Laos’ economic growth is likely to be sustained this year and accelerate in 2019, while inflation will edge up, says a new Asian Development Bank (ADB) report dated Apr 11th,2018.
In ADB’s flagship annual economic publication, Asian Development Outlook (AOD) 2018, the bank forecasts GDP growth for Laos to reach 6.8% in 2018 and increase to 7.0% in 2019.
“Despite the government’s ban on logging exports, tighter credit conditions, subdued international mineral prices, and lower tourist arrivals, the Lao PDR maintains its growth momentum supported by mega infrastructure development projects, increased electricity generation and expanding in service sector,” said Yasushi Negishi, Country Director Lao PDR Resident Mission.
Yasushi Negishi, Country Director Lao PDR Resident Mission
“The industry sector slowdown that began in 2017 persists but is compensated by slightly higher growth in service. Some hydropower projects now under construction will come online in 2019, notably the 1300 MW Xayaboury dam, industry sector will reverse its declining trend, “said Rattanatay Luanglathbandith, Public Management Specialist.
Meanwhile, barring more bad weather, agriculture should continue to grow around 3% and service sector growth is expected to strengthen mildly as tourism is expected to recover from last year with Visit Laos Year 2018.
While the growth momentum is maintained, inflation is expected to remain at a moderate 2 – 2.5% range. The current account deficit is projected to expand to 14.9% of GDP in 2018 as higher inflation, rising international oil prices and large import machinery for the mega infrastructure projects drive up the import bill while export growth moderates.
When the new hydropower projects start operations, the electricity export is expected to pick up in 2019, pushing the current account deficit down to 13.7% of GDP.
External risks to the country’s outlook include an unexpectedly large slowdown in trade and heightened instability in global or regional financial markets. A bigger risk could manifest itself if government efforts to consolidate its finances are not successful, threatening debt distress under the condition that foreign exchange reserves barely cover normal imports.
“A development challenge for the country is a mismatch between the skill that young people acquire in schools and those in demand in the labor market, said Luanglathbandith.
“There had been substantial efforts made by the government to generate employment and income for people in the Lao PDR,” he explained.
“For more inclusive growth, the government needs to further enhance its efforts to provide labor with skill sets to respond to demands in the labor market, ” added Luanglathbandith.
PTT Public Company Limited, one of Thailand’s largest fuel distributors, says it has plans for further expansion in Laos. After entering the Lao market six years ago, the company has had good success, and plans to expand the number of its petrol stations in Laos from 45 to 100 by 2022.
The company’s expansion is in line with the growing number of vehicles registered throughout the nation, which has caused rapid growth in fuel consumption.
PTT strives to provide the highest quality fuel and the best service, with expansion of petrol stations based on direct investment by the Thai company as well as offering franchise agreements to local partners.
A PTT petrol station franchise costs between 15 million Thai baht and 35 million Thai baht. There are three types of PTT stations that investors may choose from, including platinum, standard, and complex. Platinum is the top model, which includes facilities such as retail fuel distribution services, convenience stores, restaurants, and bank service units.
The Thai brand is already well known by Lao people who frequently travel to Thailand, and has quickly gained
popularity in Laos. This positive reaction by the market has meant the company is now ready to expand further into the Lao market.
The company sells not only fuel, but convenience, and the PTT service stations have become a one-stop location for shopping, dining, and banking, as well as fuel purchase.
PTT has lifted the bar for petrol station business standards in Laos, and ultimately has created a better experience for consumers.
Officials from the Vientiane Department of Industry and Commerce performed a random inspection at multiple markets such as Kuadin Market, Aussie Market, Phonthong Market and others to ensure that vendors were obeying the ministerial order to not hike up prices during the Pi Mai holiday.
A celebratory procession along the major avenues of the capital city of Laos was organized to celebrate the recognition of Lao khaen music as UNESCO World Intangible Cultural Heritage.
Taking part in the celebration were Deputy Prime Minister Sonexay Siphandone, Minister of Information, Culture and Tourism Bosengkham Vongdara, representatives of relevant state bodies and residents of the capital.
The official khaen procession began at Jao Fagnum Park, and proceeded to the Presidential Palace, then Patuxay Monument before making a quick stop for a wreath-laying ceremony at the Tomb of the Unknown Soldiers. parade continued its way along Kaysone Phomvihane Avenue. Capital residents stood on the roadsides showering the parade with prideful cheers and support.
The procession then made its way to Kaysone Phomvihane Memorial where there a wreath was also placed and Khaen music showcased. The parade then headed to the National Cultural Hall. The history of Khaen was read aloud and a series of Khaen shows performed at the hall in the evening of the same day.
