Laos, South Korea Sign USD 1.1 Million in Agriculture Deals

Laos and South Korea have sealed two new agriculture deals worth more than USD 1.1 million. 

GeographicReference

The two countries signed the memorandums of understanding (MOUs) at the 2nd K-Green Agro Partnering Forum 2026, held on 18 June in Vientiane, with the Korea Trade-Investment Promotion Agency, South Korea’s trade representative agency in Laos.

The first MOU establishes a pilot project to export Lao-grown chili peppers and cabbage to the South Korean market, covering cultivation support, quality management, and export verification. 

Another agreement focuses on cooperation in tissue culture technology, building on Korea’s growing role in transferring smart agriculture know-how to Laos.

According to reports by Ministry of Agriculture and Environment, Chanthakhone Boualaphanh, Vice Minister of Agriculture and Environment, said the forum is not merely a technical or business-matching platform but a venue reflecting the “shared vision” of both countries in building a modern, green, sustainable, and climate-resilient agricultural future. 

She added that “Green Agriculture” stands as a key strategy for transforming Laos’ agricultural sector. 

GeographicReference

Officials and agricultural experts highlighted Laos’s strong potential to expand exports of high-value crops, noting that South Korean expertise in smart farming and data-driven planning could help Lao farmers address productivity and climate-related challenges.

According to the World Bank, about 70 percent of Laos’ workforce works in agriculture, and the government aims to raise the sector’s share of GDP to over 20 percent in 2026.

Beyond the two signed MOUs, the forum’s business matching session connected 12 Korean companies with more than 25 Lao partners. These talks generated broader cooperation agreements and follow-up discussions worth an estimated USD 14 million, separate from the USD 1.1 million tied to the signed MOUs.

The forum also reviewed progress on a 2025 agreement between Laos’s National Agriculture and Forestry Research Institute and a Korean smart agriculture firm, now advancing toward an AI-driven pilot project covering livestock management and disease-free seedling cultivation.

Participants also discussed how regional infrastructure projects, including the Laos-Vietnam Railway and expanding logistics parks and dry ports, are expected to improve Laos’ connectivity to international markets and lower transport costs for agricultural exports. 

GeographicReference

source: https://laotiantimes.com/2026/06/30/laos-south-korea-sign-usd-1-1-million-in-agriculture-deals/

Laos Raises Tax-Free Income Threshold Under New Personal Income Tax Rules

Laos has officially raised the monthly income exempt from personal income tax from LAK 1.3 million (USD 58.8) to LAK 2.5 million (USD 113.5), giving lower-income workers a larger tax-free allowance while leaving tax rates unchanged. 

SoutheastAsians & Pacific Islanders

The revised personal income tax system, promulgated by a presidential decree on 6 August 2025, takes effect this month and applies to salaries, wages, bonuses, allowances and other employment income, according to the Ministry of Finance.

Under the new system, monthly earnings of up to LAK 2.5 million are exempt from income tax. Income above that threshold will continue to be taxed progressively at rates ranging from 5 percent to 25 percent, with each rate applying only to the portion of income within the relevant bracket.

Previously, workers began paying income tax once their monthly income exceeded LAK 1.3 million.

With the current regulations, If a person earning LAK 6 million (USD 272) a month would pay no tax on the first LAK 2.5 million. The next LAK 2.5 million would be taxed at 5 percent, while the remaining LAK 1 million would be taxed at 10 percent.

Farming and Property Transfer

The revised regulations also update tax rates for several other categories of income.

Transfers or sales of agricultural land for farming will be taxed at 1 percent of total income. A 2 percent rate applies to income from share sales, property transfers, land-use rights, and business activities including agriculture, handicrafts, trade and services where annual income exceeds LAK 100 million (USD 4,528).

Lottery prizes above LAK 10 million (USD 454), gifts or awards exceeding LAK 5 million (USD 227), intellectual property income, qualifying sports and entertainment earnings, and construction or repair services will be subject to a 5 percent tax. Dividends, profit distributions and other shareholder benefits will continue to be taxed at 10 percent.

