Laos, Vietnam Agree to Deepen Cooperation Across Seven Key Sectors_blog

28 Jan, 2026

Laos, Vietnam Agree to Deepen Cooperation Across Seven Key Sectors

Laos and Vietnam have agreed to strengthen cooperation across seven key sectors, reaffirming their commitment to deepen political trust and expand practical collaboration following high-level talks in Hanoi on January 26.

The agreements followed high-level talks between Vietnamese Communist Party General Secretary To Lam and Lao President Thongloun Sisoulith in Hanoi on 26 January.

Both leaders emphasized the importance of enhancing their partnership amidst evolving regional dynamics and agreed to further fortify the political foundation of the Vietnam–Laos relationship. This includes continued high-level exchanges, strategic coordination, and mutual support in international forums.

Strengthening Political Ties

Economic cooperation topped the discussions, with both sides reaffirming their shared goal of boosting bilateral trade to USD 10 billion. They agreed to further strengthen economic ties, focusing on enhancing trade links and increasing investment opportunities.

The two leaders also touched on the importance of fostering a regional environment conducive to sustainable growth, particularly focusing on strengthening the digital economy and supporting agricultural innovation.

They discussed expediting key strategic infrastructure projects to improve connectivity. Notable initiatives include the Hanoi–Vientiane expressway, the Vientiane–Vung Ang railway, and enhanced border transport links.

Education, Human Resources, and Digital Development

Meanwhile, expanding cooperation in education and human resource development remains a key cooperation point in both countries’ agendas. Thongloun and To Lam discussed increased focus on improving education quality, training skilled personnel, and fostering a deeper understanding of the special Laos-Vietnam relationship among younger generations. Furthermore, both nations committed to advancing digital transformation, including e-government and telecommunications.

Energy Security and Regional Integration

Energy security was also highlighted as a priority area during the 26 January meeting. Both sides agreed to strengthen cross-border infrastructure for electricity and fuel, with projects such as the North Laos–Vietnam power transmission line and a petroleum storage initiative designed to improve supply stability and enhance long-term economic cooperation.

Commitment to Regional and International Cooperation

Finally, both countries reaffirmed their commitment to close coordination on regional and international issues. The two leaders pledged to continue supporting each other at multilateral forums and sharing information to ensure mutual progress on global challenges.

As both countries continue to deepen their collaboration in the political, economic, and cultural spheres, they also seek to enhance cooperation in defense, ensuring that both nations remain secure and resilient against global and regional challenges.

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30 Jan, 2026

Laos Inflation Eases to 5.1 Percent in January 2026 as Utility Costs Drive Price Pressures

Laos recorded an inflation rate of 5.1 percent in January 2026, down from 5.6 percent in December 2025, as the country continues to grapple with elevated price pressures driven primarily by utility costs, according to official data.The consumer price index (CPI) stood at 256.8 in January 2026, slightly lower than 257.2 of December 2025 but significantly higher than the 244.2 recorded in January 2025, indicating sustained year-on-year price growth.Utilities Remain Primary DriverThe housing, water, electricity, and cooking fuel category emerged as the primary driver of inflation, surging 24.2 percent year-on-year. This sharp increase was fueled by a dramatic 169.1 percent spike in electricity prices and a 42.7 percent rise in water supply costs, placing significant pressure on household budgets.Other categories also experienced substantial price increases. Healthcare and medicine climbed 13.6 percent, education rose 11.5 percent, and miscellaneous goods and services surged 32.1 percent. Alcohol and tobacco products increased 8.3 percent, while clothing and footwear advanced 7.6 percent.On a month-on-month basis, overall prices declined 0.2 percent in January. Food and non-alcoholic beverages fell 1.2 percent due to lower vegetable prices, while fuel prices decreased 3.2 percent.Laos’ overall inflation rate for 2025 stood at 7.7 percent, down from 23.13 percent in 2024. Under its 10th Five-Year National Socio-Economic Development Plan (2026-2030), the government has set a target to maintain inflation at around 5 percent annually.

26 Jan, 2026

Laos Introduces Fines for Damaging, Misusing Banknotes

The Lao government began enforcing new rules on the use and handling of banknotes on 20 February, introducing fines for damaging or misusing cash to protect the kip and improve circulation.Under the decree, individuals who deliberately damage banknotes, such as scattering or stepping on them, or who sell new notes for profit will face fines of LAK 5 million (USD 230). Authorities said these practices show disrespect for the national currency and reduce the quality and lifespan of banknotes in circulation.The rules also prohibit practices that commonly damage cash, including writing on notes, using glue or tape, or stapling banknotes into ceremonial bouquets, a custom still seen at some celebrations in Laos.Meanwhile, the government reaffirmed the public’s right to exchange worn or damaged banknotes free of charge at any commercial bank. For a full exchange, more than 50 percent of the original note must remain intact.Banks now face stricter obligations under the decree. Financial institutions that refuse to exchange damaged notes or charge fees for doing so will be fined LAK 10 million (about USD 460)Fines will double for repeat violations, applying to both individuals and financial institutions. Officials said the penalties aim to reduce violations and strengthen compliance with the new banknote regulations.The Bank of the Lao PDR remains the sole authority responsible for printing, distributing, inspecting, and destroying banknotes.