Laos Attracts Foreign Investment of Over USD 800 Million in Khammouane

The Asia-Potash International Intelligent Industrial Park in Khammouane province has been a significant investment for the country, with an investment cooperation memorandum worth USD 835 million signed in Guangzhou, China.

The event, sponsored by the Ministry of Industry and Commerce and the Khammouane Provincial Government, showcased the park’s potential as a hub for new development and the country’s commitment to development. Over 100 Chinese enterprises, investors, and financial institutions attended the event, which resulted in the signing of 10 projects worth LAK 15.1 trillion. The total output value of the projects is expected to exceed USD 2 billion.

The event was a practical action to stabilize the economy, attract foreign investment, increase foreign exchange, and replace imports. The Lao government has seized the opportunity of the overseas layout of Chinese enterprises and aims to link up with the global market and stimulate Laos’ economic development. The province is committed to providing convenience and support for these endeavors, and the government is committed to fostering a more open and inclusive investment and business environment.

The province’s Governor, Mr. Vanhxay Phongsavanh, emphasized the importance of the park’s core advantages, including energy, minerals, agriculture, forestry, services, and tourism. The park is expected to become an outstanding model for the development of a comprehensive mining industry, contributing to national fiscal revenue generation, local development, and reputation enhancement.

Laos also extends its heartfelt gratitude to the Lao government on behalf of Asia-Potash International, stating that the park has become an international potash fertilizer enterprise with the largest amount of potash resources in Asia, the largest scale in Southeast Asia, and the fastest production speed in the world.

The industrial park project, a landmark initiative under the framework of China-Laos government-enterprise cooperation, integrates industrialization, urbanization, and modern agriculture building, and encourages the fast growth of the service sector. It significantly improves firms’ sustainable development capacities and encourages Laos to build an industrial pattern that decreases imports while generating foreign cash through exports.

Asia-Potash International is sure that it can inject fresh energy into the China-Laos collaboration by investing in fast-growing agricultural land in Laos. The Asia-Potash International Intelligent Industrial Park, based in Khammouane, leverages its unique advantages in resources, energy, market access, and cost-effectiveness, according to Mr. Tong Yongheng, Deputy General Manager of Asia-Potash International and Head of the Laos Potash Fertilizer Base.

The industrial clustering development concept would provide a high synergistic effect among diverse industries. The park is divided into three sections: a potash fertilizer industrial park, a non-potash industrial park, and an Asia-Potash town. At present, the construction of Phase I ionic membrane chlorine-alkali construction project with an annual output of 30,000 tons is progressing rapidly and is expected to be completed by the end of September this year. It spans 2,000 hectares and is anticipated to draw a total investment of USD 4.31 billion.

It is now in the investment marketing stage. The medium-term project construction is planned to be finished by the end of 2026, and a salt chemical industry of the size of 5 million tons of potash fertilizer will be developed; all projects are projected to be completed by the end of 2028.

The chlorine-alkali project at the Asia-Potash International Intelligent Industrial Park, according to Mr. Cao Lixiang, Chairman of Hengguang Technology, is their first foreign investment project.

sourec: https://laotiantimes.com/2023/07/14/laos-attracts-foreign-investment-of-over-usd-800-million-in-khammouane/

Don Deth and Don Khone Islands in Champasack Get New Roads to Boost Tourism

Concrete and asphalt roads were constructed on Don Deth and Don Khone islands in Champasack province, which was Phase II of an infrastructure development project to improve tourism in the area.

With funding from the Asian Development Bank (ADB), a 2,800-meter concrete road was built from National Road 13 South to the boat dock in Nakasang village, and a 15 kilometers long and 2.9 meters wide asphalt road was constructed to link Don Deth and Don Khone islands.

Don Deth and Don Khone islands are located on the Mekong River in Khong District in Champasack and were once accessible only by motorcycles and bicycles despite long being popular with tourists visiting the Siphandon area, aka the 4,000 Islands.

