AGP Executive Report

Weather & Flood Readiness: Laos’ weather bureau warns of widespread rain from Thursday to Sunday as a tropical storm approaches, with risks of flash floods, landslides and urban flooding. Aquaculture & Biodiversity: Laos plans to release 72 million fish fingerlings nationwide on July 13 to restore freshwater resources and support sustainable fisheries. EV Push in Laos: New data shows Chinese EV exports are surging, while Cambodia and Laos record their highest monthly EV imports as governments roll out tax incentives, charging expansion and local assembly partnerships. AI Infrastructure for Industry: Comin Asia and Nokia are partnering to deploy AI-ready, sovereign data centre infrastructure across Southeast Asia, with Laos flagged for surplus power and growing cross-border connectivity. Green Tourism Spotlight: Tham Non–Tham Nang Fa in Vangvieng is highlighted as a conservation-led eco-tourism model, balancing visitor access with environmental protection and community development. Mekong Water Security: The Mekong River Commission and India sign a new MoU to strengthen water security, climate resilience and clean energy technology cooperation, relevant to Laos’ basin management. Industry Policy Update: Laos’ Industry and Commerce Ministry reviews H1 performance and sets H2 priorities, including boosting domestic production, reforming state firms, modernizing trade and supporting SMEs.

Mekong Water Security Deal: The Mekong River Commission (MRC) and India signed a new MoU to back water security, climate resilience, disaster risk management and clean energy tech—aimed at practical solutions for a riskier Mekong. Aquaculture Supply Push: Laos is preparing to release 72 million fingerlings nationwide on July 13, mobilizing dozens of hatcheries and private breeders to restore fish stocks and protect native species. Low-Carbon Urban Upgrade: China highlighted the Vientiane-Saysettha Low-Carbon Demonstration Zone, citing solar lighting, new-energy buses and monitoring vehicles that could cut emissions by over 1,200 tonnes a year while supporting local jobs and firms. Agribusiness Exports: Laos reported crop and crop-product exports of $752m in the first five months of 2026, plus growth in livestock and forest products, alongside efforts to expand market access and improve clean farming for export standards. Digital Trade Trust: Laos and Vietnam are moving toward digital trust infrastructure to accept digital signatures for cross-border trade, as e-signature systems evolve into broader identity-and-security platforms. Electricity Market Opening (Philippines): EvoEnergi (D&L Group) switched on power to residential retail aggregation groups under the RCOA framework after the threshold fell to 100 kW—showing how smaller users can pool demand for competitive supply. Regional Aviation Industry: China’s COMAC C909 marked 10 years of commercial service, now operating hundreds of routes and expanding into business-jet configurations—an industry signal for regional connectivity. Laos-Malaysia Ties: On the 60th anniversary of diplomatic relations, Laos’ ambassador to Malaysia said investment and human-resource cooperation remain key areas for deeper economic collaboration.

Water & Climate Security: The Mekong River Commission and India signed a new MoU to boost cooperation on water security, climate resilience, disaster risk management, clean energy technology and sustainable basin development. Aquaculture Supply: Laos is preparing to release 72 million fingerlings nationwide on July 13 to restore fish stocks and protect aquatic biodiversity, using 53 state hatcheries plus private and household breeding operations. Green Development: China highlighted the Vientiane–Saysettha Low-Carbon Demonstration Zone as a model for green development, citing solar lighting, new-energy buses and expected annual emission cuts of over 1,200 tonnes. Trade & Agriculture Exports: Laos reported crop exports of about $752m in the first five months of 2026, while Lao Cai’s border trade with China surged over 60% year-on-year, led by durian shipments. Energy Market Reform: EvoEnergi switched on power to the first residential retail aggregation groups in the Philippines under a lowered 100 kW threshold, expanding contestable electricity access for smaller users. Policy & Business Climate: Laos set priorities to strengthen the economy, including support for SMEs, reducing trade barriers, promoting EVs, and modernizing the trade system. Tax Update: Laos raised the monthly income exempt from personal income tax to LAK 2.5m, easing the tax burden for lower-income workers. Regional Connectivity: Laos and Cambodia are linked through new overland transit efforts aimed at moving agricultural goods to China faster.

