AGP Executive Report

Transport & Compensation: Bolikhamxay is displaying a draft compensation plan for the 203.8-km Pakxan–Thanh Thuy stretch of the Vientiane–Hanoi expressway, covering land, buildings, crops and fruit trees, with payments due within 60 working days after approvals. Public Investment Execution: Vietnam reports public investment disbursement at 55.5% of its 2026 target as of Sept 24, a reminder of how fast spending can make or break cross-border infrastructure timelines. Trade & Industry Digital Push: AI is moving from demos to real trade gains in China–ASEAN commerce, helping sellers localize pitches and boost sales. ASEAN Market Expansion: DFI Retail Group plans to expand Starbucks in Vietnam and Thailand and grow outlets across Laos and other markets through 2029, adding more food and functional drink options. Cross-border Infrastructure for Trade: Vietnam and Laos provinces agree to upgrade the Huoi Puoc–Na Son border gate to international status in 2027 to expand the border-gate economy and logistics corridor. Energy & Environment: ASEAN leaders urge building a regional power grid and climate finance to improve resilience as ozone pollution and heat worsen air quality risks. Security & Aviation Training: China and Laos opened a joint support and training centre at Ban Keun Airport in Vientiane Province, aimed at training Lao air force pilots. Health Measures: Laos has imposed domestic travel restrictions between localities/provinces to curb viral spread, with exceptions for goods and medical needs.

China–Laos Aviation Training: China and Laos have opened the China-Laos Joint Support and Training Centre and the China-Laos Friendship Aviation Academy at Ban Keun Airport near Vientiane, aimed at training Lao air force pilots and deepening practical military cooperation. Infrastructure & Compensation: Laos’ expressway project linking Lao and Vietnamese capitals is moving ahead after compensation was paid to residents affected by the Pakxan–Thanh Thuy section. Cross-Border Trade Logistics: Vietnam and Laos provinces agreed to upgrade the Huoi Puoc–Na Son border gate to international status in 2027, supporting a wider trade and logistics corridor. Public Investment Push: Laos’ regional spending picture is echoed by Vietnam’s push to keep public investment disbursement on track, with ministries asked to set realistic monthly targets and report implementation hurdles. Food & Consumer Demand: China’s durian trial crop in Yunnan is progressing toward market entry, with China already approving durian imports from Laos and other Southeast Asian suppliers. Business Expansion: DFI Retail Group plans to expand Starbucks across Asia, including Laos, as it takes full control of the Starbucks-licensed business in multiple markets. Digital Security: Kaspersky and Best Telecom expanded strategic cooperation to strengthen digital security in Laos.

China–Laos Aviation Training: China opened the China–Laos Joint Support and Training Centre and the China–Laos Friendship Aviation Academy at Ban Keun airport north of Vientiane, saying it will support Laos Air Force pilot training and is “not directed against any third party,” adding another overseas military footprint. Cross-Border Trade & Logistics: Vietnam’s Dien Bien and Laos’s Luang Prabang agreed to upgrade the Huoi Puoc–Na Son border gate to international status in 2027, aiming to expand trade space and logistics corridors. Infrastructure Quality for Industry: Lao and Chinese firms signed an MoU to strengthen engineering quality testing and lab development for roads, bridges, railways, airports and irrigation, including plans for an international-standard engineering laboratory and specialized flood-related equipment. Public Investment Delivery: Laos’s Ministry of Finance will assess a new scoring system for public investment disbursement to ensure monthly targets are realistic and implementation obstacles are reported. Environment & Climate Funding: Laos reviewed GEF-9 priorities, focusing on sustainable forestry, climate-resilient agriculture, Mekong water/energy/food security, and hazardous waste management. Farm Workers’ Protections: The SOLAR II project launched its second phase to strengthen social protection, labor rights and occupational safety for over 32,000 coffee, tea and forestry farmers across seven provinces. Digital Security: Kaspersky and Best Telecom expanded cooperation to bring cybersecurity services into Laos telecom and financial-services ecosystems.