Popular for their quaint countryside and laid-back atmosphere, these two islands also saw the construction of streetlights and an embankment to prevent flooding.

The new roads and facilities will provide easier access for tourists to visit the islands, which will in turn benefit local businesses by increasing tourism and creating jobs. Better roads will also improve safety by reducing congestion and making it easier for emergency services to access the area.

Before the COVID-19 pandemic hit three years ago, Vientiane Times reported that Champasack province attracted at least 700,000 visitors each year. However, the province only recorded 191,000 visitors last year. Tourism officials in Champasack province are optimistic that the new roads and other infrastructure projects will boost tourism in the region.

Local authorities are confident that the province has a lot to offer tourists, including its natural beauty, cultural attractions, and easygoing atmosphere. Some popular sites include the UNESCO heritage site of Vat Phou Temple and the natural wonders of Khonphapheng, Tad Fan, and Tad Yeuang waterfalls.

In addition to the new roads on Don Deth and Don Khone islands, many other tourist areas are now being developed in Laos, such as an access road at the Nam Ngum 1 dam, Kaeng Yui waterfall, and Nam Song River in Vang Vieng.

While these projects benefit local communities, they can also cause increased traffic congestion and pollution, which may negatively affect the ecosystem and the natural beauty of the areas. These effects, however, can be reduced with good planning and management on behalf of authorities while setting up tourism facilities within the country.

source: https://laotiantimes.com/2023/07/14/don-deth-and-don-khone-islands-in-champasack-get-new-roads-to-boost-tourism/

Luang Prabang to Host Annual Boat Racing Festival in September

Luang Prabang will organize its annual boat racing festival in Khan River during the Buddhist Lent starting 14 September.

The Governor of Luang Prabang, Mr. Viengthong Hatsachanh, issued a notice to announce the hosting of the much-anticipated event during the Boun Hor Khao Padap Din, a religious festival to “feed” the spirits of ancestors at home and outside the temple.

According to Mr. Viengthong, the boat racing festival will be held following the traditions of the province, to promote the heritage, culture, and uniqueness of Luang Prabang, a UNESCO World Heritage Site.

As part of preparations, all rowers will need to repair their boats, which should not exceed the capacity of 40 people, and present it to the provincial committee to enter the competition.

The provincial committee will examine the appearance and operations of each boat to ensure compliance with the competition’s rules.

Provincial authorities did not comment on measures to keep the venue clean and prevent littering, although last year’s event saw heaps of garbage scattered at the banks of the river after the festival.

In 2022, a couple of boat racing accidents were also recorded in the provinces of Champasack and Xayaboury, with at least two people reported dead after the competitions.

source: https://laotiantimes.com/2023/07/12/luang-prabang-boat-racing-festival-to-set-sail-in-september/

Laos to Release 62 Million Aquatic Animals and Wildlife on 26th Anniversary of Conservation Day

The country plans to release 62 million aquatic animals and wildlife in the upcoming Wildlife and Aquatic Animal Conservation Day to raise awareness about conservation work in Laos.

KPL reports that 62 million aquatic and wildlife animals will be returned to various water bodies and forests across the country starting on 13 July this year.

Minister of Agriculture and Forestry, Mr. Phet Phomphiphak, said at a press conference that Wildlife and Aquatic Animal Conservation Day is celebrated annually to raise awareness about the importance of wildlife conservation work among the youth in Laos.

In 2022, the ministry released over 61 million aquatic animals, and more than 200 birds, reptiles, and other wild animal species were returned to their natural habitats.

Additionally, Laos has established ten wildlife animal breeding centers in the country to research and breed wildlife and native fish species in 1,050 fish sanctuaries.

The minister urged the public and private sectors to join hands in this effort so as to conserve more species of aquatic animals and wildlife.

