In the post-COVID era, Chinese investment in Laos has surged dramatically, positioning China to overtake Thailand as Laos’ top trading partner. According to the Lao Ministry of Planning and Investment, Chinese companies invested in 17 projects worth USD 986 million in Laos in 2023, a massive increase from the USD 339 million across 30 projects in 2022. This tripling of investments reflects China’s strategic economic ambitions and its long-term plan to deepen ties with Laos under the Belt and Road Initiative (BRI).
The most prominent symbol of this partnership is the USD 6 billion China-Laos railway, which became operational in December 2021. This joint venture, set to extend into Thailand, will create a direct link from Kunming, China, to the southernmost parts of mainland Southeast Asia – Malaysia and Singapore – thus enhancing regional connectivity and solidifying China’s influence in the region. The railway is part of China’s broader expansion strategy to establish a seamless trade corridor through Laos to other ASEAN nations.
In addition to China’s investments, Hong Kong has emerged as a vital partner in Laos’ economic development, focusing on digital transformation and financial innovation. A key milestone in this evolving partnership was the recent signing of a strategic investment agreement between Goldford Group and the Lao National Digital Technology Group (LADT). This Memorandum of Understanding (MoU), witnessed by Hong Kong Chief Executive John Lee and Lao Deputy Prime Minister and Minister of Foreign Affairs Saleumxay Kommasith, was signed by Johnny Ng, Chairman of the Board of Goldford Group, and Sengaloun Souphanouvong, Director of LADT.
Johnny Ng, who also serves as the Chairman of the Web3 Hub Fund under the Hong Kong government and a legislator in Hong Kong’s Legislative Council, has been at the forefront of promoting Web3 and digital finance innovations. His leadership in this MoU exemplifies Hong Kong’s commitment to supporting ASEAN countries, particularly Laos, in their digital transformation efforts.
Divergent Approaches to Virtual Asset Regulation: Laos vs. Hong Kong
While Laos is making strides in digital finance, it grapples with regulatory and infrastructural limitations that can impact the growth of virtual assets and digital payment systems. In contrast, Hong Kong, with its more developed financial infrastructure, faces the challenge of balancing regulatory oversight with innovation, according to Ng.
“Governments can balance fostering innovation with ensuring financial security by adopting a risk-based regulatory framework that aligns oversight with the risks of various virtual asset activities,” Ng wrote in a recent email exchange. “This approach allows for stringent regulation of high-risk activities while nurturing innovation in safer areas.”
The regulatory landscape for virtual assets like Bitcoin starkly contrasts between developing nations such as Laos and developed regions like Hong Kong. In Laos, the regulatory environment is notably flexible, thanks to the early stages of electronic and cross-border payment systems, Ng remarked.
“This flexibility fuels fintech innovation and is bolstered by government efforts to attract foreign investment with favorable tax and regulatory policies,” he said. Ng further highlighted the 2023 collaboration between the Bank of Laos and Japanese company Soramitsu as a prime example, noting their joint effort to develop a Central Bank Digital Currency (CBDC) using blockchain technology.
“Policies must be flexible and adaptive, evolving with the digital asset landscape,” the Web3 Hub Fund’s Chairman stated.
Hong Kong’s legal framework currently struggles with the complexities of decentralized autonomous organizations (DAOs), suggesting a need for tailored regulations for blockchain foundations and DAOs. Additionally, enhancing financial literacy through education and awareness can help reduce fraud and misuse. By adopting these strategies, Ng believes that governments can foster technological innovation while ensuring financial security and investor protection.
Moreover, the recent MoU between Goldford Group and LADT is poised to significantly advance digital finance and technology between Hong Kong and Laos. This partnership aims to create a new payment model that merges Web2 and Web3 technologies, addressing the demand for a more integrated and efficient payment system.