China–Laos Military & Aviation: China opened the China–Laos Joint Support and Training Centre and the China–Laos Friendship Aviation Academy at Ban Keun airport, saying the facilities are jointly run and “not directed against any third party,” aimed at training Lao Air Force pilots and aviation staff. Engineering & Standards: Lao and Chinese firms signed an MoU to upgrade engineering quality testing, lab development, and technical training, including plans for an international-standard testing laboratory and specialized equipment for urban flooding research. Environment & Climate Funding: Laos reviewed GEF-9 priorities in Vientiane, aligning donor-backed climate and environmental projects with national plans, with focus areas including sustainable forestry, climate-resilient agriculture, Mekong water/food security, and hazardous waste management. Farmers’ Social Protection: The SOLAR II project phase launched to strengthen labor rights, occupational safety, and social protection for about 32,000 coffee, tea, and forestry farmers/workers across seven provinces, backed by the EU via the ILO. Food Supply & ASF Controls: Nonkhor Market in Vientiane resumed pork sales after eased, regulated pig movement rules, with strict veterinary inspections and health certificates to keep African Swine Fever contained. Digital Security in Telecom/Finance: Kaspersky and Best Telecom expanded cooperation to bring consumer cybersecurity services into Laos through bundled telecom offerings and partner IT firm Sysmatik. Inflation Watch: Laos reported September inflation at 7.8%, driven by education and housing/utilities costs as the new school year began. Disaster Risk at Hydropower Site: A slope collapse hit workers’ housing at the Pak Beng hydropower project near Pak Beng, with at least one injury reported and no official casualty figures yet.

China–Laos Military Aviation: China has opened the China–Laos Joint Support and Training Center and the China–Laos Friendship Aviation Academy at Ban Keun airport, saying the effort is for Laos air-force pilot training and “not directed against any third party.” ASEAN Tourism: Lao officials joined ASEAN tourism ministers in Manila to push intra-ASEAN travel, expand marketing of second- and third-tier destinations, and update the 2002 ASEAN Tourism Agreement for digital and sustainability goals. Livestock & Food Supply: Nonkhor Market in Vientiane resumed pork sales after ASF-related movement restrictions eased, with strict veterinary checks, health certificates, and tighter supplier surveillance. Labour Rights in Agro-Forestry: SOLAR II launched to strengthen labour rights and social protection for coffee, tea and forestry workers and small producers, funded by the EU and led by the ILO through 2030. E-commerce Push: Laos is reviewing a 2026–2035 master plan to professionalize e-commerce, improve digital infrastructure and logistics, and strengthen consumer protection and dispute handling. Transport Connectivity: A new Boten–Vientiane intercity train service began on the China–Laos Railway, enabling same-day round trips for northern commuters and business travel. Economy Watch: Laos inflation rose to 7.8% in September, driven by education and utility costs, with housing/water/electricity/cooking gas the biggest pressure.

China–Laos Defence Ties: China has opened a new China–Laos joint military support and training centre at Ban Keun airport, with a friendship aviation academy now operational, aiming to train Lao air force pilots. Rail & Connectivity: A new Boten–Vientiane intercity train service on the China–Laos Railway launched Monday, enabling same-day round trips and adding stops at Luang Prabang and Vang Vieng. E-commerce & Digital Economy: Laos is reviewing a 2026–2035 e-commerce master plan to boost digital growth, logistics, consumer protection, and cybersecurity. Livestock & Food Supply: Vientiane eased regulated pig movement to stabilize pork supply while tightening African Swine Fever controls through red/yellow/green zones and stricter transport rules. Labour Rights in Agriculture: SOLAR II (EU/ILO) begins in Vientiane to strengthen labour rights and social protection for coffee, tea and forestry workers and small producers through 2030. Finance & Crypto Controls: Laos ordered banks and payment providers to block card payments tied to unlicensed foreign crypto platforms. Regional Business Push: Thai firms are looking to Indonesia for scale as domestic opportunities shrink, using bank-led matchmaking to expand into sectors from agriculture to manufacturing. ASEAN Digital Trust: ASEAN’s borderless digital economy push faces scrutiny over trust, security and inclusion ahead of a planned DEFA signing.

