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Seven Missing in Houaphanh after Tropical Storm Wipha

Seven Missing in Houaphanh after Tropical Storm Wipha

Seven people have been reported missing in the wake of Tropical Storm Wipha which caused flash floods in Houaphanh Province last weekend.

Authorities in Houaphanh Province say flash floods caused by the storm swept away seven villagers in Viengxay District. A search operation is being conducted along the Xia Stream, which runs close to the border with Vietnam. So far the victims have not been found.

Flooding in Houaphanh has affected 18 villages, with the estimated cost of damage amounting to LAK 18 billion.

Viengxay district authorities have also called upon Vietnam for assistance in the search for missing flood victims, according to an article in VN Express. A letter was sent to official counterparts in the neighboring Vietnamese district requesting urgent assistance in the search.

Vietnam’s Quan Son District, Than Hoa Province was also hit by tropical storm Wipha, which reached Vietnam before sweeping across Northern Laos.

In Vietnam the death toll from the storm is believed to be twelve, while a further nine are still considered missing.

US Ends Visa-free Entry for Foreigners Who Have Visited North Korea

US Ends Visa-free Entry for Foreigners Who Have Visited North Korea

The United States has revoked visa-free entry rights for foreigners who have visited North Korea in the past eight years.

The US currently allows citizens of 38 countries – including the United Kingdom and France – to enter for up to 90 days without a visa under a waiver program.

As for members of ASEAN nations, Singapore and Brunei are participants of the program.

Under the new rule, visitors who have traveled to eight countries, including North Korea, since March 1, 2011, are “no longer eligible” to enjoy such a waiver and will have to formally apply for tourist or business visas.

The other seven countries are Iran, Iraq, Sudan, Syria, Libya, Somalia and Yemen.

Lao citizens are currently not subject to the waiver program, meaning they must apply for a tourist or other types of visas to enter the US.

However, the change could affect Lao persons holding a French or other passport, or those who have family members with French or other citizenship.

Laos and North Korea established diplomatic ties in 1974, and bilateral relations and official exchanges of visits have been on the rise since the 1990s.

As the latest example, Top North Korean diplomat Ri Su Yong visited Laos in March with a delegation of the Workers’ Party of Korea.

At that time, Ri was expected to address party-to-party relations with top government officials of the ruling socialist Lao People’s Revolutionary Party.

Meanwhile, in December last year, a delegation from the Lao foreign ministry visited Pyongyang. It came after the Lao delegation’s visit to the North Korean capital for the September 9 foundation day celebrations.

Despite friendly relations, Laos has expressed its opinion on matters such as the North Korean – US Summit last year, and even expressed concern over North Korean nuclear tests in 2017.

It is unclear how many Lao citizens visit North Korea for sightseeing, but The Laotian Times has confirmed that there are several Lao students who study in North Korea to obtain university-level degrees each year.

Lao Doctors Urged to Provide Correct Dengue Treatment

Doctors in Laos treating a patient with dengue fever.
Doctors in Laos treating a patient with dengue fever.

Laos has advised health officials and medical staff to ensure that all dengue patients strictly follow the treatment plan provided by doctors.

“In 2019, Lao health officials are facing the highest number of dengue fever cases in recent years,” said Khampe Phongsavath, president of the Paediatrics Association of Laos, and a member of the dengue control and prevention team under Lao Ministry of Health, as quoted by Vientiane Times.

Khampe added that he wanted to give advice to people so that they were properly informed about ways to prevent the dengue virus.

Laos is currently facing an unusually high number of dengue cases across the country. As of August 3, a total of 20,388 people have been diagnosed with dengue fever nationwide, and 48 have died, according to a report by the Laos Ministry of Health.

Accordingly, the Lao government is stepping up efforts to contain the virus.

Each province in the country have set up special taskforces to engage the public in efforts to prevent and control the disease.

The health ministry is also encouraging people to make sure to remove all stagnant water, which plays a role in creating breeding sites for mosquitoes.

The ministry issued a nationwide dengue warning in early July amid increasing dengue fever cases.

Indonesia’s Largest Bank Mandiri Eyes Lao Market

Indonesia’s Largest Bank Mandiri Eyes Lao Market

Indonesia’s state-owned Mandiri Bank has announced its intention to enter Laos and Cambodia.

Rohan Nafas, Mandiri Bank corporate secretary, said the bank is now studying the best ways of penetrating the two new markets.

In particular, the bank is exploring which sectors would be the best to enter, such as banking or finance.

To that end, the bank has set up an investment fund to facilitate the process.

Mandiri Bank is the largest bank in Indonesia in terms of assets, loans and deposits. The bank had USD 83.6 billion in assets as of end-2018.

Laos has seen several foreign banks making a foray into the market over the past few years.

