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 Driver

The 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.

02 Feb, 2026

Vientiane Tourism Exceeds 2025 Targets, Generating Over USD 621 Million

Vientiane welcomed more than 2.2 million visitors in 2025, exceeding its annual tourism target and generating over USD 621 million in revenue, Lao authorities reported.The Department of Culture and Tourism Vientiane Capital on 27 January reported that these figures surpassed the 2025 target of 2 million visitors and USD 600 million in revenue.Officials said major cultural and heritage sites continued to draw strong interest. Ho Phrakeo Museum, Wat Sisaket, and Pha Thatluang recorded more than 208,500 visits, with international tourists accounting for the majority.The 2025 performance marks significant growth from 2024, when Vientiane recorded around 1.7 million tourist visits and generated more than USD 490 million in tourism income. In 2024, more than 300,000 visitors traveled to the capital’s main tourist sites, contributing over LAK 9 billion (approximately USD 400,000) to the local economy.Key attractions include Pha Thatluang, Patuxay, Ho Phrakeo Museum, and Wat Sisaket.Nationally, Laos welcomed nearly 4.6 million tourists in 2025. In the next five years, the country aims to attract over 43 million total visitors nationwide, 22 million international tourists, 4.4 million each year, generating at least USD 13 billion in revenue.Looking ahead, the department said it will focus on improving tourism standards, preserving cultural heritage, and strengthening management systems to support sustainable growth and maintain Vientiane’s appeal as a key destination.

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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 TiesEconomic 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 DevelopmentMeanwhile, 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 IntegrationEnergy 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 CooperationFinally, 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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