Vientiane (VNA) – The year-on-year inflation rate in Laos declined to 38.86% in May, down from 39.89% in April, according to the Lao Statistics Bureau.
Although the inf🧸lation index of Laos has decreased for four consecutive months, this is still a very high level of inflation that causes income of households to decrease, affecting the consumption and investment.
The continued devaluation of the Lao kip (LAK) contributes significantly to drive up inflation, as around one-third of the goods included in price calculations are imported.
The price of food and non-alcoholic beverages rose by 52.69% in May, while medicines and medical care costs jumped by 40.78%, Vientiane Times reported.
Hotel and restaurant services rose by 37.4% with the cost of housing, water, electricity, and cooking gas also going up.
To deal with high inflation, the Bank of Laos on June 1 established a new department which is responsible for monitoring foreign currency inflows and promoting the wider use of the kip.
Meanwhile, the country’s economists remain optimistic about the economic recovery, forecasting that Lao is still able to achieve an economic growth of 4.5% this year.
Although international observers agree that Laos could return to a period of growth, the IMF and World Bank have both warned that the scale of Laos’s public and external debt poses substaᩚᩚᩚᩚᩚᩚᩚᩚ🦹ᩚ𒀱ᩚᩚᩚntial risks to this outlook./.
Lao Prime Minister Sonexay Siphandone has called for intensive action to develop three digital pillars – a digital economy, government and community - to give a big boost to the country’s socio-economic development, local media reported on May 29.
Laos welcomed over 1 million foreign tourists in the first four months of this year, according to the Tourism Development Department of Lao Ministry of Information, Culture, and Tourism.
As fuel prices continue to rise, promoting electric vehicles (EVs) as well as installing charging stations in the capital Vientiane of Laos is considered a solution to reducing environmental pollution in the future.
The Ministry of Commerce reported that imports also rose 18% to 29.9 billion USD during the same period, resulting in a trade surplus of 1.1 billion USD. In May alone, Thailand posted a 4.6 billion USD trade surplus with the US and a 4.1 billion USD trade deficit with China.
The World Bank will provide a 2.1 billion USD financing package for Indonesia, focusing oncreating jobs, stimulating economic growth, and enhancing access to clean energy across the country.
Member states also reviewed progress on six priority areas for 2025, including the development of an underground cable framework, the follow-up agreement to the ASEAN Petroleum Security Agreement (APSA), the launch of the ASEAN Energy Efficiency Database, and the rollout of an investment platform for sustainable building initiatives.
In March, Thai Prime Minister Paetongtarn Shinawatra met with Formula 1 chief Stefano Domenicali and said Thailand would commission a feasibility study into hosting a Grand Prix on a Bangkok street circuit from 2028.
The proposed giant sea wall aligns with bilateral cooperation and has been designated a national priority, considering that several regions in Indonesia are experiencing land subsidence of 10–15 centimetres per year.
International flights were cancelled including Jetstar and Virgin Australia flights to cities across Australia, and flights of Air India, Air New Zealand, Singapore's TigerAir and China's Juneyao Airlines.
The partnership aims to strengthen collaboration in the exploration and exploitation of mineral resources, including gold, copper, and manganese, as well as in the development of steel, aluminum, and renewable energy industries.
The Thai cabinet has approved a seven-year EV bus leasing scheme proposed by the Bangkok Mass Transit Authority (BMTA) for the capital, with an estimated cost of 15.35 billion THB (over 470 million USD).
Aircraft are prohibited from flying below 6,000 metres in the vicinity of the volcano, and should also remain alert to the presence of volcanic ash, which can disrupt flights.
Laos declared the transfer of the press management functions of five key media agencies and associated personnel to the Propaganda and Training Board of the Lao People's Revolutionary Party Central Committee.
Univers said in a statement that the new centre will serve as a hub for innovation, bringing together digital intelligence and climate ambition to accelerate Sarawak's transition toward a low-carbon, tech-enabled economy.
The target is to be completely free from plastic waste within two years. This can only be achieved if all parties implement the initiative with strong discipline.
Indonesia is taking new steps to improve protections for fishery workers, amid concerns over low wages, harsh working conditions, and limited access to social welfare.
The 2025 ASEAN- the Republic of Korea (RoK) Connectivity Forum that opened in Jakarta on June 17 reaffirmed a shared commitment to shaping a connected, resilient future by advancing the ASEAN Connectivity Strategic Plan.
The desk will serve as a service centre providing market intelligence, business licensing guidance, facilitating business cooperation, identifying potential investment projects, and harmonising regulatory policies between the two parties.
Malaysian Prime Minister Anwar Ibrahim noted that the Asia-Pacific region accounted for half of global energy consumption and 60% of greenhouse gas emissions in 2024. Despite this, regional countries, including eight of ten ASEAN member states, remain committed to climate goals, including net-zero emissions and tripling global renewable capacity by 2030.
Illustrative image. (Photo: thestar.com.my) 
