Laos faces tough choices on geostrategy and economy

Significance

Phankham Viphavanh succeeds him as prime minister. The country’s reshuffled leadership is entrusted with handling complicated ties with China and Vietnam -- each of which looks to keep Laos within its orbit -- and mitigating a growing debt problem.

Impacts

• Vietnam, which has a policy of ‘cooperation and struggle’ with China, will try to push back on Beijing’s growing influence in Laos.
• Once operational, the China-Laos railway should help boost regional connectivity.
• Laos will place high emphasis on ensuring it graduates from ‘least developed country’ status by 2026, having previously targeted 2024.