AGP Executive Report

Laos Economy: Laos’ economy grew 4.8% in the first nine months of 2026, up from 4.6% last year, driven by processing and manufacturing, private investment and electricity, including new wind power. Tourism also picked up as international arrivals rose 7%, but agriculture is still under pressure from higher fuel costs, African Swine Fever and natural disasters. China–Laos Security: China has started operating a new Joint Support and Training Center and Friendship Aviation Academy at Ban Keun Airport, north of Vientiane, as part of deeper military cooperation and pilot training. Laos–Thailand Ties: Laos and Thailand reviewed progress and set directions for the 23rd Joint Commission meeting, focusing on border security, land and water demarcation, anti-drug and anti-trafficking work, plus connectivity and tourism. Education Support: The MoES, with Australia’s BEQUAL program, is piloting new multigrade teaching guidelines in 30 schools across Luang Namtha, Xiangkhouang and Savannakhet. Food Output: Laos produced 2.33 million tons of food crops in the first nine months, hitting 90% of the annual target, with flooding and other disasters still a risk. Sports Spotlight: Nepal’s karate breakthrough at the Asian Games came from Tenzing Sherpa, who won bronze after beating Laos’ Xayasan Vatthana.

Lao State Leadership: Laos’ National Assembly opened its second ordinary session in Vientiane on Oct 5, electing Sonexay Siphandone as President of the 10th NA and approving Saleumxay Kommasith as Prime Minister, with lawmakers set to review major national reports through Oct 21. Lao-Thai Cooperation: Laos and Thailand met in Luang Prabang to prepare for the 23rd Joint Commission meeting, agreeing to push forward border security, connectivity, tourism, energy and cooperation against transnational crime, drugs, cybercrime and human trafficking. Luang Prabang Bridge: The planned 820-metre Mekong bridge linking Chomphet District and Luang Prabang Town moved to the next stage, with environmental and social impact work and detailed design completed and construction expected to start in 2027. China Military Aviation Training: China and Laos began operating a joint air support and training center at Ban Keun Airport, adding an aviation-focused military presence near Vientiane for Lao pilot training. US Deportation Case: A Laotian man deported by the US to Eswatini under a third-country policy was released after more than a year in maximum-security prison and is reportedly on his way back to Laos. Wildlife Crime: A regional report warns that fewer than half of tiger trafficking arrests in Southeast Asia lead to convictions or penalties, leaving organized networks largely undeterred.

China–Laos Military Ties: China has opened the China–Laos Joint Support and Training Center and the Friendship Aviation Academy at Ban Keun Airport, with a new runway and aviation facilities, as analysts say it expands Beijing’s power projection in mainland Southeast Asia. Mekong Water Tensions: A report argues China’s limited cooperation with downstream states is turning the Mekong into a geopolitics battleground, despite the river’s lifeline role for Laos and the region. Laos–ASEAN Connectivity: Thailand and Laos discussed a single customs and immigration checkpoint to speed cross-border trade and travel. Laos Economy & Trade: Laos Gold Festival 2026 drew over 50,000 visitors, with Lao consumers buying 230kg of gold worth about US$33m in three days, supporting plans to position Laos as an ASEAN gold hub. Sports: The Asian Games closed in Japan and head to Doha in 2030, with Laos among the bottom four medal winners (one bronze). Regional Crime Crackdown: The Philippines arrested 244 suspects in a crackdown on online scam operations linked to offshore gaming firms.

China–Laos Military Ties: China’s new joint support and training centre and aviation academy at Ban Keun, about 50km north of Vientiane, have started operating, with a new runway and facilities built on farmland—Beijing says it’s for training Lao pilots and not aimed at third parties, while analysts warn it expands China’s air-power reach in mainland Southeast Asia. Regional Water Politics: A report says China’s approach to the Mekong has turned the river into a geopolitics flashpoint, arguing cooperation with downstream states is weaker than with upstream partners—an issue that matters directly for Laos and other Mekong lifeline countries. Laos Gold Push: Laos saw 230kg of gold sold in three days at a Vientiane festival worth about US$33 million, reinforcing efforts to position Laos as an ASEAN gold hub as buyers seek a safe hedge. Cross-Border Trade Talks: Thailand and Laos discussed a single customs and immigration checkpoint to speed up procedures and boost connectivity. ASEAN Energy Watch: Plans for wider Thailand–Malaysia power sharing face new doubts as AI and data-centre demand strain peak-hour trading margins. Fraud Crackdown Link: China is also expanding international police cooperation against telecoms and cyber fraud, including a new alliance with East African partners.