Laos Economy Priorities: Laos’ Industry and Commerce Ministry reviewed first-half 2026 results and set second-half priorities to strengthen the economy, including boosting domestic production, reforming state-owned enterprises, modernizing trade, and improving human resources. Agri Exports Surge: Laos earned over $752m from crop exports in the first five months of 2026, with bananas, dried cassava, watermelon, cassava flour and coffee leading; livestock exports also rose, while timber and forest products hit about a third of the year’s target. Food Security & Market Access: The agriculture ministry pushed dry-season crops and cleaner farming to meet export standards, and said Laos secured access for 84 agricultural and livestock product lines in neighboring markets. Power Market Reform: EvoEnergi switched on power to Laos’ first two residential retail aggregation groups under the ERC’s RCOA framework after the participation threshold fell to 100 kW, letting smaller users pool demand to choose suppliers. Green Development Cooperation: China highlighted the Vientiane–Saysettha Low-Carbon Demonstration Zone as a model for green development, citing solar lighting, new-energy buses and emissions cuts of over 1,200 tonnes annually. Cross-Border Trade Boost: Lao Cai border trade in northern Vietnam jumped 62% year-on-year in H1 2026, driven by record durian exports to China, with faster customs clearance and higher volumes. Tax Relief for Workers: Laos raised the monthly personal income tax-free threshold to LAK 2.5m from LAK 1.3m, expanding tax relief for lower-income earners. Regional Haze Alert: Mekong countries stepped up efforts against transboundary haze as hotter weather and El Niño risks raise fire and air pollution threats. SME Digital Push: Laos launched an initiative to strengthen MSMEs’ digital adoption to support production and competitiveness.

Laos Tax Update: Laos raised the monthly personal income tax-free threshold to LAK 2.5 million from LAK 1.3 million, effective this month under a 6 Aug 2025 presidential decree, while keeping the progressive rates at 5%–25% for income above the new bracket. Innovation & Startups: The 4th China-ASEAN Innovation and Entrepreneurship Competition wrapped up in Vientiane on June 25, with Lao, ASEAN and China officials backing the “Innovation Cooperation for a Shared Dream” push. SME Support: Business Bridge Asia expanded its Southeast Asia market entry consulting for SMEs, adding country-specific guidance and on-the-ground support across 14+ markets. Regional Environment & Risk: Greater Mekong governments met in Vientiane to tackle transboundary haze as heat and El Niño raise fire risks, with Laos warning of growing impacts on health, agriculture and the regional economy. AI Infrastructure for Laos: Comin Asia and Nokia announced plans to deploy AI-ready, sovereign data centre infrastructure across Southeast Asia, targeting practical deployment needs in markets including Cambodia and Laos. Cross-border Trade & Property: A Vietnam–Laos partnership signed a strategic cooperation deal for a 557.28 ha real estate project in the Long Thanh–Vientiane SEZ, including a 99-year land lease and incentives for foreign buyers.

Transboundary Haze Alert: Laos PM Sonexay Siphandone warned that hotter weather and El Niño risks could trigger more forest and peatland fires, with the June 25 Mekong-region steering meeting citing an ~8% rise in hotspots from Dec 2025–May 2026. Education & Media: A Lao News Agency interview highlighted how media partnerships are helping the BEQUAL programme spread basic education messages to parents, teachers and decision-makers amid economic and learning pressures. AI Infrastructure for Laos: Comin Asia and Nokia announced plans to deploy AI-ready, sovereign data centre infrastructure across Southeast Asia, targeting practical power and policy conditions in markets including Laos and Cambodia. EV Trade Push: New reporting says Chinese EV exports hit a May record $9.2bn, with ASEAN demand driving growth; Laos is cited for EV-friendly policies like fleet requirements and temporary gas import limits. Mining Investment Focus: Lao Vice President Vienthong Siphandone visited Khammouane mining firms, urging environmentally sustainable operations and local jobs, including potash production and expansion plans. Regional Security Cooperation: Indonesia and Australia agreed to strengthen ASEAN border security via intelligence sharing, immigration coordination and cybersecurity, with Laos flagged among countries facing online scam and trafficking risks. Drug Trade Pressure: UN reporting reiterates that Afghanistan’s pre-ban opium stockpiles still sustain global heroin supply, keeping trafficking pressure on the region.