The khaen music of the Lao people is played with a mouth organ that resembles panpipes but made with bamboo tubes of varying lengths, each with a metal reed, according to UNESCO.
The player blows into the instrument through an air chamber and the sound produced depends on the size of the tube.
Khaen music is popular in all regions of Laos due to its harmonic richness. It is usually an incremental part of village festivals and it is customary for people listening to it to become active participants in the songs and dances, rather than merely spectators.
Khaen music is an integral part of Lao life that promotes family and social cohesion. Thanks to the use of bamboo, the practice is also linked to natural agriculture and healthy lifestyles. Families play an important role in transmitting the art and khaen player associations exist in many local communities where young people can learn the art.
To maintain the practice in spite of lifestyle changes, several local communities, associations and groups have commenced various initiatives to consolidate and promote it through formal and non-formal education.
In 2005, the Association of Khaen Arts was established and various festivals are organized to promote and enhance the art.
Source: KPL
Photo Credit: Support Prime Minister Thongloun Facebook Page
At the 3rd MRC Summit held in Siem Reap, Cambodia on the 4th of April, prime ministers of the four member countries Cambodia, Laos, Thailand and Vietnam affirmed their resolve to push Mekong cooperation in order to utilise development opportunities and overcome challenges.
With the theme “’Enhancing Joint Efforts and Partnerships towards Achievement of the Sustainable Development Goals in the Mekong River Basin,” the summit also saw the participation of the Minister of Water Resources of China and the Minister of Environment of Myanmar, the two dialogue countries of the MRC, and representatives from other development partners.
The summit reviewed cooperation within the commission and the implementation of commitments made at the second summit in Vietnam’s Ho Chi Minh City in 2014, while identifying priority areas in the next periods.
They agreed to apply the set of procedures of the commission on the sustainable, reasonable and equal use of water resources and other resources of the Mekong River.
They shared the view that the MRC should promote its role in orienting cooperation and setting forth specific measures in order to achieve sustainable development goals (SDGs) in the region.
It is necessary to enhance cooperation with mechanisms in and outside the region such as the Association of Southeast Asian Nations (ASEAN), the Mekong-Lancang cooperation, the Greater Mekong Sub-Region cooperation and other international river basin management organizations, while encouraging public involvement in these efforts, the summit heard.
The delegates approved the Siem Reap Declaration which acknowledges achievements recorded by the commission, points to opportunities and challenges for the Mekong River Basin and affirms the importance of Mekong cooperation as well as the acceleration of the implementation of the 1995 Mekong Agreement.
The document also outlines priority activities of the commission for the next four years and long-term orientations for cooperation within the commission.
The Mekong Committee was established in 1956, under the auspices of the United Nations to coordinate aid and manage resources in the river basin.
In 1995, Cambodia, Laos, Thailand and Vietnam signed an Agreement on the Cooperation for the Sustainable Development of the Mekong River and set up the MRC, replacing the Mekong Committee.
The MRC holds its summit every four years, starting from 2010. The first MRC summit was held in Hua Hin, Thailand in 2010 and the second one took place in Ho Chi Minh City, Vietnam in 2014.
It can be hard to say goodbye to a place, especially when you’ve uncovered a special, life-lengthening secret along the way. In 1945, when World War II was ending and the Japanese ended its occupation of Southeast Asia, one Japanese soldier was left behind in Xiengkuang Province.
Maybe he chose not to join his fellow troops as they returned to their home country. But the stories that have been told since are certain of one thing: he stayed in Laos for decades. And when he finally made his way home to Japan and reconnected with his fellow war veterans, he couldn’t help noticing that time had not been kind to them.
He, on the other hand, was strong as an ox, with the vitality of a man far younger than his advancing years. His friends were amazed, and demanded to know his secret.
It was simple, he told them. He had, for all these years, been feasting regularly on the matsutake mushrooms that grow in abundance in Xiengkuang. The same mushrooms that are, even today, considered a delicacy in Japan, purchased as shavings in a side dish, rather than harvested freely under the pine trees.
The story – possibly embellished – has become part of local Lao lore when it comes to the restaurant and dining trade. But when Xiengkuang native Manola was setting up Kualao Restaurant, five decades after the Japanese left the country, she had no recollection of matsutake – also known as “pine” mushrooms – being anything out of the ordinary when she was growing up. Nor did her own mother. But in her mission to promote the finest Lao cuisine, and out of a love for her home province, she included the mushrooms on the Kualao menu.
