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Starting 1 August, digital platforms like GoogleFacebook, and Amazon will enforce a 10 percent value-added tax (VAT) on customers in Laos, following the country’s VAT increase from 7 percent.

The three major platforms have been notifying users about the upcoming changes. This VAT adjustment will affect various services involving customer purchases on these platforms.

Before the changes take effect, users are required to provide their Laos Tax Identification Number (TIN) to update their information. Once updated, the platform’s TIN will be reflected on their invoices.

The VAT increase, first announced in March, is part of broader efforts to enhance state budget revenue and support economic and social development.

The increase will also apply to a range of transactions, including imports, goods, general services, mineral imports and supply, and electricity usage.

For the past two years, Laos has maintained a VAT rate of 7 percent. However, given the country’s current economic challenges, international experts and organizations, such as the World Bank, recommended returning to a 10 percent VAT rate to prioritize tax collection and replenish the state budget.

After enduring economic turmoil for the past two years, Laos has implemented various measures to address these issues, but with limited success.

On 15 July, Lao President Thongloun Sisoulith directed the government to take decisive action to halt the economic challenges, particularly the soaring inflation rate and the ongoing depreciation of the Lao kip currency. The president recommended increasing foreign reserves, curbing non-essential imports to stabilize the economy, and urging debt collection and asset auctions to enhance financial integrity.

Source: https://laotiantimes.com/2024/07/19/laos-to-raise-vat-to-10-percent-on-digital-platforms/

Vietnam has become a hub for higher education for more than 10,000 students from Laos,  supported by government scholarships and other funding avenues.

The Lao Embassy in Vietnam shared these figures during a meeting on 12 July, reporting the growing trend of Lao nationals seeking educational opportunities across the border. Among the Lao students currently enrolled in Vietnamese universities, the majority are pursuing degrees in administration, public security, and defense.

Mick Phavongsa, a nursing student at Vinh University of Medicine in Nghe An Province, expressed optimism about her career prospects upon completing her studies

“I am currently awaiting my university completion certificate and plan to apply to a Vietnamese hospital in Vientiane as a nurse,” she said.

Many Lao students, like Mick, cite familial and cultural ties as influential factors in their decision to study in Vietnam. Proximity to home and familiarity with Vietnamese culture also contribute to their academic choices.

“I chose to study in Vietnam to open up new opportunities, meet new people, and explore different cultures,” said Phoutthasak Souknilan, pursuing a dentistry degree in Ho Chi Minh City. 

Based on his experience, the education system in Vietnam stands out for its modernity and effective integration of technology.

While studying in Vietnam offers many benefits, Phoutthasak highlighted some challenges, especially for newcomers, such as adapting to a new language and education system. 

“Many people feel discouraged at this stage, and some even decide to give up their studies,” he noted.

Donut Vongsa, a Lao student majoring in medicine at Pham Ngoc Thach University in Ho Chi Minh City, emphasized the enriching experience of making international connections during his studies. However, according to Donut, studying in Vietnam is not always easy. 

“The study environment here is very difficult and demanding, which can sometimes lead to stress,” she said.

The Lao government, through various scholarship programs, currently supports thousands of students in Vietnam, contributing to their educational and professional growth. This initiative aims to equip Lao nationals with skills essential for their country’s socio-economic development upon their return.

Thanks to these scholarships, Lao students like Mick, Phoutthasak, Donut, and many others have secured opportunities to study in Vietnam.

According to local Lao media, Lao government scholarships currently support 3,417 students, with an additional 4,244 benefiting from exchange scholarships between bordering Lao and Vietnamese provinces. Moreover, 1,058 students are self-funded, and 141 receive funding from other sources.

This year, 476 students have completed their studies in Vietnam and will soon return to Laos. According to the Lao Ministry of Education and Sports, these graduates from Vietnamese universities have acquired valuable professional skills, securing stable jobs that contribute significantly to Laos’ governmental functions.

Source: https://laotiantimes.com/2024/07/18/over-10000-lao-students-study-in-vietnam-with-government-aid/

In a landmark discussion hosted by the European Union (EU), ASEAN, and leading scholars from both regions convened to enhance cooperation in education and research, highlighting the transformative impact of the EU’s Global Gateway strategy on ASEAN. The dialogue focused on innovation, research collaboration, sustainable development, and the exchange of students and academics.

During the The Ambassador of the European Union (EU) to ASEAN, Sujiro Seam emphasized the importance of people-to-people connectivity and investment in education and research as key components of the ASEAN-EU Strategic Partnership. He noted that the Partners’ Dialogue celebrated the existing cooperation between the EU and ASEAN in education and research, and explored ways to develop further this collaboration within the framework of the Global Gateway Strategy, benefiting both regions and their populations.

The EU-funded Erasmus Program and Horizon Europe exemplify successful collaboration in higher education and research. 

The Erasmus Program has benefited students, scholars, and universities in ASEAN through exchanges, postgraduate scholarships, and support for university partnerships. 

Meanwhile, Horizon Europe, the world’s largest publicly funded multilateral research and innovation program, offers researchers and innovators outside Europe the opportunity to participate in EU-funded collaborative research and innovation projects. This program aims to address global challenges by fostering green, digital, healthy, and resilient societies.

Launched in 2021, the Global Gateway strategy aims to tackle global challenges such as climate change, health system improvement, and the enhancement of global supply chain competitiveness and security.

Between 2021 and 2027, the EU and its Member States, collectively known as Team Europe, have committed to mobilizing at least EUR 10 billion for sustainable and high-quality projects in the ASEAN region. This investment is tailored to meet the needs of partner countries and ensure lasting benefits for local communities.

Since 1977, the EU’s partnership with ASEAN has been built on shared values and common goals. In 2020, the EU and ASEAN elevated their relationship to a Strategic Partnership. They continue to cooperate in ensuring regional peace and security, building sustainable connectivity, promoting free and fair trade, and supporting sustainable development in ASEAN.

To commemorate 45 years of dialogue relations, the Delegation of the European Union to ASEAN, in partnership with the ASEAN Secretariat and bilateral EU Delegations to ASEAN Member States, organized a series of events throughout 2022. These included a comic strip competition, a virtual cooperation exhibition, a joint photo exhibition, and the ASEAN-EU Bike 45 Ride. The celebrations culminated in the first-ever EU-ASEAN Commemorative Summit at the Leaders’ level on 14 December, 2022, in Brussels.

Source: https://laotiantimes.com/2024/07/17/eu-asean-team-up-in-education-to-address-global-challenges/

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