Wildfire in Laos — Green alert

Supply-chain Risk Briefing: Laos Forest Fires

1) Summary Forest fires occurred in Laos from April 3-15, classified as medium level by GDACS. These fires during the dry season lasted approximately two weeks and are expected to impact regional ecosystems and economic activities.

2) Supply-chain impact

• Agriculture sector: Potential impact on production areas of Laos' major agricultural products including rice, corn, and cassava, with particular concerns over soil and water source damage from fires during the dry season
• Forestry resources: Direct losses of forest resources such as rubber trees and timber, with expected production capacity decline over the coming years
• Hydroelectric power: Potential disruption to electricity production due to sediment inflow and water quality deterioration in watersheds around hydroelectric plants, which are Laos' primary power source
• Tourism: Expected damage to eco-tourism resources and related service industries and regional economy

3) Watch points

• Sediment runoff and flood risk levels at the start of rainy season (May-June) - Possibility of secondary disasters in areas where vegetation was destroyed by fires
• Whether there are cascading effects to neighboring Vietnam and Thailand border areas - Need to monitor deterioration of water and air quality in the Mekong River basin