According to Mr. Phet, Wildlife and Aquatic Animal Conservation Day was established by the government of Laos in 1997, making this year its 26th anniversary.

source: https://laotiantimes.com/2023/07/10/laos-to-release-62-million-aquatic-animals-and-wildlife-on-26th-anniversary-of-conservation-day/

Laos, United Nations Strengthen Cooperation Framework for Sustainable Development

The Ministry of Foreign Affairs and the UN Coordinator’s Office in Laos organized a high-level meeting of the Joint Steering Committee to revise the cooperation framework for sustainable development between the Lao government and the United Nations (UN) on Monday in Vientiane Capital.

According to Paxason, the purpose of the Joint Steering Committee meeting was to discuss and approve the official progress report of the cooperation framework between the Lao government and the UN Organization for Sustainable Development (UNSCDF) for 2022.

Additionally, the meeting aimed to present the joint work plan for 2023 and review tasks already implemented during this year. Another key agenda item was to discuss preparations for the Lao delegation to participate in the upcoming UN summit in New York that will be held in September.

Deputy Minister of Foreign Affairs Mr. Phoxay Thikhamphithun emphasized the importance of the cooperation framework mechanism at the event saying that it serves as a platform for the Joint Steering Committee to discuss activities and challenges under the four main goals of the UNSDCF 2022-2026, namely: Good standard of living and Comprehensive prosperity, State administration, management and rule by law, Environment and climate change, and building resilience.

The Committee also monitors sub-cooperation programs between the government sector and the UN network organization, supporting the implementation of the 9th 5-year national economic-social development plan and shaping future activities to align with the development situation in Laos.

The outcomes of the meeting will guide the continued implementation of the cooperation framework between the Lao government and the United Nations.

source: https://laotiantimes.com/2023/07/06/laos-united-nations-strengthen-cooperation-framework-for-sustainable-development/

Visit Laos Year 2024 Anticipated to Welcome 4.6 Million Visitors

The Ministry of Information, Culture and Tourism (MICT) has revealed key milestones and achievements of the tourism industry in Laos from the first six months of this year, along with plans to welcome over 4 million visitors for “Visit Laos Year 2024.”

The Lao government is currently preparing for Visit Laos Year 2024 and plans to attract 4.6 million visitors throughout the year, with a revenue target of USD 712 million.

The government has also renovated infrastructure, produced various tourism advertising materials, QR codes containing information on tourism sites in Laos, and created a tourism handbook, along with other developments that align with the 2021-2023 tourism development plan.

In spite of travel-related challenges due to the Covid-19 pandemic, Mrs. Suansavanh Viyaketh, Minister of Information, Culture and Tourism in Laos revealed that over 3 million domestic tourists and 2.6 million international tourists have visited Laos from 2021-2023.

She also reported that revenue generated from domestic and international tourists exceeded USD 631 million during this time, with the average length of stay being seven days.

Looking ahead, the national steering committee will meet next month to finalize the budget for Visit Laos Year 2024 depending on the events that have been proposed and confirmed. This will then be sent to the government for final approval.

In September and October, a promotional calendar will be produced alongside videos and souvenirs to advertise the Visit Laos Year 2024 campaign, and a press conference and the opening ceremony will be held between November and December to officially kickstart the promotions.

In 2023, the government has also hosted seminars on advertising and promoting domestic tourism to attract visitors, as well as participated in tourism exhibitions conducted by other ASEAN member countries to gain more insight into developing the tourism industry.

During Visit Laos Year 2018, the nation welcomed 4.1 million international tourists, which was followed by Visit Laos-China Year 2019, in which Laos welcomed 4.58 million visitors.

source: https://laotiantimes.com/2023/07/07/visit-laos-year-2024-anticipated-to-welcome-4-6-million-visitors/

Lao Prime Minister Addresses Alarming Decline in School Enrollment, Pledges Solutions

The Prime Minister of Laos, Mr. Sonexay Siphandone discussed plans to address the increase in school dropout rates and decline in student enrolment across Laos during the ongoing National Assembly session in Vientiane Capital on Monday.