Eventually, a Japanese film crew made its way to the restaurant, where they filmed a Japanese tourist feasting on a plate of matsutake.
“I feel like a king, being able to munch on a whole matsutake mushroom like this,” he said. “In my country, we only get to eat very, very thin slices. It’s very rare and very expensive in Japan.”
But the film crew was not the first sign of interest from the Japanese. Years before, a Japanese researcher had happened upon an online review of the restaurant, and travelled to Laos to learn more about the origins of the mushroom, already well-known for its medicinal qualities. He travelled with Manola to Xiengkuang and took some soil samples home to Japan, where he determined that these were the exact same species as the ones grown in Japan.
Today, matsutake are known to grow in China, Japan, Korea, Laos, Canada, Finland, Sweden and the United States. In Laos, a steady stream of Chinese and Vietnamese traders travel to Xiengkuang to buy up the sought-after and readily-available mushrooms.
Down in the capital, the mushroom is still widely popular, especially when served infused in traditional Lao whiskey. Kualao is famous for its own version of bottled matsutake whiskey and was among the first restaurants to promote the mushrooms for their rarity and medicinal qualities. Many wealthy diners will order it to impress their guests, especially senior business and state officials.
The restaurant is also, not surprisingly, the Japanese Embassy’s first choice when introducing visiting dignitaries to Lao cuisine; the Crown Prince of Japan and four different Japanese prime ministers have dined there over the years, no doubt regaled by the legend of the youthful World War II soldier who lingered in the north, knowing he was onto a good thing.
I am standing in an immense, high-ceilinged wood and thatch building. There are no walls, so a slight breeze provides some respite from the heat, while Mr Viphat’s gravelly voice is recounting a story.
It is said that, long ago, a great flood covered the world, leaving two survivors – a woman, Anoi Amek, and a dog, Apuu Paner. The dog wished to marry the woman, but she refused. She would only marry the dog if he fetched fire from the mountaintop.On the first two attempts, the streams he crossed extinguished the fire upon his return. On the third attempt, he succeeded by placing the fire in a gourd tied around his neck, and Anoi Amek and Apuu Paner united. Their human offspring married, and their children are the Katu people.
Carving of Anoi Amek
Mr Viphat is the village chief of Ban Kandone, an ethnic Katu village in Sekong Province in southern Laos. He is also the community’s unofficial historian, tourist guide, and culture keeper.
The Katu are traditionally swidden cultivators and skilled hunters living in the Annam Mountains in southern Laos and central Vietnam (the Central Annamite Mountain region). The total population, which amounts to approximately 300,000 peoples, is roughly evenly divided between the two countries.
The story of Anoi Amek and Apuu Paner is the Katu people’s origin myth, and we’re looking at painted statues of the two central characters placed on a cross-beam of the building. We are in Kandone’s communal house, called the rong, which is both the physical and spiritual centre of the community. The homes of the residents form a wide circle around the rong, facing it, and village meetings, festivals, and feasts all take place in and around the building. It is decorated with carvings of animals and humans and nature motifs, representing beings from their environment, myths, and ancestors. Huge snakes extend across joists, and turtles, birds and lizards perch under the eaves. In one corner, a dozen buffalo skulls with their curved horns are hung on top of each other. Mr Viphat explains that these are from their annual buffalo sacrifice, the largest and most important ceremony of the year. He points to three wooden poles in front of the rong.
Mr Viphat in front of the newly painted community house
“This is where we tie the buffalo. For a large village, like ours, we can afford to kill many buffalo. For a small village, perhaps only one. Every family joins the feast.”
Mr Viphat shows me around Kandone, which is a government-designated tourism and cultural village in Sekong Province, though it does not currently receive many visitors, being somewhat off the beaten track. It’s about 21km from the popular Bolaven Plateau loop and its coffee plantations, and about two hours from Pakse town. The village’s striking communal house is the main draw, but the clean and friendly community also boasts homestays, a waterfall, and one remaining traditional coffin. This may seem like an unusual “sight”, but Mr Viphat points it out with pride. Carved out of one solid piece of wood, the tubular coffin is decorated with sculpted serpent heads and curlicues and is stored under a rice granary. Its owner, now in his 80’s, made it over 10 years ago in preparation for his death. These days, Katu tend to be buried in more traditional plywood box coffins, or those made of concrete. It’s now difficult to find trees of the size needed or people with the time and skills to craft the coffins.
