Laos is currently facing challenges transitioning from commodity-driven growth to a more inclusive prosperity model, reveals a new report from the Organisation for Economic Co-operation and Development (OECD).

The report, titled “Multi-dimensional Country Review (MDCR) of Lao PDR,” was launched on 6 June in Vientiane Capital. It highlights the country’s development journey, noting sustained economic growth of over 7 percent annually from 2000 to 2019, driven by strong commodity exports and substantial external financing.

The report shows that foreign direct investment (FDI) increased in Laos from USD 187.4 million in 2006 to USD 1.69 billion in 2017. During this period, extreme poverty dropped from 25 percent to 7 percent, while household income, education, and healthcare also saw significant improvements.

However, Laos now faces challenges with its current development model, worsened by the impact of COVID-19, which has increased food and energy prices. Debt-financed investments, including public-private partnerships (PPPs), have fueled growth, but slow government revenue growth hinders the country’s ability to manage its growing debt and invest in human capital.

Moreover, economic growth and investment have been unevenly distributed, with certain sectors and state-owned enterprises (SOEs) dominating opportunities. Most of the workforce is still in informal sectors, and environmental issues including deforestation and air pollution continue.

To address these challenges, the report suggests a shift towards human capital development and green sustainability. This includes reducing the debt burden to create fiscal space, reforming the tax system to boost revenue, improving access to resources and infrastructure to attract sustainable investments, and increasing investment in education, healthcare, and social services.

Additionally, the report also emphasizes the need to enhance data collection and institutional capacity for green and climate finance, along with improving coordination among government agencies and development stakeholders.

As Laos navigates this critical juncture, the adoption of comprehensive reforms outlined in the MDCR could pave the way for a more resilient and sustainable future.

Source: https://laotiantimes.com/2024/06/06/human-capital-green-sustainability-two-priorities-for-laos-future-economic-model/

Villages and communities across Vientiane Province came together to participate in the popular  Rocket Festival, also known as “Bun Bang Fai,” building large bamboo rockets adorned with bright colors and unique designs and launching them into the sky. The festival is celebrated yearly to call for rain for successful cultivation showing the event’s deep-rooted agricultural significance.

What is Bun Bang Fai?

Held in various parts of the country, the Rocket Festival is a lively event celebrated annually in the 6th month of the lunar calendar, typically falling between May and June each year. This aligns with the agricultural cycle and reflects the meaning of this festival as a plea for a prosperous harvest season.

Rockets are traditionally made from bamboo stuffed with gunpowder, however, the festival has evolved with the times, and today’s rockets incorporate materials such as glass or metal piping. Despite this shift in materials, the rockets maintain their diverse size range, from small handheld rockets to towering structures that demand several people to lift. 

But the festival’s connection to agriculture is not merely symbolic. The rockets are the villagers’ prayers for abundant rainfall, which is crucial for a successful harvest season. According to local belief, the louder and higher the rockets fly, the more likely the rain gods are to answer their prayers. This belief gives rise to friendly yet fierce competition among the villagers, each striving to create the rocket that will soar the highest and loudest.

The Celebration:

Before the festival, each village forms a committee to plan every detail, from inviting other villages to setting rules to drafting safety measures. The event also offers prizes for various contests, such as the most beautifully decorated rocket and the highest-flying rocket.

On the other hand, families and friends also gather before the festival to prepare for the event, crafting rockets of all shapes and sizes.

On the big day, the towns kick off a fierce competition as villages gather in open fields to launch their bamboo rockets. Judges score them based on height, decoration, and entertainment value. The entertainment category includes teams dressing up in wild costumes and performing all sorts of acts to entertain the crowds.

In addition to the rocket launches, the festival also features colorful parades, traditional performances, and other competitions, adding to the festive atmosphere. Additionally, during the celebrations, residents and visitors can enjoy various traditional foods.

Source: https://laotiantimes.com/2024/06/04/bamboo-rockets-light-up-vientianes-skies-in-annual-festival/

LOCA, Laos’s leading mobility service provider, has received significant funding from the Asian Development Bank (ADB) through ADB Frontier, with support from the United States Agency for International Development (USAID). This investment will enable LOCA to expand its electric vehicle (EV) fleet and EV charging network across the country.

