Wildfire in Laos — Green alert

Supply-chain Risk Briefing: Laos Forest Fire

1. Summary

Forest fires occurring in Laos from April 9-14 have persisted for 5 days, creating medium-level supply-chain risks. Current information on firefighting progress or damage scale remains limited.

2. Supply-chain impact

• Agricultural commodities: Potential impact on production areas of Laos' key agricultural products including rice, corn, and cassava within fire-affected zones
• Timber and pulp: Concerns over direct and indirect production disruptions in Laos' forestry sector, which forms part of Southeast Asia's timber supply chain
• Hydroelectric power: Potential impact on water resources and power generation infrastructure needed for electricity production, a major Laotian export
• Regional logistics: Fire-related road restrictions or air quality deterioration may cause temporary disruptions to inland transportation
• Lower Mekong region: Smoke and ash may indirectly affect agricultural activities in downstream countries (Thailand, Vietnam)

3. Watch points

• Fire extinguishing timeline: Duration of fire persistence is a key variable determining the scale of damage to agricultural facilities and logistics infrastructure
• Monsoon onset: Impact of Southeast Asia's rainy season beginning in April-May on natural fire suppression and potential accompanying flood risks