In November last year, Thailand’s Export-Import Bank opened its first representative office in Vientiane to assist the Lao government’s policy on trade and investment integration into the Mekong sub-region which covers Cambodia, Laos, Myanmar, Thailand and Vietnam.

Separately, The Joint Stock Commercial Bank for Foreign Trade of Vietnam, or Vietcombank, officially inaugurated its operation in Laos in October last year.

At that time, the bank said it will provide services for Vietnamese businesses investing in Laos, those already operating in the country, and others, to raise trade value between Vietnam and Laos.

Such moves by foreign players come amid Laos’s efforts to improve business standards for the banking sector.

The Lao banking sector is working to improve regulations and update preparations for implementing the Basel II principles, including learning about the International Financial Reporting Standards (IFRS 9).

Basel II is an international business standard that requires financial institutions to maintain enough cash reserves to cover risks incurred by operations. The accord prevents banks from hurting the economy by taking more risks than they can handle.

IFRS 9, meanwhile, addresses accounting for financial instruments. It contains three main topics: classification and measurement of financial instruments, impairment of financial assets, and hedge accounting.

The Lao Bankers’ Association and Deloitte Consulting Malaysia also held a meeting in March to review and update the revision of regulations in the local banking industry as part of strengthening capacity to implement the management of commercial banks based on the Basel principles by 2025.

At that time, Chairman of the Lao Bankers’ Association, Mr. Phoukhong Chanthachack, said improving the management and services of commercial banks in Laos to comply with international standards is entirely obligatory, as quoted by Vientiane Times.

He added that it would build confidence among investors and enable banks in Laos to approach bigger financial markets and expand services to integrate with global networks once they were recognized by the international community.

Laos and Indonesia established diplomatic relations in 1957. Indonesia maintains an embassy in Vientiane, while Laos has an embassy in Jakarta.  There are currently no direct flights between the two countries.

Alipay Payment Platform Set to Enter Laos

Alipay Payment Platform Set to Enter Laos

Chinese mobile payment platform Alipay is set to make a foray into Laos after Lao Development Bank (LDB) entered into an agreement with KIWI Company to roll out the service.

KIWI Group, a fintech operator in Southeast Asia, provides cashless payment solutions for its clients.

The service will allow users to make payments and transactions at stores and restaurants in Laos that are partnered with LDB.

The application also can be used to pay visa fees on arrival at the Boten International Checkpoint in Luang Namtha province, which borders Yunnan province in China, and at the 4th Friendship Bridge International Checkpoint in Bokeo province.

Those who want to use the service need to register in China, and LDB will provide facilities for transaction services only.

Alipay is a third-party mobile and online payment platform, established in Hangzhou, China in February 2004 by Alibaba Group. It is one of the most used mobile payment applications in China, with more than 1 billion users.

This came after Banque pour le Commerce Exterieur Lao Public (BCEL) joined hands in July with Chinese payment service provider UnionPay International (UPI) to roll out a new QR code payment service in Laos.

The move will enable UnionPay app users to make payments by scanning QR codes at local stores in the country. UnionPay currently operates one of the most popular mobile payment apps in China, with about 150 million users across 18 cities.

Such developments are a boon to Laos, which is currently pushing its tourism campaign, Visit Laos-China Year 2019, to attract more Chinese tourists.

More than 4.1 million visitors came to Laos in 2018, an 8.2 percent increase compared to 2017. Among them, over 800,000 tourists came from China, a rise of 26 percent, according to the Lao Ministry of Information, Culture, and Tourism.

First Freight Train Service Launched from Laos

First freight train launched in Laos

The first freight train service to and from Laos was launched yesterday, with a shipment of Beerlao crossing the Thai-Lao Friendship Bridge.

Luang Prabang Villagers Hit by Flash Floods

Luang Prabang Villagers Hit by Flash Floods

A number of villages in Nan District, Luang Prabang Province have been hit by severe flash floods after torrential rain on Monday evening.

A massive rainstorm has finally broken the severe drought that gripped the country for months, causing flash flooding in Luang Prabang.

The Nan River burst its banks early Monday morning, overflowing into several nearby villages. Nearly 400 families have been affected by the floods, with local authorities providing assistance.

Villagers and their belongings are being moved by boat to higher ground, and so far there have been no reports of injury.

Flash floods nearly reach the rooftops in Nan District, Luang Prabang
Flood waters nearly reach the rooftops in Nan District, Luang Prabang

The floodwaters began to subside yesterday afternoon, and authorities are now undertaking an assessment of the damage caused to villagers’ homes and livelihoods.

The Meteorology and Hydrology Department, Ministry of Natural Resources and Environment, has issued a severe weather warning for many parts of the country, especially the northeast, central and southern regions as a tropical depression will pass over the country in the next few days.

Strong winds and heavy rains are expected, which could cause flash flooding and landslides.

