27 Dec, 2025

Asian Development Bank Approves Funds for Forestry Restoration Project in Laos

The Asian Development Bank (ADB) has approved USD 10 million in funding for the Responsible Forestry Project Phase I in Laos. The package includes a USD 5 million concessional loan from ADB’s ordinary capital resources and a USD 5 million grant.The project aims to tackle forest degradation, enhance climate resilience, and support the livelihoods of forest-dependent communities in Bolikhamxay, Khammouane, and Vientiane Capital.ADB emphasized that public funding alone is insufficient to reverse the damage, highlighting the need for increased private investment in forest restoration, tree planting, and conservation-focused ecotourism.Phase I will focus on identifying existing challenges and preparing technical and feasibility studies for Phase II. It will also promote collaboration among relevant stakeholders to develop commercial plantations and conservation initiatives.The project is expected to strengthen institutional capacity and create opportunities for local communities to participate in forestry activities while benefiting economically from sustainable forest management.Forests cover approximately 62 percent of Laos and provide employment for more than 65 percent of the workforce. However, unsustainable practices have caused widespread degradation, resulting in economic losses estimated at nearly 19 percent of the country’s gross domestic product each year.

23 Dec, 2025

Rising Gold Prices Add to Household Costs in Laos

Gold prices in Laos jumped sharply on 23 December, following a broader rise seen across neighbouring countries, as global prices climbed and local currency pressures pushed costs higher at gold shops nationwide.In Laos, on 23 December, the selling price of gold ornaments rose by LAK 940,000 (USD 43) per baht in a single day. As of the morning of 24 December, prices had increased by a further LAK 50,000.Similar increases have been reported elsewhere in Southeast Asia, where gold prices closely track global markets and exchange rates.The selling price of gold ornaments climbed to LAK 46.71 million (USD 2,158) per gold baht (1 gold baht equals to 15.2 grams), up from LAK 45.77 million (USD 2,116) on 22 December. The increase followed a smaller rise of LAK 240,000 (USD 11) per baht the previous day, marking a significant acceleration in price growth.While gold price movements often draw attention from investors, the impact in Laos has been felt mainly by ordinary families. In Lao society, as in much of Asia, gold remains closely tied to family traditions, particularly weddings, religious ceremonies, and long-term household savings. As prices rise, these purchases have become more costly for local buyers.The increase came as global gold prices reached a new record of USD 4,497 per ounce, supported by market volatility and recent US monetary policy decisions. Earlier this month, the US Federal Reserve cut interest rates by 25 percent, its third reduction in 2025, bringing rates to their lowest level in three years. Lower interest rates typically support gold prices, as investors seek safe-haven assets during periods of economic uncertainty.At the domestic level, higher gold prices are adding pressure for Lao consumers already facing rising living costs. According to the Lao Statistics Bureau, inflation rose to 4.8 percent in November, up from 4.3 percent in October, driven mainly by increases in electricity, water, health care, and education costs, alongside continued depreciation of the kip.Housing, electricity, and cooking fuel prices rose by 18 percent, while health care costs increased by 13.5 percent and education expenses climbed 11.6 percent, further straining household budgets.The Laotian Times has previously reported that fluctuations in the kip and rising inflation frequently translate into higher gold prices at local shops, increasing costs for jewellery buyers and small savers.