The emerging payment model that integrates Web2 and Web3 technologies promises to reshape transaction processes by combining the ease of Web2 with the advanced capabilities of Web3. This hybrid approach aims to streamline crypto adoption, merging the user-friendly aspects of traditional payment systems with the decentralized, secure features of blockchain technology. Tools that bridge Web2 and Web3, such as APIs for authentication and cross-chain transactions, could simplify the user experience and foster wider acceptance of decentralized financial systems.
Advancing Financial Integration in Southeast Asia
“The Southeast Asian region, particularly countries like Laos, presents significant opportunities for expanding financial inclusion and integrating advanced digital payment solutions,” Ng said, emphasizing the importance of this collaboration. “The growth of infrastructure, such as the Laos-China Railway, has enhanced connectivity and increased demand for efficient cross-border payments.”
The electronic and cross-border payment market in Laos has shown impressive growth, with electronic payment transactions increasing by over 15 percent annually in recent years, and projections indicate a continued compound annual growth rate of 15.19 percent from 2024 to 2028.
The SWIFT system’s dominance in cross-border payments highlights the need for more efficient and competitive alternatives. While SWIFT is widely used, its reliance on intermediaries results in higher costs and slower transactions. In contrast, cross-border QR payment systems in Southeast Asia, such as those in Vietnam and Thailand, offer a promising solution. These QR systems enable real-time transactions, reduce costs, and improve accessibility, particularly for unbanked populations, thereby enhancing financial inclusion in the region.
The partnership also opens up opportunities for exploring blockchain applications for secure and transparent financial services, aligning with global fintech trends. Additionally, this collaboration can help develop local talent and strengthen digital infrastructure, supporting sustainable economic growth in Laos while benefiting from Hong Kong’s technological expertise and investment acumen.
Hong Kong’s role as a “superconnector” is crucial in this context. By leveraging its position, Hong Kong aims to support Lao Small and Medium Enterprises (SMEs) in areas such as banking, digital finance, logistics, and e-commerce.
“This role builds on the success of previous ASEAN missions and emphasizes Hong Kong’s commitment to fostering regional economic integration,” Ng said.
Trade statistics further underscore the growing relationship between Laos and its regional partners. Between April 2023 and 2024, Chinese exports to Laos rose by 38.6 percent to USD 324 million, while imports from Laos increased by 40.7 percent to USD 408 million. Key Chinese exports include electric locomotives, insulated wire, and plastic pipes, while Laos exports potassic fertilizers, chemical wood pulp, and iron and copper ores.
As Laos establishes itself as a key Southeast Asian hub, its partnerships with China and Hong Kong are set to reshape its economic landscape. A recent memorandum of cooperation between the Lao News Agency and the HKTDC, signed at the Belt and Road Forum, underscores Laos’ commitment to transitioning from a landlocked to a land-linked country. Meanwhile, the collaboration between Goldford Group and LADT aims to integrate advanced digital payment systems, enhancing connectivity and boosting financial inclusion.
Source: https://laotiantimes.com/2024/09/05/op-ed-china-hong-kongs-strategic-investments-in-laos-usher-in-a-new-era-of-economic-collaboration/
Luxembourg Development Cooperation Supports Lao Red Cross with High-Tech Blood Cold Chain Equipment
Luxembourg has handed over state-of-the-art blood cold chain equipment to the Lao Red Cross, valued at approximately 2 million Euros on 13 September in Vientiane. This significant contribution aims to strengthen the Laos’ blood transfusion services and ensure a reliable and safe supply of blood products across Laos.
The handover ceremony took place in Vientiane Capital and was attended by key dignitaries, including Khamlavanh Chanthalavanh, President of the Lao Red Cross, Phaivanh Keopaseuth, Vice-Minister of Health, Thomas Lammar, Chargé d’affaires of the Luxembourg Embassy in Laos, Chanthala Souksakhone, Director of the National Blood Transfusion Institute, Robert de Waha, Resident Representative of LuxDev Asia office, as well as representatives from the Lao Government and LuxDev, the Luxembourg Development Cooperation Agency.