Transboundary Haze Risk: Laos PM Sonexay Siphandone warned that hotter-than-usual weather and El Niño are raising the risk of forest and peatland fires across the Mekong, with a reported ~8% rise in hotspots from Dec 2025–May 2026, threatening agriculture, health, and the regional economy. AI Infrastructure for Laos & Cambodia: Comin Asia and Nokia announced plans to deliver AI-ready, sovereign data centre infrastructure across Southeast Asia, targeting power- and policy-compatible deployments in markets including Laos and Cambodia. EV Push in the Region: China’s EV exports hit a record $9.2bn in May, driven by Southeast Asia demand; Laos is cited as adopting EV-friendly policies such as fleet requirements and temporary bans on gas imports. Mining & Fertilizer Investment: Laos Vice President Vienthong Siphandone visited Khammouane mining firms, including Lao Kaiyuan Mining and Asia-Potash (Laos), urging continued environmentally sustainable operations and industrial development. Maritime Security: ReCAAP ISC and the Philippine Coast Guard held a senior officers meeting with Laos and other focal points to strengthen port security and cooperation against piracy and sea robbery. Fuel & Trade Policy Watch: Laos’ fuel excise and nationwide fuel price revisions continue to draw attention as regional energy costs and cross-border trade pressures build.

Laos Economy Watch: Laos reported 5% growth in the first half of 2026, with June inflation easing to 7.4% as fuel-price moves and tighter macro management helped cool prices. Fuel & Transport Costs: Laos reinstated higher fuel excise taxes after emergency cuts ended—regular gasoline tax rose to 25% and diesel to 5%—with Vientiane retail prices updated on June 25. Mining & Industry: Lao Vice President Vienthong Siphandone visited Khammouane mining firms, urging environmentally sustainable operations and continued investment, while highlighting potash production and expansion plans. Drug Policy: Prime Minister Sonexay Siphandone reaffirmed Laos’ commitment to combating narcotic drugs on the International Day Against Drug Abuse and Illicit Trafficking, pointing to law enforcement, alternative livelihoods, and rehab services. Regional Security & Trade Links: South Korea and Mekong nations, including Laos, met to expand cooperation against transnational crime and share progress on joint projects. Agribusiness Expansion: AgroBerries announced a 150-hectare blueberry project in Laos via a joint venture, with first commercial volumes expected in Q4 2026.

EV & Energy Transition: A new report says the Iran war and higher fuel prices accelerated EV demand in developing markets, but charging build-out is lagging—an issue Laos policymakers will feel as electrification grows. Aviation Industry: COMAC marked 10 years of commercial service for its C909 regional jet, highlighting China’s push to expand regional air connectivity—relevant for Laos’ transport links. Drug Trade & Security: UNODC warns Afghanistan’s pre-ban opium stockpiles will keep heroin supply flowing through 2026, while Myanmar’s expanded cultivation is raising cross-border trafficking risks across the Golden Triangle corridor. Laos Governance & Macroeconomy: Laos reported 5% growth in H1 2026 as inflation eased to 7.4% in June, with reserves covering over five months of imports. Fuel Policy: Laos restored higher fuel excise taxes (gasoline up, diesel up) after emergency cuts ended, updating Vientiane retail prices. Mining & Industry: Laos Vice President Vienthong Siphandone visited Khammouane mining firms, urging greener operations and investment tied to fertilizer and circular-economy industrial development. Agribusiness Investment: AgroBerries announced a 150-hectare blueberry project in Laos, with first commercial volumes expected in Q4 2026. Regional Tech Cooperation: ASEAN and Korea reaffirmed STI cooperation in Vientiane, including AI, digital transformation, and clean energy—supporting Laos’ innovation agenda. Transport Delivery: Laos’ PM stressed that key national transport project deadlines must not slip without objective reasons, as implementation reviews flagged site clearance, materials, and labor bottlenecks. Drug Abuse Crackdown: On the International Day against Drug Abuse, Laos reiterated its National Agenda focus on prevention, enforcement, alternative livelihoods, and rehabilitation.

Laos Economy & Fuel Policy: Laos reported 5% growth in H1 2026 while June inflation eased to 7.4%, with reserves covering over five months of imports and revenue collection at 52% of target, as authorities push tighter macro management and support domestic production. Energy & Industry Costs: Laos restored higher fuel excise taxes—gasoline up to 25% and diesel to 5%—ending emergency relief, with Vientiane retail prices revised on 25 June. Mining & Sustainable Investment: Lao Vice President Vienthong Siphandone visited Khammouane mining firms, urging environmentally sustainable operations, jobs, and industrial development, highlighting potash output and expansion plans. Drug Control & Public Safety: Prime Minister Sonexay Siphandone reaffirmed Laos’ commitment to combating drug abuse and trafficking on the 39th International Day, stressing law enforcement, rehabilitation, alternative livelihoods, and community participation. Regional Tech Cooperation: Laos hosted ASEAN STI meetings in Vientiane, with Vietnam and Malaysia backing deeper science, technology and innovation links, including digital transformation and climate-resilient agriculture. Agribusiness Expansion: AgroBerries announced a 150-hectare blueberry project in Laos via a joint venture, with first commercial volumes expected in Q4 2026. Cross-border Security & Scams: Regional talks flagged rising irregular migration, human trafficking, and online scams, calling for stronger intelligence sharing and cybersecurity coordination across ASEAN and partners.