“Where will he be buried?” I ask. Mr Viphat indicates an area beyond the edge of the settlement. Their cemetery is a collection of tomb houses – a village of the dead – where the ancestor spirits live. The village of the living and the village of the dead are each other’s mirror image and complement: the living need the ancestors for protection and the ancestor spirits depend on their living descendants for care and attention in the form of ritual food offerings.
Kandone is also home to many skilled weavers. The Katu weave on backstrap looms, an ancient technique of creating cloth. Different from the frame looms used by the Tai groups, such as the Lao and Tai Daeng people, the women sit on the floor and use the extension of their legs and their weight to extend the warp threads. Katu backstrap loom weaving is also distinctive for using weft-based beading, creating graphic designs which require a great deal of patience and skill. Traditional textiles would be red, black, and white, with lead or aluminium beads. Today, textiles come in a rainbow of colours with the availability of pre-dyed yarns from the market, and are accented with plastic beads.
Interior of a Rong
As we walk down the main thoroughfare of the village I see that several houses have textiles for sale, simply hung on wires strung between supporting pillars. Their owners look at me hopefully as I browse. Mr Viphat shows me a small half-constructed house towards the entrance of the community. He’s trying to build a handicraft shop, where everyone can leave their products to sell. “At the moment, tourists have to go house-to-house to buy. If you’re not home that day, you have lost your chance to sell your textiles.” He doesn’t lack entrepreneurial spirit – he explains he’ll charge each artisan a percentage when their craft is sold, an opportunity for both him and the sellers. He hopes more tourists will visit and the community will gain a source of supplementary income.
Our tour of the village ends back in the rong. School is out, and the children have come to gaze at the foreign visitor. They chase each other across the wide building, bare feet pounding the smooth floorboards, and hide behind poles carved with monkeys and humans. They scamper up and down the precarious narrow stairs, and shout to each other in Katu. Their comfort and familiarity here in the heart of their community is clear. Kandone doesn’t need tourists or a government title to keep their culture intact.
To learn more about the ethnic groups of Laos, visit the Traditional Arts and Ethnology Centre in Luang Prabang.
Standing on the baking hot tarmac at Vientiane’s international airport on a May afternoon, Soudaphone Visounnarath doesn’t quite know what to do with her arms. She’s a bit embarrassed to don the pilot’s cap she rarely wears, and is a tad uncomfortable in her full uniform outside on such a hot day.
But when the photographer’s shutter starts clicking, her chin lifts and she looks every bit the authoritative, in-control pilot that she is.
And she doesn’t seem remotely fazed to be the country’s first female pilot, at the age of just 24. Her father spent his career as a flight engineer for Lao Airlines, and Manoy, as she’s known, remembers a house full of technical talk and aeroplane paraphernalia.
So when, as a teenager finishing school, she saw an ad for pilot training with Lao Airlines, it seemed like it would be the perfect fit.
“I like to fly and I love to travel. So I applied, passed the examination, and got in,” she says. It was as simple as that, although the two-year course was, not surprisingly, incredibly challenging.
She and her fellow students had to learn, in minute detail, everything about aeronautical engineering, about aircraft, about navigation and meteorology. They had to fly for the first time in a single-engine plane, then in a multi-engine one.
Being a female pilot in a male-dominated field is tough, she says, but no more so than in any other profession. Manoy spent two years studying in Toulouse, France, as part of her course. And at every phase, she was pretty much the only woman in the room.
“People think it’s not the right job for a woman, but actually, most countries have male and female pilots,” she says, shrugging. “But it’s really quite a new thing in Laos.”
Soudaphone Visounnarath
As a mentor to younger aspiring pilots, ahe is already blazing a path for those in her wake; there are two more female trainees waiting in the wings to graduate in Laos.
And nothing took away from the thrill of her first solo flight – April 22, 2014. It was, she says, a big moment for her, and a feeling of release.
“Normally you have an instructor beside, talking and talking, but finally, I could sit back and say, ‘This plane is mine!’,” she says, although, she adds, that first flight was just one circuit – a take off, turn around and landing.
Nowadays she flies an Airbus A320, mainly on international flights but also to Luang Prabang. She says lots of people are surprised to learn of both the extent and limits to what a pilot needs to know at any one time. For instance, aeroplanes are not like cars; just because you can fly one does not mean you can take command of all others.
Also, while Manoy flies as a First Officer, she has her eye firmly on becoming a fully-fledged captain. But first, she needs to attain the age of 27, and pass more exams. So, three more years to go.
In the meantime, she is more than happy with her own place in the skies over Asia.
“I love to travel and I love to be in the sky,” she says.
“When you’re in the sky and looking around at the amazing view, it’s just so beautiful.”