Rail & Corridor Boost: Laos launched the Boten–Vientiane intercity service on the China-Laos Railway, with C95 departing Boten at 8:00am and arriving Vientiane at 11:47am, and C96 returning in the afternoon; the same-day round trips and stops at Luang Prabang and Vang Vieng aim to support commuting, business travel, and cultural tourism along the corridor. E-commerce Push: Laos is reviewing a draft 2026–2035 master plan to grow e-commerce and the digital economy, focusing on digital infrastructure, logistics, AI and cybersecurity, plus consumer protection mechanisms for complaints and disputes. Livestock Supply Stability: Vientiane tightened African Swine Fever controls while easing regulated pig movement, using red/yellow/green zoning, inspection and negative ASF tests for heavier pigs, and route and slaughterhouse hygiene requirements to protect pork supply. Tourism Investment: Khammouane signed a USD 1.2m concession to develop the Khounnamphone nature tourism site in Thakhek District, with 20 zones over 50 years split between development and conservation. Regional Fraud Crackdown: Cambodia says online scam hubs are shifting from large compounds to smaller hidden operations, while authorities continue targeting financial networks and masterminds.

ASF & Pork Supply: Vientiane eased regulated pig movement while tightening African Swine Fever controls, using red/yellow/green zones, route rules to approved slaughterhouses, and document checks for vendors to protect pork availability. China-Laos Railway: The China-Laos Railway launched a new Boten–Vientiane intercity service (C95/C96) with same-day commuting options and stops at key northern stations, aiming to boost tourism and corridor development. E-commerce Push: Laos reviewed a draft 2026–2035 e-commerce master plan to grow the digital economy, with focus on digital infrastructure, logistics, AI and cybersecurity, plus consumer protection for online complaints and disputes. Tourism & Nature Investment: Khammouane signed a USD 1.2m concession to develop the Khounnamphone nature tourism site, splitting land into development and conservation zones and betting on private investment. Regional Scam Crackdown: Cambodia says online scam syndicates are shifting from large compounds to smaller hidden operations, while authorities continue targeting financial networks and masterminds. Cross-border Payments Trend: Vietnam’s cross-border QR payments are moving from basic connectivity toward real economic value for tourism, retail and trade.

Power & Energy Deals: ACEN secured ERC approval for a 10-year power supply agreement with La Union Electric Company in the Philippines, covering solar and coal-linked supply through 2036. Tourism Investment in Laos: Khammouane signed a USD 1.2m concession to develop the Khounnamphone nature tourism site in Thakhek District, with the land split into 20 zones over 50 years. Infrastructure & Urban Branding: Thakhek in Khammouane broke ground on a 2.5 billion kip clock tower aimed at boosting the city’s liveability and tourism appeal. Agriculture & Food Security: African Swine Fever continues to disrupt Laos’ livestock sector, with Vientiane Capital reporting pig deaths and pork movement restrictions, while ASF has spread to multiple provinces. Regional Trade & Payments: Cross-border QR payments in Vietnam are shifting from basic connectivity to real economic value for tourism, retail and trade. SME Capacity Building: ASEAN-China Centre expands training across ASEAN, including Laos, to help SMEs use FTAs, customs processes and cross-border e-commerce to reach China markets. Industry & Logistics Outlook: AIIB’s second-decade push focuses on turning infrastructure plans into bankable projects that attract private capital. Culture & Media: China-ASEAN Film Week opened in Vientiane, featuring selected films and cultural performances through Sept 29.