Mining & Industry Investment: Laos Vice President Vienthong Siphandone toured Khammouane’s Lao Kaiyuan Mining and Asia-Potash International, urging greener operations, local jobs and industrial development, as potash output and expansion plans were highlighted. STI & Regional Innovation: Malaysia pushed ASEAN to build a more integrated, mission-driven science, technology and innovation ecosystem at AMMSTI-22 in Vientiane, linking STI to energy transition, food security, public health and climate resilience. Laos Macroeconomy: Laos reported 5% growth in H1 2026 while June inflation eased to 7.4%, with officials citing stabilization steps, revenue collection and a steadier kip. Fuel Tax & Prices: Laos reinstated higher fuel excise taxes (gasoline up, diesel up from zero), updating Vientiane retail prices and adjusting premium gasoline pricing rules. Drug Control & Public Safety: Marking International Day against Drug Abuse, Laos Prime Minister Sonexay reaffirmed the national agenda on drug prevention, enforcement, rehabilitation and community action. ASEAN–Korea STI Cooperation: Laos hosted ASEAN–Republic of Korea STI committee talks, reviewing 2025–2027 plans and new projects in AI, digital transformation and clean energy technologies. Cross-border Crime Response: South Korea met Mekong nations (including Laos) to expand cooperation against transnational crime, including advanced tech and economic security. Cybercrime Warning: INTERPOL flagged scam-driven cybercrime across Asia-Pacific, noting Laos among countries where online scams and trafficking-linked operations generate major illicit revenue. Energy Security Lens: A regional energy-security discussion underscored that ASEAN countries face different realities—exporters vs fuel importers—making cooperation on stability and transition more urgent.

ASEAN STI Push in Vientiane: Malaysia urged ASEAN to build a more integrated, mission-oriented science, technology and innovation ecosystem, linking research to real-world impact on energy transition, food security, public health and climate resilience. Korea–Laos STI Cooperation: Laos and the Republic of Korea reaffirmed plans to boost innovation-driven growth, digital transformation and clean energy technologies under the ASEAN–RoK STI framework. Fuel Tax and Prices: Laos restored higher fuel excise taxes as emergency relief ended—regular gasoline tax rose back to 25% and diesel to 5%—with Vientiane retail prices updated from June 25. LTMS-PIP Power Flows: LTMS-PIP Phase 2 (Malaysia–Singapore) reported 30.6 GWh supplied and RM23.06m revenue as of April 2026, with feasibility work for further interconnections underway. Sustainable Agro Investment: Korea–Laos backed sustainable agriculture and green agribusiness deals through the K-GREEN AGRO Partnering Forum, including business matching and follow-up discussions worth about USD 14m. Drug Abuse Focus: Laos’ PM reiterated commitment to combating drug abuse and trafficking on the International Day against Drug Abuse and Illicit Trafficking, calling for stronger enforcement, rehabilitation and community action. Cyber-Scam Warning for the Region: Interpol flagged Asia-Pacific cyber scams as a major driver of crime, often tied to trafficking-linked scam operations.

Fuel & Tax Policy: Laos restored higher fuel excise taxes as emergency relief ended, with regular gasoline tax rising to 25% and diesel to 5%, pushing Vientiane retail prices to LAK 30,690/litre for regular petrol and LAK 24,560/litre for diesel. Energy Infrastructure: LTMS-PIP Phase 2 (Lao PDR–Thailand–Malaysia–Singapore) reported 30.6 GWh supplied and RM23.06m revenue as of April 2026, with Malaysia–Singapore wheeling revenue of RM137,236 in Jan–Feb. Agribusiness & Trade Corridors: Laos and Japan backed human-capital development via a JDS scholarship exchange worth 378 million JPY, while Laos–Korea green agriculture talks in Vientiane drew deals and follow-ups worth about USD 14m. Regional Tech & Security: Thailand reported a sharp drop in border scam cases and damage, while FATF pressure highlights Myanmar’s need to act against cyber-scam compounds that also trap trafficking victims. Sustainable Mobility: Vietnam’s Green SM expanded all-electric ride-hailing into Kazakhstan, starting in Almaty with VinFast VF 6 Eco SUVs. Governance: Prime Minister Sonexay urged faster administration and tighter policy implementation after a five-year review. Illegal Resources Crackdown: Savannakhet detained 21 people in intensified illegal gold mining and logging raids, seizing vehicles and equipment.

