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/

After two years in the work, a new e-commerce platform for Lao agriculture products has finally been launched to promote both domestic trade and across borders.

The platform features two versions, serving two different purposes including the domestic platform and.as the cross-border platform. Both sites are under the support of the Chinese government and implementation of the Trade Promotion and Handicrafts Department of the Ministry of Industry and Commerce of Laos.

The launch ceremony officially kicked off on 13 May at the Don Chan Palace Hotel. According to the Chinese Charge d’ Affaires Wang Chang,  building e-commerce in Laos falls into one of the eight major projects of the Chinese government’s support towards their Lao counterpart. While the project would contribute to Laos’s development and generate income for its citizens, it would also enhance the digital trade relationship between Laos and China by promoting the export of Lao agricultural products and industrial handicrafts to China.

Director General of the Trade Promotion and Handicrafts Department, Vithoun Sitthimorada  added that the website will prove greatly beneficial to the Lao government employees, producers and representatives of business units in more ways than one. The platform is capable of providing technical support for e-commerce system administration, establishing a development model for e-commerce to reach rural areas to link information to produce results, achieving online buying and selling between producers and consumers, and encouraging the export of products abroad.

Lao state media suggested this achievement as a significant national milestone for Laos.The project promises the promotion of production as a commodity, the stimulation of trade and investment, the creation of job opportunities, the establishment of connections between producers and consumers both domestically and internationally, and the encouragement of a shift from traditional production patterns to new ones.

The past two years of e-commerce in Laos have mostly seen locals ordering online from neighboring countries, including Thailand, China, and Vietnam. This trend is often attributed to the lack of e-commerce platforms in Laos and the customers’ demands for a broader variety of products compared to what’s available within Laos.

As e-commerce slowly but surely grows, it is evident that Laos is moving towards a digital era with aims to meet the growing demand of people from all sorts of different sectors, ultimately revolutionizing the world of trade and sales of the country.

Source: https://laotiantimes.com/2024/05/15/laos-launches-new-e-commerce-platform-for-agricultural-products-supported-by-chinese-government/

Lao President Thongloun Sisoulith met with Russian President Vladimir Putin on 9 May in Moscow during his visit to Russia from 7 to 11 May. The leaders praised the strong and growing relationship between their countries and reaffirmed their commitment to enhance cooperation, particularly in trade, defense, and cultural exchange.

President Thongloun highlighted the successful implementation of the Treaty on Amity signed three decades ago, stating that the current period favors the further development of bilateral relations and friendship. He proposed continued cooperation and the implementation of various proposals to deepen ties.

Putin acknowledged the recent 12-percent growth in two-way trade and economic relations. He also mentioned the expansion of defense and security cooperation and expressed gratitude for Laos’ support of Russian language studies.

During his visit, Thongloun also attended the Victory Day parade in Moscow, marking the 79th anniversary of the Great Victory in the Great Patriotic War. The Russian president thanked Laos for providing T-34 tanks to Russia, which he described as symbols of victory.
Putin emphasized that fostering a strategic partnership with the Association of Southeast Asian Nations (ASEAN) is a key foreign policy priority for Russia.

In addition to meeting with Vladimir Putin, President Thongloun held talks with Dmitry Medvedev, Chairman of the United Russia Political Party to further strengthen ties between the two countries.

The meeting between the two presidents marks a significant milestone in the 30-year friendship between Laos and Russia. Both leaders expressed optimism about the future of their relationship and the continued growth of cooperation in various fields.

Source: https://laotiantimes.com/2024/05/13/lao-russian-presidents-celebrate-30-years-of-friendship-in-moscow/

In a move to combat climate change, the Lao government, in partnership with AIDC Green Forest, is launching a forest carbon credit initiative (REDD+) to reduce greenhouse gas emissions from forest destruction and degradation.

The initiative, announced at a signing ceremony on 5 May, follows international standards and is a crucial national strategy to combat climate change. While REDD stands for “reducing emissions from deforestation and forest degradation,” the REDD+ program includes managing and protecting forests, building learning centers, patrolling, and enhancing people’s livelihoods. 

Under the agreement, the Ministry of Agriculture and Forestry and the Ministry of Natural Resources and Environment will work with AIDC Green Forest to implement the project. This initiative is not only about protecting and restoring forests but also improving the quality of life for local communities. However, despite the recent announcement, no other information regarding the practical approach of the project has been released.

According to Pheutsapha Phoummasak, President of AIDC Green Forest, the scheme aligns with global efforts to reduce forest destruction, a major contributor to climate change. He emphasized that it will also strengthen the national economy and contribute to the overall development of Lao society.

