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Monday, February 16, 2026
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Vietnam-Backed Aluminum Project in Sekong Advances Toward 2028 Launch

This Week

A major aluminum smelting project in Sekong Province is expected to produce up to 1 million tonnes of aluminum annually once fully operational, with production scheduled to begin in 2028, according to the Ministry of Industry and Commerce.

The project, operated by Vietnamese firm Vietnam-Phuong Group (VPG), is located in Dak Cheung district and focuses on mining bauxite. Construction of the USD 1 billion Bauxite-Alumina Mining Industrial Complex began in late 2022, covering nearly 9,000 hectares, making it the largest mining investment by Vietnam in Laos.

The Lao government granted approval for the project in September 2025. Following the completion of all necessary mining research and site clearance, the project is poised to become a major contributor to Laos’ industrial growth, energy supply, and potential exports.

Minister of Industry and Commerce Malaithong Kommasith visited the site on 3 February to monitor progress, address operational challenges, and evaluate community impact mitigation measures. He emphasized that responsible project management is crucial for ensuring sustainable benefits for both the company and local residents.

The Minister praised the company’s commitment to minimizing community impacts and encouraged greater involvement of local residents in supplying materials and services to the project, thereby creating employment opportunities for the locals.

Bauxite Mining in Laos

Bauxite is a reddish clay material found in tropical regions. It is primarily composed of aluminum oxide compounds, silica, and iron oxides. 

About 70 percent of global bauxite is refined through the Bayer process into alumina, which is then processed into pure aluminum metal.

Bauxite mining in Laos has a controversial history, particularly in neighboring Champasak Province. 

A 2020 briefing by Mekong Watch highlighted concerns over the Sino-Lao Aluminum Company (SLACO) project on the Bolaven Plateau, backed by Thai and Chinese interests. 

Local communities resisted the 135 kilometres squared project, citing threats to livelihoods, health, and environment, including potential water and air contamination. 

Against this backdrop, officials have emphasized that the Sekong project must meet environmental standards, manage waste and water carefully, and maintain transparent engagement with affected communities as operations scale up.

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