Infrastructure & Finance: AIIB kicked off its second decade in Doha, focusing on how public money can pull in private capital to turn infrastructure plans into bankable projects. Regional Governance & Trade: UN speakers pushed cooperation on shared challenges, with water and ocean governance featuring prominently. Digital Payments: Cross-border QR payments in Vietnam are shifting from basic connectivity to real economic value for tourism, retail and trade. AI Policy: India defended the right for countries to build their own sovereign AI models at the UN, while Malaysia warned the Global South can’t just host data centres. Laos Business & Industry: Vientiane shut down the KM38 Dharma Practice Center after a leader defied orders over a reborn Buddha claim, while Thakhek began a 2.5 billion kip clock tower project aimed at boosting tourism. Agriculture & Food Security: Laos faces pressure from African Swine Fever as outbreaks spread, with Vientiane markets feeling pork supply limits and rising prices. ASEAN-China Links: ASEAN-China Centre expanded SME training across ASEAN, including Laos, to help firms use FTAs and cross-border e-commerce to access China markets.

Laos Livestock Crisis: African Swine Fever has spread across Laos to seven provinces and 91 districts, with 14,002 pigs lost and losses estimated at over 58.8 billion kip, prompting tighter movement controls and stronger farm biosecurity. Vientiane Food Prices: ASF-linked restrictions are already hitting Vientiane meat markets, with pork sales disrupted and beef prices rising as consumers shift. Urban Infrastructure & Transport: Vientiane plans temporary diversions on Lane Xang Road (Sept 26–27) for the Smart Clean-Cooling Road System works, while Thakhek in Khammouane breaks ground on a 2.5 billion kip clock tower to boost the city’s tourism appeal. Land & Revenue: Vientiane authorities are set to revise official land appraisal prices to better match market values and protect state revenue. Regional Industry & Trade: The ASEAN-China Centre expands SME training across ASEAN, including Laos, to help small firms use FTAs, customs processes and cross-border e-commerce to access China markets. Culture & Film Industry: China-ASEAN Film Week opened in Vientiane (Sept 23–29), featuring selected films and cultural performances to strengthen people-to-people ties and regional screen cooperation.

Laos Livestock Crisis: African Swine Fever continues to bite Laos, with outbreaks reported across seven provinces and 91 districts, killing 14,002 pigs and pushing losses above 58.8 billion kip; authorities are tightening movement controls and surveillance as there’s no widely available vaccine or treatment. Vientiane Urban Management: Vientiane Capital plans to revise official land appraisal prices to better match market values, aiming to reduce inconsistencies and protect state revenue as urban expansion leaves older rates behind. Infrastructure & Construction: A 2.5 billion kip clock tower is breaking ground in Thakhek to boost the city’s skyline and tourism pull, while Vientiane Capital also warns drivers of temporary diversions on Lane Xang Road (Sept 26–27) for the Smart Clean-Cooling Road System project. Regional Trade & Industry: The ASEAN-China Centre expands SME training across ASEAN (including Laos) to help small firms use FTAs, customs processes and cross-border e-commerce to access the China market. Cross-border Business: Laos is mentioned in a wider U.S. trade action where final antidumping/countervailing duties were set on crystalline silicon solar cells and modules from India, Indonesia and Laos. Culture & Tourism: China-ASEAN Film Week opened in Vientiane (Sept 23–29) with Lao and Chinese performances and a lineup of regional films.

Automotive Exports: Vietnam’s car export push is accelerating, with VinFast and Hyundai shipping thousands of vehicles beyond ASEAN to Europe, Australia and the US—though analysts warn “Made in Vietnam” still relies on imported key components and needs deeper R&D to crack tougher US/EU markets. SME Trade Training: The ASEAN-China Centre is expanding training across ASEAN (including Laos) to help SMEs use FTAs, customs processes and cross-border e-commerce to access China markets. Vientiane Land & Transport: Vientiane plans to update land appraisal prices to match market values and protect state revenue, while a Lane Xang Road diversion (Sept 26–27) supports the Smart Clean-Cooling Road System project. Livestock Shock (ASF): African Swine Fever has spread to seven provinces and 91 districts; Laos reports 14,002 pigs lost and urges tighter movement controls and farm biosecurity. Solar Trade Policy: The US finalized steep antidumping and countervailing duties on crystalline silicon solar cells/modules from India, Indonesia and Laos, with Laos’ final AD margin set at 65.43%. Tourism & Culture: China-ASEAN Film Week opened in Vientiane (Sept 23–29), featuring Lao and Chinese performances and selected regional films.