During the meeting, Prime Minister Sonexay highlighted various factors contributing to the alarming decline in school-going rates. He attributed this decline to personal circumstances, poor school conditions, and financial hardships faced by parents.

In addition, the Prime Minister emphasized that the absence of dormitory facilities in certain rural schools, as well as the long distances that some children have to travel to reach school, further discourage regular attendance, particularly among girls and children from low-income households.

To resolve this issue, Mr. Sonexay emphasized that the Ministry of Education would extend support to financially disadvantaged students by ensuring access to basic educational materials and exempting them from paying school fees. Schools in rural areas will undergo improvements as well to ensure that residential facilities are made available for students.

He also outlined a comprehensive plan for the next six months, including an emphasis on vocational training for students. The government aims to encourage applicants to select courses that equip them with practical skills, enabling them to secure employment and become self-sufficient upon graduation.

To strengthen the education system, the government will also expedite the enactment of an education law that will hold parents accountable for the completion of their children’s education. Local education authorities and parent associations will also be roped in to ensure that this law is followed.

Additionally, officials from the Ministry of Education will carry out assessments to ensure the quality of education being imparted.

According to UNICEF, 2022 saw a significant increase in learning losses among Lao children due to school closures, high dropouts, and low enrollment rates.

The report showed a worrisome 2.7 percent decrease in young children attending school, and both primary and middle schools experienced lower student intake and a concerning rise in dropout rates, especially among boys. All the more concerning was the fact that only 77 percent of students reached Grade 5, which is the same level as the 2015/16 academic year.

The lack of access to affordable and quality education poses a serious threat to the country’s progress and socioeconomic development. To address this crisis, the government needs to swiftly implement efficient plans that will help the country tide over this alarming decline in student attendance in schools across Laos.

During the current National Assembly session, the government has also vowed to tackle the shortage of teachers in rural areas.

source: https://laotiantimes.com/2023/07/05/lao-prime-minister-addresses-alarming-decline-in-school-enrollment-pledges-solutions/

Lao Govt Assists Over 47,000 Families to Move on From Opium Cultivation

The Lao government is collaborating with private companies to encourage residents in seven northern provinces to cultivate commercial crops instead of illegally growing opium poppies.

Deputy Prime Minister and Minister of Public Security, General Vilay Lakhamfong said during the ongoing Ninth Ordinary Session of the Fifth National Assembly that more than 54 companies have been approved to participate in this scheme.

These companies are passing on agricultural knowledge and providing jobs to locals in 1,135 villages, benefiting 47,446 families under the Alternative Development Project (ADP) in Houaphanh province.

Under this project, locals have received 100 cows across 19 villages, bringing the total number of cattle up to 298. It also assisted in the import of 1,000 bottles of lotus flower medicine from Vietnam to help treat opium addicts in rehabilitation centers in the region.

To treat opium and heroin addiction, the Department of Treatment, Ministry of Health has observed the efficacy of methadone as well and plans to purchase the drug for medical trials in Viengxay and Huameuang district, Houaphanh province.

Additionally, this project has enabled the process of importing tools, equipment, and vehicles (including 30,000 urine drug test kits, two ambulances, 11 cars, four motorbikes, office equipment, surveying equipment, and GPS navigation equipment) from Thailand, South Korea, China, and UNODC to help law enforcement officials to combat the illegal trade of opium.

According to the Vientiane Times, a survey conducted from July 2021 to March 2023 in nine northern provinces of Laos revealed 4,493 illicit poppy fields, of which 1,437 were destroyed.

In 2021-2022, some of the contracted companies were able to supply 58,560 kg of crops grown under this project to the organization Marlongo France, which was valued at USD 276,654.

source: https://laotiantimes.com/2023/07/05/lao-govt-collaborates-with-private-sectors-to-combat-opium-cultivation/

Laos to Promote Domestic Production, Reduce Imports

The Ministry of Industry and Commerce (MTC) announced a number of measures to promote domestic production and reduce imports during the 5th Ordinary Session of the 9th National Assembly last week.