The changes come as Laos seeks to strengthen public finances while easing pressure on households after several years of high inflation and currency volatility. Official figures show the economy expanded by 5 percent in the first half of 2026, while annual inflation slowed to 7.4 percent in June, according to data presented during the government’s expanded cabinet meeting on 25 June. 

SoutheastAsians & Pacific Islanders

source: https://laotiantimes.com/2026/06/30/laos-raises-tax-free-income-threshold-under-new-personal-income-tax-rules/

Seven Villagers Remain Trapped in Xaysomboun Cave Amid Alleged Illegal Gold Mining

Seven villagers remain trapped inside a remote cave in Xaysomboun province, six days after entering the site, as Lao authorities and international rescue teams continue efforts to reach them.

The Lao government has still not released an official public statement on the incident.

The group, from Long Chaeng district, reportedly entered the cave on 20 May to search for gold and hunt wildlife, activities that remain common in remote parts of Laos but are rarely discussed publicly.

According to local accounts, the villagers initially avoided posting about the emergency online out of fear of possible backlash from authorities. Only after repeated rescue attempts failed did they seek help through social media, sending a video via Facebook Messenger to a local influencer.

The influencer later shared the footage publicly with a caption asking for urgent help, saying villagers and district officials were trying to pump water out of the cave to rescue the seven people trapped inside.

The video showed rescuers working near the flooded entrance.

Thai Rescue Team

The story quickly spread onto Thai social media, and a 26-member Thai rescue team reportedly traveled to Xaysomboun on 23 May to assist. Local reports also said Chinese specialists may have joined the operation.

The cave is believed to be more than 100 meters deep, with a narrow entrance and steep rocky chambers. One member of the original group reportedly managed to escape to the fourth level, roughly 40 to 50 meters from the entrance, before warning others that water levels were rapidly rising following heavy rainfall.

The remaining seven villagers were trapped for nearly three days before the situation became publicly known.

Village authorities have since mobilized soldiers, police officers, medical teams, district officials, and local residents to support the rescue operation. Water pumps continue working at the site, although ongoing rain has complicated efforts.

Illegal mining and wildlife hunting in remote Lao provinces often remain hidden from public view, and in cases like this, social media increasingly becomes the first channel through which emergencies emerge.

Families are still waiting for news, while there’s no official update yet on the condition or survival of the trapped villagers. Rescue efforts remain ongoing.

source: https://laotiantimes.com/2026/05/25/seven-villagers-remain-trapped-in-xaysomboun-cave-amid-alleged-illegal-gold-mining/

Laos, Cambodia Advance ASEAN Power Grid

On 25 May, Laos and Cambodia signed a joint framework agreement in Phnom Penh to launch a feasibility study on a cross-border power grid interconnection. 

The goal is to advance key regional energy priorities under the ASEAN Plan of Action for Energy Cooperation (APAEC) 2026-2030.

State-owned utilities from both countries signed the agreement, with the ASEAN Center for Energy co-signing and coordinating the World Bank-funded initiative. 

Researchers will assess technical standards, legal frameworks, and transmission strategies needed to enable electricity trade between the two neighbours.

The ASEAN Power Grid targets a 30 percent renewable energy share in total primary energy supply and 45 percent in installed power capacity by 2030, built around three objectives: strengthening regional energy connectivity, enhancing energy security, accelerating decarbonisation, and advancing inclusive energy development.

The Laos-Cambodia agreement adds a southern corridor to an already expanding regional grid. In late April, Laos and China activated a new 500 kV transmission line capable of carrying up to three billion kilowatt-hours annually from Oudomxay, including output from Laos’ largest solar farm, a 1,000 megawatts (MW) project generating approximately 1.65 billion kilowatt-hour per year. 

The link made Laos the first country to trade renewable power directly into China’s electricity grid.

Laos also supplies clean energy well beyond its immediate neighbors. 