The Memorandum of Understanding (MOU) for the project was signed in December 2022, which involved a feasibility study of 10 forests covering 1.7 million hectares. 

From these, eight forests were selected for the initiative, including Phou Khao Khouay National Park, the Nam Muan-Nam Ngoung National Protected Area, Nam Ngum National Protected Area, Phou Phanang National Bio-Diversity Conservation Area, Phoukhiew-Phouthan-Phouhai National Protected Area, Nong Ta Ngok National Productive Forest, Trans-Boundary Biodiversity Conservation in Protected Forests between Laos, Thailand and Cambodia, the Phou Hin Poun Protected Area

The project is expected to significantly reduce carbon dioxide emissions by 1.4 million tonnes annually, contributing to Laos’ Nationally Determined Contribution. This includes measures to reduce greenhouse gas emissions and enhance climate resilience.

Source: https://laotiantimes.com/2024/05/09/laos-launches-forest-carbon-credit-initiative-to-combat-climate-change/

In Laos, where traditional retail infrastructure lags behind its Southeast Asian neighbors, online shopping has become a trend despite its limited e-commerce presence, largely driven by social media platforms and innovative cross-border shopping.

With a lack of established e-commerce platforms within the country, Lao citizens have adapted by leveraging social media, particularly Facebook and TikTok, as a virtual marketplace. Groups and pages dedicated to buying and selling everything from clothing to electronics have proliferated, creating an online shopping ecosystem.

Phiyada “Namfon” Ounthong, a 24-year-old employee, has been selling home appliances and clothes on her personal Facebook account since 2019 to make extra income. She explained that she opted for Facebook as her sales platform because it is the most widely used compared to others.

“Many people have started buying things online because of how convenient it is,” Namfon said. 

“Customers can select their preferred products and price, and then either collect them from a shipping company of their choice or have them delivered to their doorstep.”

Namfon added that she has her customers transfer money to her personal bank account and then deliver the products to a shipping company chosen by the customer.

Despite the slow emergence of e-commerce in Laos, some goods demanded by customers may not be available in-country. This situation forces Lao people to navigate the complexity of the problem by using middlemen to facilitate cross-border shipping. For instance, many buyers have found ways to purchase and receive products from Thai e-commerce platforms like Shopee and Lazada, which do not typically deliver to Laos.

Dokfa Malaythong, a 23-year-old resident of Vientiane Capital, often shops in Thailand and appreciates the diverse range of products available there compared to Laos.

“In Thailand, they have unique clothing styles that I like but can’t find in Laos,” Dokfa said. “One of my most unique purchases from Thailand was an LED clip-on reading light, something Laos doesn’t offer.”

She explained that some people in Laos even buy food and food-related products from Thailand, showing the diverse needs of Lao people that go beyond what their own country offers.

“I order and pay for the products on the official e-commerce website before paying the middleman to retrieve them for me,” Dokfa added. Without revealing the middleman’s identity, she mentioned that her products usually arrive at a storage room provided by the middleman, where she goes to retrieve them and complete her purchases.

E-commerce has become increasingly popular in Laos, especially amid the COVID-19 pandemic. This trend has led the Lao government to recognize the importance of establishing clear regulations to safeguard investors. The introduction of a new decree to support e-commerce growth has bolstered trust in digital transactions among both businesses and consumers.

Latthana Douangboupha, the deputy director general of the SMEs Promotion Department in the Lao Ministry of Industry and Commerce, highlighted the importance of e-commerce in empowering SMEs during a seminar in Vientiane on 15 September last year. The seminar aimed to develop e-commerce policies and strategies to strengthen SMEs in the digital era, with government officials and representatives from various Lao companies gathering to exchange knowledge and experiences in e-commerce and digital business. 

Despite the apparent success of online shopping in Laos, challenges remain. The reliance on social media and informal cross-border arrangements can be risky, with issues such as fraud and product quality concerns being raised. Furthermore, the lack of a formal e-commerce system within Laos limits the potential for growth and the establishment of consumer protections that are standard in more developed e-commerce markets.

Laos’ online shopping landscape presents a unique case study in the evolution of e-commerce in developing countries. As online shopping continues to grow in popularity, there is a pressing need to develop formal e-commerce regulations within Laos to ensure consumer protection and sustainable growth.

Source: https://laotiantimes.com/2024/05/09/laos-embraces-online-shopping-via-social-media-cross-border-innovation/