ASEAN–China SME push: The ASEAN-China Centre is expanding training across ASEAN (including Laos) to help SMEs use FTAs, customs procedures and cross-border e-commerce to access the China market. Laos livestock shock: African Swine Fever has spread to seven provinces and 91 districts, with 14,002 pigs lost and authorities tightening movement controls and surveillance while urging farm biosecurity. Vientiane land reform: Vientiane Province plans to update official land appraisal prices to better match market values and protect state revenue, after gaps and inconsistencies were flagged. Smart city works in Vientiane: Temporary diversions are set for Lane Xang Road on Sept 26–27 to support pipe-laying for the Smart Clean-Cooling Road System project. Khammouane tourism landmark: Thakhek begins a 2.5 billion kip clock tower build aimed at improving the urban look and boosting visitor appeal. Trade pressure on solar: The US finalized steep antidumping/countervailing duties on crystalline silicon solar cells and modules from India, Indonesia and Laos, with Laos’ combined rate set at 65.43% (AD) plus 0.00% (CVD) in the final mix. Regional connectivity & development: Foreign Minister Shishir Khanal urged LDC support focused on finance, climate justice and productive capacity to turn UN commitments into action, citing unequal climate risks faced by the poorest countries.

Land & Infrastructure: Vientiane plans to update official land appraisal prices to better match market values, aiming to reduce revenue losses and fix inconsistencies across districts. Public Works Disruption: Temporary traffic diversions are set for Sept 26–27 on Lane Xang Road in Vientiane to support the Smart Clean-Cooling Road System works. Livestock & Food Security: African Swine Fever has spread to seven provinces and 91 districts, with 14,002 pigs lost and authorities tightening movement controls and surveillance. Health Security: UN leaders are pushing a high-level push on pandemic prevention, preparedness and response as funding gaps and new risks strain health systems. Trade & Industry: The US finalized steep AD/CVD duties on crystalline silicon solar cells from India, Indonesia and Laos, with Laos’ combined rate set at 65.43% (and India’s combined rate at 249.13%). Regional Business: Vietnam–Laos Product Week will run Oct 1–4 in Hanoi, featuring Lao rice, meat, beer and tea alongside Vietnamese consumer goods. Digital Economy: Laos-linked identity and payments themes continue regionally, including new partnerships and digital tourism push efforts across ASEAN.

African Swine Fever Response: Laos’ agriculture ministry says ASF is now in seven provinces and 91 districts, with 14,002 pigs lost and losses topping 58.8 billion kip, as officials push early detection, containment and strict farm monitoring. Government Execution: The September cabinet review reported 78% revenue collection and 56% spending execution, with inflation at 7.7%, while also flagging ASF containment, disaster road repairs, and priority plans for October. Irrigation Safety Skills: Korea-funded training equipped Lao irrigation officials with practical dam safety inspection methods, covering dam structures, spillways, seepage checks and gate mechanisms. Trade & Logistics Boost: The newly opened Pinglu Canal is already cutting shipping times for Laos-linked cargo and wider ASEAN trade, improving speed and lowering logistics costs for regional exporters. Cross-border Business Push: Vietnam–Laos Product Week will run in Hanoi from Oct 1–4, featuring Lao rice, beef and tea alongside Vietnamese food and cosmetics to help firms reach the Hanoi market. Digital Payments for Tourism: Sun Group and Visa signed a strategic partnership to expand digital tourism payments and customer experiences in Vietnam, with a focus on APEC 2027. Security Cooperation Against Scams: A Lancang-Mekong law-enforcement body urged tougher action against online scam masterminds, including money-laundering crackdowns and faster information sharing.