New railway’s early days give Laos cause for optimism

Significance

While concerns remain that the project will worsen its external debt position, demand to use the line is strong, even though there are currently no onward services for passengers into China’s Yunnan province because of continued pandemic-related restrictions. A short extension to a separate line that connects Laos with Thailand should be completed soon.

Impacts

• Debt restructuring will be among the government’s top priorities.
• Having recently experienced its worst wave of COVID-19 infections, Laos will try hard to increase levels of vaccination against the disease.
• Laos-China relations will strengthen.