The high-tech blood cold chain equipment, provided through the Health and Nutrition Programme (LAO/035), implemented by the Ministry of Health and LuxDev, will be distributed at central, provincial and district levels. This investment will play a crucial role in maintaining the integrity of the blood cold chain across the country, while responding the ambitious goals in terms of increased blood donations across the country. It will ensure that blood products are stored and transported safely from donation centers to hospitals and health facilities to help and rescue emergency cases timely and effectively nation-wide.
The equipment includes a range of 243 essential components, such as freezers, storage units, digital control devices, and mobile cold chain units for outreach campaigns and safe transportation of blood products at district and village levels. Furthermore, the contract includes an extended warranty period and preventive maintenance and training to ensure the effective utilization and maintenance of the equipment.
Khamlavanh Chanthalavanh, the President of the Lao Red Cross, emphasized the importance of this donation: “The Lao Red Cross is grateful for the generous support from Luxembourg Aid & Development. This equipment will enable us to increase our blood products storage by 50% and ensure a reliable supply of blood products to those in need nationwide.”
Thomas Lammar, Charge d’affaires of the Luxembourg Embassy, expressed his satisfaction with this partnership: “Luxembourg is proud to continue its longstanding support for Laos in enhancing healthcare services. Building upon our successful collaboration over two decades ago, we are pleased to once again provide high-quality blood cold chain equipment from Luxembourg. This investment reaffirms our commitment to delivering high quality, durable and reliable solutions tailored to the specific needs of our partners.”
The handover of this high-tech blood cold chain equipment marks a significant milestone in the collaboration between Luxembourg and Laos in the health sector. It demonstrates Luxembourg’s dedication to supporting sustainable development and improving the lives and health of people in Laos.
Source: https://laotiantimes.com/2024/09/16/luxembourg-development-cooperation-supports-lao-red-cross-with-high-tech-blood-cold-chain-equipment/
Empowering Women in ASEAN’s Digital Economy
The United States (US) Department of State hosted the Digital Innovations for Female Entrepreneurs in ASEAN Meeting (DIFEM) on 11-12 September in Vientiane. This two-day event aimed to tackle the financial hurdles faced by micro, small, and medium-sized enterprises (MSMEs) and to promote ASEAN’s Digital Trade Standards Roadmap.
Aligned with Laos’s ASEAN chairmanship priorities, DIFEM was a key component of the US-ASEAN Connect Digital Economy Series, highlighting a strong commitment to advancing ASEAN’s digital economy.
The conference gathered 75 entrepreneurs from across ASEAN, focusing on enhancing their digital capabilities. Attendees, including technology companies, government officials, and fellow entrepreneurs, engaged in collaborative efforts to streamline business operations and forge new commercial partnerships.
A highlight of the event was the design sprint activities, where participants received personalized consultations from industry experts to address specific business challenges. Additionally, panel discussions led by prominent female leaders in fintech, digital innovation, and artificial intelligence provided insights into leveraging digital tools to optimize business practices and expand market reach.
US Ambassador to Laos, Heather Variava, underscored the crucial role of women in the digital economy.
“The digital economy in Southeast Asia needs more women working on AI, fintech, and innovating in business policy and leadership roles. Only then can this region maximize equitable and inclusive growth,” Variava stated.
Manothong Vongxay, Vice Minister of Industry and Commerce, praised the impact of women-led enterprises.
“Women-led enterprises are setting the standard for networks of support and mentorship. We witnessed the strength of female founders sharing assets, skills, and experiences to increase market potential across many platforms,” Vongxay remarked.
The DIFEM conference not only highlighted the innovative spirit of ASEAN’s female entrepreneurs but also reinforced the region’s commitment to a digital future, driven by inclusivity and collaboration.
Source: https://laotiantimes.com/2024/09/12/empowering-women-in-aseans-digital-economy/
Thailand, Laos Announce New Udon Thani-Vang Vieng Bus Route
Representatives from Thailand’s Transport Company Limited, the Department of Land Transport (DLT) of Thailand, and the Lao Department of Transport convened in Vientiane, Laos, on 4-5 September. The meeting aimed to address and enhance road transport cooperation between the two nations.