The Laos-Thailand-Malaysia-Singapore Power Integration Project has transmitted Lao hydropower to Singapore via Thailand and Malaysia since 2022, the first multilateral cross-border electricity trade among four ASEAN countries. The project now operates at full expanded capacity, doubling its total to 200 MW, with Laos as the primary upstream supplier.

source: https://laotiantimes.com/2026/05/26/laos-cambodia-advance-asean-power-grid/

Laos Targets Nearly 10 Million Trees in Nationwide Reforestation Plan

Laos is stepping up nationwide reforestation efforts in 2026, with authorities across several provinces preparing to plant more than 10 million trees and restore thousands of hectares of degraded forest land as part of wider climate and environmental protection campaigns.

The initiatives are being launched ahead of National Arbor Day on 1 June and World Environment Day on 5 June, with provincial authorities promoting tree planting, forest recovery, and public participation in environmental conservation.

Authorities across provinces said the campaign aimed to increase forest cover, recover degraded land, improve biodiversity, and encourage long-term public participation in environmental conservation.

Provinces expand forest restoration targets

In Vientiane Capital, the Department of Agriculture and Environment has prepared around 3 million seedlings to support tree planting and forest restoration activities across all nine districts.

The capital aims to plant and restore forests across 405 hectares in 2026, including 300 hectares of commercial plantations and 100 hectares of forest rehabilitation areas. Planting activities will take place along roadsides, in public parks, at schools, at temples, at offices, on state land, and in community spaces on 1 June.

Meanwhile, Attapeu province has prepared more than 4.23 million seedlings as part of its 2026 reforestation plan, making it one of the country’s largest restoration campaigns this year.

Provincial authorities aim to plant 630 hectares of new forest and rehabilitate more than 8,200 hectares of degraded forest land. Activities will include large-scale tree planting along the Xe Khong River in Samakkhixay district, environmental cleanup campaigns, and awareness programs targeting students and local communities.

Officials in Attapeu said the campaign is intended to strengthen public understanding of climate change, droughts, flooding, and the importance of forest conservation.

Elsewhere, Luang Prabang province has also announced plans to prepare around 1 million seedlings for forest restoration activities, while Champasak province aims to plant more than 1.5 million seedlings across the province.

In Salavan province, Ta Oi district plans to plant 218,157 trees across 306 hectares this year. Local authorities have prepared ten species of seedlings. 

The 70% Coverage Target

Authorities are placing greater focus on tree survival rates and long-term forest quality, while encouraging public participation in tree care during the rainy season to support forest recovery.

These campaigns align with Laos’ national forestry strategy, which aims to raise forest coverage to 70 percent by 2035. The target comes in response to long-term forest decline linked to agricultural expansion, logging, and infrastructure development.

Over the past two decades, Laos has lost around 58 percent of its intact forest landscapes, putting pressure on ecosystems and increasing climate vulnerability. Officials say reforestation remains central to restoring ecological balance and reducing environmental risks.

With nearly 10 million trees planned across provinces, Laos is expanding its 2026 reforestation drive to restore degraded land and strengthen forest cover. Authorities also stress long-term care of planted trees to support sustainable forest recovery. 

source: https://laotiantimes.com/2026/05/21/laos-targets-nearly-10-million-trees-in-nationwide-reforestation-plan/

Remains of 37 People Discovered in Giant Stone Jar in Xieng Khouang

A new excavation on Laos’ mysterious Plain of Jars in Xieng Khouang has uncovered the densely packed bones of at least 37 people inside a single giant stone jar, offering the clearest evidence yet of how these ancient monuments were used.

Dr. Nicholas Skopal of James Cook University, Australia, in collaboration with Souilya Bounxayhip from the Lao Department of Heritage, led the discovery, which was first published in the journal Antiquity on 17 May. Researchers describe it as one of the most consequential findings in nearly a century of investigation into the site.

The jar, located northeast of Phonsavan in Xieng Khouang Province, stands 1.3 metres high and over 2 metres wide.

Inside, bones from at least 37 individuals were found, including femurs and skulls from 19 people, neatly arranged with longer bones toward the edges. Radiocarbon dating indicates the jar was used between the 9th and 12th centuries AD, supporting a medieval secondary interment practice rather than the previously assumed Iron Age cremations.