Digital Economy Push: Laos launched a “Digital in Motion” initiative to help MSMEs adopt digital tools, aiming to boost competitiveness as MSMEs make up 99.8% of enterprises but still struggle with tech access, skills, and financing. Sustainable Agriculture & Carbon Markets: Laos is studying Alternate Wetting and Drying rice farming for carbon credits, targeting lower methane emissions, reduced water use, and new income for farmers. Energy & Trade Links: Laos’ LTMS-PIP Phase 2 (Malaysia–Singapore) reported 30.6 GWh supplied and RM23.06m revenue as of April 2026, while Laos also revised fuel prices nationwide—diesel down to 24,560 kip/litre and petrol up to 30,690 kip/litre from June 25. Green Agribusiness Cooperation: Korea and Laos advanced sustainable agriculture and green growth through the K-GREEN AGRO Partnering Forum, with business matching and follow-up talks worth about USD 14m. Cross-Border Food Logistics: A new Cambodia–Laos transit route to China opened June 22, cutting time for six Cambodian farm exports (bananas, mangoes, rice, longan, cassava starch, durians) to reach China in about a week. Resource Enforcement: Savannakhet cracked down on illegal gold mining and logging, detaining 21 suspects and seizing vehicles and equipment across four districts. ASEAN Science Collaboration: In Vientiane, ASEAN–Japan and ASEAN–RoK science and innovation committees met ahead of the ASEAN STI ministerial push, reinforcing regional research and technology cooperation.

Fuel & Transport Costs: Laos revised nationwide retail fuel prices from June 25—diesel fell to 24,560 kip/litre while regular petrol rose to 30,690 kip/litre, a move aimed at easing pressure on transport and logistics operators. Power & Regional Grid Trade: LTMS-PIP Phase 2 (Lao PDR–Thailand–Malaysia–Singapore) reported 30.6 GWh supplied and RM23.06 million revenue as of April 2026, with the project operating at full 200 MW capacity. Sustainable Agriculture Dealmaking: Korea–Laos cooperation got a boost at the 2nd K-GREEN AGRO PARTNERING Forum in Vientiane, with business matching generating 51+ consultations and follow-up discussions worth about USD 14 million. MSME Digital Push: Laos launched a “Digital in Motion” initiative to help MSMEs adopt digital tools, targeting competitiveness as MSMEs make up 99.8% of enterprises. Climate-Smart Rice: Laos is studying Alternate Wetting and Drying rice farming for carbon credits to cut methane, lower costs, and create new farmer income. Cross-Border Agri Exports: Cambodia’s new transit route to China via Laos (opened June 22) is set to cut shipment time to about one week for bananas, mangoes, rice, longan, cassava starch and durians. Local Economic Snapshot: Vientiane Province reported 3.4% GDP growth in the first half of 2026, led by services and steady agriculture output, plus 1.9 million tourism arrivals. Security & Resource Enforcement: Savannakhet intensified crackdowns on illegal gold mining and logging, detaining 21 suspects and seizing vehicles and equipment.

Digital MSME Push: Laos has launched a “Digital in Motion” initiative to help micro, small and medium enterprises adopt digital tools, aiming to boost competitiveness as MSMEs make up 99.8% of businesses and employ about 80% of the workforce. Sustainable Rice for Carbon Credits: Laos is studying Alternate Wetting and Drying rice farming to cut methane emissions, lower costs, and potentially generate carbon credits for farmers. Mining Crackdown: Savannakhet Province detained 21 suspects in an intensified crackdown on illegal gold mining and logging, seizing vehicles and machinery across four districts. Cambodia–Laos Agri Ties: Laos’ PM met Cambodia’s agriculture minister as both sides moved to expand agricultural trade and cooperation, including conservation and input supply, with a focus on exporting to China via Laos corridors. Faster Route to China: Cambodia’s fresh durian and other farm products can now reach China in about a week after Laos opened a new rail transit route launched June 22, cutting travel time and paperwork for perishable goods. Regional Innovation Agenda: Cambodia reiterated its commitment to ASEAN science, technology and innovation cooperation at the 89th ASEAN COSTI meeting in Vientiane, reviewing progress on STI projects and directions for APASTI 2026–2035. EV Electrification Watch: China’s EV exports hit a new record, with Southeast Asia demand driving growth as Laos and Cambodia report rising Chinese EV imports amid incentives and charging expansion.