One of the major outcomes of the discussions was the agreement to launch a new international bus route connecting Udon Thani in Thailand with Vang Vieng in Laos. Scheduled to begin in early November, this route will provide a direct link to the Laos-China railway.
The meeting also highlighted plans to study and potentially introduce five additional bus routes. These proposed routes include connections from Chiang Mai to Boten and Bangkok to Savannakhet, which are expected to enhance accessibility and foster stronger economic ties between the two countries.
To improve passenger convenience, the transport authorities will expand ticket sales through online and E-Ticket systems across all routes aiming to streamline the booking process and provide travelers with more flexible options.
In response to growing demand, upgrades will be made to the bus services. The Bangkok-Pakse route will see the introduction of special air-conditioned buses, designed to enhance comfort for long-distance travelers. Additionally, more buses and trips will be added to the Mukdahan-Savannakhet route to accommodate increased passenger flow.
According to Thai media, there will also be an increase in staff at the Nong Khai Immigration Checkpoint. This measure is expected to improve service efficiency and facilitate smoother processing for passengers crossing the border.
The new measures are anticipated to provide significant benefits to travelers and contribute to the overall development of regional transportation networks.
Source: https://laotiantimes.com/2024/09/11/thailand-laos-announce-new-udon-thani-vang-vieng-bus-route/
Laos, South Korea Collaborate on Direct Flight Initiative to Boost Tourism, Economic Ties
Laos is considering the introduction of direct flights from South Korea to Luang Prabang as part of the Knowledge Sharing Program (KSP). This initiative aims to boost tourism and strengthen economic ties between the two nations.
At a seminar held in Vientiane on 3 September, Lao and Korean officials reviewed the progress on the KSP project, known as Luang Prabang International Airspace and Flight Procedure Improvement.
Funded by the Korean government, the project focuses on modernizing the airport’s infrastructure, enhancing air transport safety, and creating new opportunities for tourism in Laos.
During the meeting, Korean companies involved in the project presented their plans for the second year, including further design work and vital training for Lao airspace managers. They also unveiled a new conceptual design for Luang Prabang International Airport. They also revealed a new conceptual design for Luang Prabang International Airport, along with proposed improvements to the airport’s airspace design, Terminal Control Area (TMA), and flight procedures.
Both Lao and Korean officials expressed optimism that these upgrades will attract Korean airlines to establish direct flights between Incheon International Airport and Luang Prabang
The KSP’s ongoing efforts are expected to bring Luang Prabang International Airport up to International Civil Aviation Organization (ICAO) standards, positioning Laos as a key destination for international travelers, especially from South Korea.
Source: https://laotiantimes.com/2024/09/06/laos-south-korea-collaborate-on-direct-flight-initiative-to-boost-tourism-economic-ties/
Sekong Launches Electronic Birth Registration System
Sekong’s Ministry of Home Affairs launched the “Electronic Civil Registration and Vital Statistics” system on 3 September, aiming to enhance the management, use, protection, and retrieval of citizens’ information.
The new electronic birth registration system is designed to record and analyze citizens’ statistics, facilitating public access to government services and helping safeguard their rights and best interests.
Deputy Minister Nisith Keopanya announced that all Lao nationals will receive a certificate confirming their citizenship status. This data will be used to guide policy-making and national socio-economic development plans, including the Sustainable Development Plan, in line with international agreements the government has signed.
Nisith emphasized that the recording of citizen statistics is a key objective of the government, particularly because Laos is home to diverse ethnic groups and religions that contribute to national unity, protection, and development.
The electronic citizen information management system’s development began in 2022, with the birth and death registration features becoming operational in February 2023. The province has set a target of registering at least 80 percent of citizens and newborns by 2025.
