Wildfire in Laos — Green alert

Supply-chain Risk Briefing: Laos Wildfire Incident

1. Summary

A moderate-grade wildfire occurred in Laos from April 8-13, lasting approximately 6 days. The forest fire in Laos, a major inland country in the Mekong River basin, is expected to have potential impacts on regional agricultural and forestry supply chains.

2. Supply-chain impact

• Agricultural supply chain: Laos is a major producer of rice, corn, cassava and other key agricultural products; wildfire damage to farmland could disrupt food supply in the Southeast Asian region
• Timber and forest products: Concerns over impacts to production facilities and raw material supply areas for timber, rubber and other forest products that are major exports of Laos
• Hydropower dependency: Laos has a high proportion of hydroelectric power generation, with potential for water quality contamination and reduced generation efficiency due to wildfires
• Overland logistics network: Potential constraints on road infrastructure accessibility within Laos, which serves as an intermediate hub on overland transportation routes connecting Thailand and Vietnam

3. Watch points

• Damage assessment: Need to monitor official announcements from the Laos government regarding specific wildfire damage area and extent of agricultural and industrial facility damage
• Recovery status before rainy season: Requirement to track infrastructure recovery progress and whether agricultural production disruptions continue before the rainy season begins in May-June