Researchers also uncovered glass beads in nearby smaller jars, chemically traced to South India and Mesopotamia, suggesting that the communities on the highlands of Laos were linked to long-distance trade networks across Asia.

Dr. Skopal noted that “the number of individuals suggests the jars were owned by family or extended family groups. They likely served as places where ancestral rites were performed over generations.”

DNA testing is now underway to explore familial links among the remains and gain further insights into the identities and connections of these ancient communities.

source: https://laotiantimes.com/2026/05/19/remains-of-37-people-discovered-in-giant-stone-jar-in-xieng-khouang/

Laos, Japan Launch Major Upgrade of Wattay International Airport

Laos and Japan launched a major upgrade of Wattay International Airport in Vientiane on 22 May, a project valued at over JPY 2.8 billion (USD 17.9 million).

The initiative aims to modernize the country’s main international gateway and strengthen regional air connectivity. Completion is expected by April 2028.

According to the Ministry of Public Works and Transport, the project includes upgrades to the runway, taxiways, aircraft parking apron, passenger terminal, air traffic control systems, and aviation safety equipment.

Officials said the expansion will reduce passenger congestion, allow more flights, and bring Laos’ aviation infrastructure closer to international safety standards.

The government plans to incorporate modern engineering technology and enhanced airport facilities, improving the travel experience for both domestic and international passengers.

The project forms part of long-standing cooperation between Laos and Japan, which has supported infrastructure development in Laos for around 60 years.

Earlier in 2026, Japan provided Laos with airport service equipment under the “Economic and Development Program,” launched in 2021. This included 21 types of equipment, such as passenger shuttle buses, baggage handling systems, security scanners, and aviation support vehicles, distributed across airports nationwide.

Officials emphasized that the Wattay modernization aligns with national plans to expand air passenger and cargo transport, strengthen regional connectivity, and support Laos’ growing role as a hub for Southeast Asian aviation.

source: https://laotiantimes.com/2026/05/25/laos-japan-launch-major-upgrade-of-wattay-international-airport/

Vietnam Invests USD 50 Million in Major Coffee Project in Southern Laos

A new Vietnamese investment in southern Laos will bring a large-scale coffee plantation and processing project to Champasak province, further expanding foreign agricultural investment on the Bolaven Plateau.

The USD 50 million project, agreed on 10 May, will cover 5,000 hectares in one of Laos’ main coffee-growing regions, known for its fertile volcanic soil and favorable climate for  coffee production. 

Vietnamese agribusiness firm Hoang Anh Gia Lai signed the agreement with Champasak provincial authorities during an investment meeting held in Pakse.

The project will focus on developing high-quality coffee plantations alongside processing facilities aimed at producing export-grade coffee beans for international markets.

The company said the investment will introduce modern agricultural practices and expand value-added processing in Laos’ coffee sector, which remains one of the country’s leading agricultural export industries.

Champasak authorities believe the project could help create jobs, improve agricultural productivity, and support local economic growth, particularly in rural communities linked to coffee farming and processing.

Speaking during Coffee Festival 2026 in Vientiane, officials from the Ministry of Industry and Commerce said coffee generates more than USD 200 million annually for Laos and supports around 25,000 households nationwide.

While the Bolaven Plateau remains the country’s primary coffee-producing area, cultivation has also expanded into northern provinces including Phongsaly, Houaphanh, and Xieng Khouang.

Hoang Anh Gia Lai also plans to expand plantation operations to more than 20,000 hectares across Laos, Cambodia, and Vietnam as part of its long-term regional agricultural strategy.

Hydrogen-Roasted Coffee and Laos’ Export Ambitions

The investment comes as Laos continues expanding coffee production and improving quality standards to strengthen its position in international markets. 

At the same time, Laos is exploring hydrogen-roasted coffee technology as part of broader efforts to modernize the sector and reduce emissions. A hydrogen-powered coffee roasting plant is currently under development in Champasak province through cooperation between Lao and Japanese partners.