Source: https://laotiantimes.com/2024/09/09/sekong-launches-electronic-birth-registration-system/
Khao Soi Goes Viral: TikTok Sparks New Trend in Traditional Lao Cuisine
Khao Soi Luang Namtha has become a social media sensation, surging to the forefront of Lao cuisine thanks to a viral TikTok video. This traditional noodle dish, a classic in the northern Luang Namtha and Luang Prabang provinces, has found a new wave of fans across Laos and beyond, all thanks to Khonemany Keosaenmai, the 30-year-old star of the viral video.
Her clip, which showed a unique way to enjoy Khao Soi, has reignited interest in the traditional noodle, making it a trending favorite among both locals and visitors.
Khao Soi, which translates to “cut rice,” is made from rice flour. The process involves steaming the flour in a rectangular mold, then rolling and cutting it into long noodle-like pieces.
Traditionally served with pork or beef broth, Khao Soi is complemented by a sauce made from minced pork, tomatoes, and fermented bean paste, with additional seasoning sauces to enhance its flavor. It’s typically enjoyed as a soup, but Khonemany’s video introduced a new approach: wrapping the noodles around the sauce and chili, creating a handheld roll.
Khonemany explained that her innovative method was born out of practicality.
“I prefer Khao Soi without soup, so I tried to wrap it and it turned out good. I’m surprised that I could make our traditional local food more popular among everybody,” she said.
The woman ‘s passion for Khao Soi is deeply rooted in her upbringing. She proudly described the dish as a symbol of Muang Sing district, her native region, her native region, where it has been a staple in every household and local restaurant since her childhood.
Her adaptation was influenced by a type of dry Khao Soi that is less common but still cherished in local cuisine. By modifying the traditional serving method, Khonemany aimed to make the dish more convenient and accessible.
“I would like the next generation to develop Khao Soi as a product for export so that we can promote Lao food internationally,” she said.
Khao Soi is more than just a dish in Laos—it’s a tradition passed down through generations. This popular noodle dish has deep roots in Lao culture, enjoyed by families for years. It continues to be a favorite meal, found in homes and markets across the country.
Source: https://laotiantimes.com/2024/09/06/khao-soi-goes-viral-tiktok-sparks-new-trend-in-traditional-lao-cuisine/
Okard Launches Inclusive Internship Program for Persons with Disabilities
World Education and the Department of Policy for Devotees, Persons with Disabilities, and Older Persons (part of the Secretariat of the National Committee for Persons with Disabilities (NCPD)) at the Ministry of Labor and Social Welfare hosted two information sessions this week. These sessions highlighted the new Disability Inclusive Internship Program, a key component of the ‘Okard: Capacity Strengthening on Disability Inclusive Development Project’ funded by the United States Agency for International Development (USAID).
The sessions were designed to announce exciting internship opportunities for persons with disabilities, available through employers in both the public and private sectors in Vientiane.
The goal is to help job seekers with disabilities gain professional experience and enhance their skills and employability through on-the-job training with participating employers. A survey conducted in Vientiane revealed that persons with disabilities prefer on-the-job skills development over formal vocational training.
This program, set to be implemented in Vientiane from 2024 to 2027, will help bridge this gap. The information sessions, attended by around 100 participants, provided both job seekers with disabilities and employers with an opportunity to learn about the program, including the eligibility criteria and the support offered.
For job seekers with disabilities, any individual aged 14 years or older, regardless of disability type, is eligible to apply for the program. Employers from both the public and private sectors interested in participating can apply through an online application system.
The session for employers was attended by Chomyaeng Phengthongsawat, Director General of the Department of Policy for Devotees, Persons with Disabilities, and Older Persons (Secretariat of the NCPD) of the Ministry of Labor and Social Welfare, Michael McCord, USAID Country Representative to Laos, Bernard Franck, and other stakeholders.
In his opening remarks, Director General Chomyaeng emphasized the importance of the Disability Inclusive Internship Program.