Laos Saw More Chinese, Less Korean Tourists in Past Six Months

Laos Saw More Chinese, Less Korean Tourists in Past Six Months

The number of tourists visiting Laos has increased 5 percent in the past six months thanks to a rise in the number of Chinese visitors.

More than 2.2 million people visited Laos between January and June, according to Laos’s Tourism Development Department, Ministry of Information, Culture and Tourism.

The number of Chinese visitors jumped by 13 percent while that of Vietnamese visitors increased by 11 percent. The number of visitors from Thailand also rose by 1 percent.

Vientiane Times quoted an unnamed government official as saying that he believed visitor numbers were up because of the ongoing Visit Laos-China Year campaign.

However, the number of South Korean visitors plummeted by 20 percent while that of Japanese visitors sank by 13 percent.

The official told Vientiane Times that the decline in arrivals from some countries was due to circumstances beyond the authorities’ control.

“Some people stayed away because they were unsure of the quality of services here. And although Laos has many enticing tourism products there are several inconveniences, such as poor road access to tourist sites,” the official added.

Laos attracted more than 4.1 million foreign tourists last year, an 8.2 percent increase from the previous year. Tourism generated revenue of more than USD 755 million in 2018.

Meanwhile, it is expected that at least 4.5 million people will visit Laos this year, generating revenue of more than USD 700 million.

More Chinese tourist expected

Officials believe that, out of 4.5 million expected tourists, 1 million would come from China.

To achieve such a goal, Laos is currently intensifying its efforts to improve services and create more facilities for visitors.

Vang Vieng, one of the most famous tourist destinations in Laos, for instance, has improved the quality of services and made changes to the price of food, accommodation, and the fees charged at tourist attractions.

In Luang Prabang, meanwhile, restaurants have added Chinese dishes to their menus and installed signs written in Chinese at popular tourist sites.

As for Luang Namtha Province, the authorities are encouraging officials to supply useful information to Chinese visitors.

There have also been some other positive developments that might boost the number of Chinese visitors to Laos.

Banque pour le Commerce Exterieur Lao Public (BCEL) has recently teamed up with Chinese payment service provider UnionPay International (UPI) to roll out new QR code payment services in Laos.

The move will enable UnionPay app users to make payments by scanning QR codes at local stores in the country.

UnionPay currently operates one of the most popular mobile payment apps in China, and this means BCEL’s collaboration with UPI would help Laos’s local businesses to reach out to more Chinese visitors, who make up one of the largest sources of tourists.

Separately, Thailand is currently preparing to launch the country’s first bullet train that will run between Bangkok and Beijing, China, with Laos as one of the intermediate stations.

In particular, the first route, a Thai-Sino project linking Bangkok, Nong Khai, Laos and a Chinese city Mohan in the far Northeast, is currently under construction and is scheduled to be completed by 2023.

Where are the Koreans?

Laos has been one of the most popular destinations for South Korean tourists thanks to the reality TV show, “Youth Over Flowers,” which aired in 2014.

The number of visitors from South Korea to Laos grew in 2015 and 2016, finally beginning to plateau in 2017. The overall market share of South Korea rose to 4.4 percent in 2017, however, according to a report by Laos’s Ministry of Information, Culture and Tourism. The number jumped from 96,085 in 2014 to 170,571 in 2017.

However, local tourism experts have repeatedly suggested that such a number is decreasing, but there had been no official number released by the Lao government until now.

Confirmation from the tourism ministry that the number of South Korean visitors plummeted by 20 percent in the first six months is therefore highly significant.

One Vientiane-based tourism expert cited a lack of promotional efforts as one of the reasons to contribute to the drop in such number.

“The TV show that led to the surge came out five years ago. Out of sight, out of mind. No one made any more major Korean TV shows or films, to my knowledge,” the expert told The Laotian Times.

As he pointed out, several South Korean broadcasters released similar shows to repeat the success of “Youth Over Flowers,” but none of them was able to attract similar viewer numbers.

The expert also noted that not enough has been done to promote and encourage people to return to Laos.

According to the latest survey conducted by the tourism ministry, only 7.9 percent of respondents said it was their returning visit to Laos. In contrast, first-time visitors accounted for 75.2 percent.

Time for a Diversification?

The Lao government invited 12 representatives from Malaysia, Singapore, Thailand, China, Japan and South Korea to Bolikhamxay and Khammouane provinces, in a bid to promote other parts of the country.

The familiarization trip to the two provinces took place between July 12 and 17 and was designed to publicize some of Laos’ tourist attractions and encourage the tour operators to include some of these locations in their package tours.

It marked the Lao government’s latest effort to promote lesser-known tourist sites to foreigners, and this work is expected to continue in the coming years.

Story: Taejun Kang
Photo: Prae P.