Founded in 2018, LOCA announced its EV ambition in 2021 when Laos had only 40 EVs. Today, the company operates a fleet of 1,000 drivers, including 600 EV drivers and 150 women drivers. LOCA aims to achieve 100 percent EV integration by 2030 and will cease accepting internal combustion engine (ICE) vehicles after 2025.

“This funding from ADB Frontier, supported by USAID, is a huge boost for LOCA and the future of e-mobility in Laos,” said Souliyo Vongdala, Co-founder and CEO of LOCA. “It validates our vision and strengthens our resolve to create a cleaner, greener transportation network.”

With Laos adding 500 new EVs each month, LOCA’s platform now hosts over 10 percent of the country’s EVs. The company is a leader in the EV charging market, capturing over 80 percent of all EV drivers. With 24 charging stations already operational and plans to reach 40 by the end of 2024, LOCA is driving the charge towards a more sustainable future.

“The support from ADB and USAID not only empowers us to expand our fleet but also to enhance our charging infrastructure, ensuring that EV drivers have the necessary support and convenience,” added Phonepasong Mixab, Co-founder and Co-CEO of LOCA. “This is a crucial step in our mission to reduce carbon emissions and promote eco-friendly transportation in Laos.”

LOCA’s commitment to sustainability and innovation has earned widespread support from drivers, customers, and its dedicated team. This new funding is set to accelerate LOCA’s efforts, providing the necessary resources to meet the growing demand for electric vehicles and charging stations.

“This investment is a testament to the incredible progress we’ve made in a short time,” said Souliyo Vongdala. “We are incredibly grateful to our drivers, customers, and team for their unwavering support. Together, we are driving towards a greener and more sustainable future for Laos.”

With this funding, LOCA is poised to continue leading the charge in the e-mobility revolution in Laos, setting a high standard for sustainable transportation solutions in the region.

Source: https://laotiantimes.com/2024/05/27/loca-secures-funding-from-adb-frontier-to-expand-electric-vehicles-fleet-charging-network/

Laos has achieved a big step in its telecommunications system by adding fiber optic cable that stretches 98,524 kilometers. This means more villages across the country can now get mobile phone signals.

As of now, over 6.1 million mobile phone numbers across Laos have been issued, enabling internet usage, with the public opening more than 4.6 million accounts. Minister of Technology and Communications Boviengkham Vongdara highlighted these achievements during a press conference for the 159th anniversary of the World Telecommunication and Information Society on 17 May.

With a specific count of 6,113,455 registered mobile phone numbers, the Ministry of Technology and Communications aims to increase this figure to 6.5 million soon. Also, there are 4,614,752 registered internet users, approaching the ministry’s target of 4.7 million accounts.

Boviengkham reported that mobile phone coverage has expanded to reach 8,245 villages across 148 districts in 18 provinces, covering 97 percent of villages nationwide, with the majority of network users utilizing 3G and 4G access. Meanwhile, the introduction of 5G high-speed internet earlier this year in Vientiane, Luang Prabang, and Bokeo provinces also represents a significant advancement in connectivity.

Currently, Laos hosts five telecommunication service providers and over 20 internet companies, contributing to the country’s economy. In 2023 alone, these entities generated over LAK 5 trillion (USD 234 million) in revenue and paid more than LAK 391 billion (USD 18 million) in taxes to the government.

Additionally, in terms of regional connectivity, Laos has also strengthened its ties with neighboring countries, boasting 18 transmission links, including six with Thailand, five with Vietnam, two with Cambodia and Myanmar each, and three with China.

As World Telecommunication and Information Society Day is observed both globally and locally, it acknowledges the transformative impact of digital innovation. This innovation holds the potential to empower education by breaking down barriers through online platforms, revolutionizing healthcare through telemedicine, and fostering connections within communities through social media.

However, despite these advancements, millions still lack access to digital tools.

Source: https://laotiantimes.com/2024/05/22/laos-expands-telecommunications-network-reaching-remote-villages/

Heather Variava, the United States (US) Ambassador to Laos, who assumed her position in February this year, spoke with Lao media officials on 14 May in a press conference where she officially introduced herself and shared the vision for her three-year tenure in Laos with the public.

