Wildfire in Laos — Green alert

Supply-chain Risk Briefing: Laos Forest Fires

1. Summary

Forest fires occurred in Laos lasting 8 days from April 6 to 14, currently classified as medium-level risk. As a major agricultural nation in the Mekong River basin, forest fires in Laos could potentially impact regional agricultural production and logistics networks.

2. Supply-chain impact

• Agriculture sector: Laos is a major producer of rice, corn, rubber, etc., with potential impacts on crop yields due to air quality deterioration and soil damage from fires
• Timber/forest products: Direct timber resource losses from forest fires and concerns about future timber supply disruptions
• Overland logistics: Laos is an important transit point for overland logistics between China and Southeast Asia, with potential temporary blockages of road networks near fire areas
• Power supply: Potential indirect impacts on water resource management and power exports due to forest losses around Laos' hydroelectric facilities

3. Watch points

• Confirmation of fire suppression completion timing and damage area scale for substantive damage assessment of agriculture/forestry sectors
• Dry season duration and rainfall change trends - indicators for assessing additional fire outbreak risk and agricultural productivity recovery speed