forced a default, preferring to roll over deadlines. Vientiane needed $1.79 billion for its 30 percent stake in the railway joint venture but put up only $250 million of its own money. The rest came from one bauxite mine and three potash mines promised as collateral, in addition to a separate joint-venture loan that remains undisclosed.
Read more: Chosun (GDP share), Chosun (mine collateral)
Dam Release Ordered as Rivers Top Danger Lines
Xe Lanong 1 Hydropower Dam in Savannakhet began releasing water on August 11 as heavy rains pushed inflows from 650 to as much as 4,000 cubic meters a second, causing the provincial administration to warn nine downstream districts to move livestock, boats and equipment to higher ground. Nam Theun 2 Power Company paused generation and stopped releasing water into the Xe Bangfai on August 7 to reduce pressure downstream. The Mekong River Commission expected alarm-level water in Vientiane on August 11, followed by Thakhek and Pakse on August 12.
Read more: The Star
Lawmakers Consider VAT Break on Electricity
The National Assembly Standing Committee floated dropping the 10 percent VAT on subsidized residential power to protect low-income households from rate hikes. Lawmakers have not said which households would qualify, how the subsidy would work, or when it might take effect. The VAT has swung before, falling to 7 percent as pandemic relief before going back to 10 percent in March 2024.
Read more: Laotian Times
Satellite Images Confirm Dam Construction
Satellite images show earthworks and access roads at the Pak Beng site, the first concrete (bad pun?) evidence that construction has started on the Chinese-Thai joint venture. It will be the most upstream mainstream dam built on the Mekong. Power generation, mostly for export to Thailand, is expected to begin by 2033. Environmental assessments show downstream fisheries in Thailand and beyond could be affected by sediment and flow changes. There is still no public timeline for resettlement or compensation.
Read more: Eurasia Review
Chinese Rare Earth Mine Goes Quiet
A Chinese-run rare earth mining setup has stopped digging, and the companies involved saying the pause is meant to ensure compliance with local law. They did not say which regulation forced the stop or when work might pick up again. The news is strange because the biggest Chinese rare earth producers have reported some of their strongest first-half earnings on record recently as they ride demand for the magnets and alloys that are used heavily in (among other things) EVs.
Read more: Nikkei Asia
Paris Baguette Picks KOLAO
Paris Baguette opened its first store in Laos on August 11 at KokKok Mega Mall Patuxay in Vientiane. It’s a 360-square-meter bakery cafe run under a 2024 master franchise with KOLAO Group affiliate Grandview Property. It’s the Korean chain's seventh Southeast Asian market and, according to the company, the first Korean bakery to enter the country. The market is still small. World Coffee Portal counts fewer than 180 branded coffee shop outlets (Thailand's Cafe Amazon leads with 104), and things the market will only grow past 222 outlets by 2030.
Read more: Business Korea, News Article Insiders, World Coffee Portal
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