China–Laos Military Ties: China has opened the China–Laos Joint Support and Training Center near Ban Keun, about 50km north of Vientiane, with a new runway and aviation academy, as analysts say it could deepen Beijing’s overseas military reach. South China Sea Watch: Separate reporting says China is also pushing ahead with runway construction on Antelope Reef in the Paracels, with analysts estimating completion by mid-2027. Regional Energy Trade Doubts: ASEAN power-sharing plans face new hurdles as AI and data-centre demand make cross-border electricity trading less workable, shifting interconnections toward emergency grid support. Cross-Border Facilitation: Thailand and Laos discussed a single customs and immigration checkpoint to speed up trade and travel. Laos Infrastructure: Bolikhamxay is finalizing land compensation rates for the Vientiane–Hanoi Expressway, a key link to Vietnamese ports, with payouts expected after household consultations. Gold Market Signal: Laos saw 230kg of gold sold in three days during a Gold Festival, reinforcing plans to position Laos as an ASEAN gold hub. Crime Case Linked to Laos: Japanese police arrested nine people over an alleged fraud operation based in Laos.

China–Laos Military Ties: China has officially opened a new joint military training and support centre at Ban Keun, about 50km north of Vientiane, with a new runway and aviation academy—Laos says it’s for training Lao air force pilots, while analysts warn it could expand China’s regional military reach. Regional Security Watch: Malaysia’s foreign policy analyst says it’s premature to treat the Ban Keun facility as a threat without more details from Vientiane, urging transparency through diplomatic and ASEAN channels. Cross-Border Trade: Thailand and Laos discussed a single customs and immigration inspection checkpoint to streamline cross-border trade and improve connectivity. Infrastructure for Connectivity: Laos is finalising land compensation rates for the Vientiane–Hanoi Expressway, with meetings held across route districts as the project moves toward payouts. Economy & Markets: Vietnam plans further capital-market reforms to mobilise medium- and long-term funding for double-digit growth, including a market upgrade to secondary emerging status. Sports: Laos-linked coverage also appears in regional Asian Games results, including Laos athletes facing Japan in judo events. Public Interest: A Lao Gold Festival in Vientiane reported strong gold purchases and deposits, reinforcing gold’s role as a safe investment for consumers.

China–Laos Military Ties: China has opened a joint flight training and support centre at Ban Keun airfield north of Vientiane, with Laos officials attending the launch of the China-Laos Joint Support and Training Center and the Friendship Aviation Academy, as analysts say it signals a growing Chinese overseas military footprint. Fraud Crackdown: Japanese police arrested nine Japanese nationals over an alleged fraud operation run from Laos, with investigators looking into links to a wanted suspect in a Japan robbery-murder case. Regional Security: Indonesia urged continued cooperation to prevent tensions in the South China Sea, highlighting ASEAN mechanisms and calling for practical confidence-building steps. Infrastructure Watch: Bolikhamxay has moved ahead with compensation preparations for the Pakxan–Thanh Thuy section of the Vientiane–Hanoi expressway, a key Laos–Vietnam corridor. Diplomacy: Laos and Trinidad and Tobago established diplomatic relations at the UN, bringing Laos’ total to 155 countries. Economy & Policy: Laos reported inflation rising to about 7.9% in September, while Vietnam announced plans to deepen its capital market to back double-digit growth. Environment: Laos voted against a South Atlantic whale sanctuary bid at the International Whaling Commission meeting.

Laos–Vietnam Connectivity: Bolikhamxay Province is moving ahead with preparations for the Pakxan–Thanh Thuy section of the Vientiane–Hanoi expressway, posting a draft compensation plan for affected residents covering land, buildings, crops and fruit trees, with payments to be transferred within 60 working days after approvals. Economic Pressure: Laos’ inflation climbed to 7.9% in September, up from 7.7% in August, driven by higher fuel prices, education-related costs and seasonal price moves, with housing and utilities rising sharply. Diplomacy: Laos officially established diplomatic relations with Trinidad and Tobago at the UN, bringing the total number of partners to 155 worldwide. Regional Ties: Prime Minister Sonexay Siphandone met Thailand’s deputy PM and foreign minister ahead of the 23rd Lao-Thai Joint Commission meeting, aiming for practical outcomes and deeper cooperation. China–Laos Spotlight: China’s National Day flag-raising also took place at the Mohan Railway Port on the China–Laos Railway, underscoring the corridor’s role in cross-border traffic. Tourism & Trade: Vietnam–Laos Product Week opened in Hanoi to boost market links, while China’s National Day holiday is expected to drive a major travel surge, with flights to Laos among those rising.