“This program will equip persons with disabilities with the necessary skills needed in the labor market through on-the-job training offered by employers in both the public and private sectors. This will contribute to increasing employment opportunities for persons with disabilities in Laos.”
McCord highlighted the vital role of the public-private partnership in promoting economic empowerment for persons with disabilities in Laos. “Today’s event marks a significant milestone in our collective effort to support persons with disabilities in Lao PDR. By providing them with the opportunity to intern, we are helping them take their first steps towards building skills and gaining professional experience, which are essential for accessing future employment opportunities,” McCord said.
The Disability Inclusive Internship Program under the Okard Project aims to facilitate internships for at least 35 persons with disabilities in the public and private sectors in Vientiane. Interns will receive a monthly stipend, personal accident insurance, reasonable accommodation, and peer-to-peer support during the six-month internship. Additionally, a job coach will conduct follow-up visits to monitor progress in skills development, capacity building, and confidence in the workplace. Employers are expected to designate a buddy for each intern and provide on-the-job training, coaching, and mentorship to help the interns grow and succeed in their roles.
Source: https://laotiantimes.com/2024/09/06/okard-launches-inclusive-internship-program-for-persons-with-disabilities/
OP-ED: China, Hong Kong’s Strategic Investments in Laos Usher in a New Era of Economic Collaboration
In the post-COVID era, Chinese investment in Laos has surged dramatically, positioning China to overtake Thailand as Laos’ top trading partner. According to the Lao Ministry of Planning and Investment, Chinese companies invested in 17 projects worth USD 986 million in Laos in 2023, a massive increase from the USD 339 million across 30 projects in 2022. This tripling of investments reflects China’s strategic economic ambitions and its long-term plan to deepen ties with Laos under the Belt and Road Initiative (BRI).
The most prominent symbol of this partnership is the USD 6 billion China-Laos railway, which became operational in December 2021. This joint venture, set to extend into Thailand, will create a direct link from Kunming, China, to the southernmost parts of mainland Southeast Asia – Malaysia and Singapore – thus enhancing regional connectivity and solidifying China’s influence in the region. The railway is part of China’s broader expansion strategy to establish a seamless trade corridor through Laos to other ASEAN nations.
In addition to China’s investments, Hong Kong has emerged as a vital partner in Laos’ economic development, focusing on digital transformation and financial innovation. A key milestone in this evolving partnership was the recent signing of a strategic investment agreement between Goldford Group and the Lao National Digital Technology Group (LADT). This Memorandum of Understanding (MoU), witnessed by Hong Kong Chief Executive John Lee and Lao Deputy Prime Minister and Minister of Foreign Affairs Saleumxay Kommasith, was signed by Johnny Ng, Chairman of the Board of Goldford Group, and Sengaloun Souphanouvong, Director of LADT.
Johnny Ng, who also serves as the Chairman of the Web3 Hub Fund under the Hong Kong government and a legislator in Hong Kong’s Legislative Council, has been at the forefront of promoting Web3 and digital finance innovations. His leadership in this MoU exemplifies Hong Kong’s commitment to supporting ASEAN countries, particularly Laos, in their digital transformation efforts.
Divergent Approaches to Virtual Asset Regulation: Laos vs. Hong Kong
While Laos is making strides in digital finance, it grapples with regulatory and infrastructural limitations that can impact the growth of virtual assets and digital payment systems. In contrast, Hong Kong, with its more developed financial infrastructure, faces the challenge of balancing regulatory oversight with innovation, according to Ng.
“Governments can balance fostering innovation with ensuring financial security by adopting a risk-based regulatory framework that aligns oversight with the risks of various virtual asset activities,” Ng wrote in a recent email exchange. “This approach allows for stringent regulation of high-risk activities while nurturing innovation in safer areas.”
The regulatory landscape for virtual assets like Bitcoin starkly contrasts between developing nations such as Laos and developed regions like Hong Kong. In Laos, the regulatory environment is notably flexible, thanks to the early stages of electronic and cross-border payment systems, Ng remarked.
