Wildfire in Laos — Green alert

Laos Forest Fire Supply-chain Risk Briefing

1. Summary

Forest fires occurred in Laos from April 7-15, lasting 8 days, and are assessed as moderate-grade incidents. The fires appear to be currently extinguished, but given the dry season characteristics of the Southeast Asia region, potential for further spread and impacts on regional logistics networks must be monitored.

2. Supply-chain impact

• Agricultural commodities - Laos is a major producer of rice, coffee, rubber, and other agricultural products, with potential damage to farmland and plantation facilities near fire-affected areas
• Timber and forest products - Concerns over supply chain disruptions and quality degradation of Laotian timber in Southeast Asian timber supply chains
• Overland logistics - Potential temporary delays in Mekong River basin transportation networks and overland transport routes between Thailand and Vietnam
• Power supply - Need to review watershed management and power export impacts due to forest losses around Laos's hydroelectric facilities

3. Watch points

• Weather conditions - Track additional fire risk based on duration of Southeast Asia dry season and rainfall pattern changes
• Spread to neighboring countries - Monitor fire spread to border areas of Thailand, Vietnam, Cambodia and cascading effects on regional logistics networks