MIA Awareness Drive: VFW Commander-in-Chief Cory Geisler urged support for the Defense POW/MIA Accounting Agency after touring DPAA recovery work in Vietnam, including a memorial for an Mi-17 crash that killed Americans and Vietnamese. Public Health Measures: Laos has imposed a ban on domestic travel between localities and provinces to curb viral spread, with limited exceptions for goods transport and medical needs. Diplomacy: Laos and Trinidad and Tobago officially established diplomatic relations at the UN in New York, bringing Laos’ total to 155 partners worldwide. Economy Watch: Laos’ inflation rose to 7.9% in September, driven by higher fuel prices and education-related costs, while housing, water, electricity and gas saw the biggest jump. China–Laos Military Ties: China and Laos opened a joint support and training centre at Ban Keun Airport near Vientiane, saying it is for training Lao air force pilots and not aimed at third parties. Regional Security & Rights: A Thailand-based rights group says Lao activist Khieo Lapchanh has been missing since Sept 15, raising fears of transnational repression. Sports: India’s Asian Games run continued with rare silver medals in sailing and Greco-Roman wrestling, while Laos’ own sports coverage included regional updates and Laos-linked athlete stories.

China–Laos Military Ties: China opened a joint support and training centre plus an aviation academy at Ban Keun Airport north of Vientiane, with satellite imagery showing a new paved runway and buildings; both sides say it’s for Lao air force pilot training and “not directed at any third party.” Border Trade Upgrade: Vietnam and Laos agreed to upgrade the Huoi Puoc–Na Son border gate to international status in 2027, aiming to expand trade and logistics links. Road Compensation: Laos is paying compensation to residents affected by the Pakxan–Thanh Thuy expressway project, part of the Lao–Vietnam capital link. Activist Missing in Thailand: A Thailand-based Lao activist, Khieo Lapchanh, has been missing since mid-September; a human rights group warns of possible transnational repression after threats over government-critical videos. Sports Spotlight: India’s men’s sepaktakraw quadrant team secured at least bronze at the Asian Games by reaching the semifinals; Bahrain’s Sukhrob Boqiev won bronze in men’s -66kg karate. Local Diplomacy: Laos’ Foreign Ministry held a lecture in Vientiane marking major national historical anniversaries and Laos–Vietnam friendship milestones.

China–Laos Military Aviation: China and Laos have inaugurated a joint air force support and training centre at Ban Keun Airport near Vientiane, aimed at training Lao air force pilots and jointly operated by both sides, with officials saying it does not target third parties. Aviation Training in Laos: Laos and China also opened a Joint Aviation Training and Support Center and Laos–China Friendship Aviation College at Ban Keun, framed as a step up in military aviation cooperation and pilot skills development. Education & Literacy: Laos’ Ministry of Education and Sports launched new research to boost Lao language skills and literacy in primary schools, especially for children who don’t speak Lao at home, supported by Australia’s BEQUAL program. Environment Funding: Laos held a GEF-9 planning workshop in Vientiane to set priorities for environmental and climate action, including sustainable forestry, climate-resilient farming, Mekong water security, and hazardous waste management. Farmers’ Rights: The SOLAR II project began its second phase to strengthen social protection, labor rights, and occupational safety for more than 32,000 farmers across seven provinces. Digital Security Deal: Kaspersky and Best Telecom expanded cooperation in Laos to strengthen cybersecurity for telecom and financial services, including bundled consumer protection services. Social Protection for Farmers: The SOLAR II rollout highlights ongoing gaps in contracts, awareness of safety rules, and social security coverage in rural coffee, tea, and forestry sectors.

China-Laos Military Cooperation: China says its new China-Laos Joint Support and Training Center and Friendship Aviation Academy are now operating at Ban Keun airport, aimed at training Laos air force pilots, while insisting the move is “not directed against any third party.” ASEAN Media Coordination: Laos hosted the 27th ASEAN committee culture and information sub-committee on information meeting in Vientiane, focusing on stronger regional media cooperation and tackling fake news amid rapid digital change. Laos Economy Watch: Laos inflation rose to 7.8% in September, with education and utility costs cited as key drivers. Regional Security/Justice: U.S. authorities reported 104 arrests in a Kansas ICE operation targeting noncitizens with criminal convictions, including a person identified as Lao, while rejecting claims of indiscriminate “sweeps.” Sports (Regional Spotlight): Vietnam topped the Southeast Asian Pencak Silat Championships, with Laos among participating countries, while Asian Games coverage highlighted medal action across archery and squash.