“This flexibility fuels fintech innovation and is bolstered by government efforts to attract foreign investment with favorable tax and regulatory policies,” he said. Ng further highlighted the 2023 collaboration between the Bank of Laos and Japanese company Soramitsu as a prime example, noting their joint effort to develop a Central Bank Digital Currency (CBDC) using blockchain technology.
“Policies must be flexible and adaptive, evolving with the digital asset landscape,” the Web3 Hub Fund’s Chairman stated.
Hong Kong’s legal framework currently struggles with the complexities of decentralized autonomous organizations (DAOs), suggesting a need for tailored regulations for blockchain foundations and DAOs. Additionally, enhancing financial literacy through education and awareness can help reduce fraud and misuse. By adopting these strategies, Ng believes that governments can foster technological innovation while ensuring financial security and investor protection.
Moreover, the recent MoU between Goldford Group and LADT is poised to significantly advance digital finance and technology between Hong Kong and Laos. This partnership aims to create a new payment model that merges Web2 and Web3 technologies, addressing the demand for a more integrated and efficient payment system.
The emerging payment model that integrates Web2 and Web3 technologies promises to reshape transaction processes by combining the ease of Web2 with the advanced capabilities of Web3. This hybrid approach aims to streamline crypto adoption, merging the user-friendly aspects of traditional payment systems with the decentralized, secure features of blockchain technology. Tools that bridge Web2 and Web3, such as APIs for authentication and cross-chain transactions, could simplify the user experience and foster wider acceptance of decentralized financial systems.
Advancing Financial Integration in Southeast Asia
“The Southeast Asian region, particularly countries like Laos, presents significant opportunities for expanding financial inclusion and integrating advanced digital payment solutions,” Ng said, emphasizing the importance of this collaboration. “The growth of infrastructure, such as the Laos-China Railway, has enhanced connectivity and increased demand for efficient cross-border payments.”
The electronic and cross-border payment market in Laos has shown impressive growth, with electronic payment transactions increasing by over 15 percent annually in recent years, and projections indicate a continued compound annual growth rate of 15.19 percent from 2024 to 2028.
The SWIFT system’s dominance in cross-border payments highlights the need for more efficient and competitive alternatives. While SWIFT is widely used, its reliance on intermediaries results in higher costs and slower transactions. In contrast, cross-border QR payment systems in Southeast Asia, such as those in Vietnam and Thailand, offer a promising solution. These QR systems enable real-time transactions, reduce costs, and improve accessibility, particularly for unbanked populations, thereby enhancing financial inclusion in the region.
The partnership also opens up opportunities for exploring blockchain applications for secure and transparent financial services, aligning with global fintech trends. Additionally, this collaboration can help develop local talent and strengthen digital infrastructure, supporting sustainable economic growth in Laos while benefiting from Hong Kong’s technological expertise and investment acumen.
Hong Kong’s role as a “superconnector” is crucial in this context. By leveraging its position, Hong Kong aims to support Lao Small and Medium Enterprises (SMEs) in areas such as banking, digital finance, logistics, and e-commerce.
“This role builds on the success of previous ASEAN missions and emphasizes Hong Kong’s commitment to fostering regional economic integration,” Ng said.
Trade statistics further underscore the growing relationship between Laos and its regional partners. Between April 2023 and 2024, Chinese exports to Laos rose by 38.6 percent to USD 324 million, while imports from Laos increased by 40.7 percent to USD 408 million. Key Chinese exports include electric locomotives, insulated wire, and plastic pipes, while Laos exports potassic fertilizers, chemical wood pulp, and iron and copper ores.
As Laos establishes itself as a key Southeast Asian hub, its partnerships with China and Hong Kong are set to reshape its economic landscape. A recent memorandum of cooperation between the Lao News Agency and the HKTDC, signed at the Belt and Road Forum, underscores Laos’ commitment to transitioning from a landlocked to a land-linked country. Meanwhile, the collaboration between Goldford Group and LADT aims to integrate advanced digital payment systems, enhancing connectivity and boosting financial inclusion.