Unlike traditional roasting methods, hydrogen roasting produces only water as a by-product, while developers say the technology could improve flavor stability and shelf life. 

This helps Lao coffee meet growing sustainability standards in international markets such as Japan, Europe, and North America.

source: https://laotiantimes.com/2026/05/14/vietnam-invests-usd-50-million-in-major-coffee-project-in-southern-laos/

Laos, China Launch New Cross-Border Bus Route Linking Yunnan to Luang Namtha

Laos and China have launched a new international bus route connecting Xiang Hung City in Yunnan Province to Xiang Kok village in Luang Namtha, creating a direct overland link along a previously less accessible corridor.

Officials marked the launch on 11 April at the ASEAN Comprehensive International Transport Service Center in Xishuangbanna, Yunnan. The opening coincided with the 65th anniversary of diplomatic relations between Laos and China and the ongoing China–Laos Friendship Year.

How the Route Works

The route spans about 280 kilometers, starting from Jinghong City in Xishuangbanna and crossing into Laos through the Mengman Chahe Port before reaching Xiang Kok village.

The service runs one round trip daily, with a one-way journey taking seven to eight hours. A one-way ticket costs 158 yuan, around LAK 300,000 (USD 22).

The route offers direct, point-to-point travel, removing the need for multiple transfers that previously made the journey difficult for passengers.

Chinese media reported that He Shenglong, Director of the Comprehensive Transportation Department of Yunnan Provincial Department of Transportation, said the route strengthens cross-border transport systems, improves port efficiency, and enhances service standards.

He said the route will help attract investment, boost tourism, and support trade and logistics along the corridor.

Laos and China began discussions on cross-border transport cooperation in May 2025 in Kunming. Officials inspected proposed routes in July, followed by trial operations for the Jinghong–Xiang Kok route in December the same year.

Authorities officially launched the service this month.

Different from Existing Route

The new service marks the second cross-border bus route between the two countries but differs from the earlier Mohan–Boten shuttle.

The Mohan–Boten route connects railway stations over a short 16-kilometer distance and mainly serves passengers using the Laos–China Railway.

Meanwhile, the Xiang Hung–Xiang Kok route operates as a standalone intercity service along a western corridor that previously lacked direct public transport, opening access to areas once limited to traders and local communities.

Boosting Trade and Tourism

Authorities expect the route to support cross-border trade, increase tourist flows, and create new business opportunities.

Luang Namtha, a key gateway for trade and eco-tourism in northern Laos, stands to benefit from increased visitor traffic. The route also strengthens connectivity between Yunnan and Southeast Asia.

Officials said the new service will support sustainable economic development and deepen cooperation between Laos and China.

source: https://laotiantimes.com/2026/04/13/laos-china-launch-new-cross-border-bus-route-linking-yunnan-to-luang-namtha/

Laos Orders Travel Companies to Attach Hotel Booking Confirmations of Clients

Travel companies bringing tourists into Laos must now attach confirmed hotel booking documents to their entry paperwork, the Tourism Police Department announced.

According to the 12 May notice, tour operators are required to submit a detailed set of documents to the government before tourists arrive, including passenger name lists, passport details, travel itineraries, arrival and departure checkpoints, intended hotels, daily activity schedules, and tour guide information.

The new rule adds one more step: listing a hotel name in the itinerary is no longer enough. Companies must now attach the actual confirmed booking document for every night of the trip, from the day tourists arrive to the day they leave.

Authorities said the change supports a government drive to move tourist accommodation records into a modern digital system, with the aim of improving safety, security, and the overall visitor experience in the country.

The move comes as Laos pushes to grow its tourism sector. The country welcomed 4.58 million international visitors in 2025 and is now targeting between 5 and 6 million arrivals in 2026.

All previously required documents remain mandatory and no existing paperwork needs to be refiled. However, any company that does not yet collect official hotel confirmation documents as part of its standard booking process must update its procedures immediately. Applications submitted without the new attachments risk delays or outright rejection.

source: https://laotiantimes.com/2026/05/13/laos-orders-travel-companies-to-attach-hotel-booking-confirmations-of-clients/

Translate »