Born and raised in Iowa, US, Ambassador Variava considers herself “a traveler” with a strong love for the Southeast Asia (SEA) region. This is also evident from her previous foreign service work as Deputy Chief of Mission and Charge d’Affaires at the US Embassy in Manila, Philippines, as well as Deputy Chief of Mission and Charge d’Affaires at the US Mission to Indonesia and as US Consul General in Surabaya, Indonesia.

During the conference, Variava beamed with joy as she expressed her utmost gratitude, describing her mission in Laos as a dream coming true. “I have to say that I am very, very fortunate because I am living my dream.”

“My priority as ambassador is primarily to build and expand the US comprehensive partnership that was announced almost 10 years ago by President [Barack] Obama when he visited [Laos] in 2016,” said the ambassador as she outlined her tasks.

She continued, “First, I see that one of the most important ways the US can partner with Laos is by helping it to build its capacity, to build the capacity of its people, to make Laos a more prosperous, stable, independent, sovereign nation within Southeast Asia.”

Strengthening ASEAN Ties: US Support for Laos’s Chairmanship

Heather Variava further emphasized the significant value the United States places upon the Association of Southeast Asian Nations (ASEAN), highlighting the US’s full support for Laos as it chairs the ASEAN meetings this year under the theme of “Connectivity and Resilience.”

“We have provided laptops to Laos to use during the ASEAN chair year to support the staff and the visiting delegations as they come,” said the ambassador. “We have provided stationery and other supplies, again, to support Laos in a logistical sense when it comes to the ASEAN chair year.”

The US Ambassador also noted the arrival of several delegations from both the US government and private sectors to Laos. Variava specified that the support and collaboration between the US and ASEAN are “just getting started.” As stated by the ambassador, US senior officials are very much interested in holding meetings with Laos to further explore potential collaborations in its ASEAN chairmanship.

Acknowledging the Visit Laos Year 2024 campaign as the most important for Laos as ASEAN chair, the ambassador stressed the US’s support for the country in the area of tourism. She underscored how Americans are one of the top five contributors to tourism in Laos, noting that Laos’s cultural heritage is the country’s vital point in attracting tourists, especially those from the US. Variava believes that protecting the country’s cultural heritage would help Laos become an even more attractive tourism destination.

An example she brought up was when the US Embassy took part in the national handicraft branding event “in which the US Agency for International Development partnered with Laos to highlight and ensure the sort of protection of the cultural and intellectual property that is part of Laos’s rich cultural heritage.”

Advancing Health and Well-being: US Initiatives in Rural Laos

Apart from the support for Laos’s ASEAN chairmanship, the US Embassy also pays attention to issues on a smaller scale, the roots of which play a huge part in pushing Laos to prosperity—particularly focusing on children, especially those in rural areas where opportunities and access to health care are scarce.

Variava stated that the US has been cooperating with the Lao government to elevate the quality of life for rural residents, especially women and children. She mentioned the work of the United States Agency for International Development (USAID), which has contributed immensely in providing maternal and child health and nutrition. The support involves providing beneficial nutrition for mothers and babies, assisting them in accessing quality health care to help mothers raise their children safely, and ensuring young people have what they need to grow up healthy.

“We’ve devoted somewhere in the neighborhood of USD 40 million in that area in recent years. We also work with the government of Laos and the Ministry of Health, which is a great partner of ours in the areas of infectious diseases. So our Centers for Disease Control and the Defense Threat Reduction Agency help build Laos’s capacity to detect, prevent, and respond to infectious disease. And that could be COVID, malaria, HIV/AIDS, or any other new disease that might emerge.”

She also highlighted the attention the US has been giving to people with disabilities in Laos, which she personally considers one of her “serious responsibilities.”

“I would emphasize that all of our assistance goes to people with disabilities regardless of the cause of their disability.”

The ambassador noted the US’s assistance in helping people with disabilities in a practical approach, including providing prosthetics to those who need such equipment, all the way up to supporting those with disabilities to become more integrated into society to have economic opportunities and opportunities to start their own businesses.

By prioritizing economic collaboration, cultural preservation, health initiatives, and support for people with disabilities, Ambassador Variava is poised to make meaningful contributions to Laos’s development and its role within ASEAN. Her vision and proactive approach signal a promising future for the bilateral ties between the US and Laos, highlighting a shared commitment to prosperity, stability, and mutual respect.

Source: https://laotiantimes.com/2024/05/20/us-ambassador-heather-variava-outlines-vision-for-strengthening-relations-with-laos/