Deputy Minister of Industry and Commerce, Mrs. Chansouk Sengphachanh, said that the MTC has been working with the Ministry of Planning and Investment to encourage businesses in Laos to sell domestically produced products instead of imported goods.

The MTC is also keen to promote domestic production and reduce imports by working with the Ministry of Agriculture and Forestry (MAF) to regulate the importation of products that can be produced domestically.

The two ministries agreed to decrease raw material exports and allocate supplies to domestic industries to assist in the export of high-value goods such as potatoes, coffee, and corn.

Additionally, the ministries together with local communities have planned on organizing a market to promote agricultural products, which shows their commitment to developing this into a detailed joint action plan.

For further support for micro, small, and medium-sized enterprises (MSMEs), Mrs. Chansouk said that the MTC will provide loans with low-interest rates and offer technical assistance to help MSMEs improve their production quality.

This will allow domestic businesses the ability to compete in both the domestic and international markets, as Laos currently has 8 commercial banks, 11 microfinance institutions, and 2 contract partnership funds to provide loans to MSMEs.

Furthermore, the MTC will strengthen cooperation with the Bank of Lao PDR to register all importers and exporters within the next six months and develop a consolidated database of this information, allowing for better regulation of two-way trade in the country.

During the session, she said that the MTC is researching the possibility of registering overseas suppliers of certain products such as fuel to negotiate for better imports, believing that these measures will help boost the Lao economy and create jobs.

source: https://laotiantimes.com/2023/07/03/laos-to-promote-domestic-production-reduce-imports/

National Assembly Member Proposes Adjusting Lao Workers’ Wages to Current Forex Rates

During the ongoing 5th Ordinary Session of the 9th National Assembly Legislature, Mr. Xayadeth Phouiyavong, a constituent of Savannakhet’s District 13, urged the government to adjust factory workers’ wages based on current exchange rates between LAK and USD.

While praising the government’s efforts in addressing Laos’ economic challenges, Xayadeth proposed a solution to tackle the issue of workers’ wages in factories, especially in companies involved in exports and the generation of foreign currency in the country.

His proposal suggested that in the face of rampant inflation, a worker’s salary should be based on current exchange rates, especially against the US dollar. This would ensure that Lao workers get compensated fairly and maintain a decent standard of living.

Ultimately, the aim is to prevent Lao workers from leaving the country for better opportunities, which negatively impacts the socio-economic development of Laos, he said.

Highlighting the current situation, Xayadeth gave an example of how the minimum wage of LAK 1.3 million per month, once equivalent to USD 150, has now decreased to USD 68. This decline has made it challenging for workers to earn a livable income, highlighting the urgency to address the issue in the face of the ongoing economic decline.

He emphasized that the local workforce is the backbone of the country, and the acute labor shortage is going to negatively impact any efforts to stabilize the economy.

However, Laos, unlike neighboring countries like Cambodia, has a firm grasp on the use of foreign currencies. As the Law on the Management of Foreign Currency published on 30 November 2022 states, payment in foreign currency is prohibited in the country for payment for goods, services, debt, dividends, or taxes, which must be made in LAK. Moreover, employee salary, bonuses, welfare benefits, etc. must also be paid in LAK.

In an effort to retain Lao workers, Xayadeth urged the Ministry of Foreign Affairs to collaborate with the Ministry of Labor and Social Welfare to appoint labor advisers (labor ambassadors) in countries where Lao workers frequently seek employment. The purpose of these advisers would be to safeguard Lao workers from being exploited or getting trapped in human trafficking schemes.

source: https://laotiantimes.com/2023/06/29/national-assembly-member-proposes-adjusting-lao-workers-wages-to-current-forex-rates/