Source: https://laotiantimes.com/2024/09/05/op-ed-china-hong-kongs-strategic-investments-in-laos-usher-in-a-new-era-of-economic-collaboration/
Laos Joins School Meals Coalition
Laos has officially joined the School Meals Coalition, a global alliance focused on advancing child nutrition, education, and well-being through comprehensive school meal programs. The announcement was made on 4 September in Vientiane during an event attended by key figures including Minister of Education and Sports Phout Simmalavong and French Ambassador Siv-Leng Chhuor.
The School Meals Coalition, now comprising 101 countries, aims to ensure that every child has access to a nutritious meal at school by 2030. This initiative supports the United Nations Sustainable Development Goals (SDGs), specifically SDG 2 (Zero Hunger), SDG 17 (Partnerships), and SDG 4 (Quality Education).
Currently, more than 33 percent of Lao children suffer from chronic malnutrition, impacting their cognitive development and academic performance. Laos’ national school meal program reaches 25 percent of primary schools, serving 250,000 children.
As a new Coalition member, Laos plans to expand its school meal initiatives and collaborate with international and local partners to address malnutrition. The government aims to utilize international expertise and resources to develop a sustainable, locally sourced school meal program, benefiting both students and local agriculture.
Laos has been developing its national school nutrition system since 2000, with support from the World Food Program, Catholic Relief Services, and the World Bank. The national program, launched in 2010, targets regions with high food insecurity and malnutrition. In 2020, a domestic budget line was allocated, and in 2022, a Decree for Promoting School Lunch was endorsed.
Source: https://laotiantimes.com/2024/09/05/laos-joins-school-meals-coalition/
Nam Theun 2 Development Fund Expands to Benefit More Districts
The Nam Theun 2 Development Fund (NT2DF) is set to expand its reach beyond Nakai’s resettled villages, bringing the transformative projects to the entire district and soon to neighboring Gnommalath and Mahaxay districts.
On 27 August, the Khammouane Provincial Authorities, in partnership with Nam Theun 2 Power Company, held the eighth steering committee meeting for the Nam Theun 2 Development Fund (NT2DF). Co-chaired by Vanxay Phongsavanh, Khammouane Governor and Marc-Antoine Rupp, Nam Theun 2 Chief Executive officer.
The meeting reviewed NT2DF’s progress over the past six months, emphasizing successes in long-term scholarships, social safety nets, and funding for domestic animal disease prevention in 16 hamlets.
The fund originally aimed at enhancing livelihoods in 16 newly established villages in Nakai and now is moving into Phase 2. This phase will extend support to the entire Nakai District, with future plans to include Gnommalath and Mahaxay Districts, aiming for more substantial outcomes.
Nam Theun 2 CEO Antoine stressed the importance of ongoing collaboration: “We must work together as a team. Each of us has a crucial role in turning plans into action and advancing our region. Let’s stay united in building a brighter future for Nakai and beyond.”
Nam Theun 2 Power Company is committed to sustainable development, environmental protection, and empowering communities. As NT2DF enters this new chapter, the company looks forward to continued progress.
During the meeting, the NT2DF Steering Committee handed over equipment and medicines valued at LAK 171 million (USD 7,745) to the Nakai Forestry and Agriculture Office, responsible for program implementation.
Established through a 2018 cooperation agreement between Khammouane Province and Nam Theun 2, NT2DF exclusively supports sustainable economic and social development around the Nam Theun 2 Project. Funding is based on annual energy production, with LAK 1,000 (USD 0.045) allocated per megawatt-hour. Additionally, Nam Theun 2 has contributed over LAK 30 billion (USD 1,358,800) to the fund from 2018 to 2023.
Source: https://laotiantimes.com/2024/09/04/nam-theun-2-development-fund-expands-to-benefit-more-districts/