China-Laos Military Ties: China opened a new China-Laos joint support and training center and the China-Laos friendship aviation academy at Ban Keun airport, aimed at strengthening Laos air force pilot and ground crew training, with Beijing saying it is not directed at any third party. ASEAN Media Cooperation: Laos hosted an ASEAN culture and information meeting in Vientiane to set directions for regional information and media work, including tackling fake news and synthetic media. Inflation Watch: Laos inflation climbed to 7.9% in September, driven mainly by higher fuel prices and education-related costs, with the central bank targeting below 7% for 2026. Food Security & Disease Control: Laos eased regulated pig movements to keep pork supply stable while tightening African Swine Fever surveillance using red/yellow/green zones. Labour Rights in Agriculture: SOLAR II launched in Vientiane to improve labour rights and social protection for coffee, tea and forestry workers, expanding coverage to more districts through 2030. Digital Payments: Vietnam reported a surge in cross-border QR payments, with visitors from Laos and Thailand using VietQR Global codes more than doubling in volume and value. Sports (Regional Interest): Philippines women’s sepak takraw won historic silver after losing to Vietnam in the Asian Games doubles final.

ASEAN Cooperation: Laos hosted the 27th ASEAN committee on culture and information sub-committee on information in Vientiane, pushing stronger regional media ties and tackling disinformation and synthetic media. Humanitarian Response: Plan International Laos launched emergency relief after Typhoon Maysak hit Luang Namtha, supporting 500 households with food, clean water and WASH, with special concern for girls and young women. Cluster Munitions: Cambodia’s CMAC chief Heng Ratana told a Vientiane conference that alleged Thai cluster munitions use affected hundreds of villages and tens of thousands of people, reaffirming the ban. Labour Rights in Agriculture: SOLAR II began in Vientiane 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. Food Security: Laos eased regulated pig movement while tightening African swine fever controls using red/yellow/green zones to keep pork supply stable. Digital Payments for Tourism: Vietnam’s cross-border QR payments surged, with visitors from Laos and other neighbors using familiar apps to spend more easily. Transport Connectivity: The Boten–Vientiane intercity train service launched on the China–Laos Railway, enabling same-day round trips for northern residents. Sports Spotlight: Laos featured in Asian Games sepak takraw as the Philippines beat Laos in women’s doubles semis, then lost to Vietnam in the final for silver.

China-Laos Railway: Laos launched its first morning intercity train service between Boten and Vientiane on the China-Laos Railway, with C95 departing Boten at 8:00 am and arriving Vientiane at 11:47 am, and C96 returning at 2:05 pm (arriving 6:32 pm), stopping at six stations and enabling same-day round trips for work, business and family visits. Digital Economy: Laos is reviewing a draft 2026–2035 master plan to strengthen e-commerce and grow the digital economy, focusing on digital infrastructure, logistics, AI and cybersecurity, plus consumer protection mechanisms for online complaints and disputes. LDC Graduation: Laos reaffirmed its commitment to a smooth, sustainable exit from Least Developed Country status, with graduation scheduled for November 24, 2026, and reiterated support for multilateralism at the UN General Assembly. Sports Cooperation: Laos and Cuba moved to deepen cooperation in sports science and education, including a signed agreement between Cuban and Lao universities on exchanging technical knowledge, research and staff. Regional Diplomacy: Thailand’s foreign minister will visit Laos from Sept 30 to Oct 2 to co-chair the 23rd Lao-Thai Joint Commission meeting, aiming to expand bilateral cooperation. Humanitarian Support: The Swiss Red Cross handed over vehicles and equipment to the Lao Red Cross to boost blood donation services and school/community emergency preparedness. Asian Games Spotlight: In Japan, the Philippines’ women’s sepak takraw team beat Laos to reach the gold-medal match, while Laos’ presence continues to be felt across the region’s sport scene.

Laos–EU Partnership: Laos is moving into a new phase with the European Union, with support shifting toward sustainable investment, private-sector growth, trade, jobs and connectivity as both sides prepare for the next stage of cooperation. LDC Graduation Push: Laos says it is on track to graduate from Least Developed Country status by the end of this year, backed by a Smooth Transition Strategy to manage the exit. Culture & People-to-People Ties: The “Lancang-Mekong Melodies: Lao People Singing Chinese Songs” grand final was held in Vientiane, drawing more than 700 people and promoting youth interest in Chinese culture. Tourism Momentum: Laos is ranked among the world’s fastest-improving travel and tourism economies in the World Economic Forum’s 2026 index, with a 6.1% improvement from 2024 to 2026. Cyber-Scam Crackdown Focus: Regional efforts to fight online scams are intensifying, with Interpol warning that romance and financial fraud linked to organised syndicates is increasingly threatening Asian economies, including Laos. Sports Spotlight (ASEAN Cup): Laos’ football team faces scrutiny after alleged match-fixing and heavy defeats, with coach Vladica Grujic under pressure ahead of the FIFA ASEAN Cup.