Wildfire in Laos — Green alert

Supply-chain Risk Briefing: Laos Forest Fires

1) Summary Moderate-intensity forest fires occurred in Laos for approximately two weeks from April 2 to 15. These fires, which occurred at the end of the dry season, appear to follow the typical seasonal wildfire pattern of the Southeast Asian region and are currently understood to have been extinguished.

2) Supply-chain impact

• Agricultural commodities: Potential impact on production areas of major Laos exports including rice, corn, and coffee. Particular concern for damage to coffee plantations in northern mountainous regions
• Timber and forest products: Temporary disruption expected in procurement of Laotian timber within Southeast Asian timber supply chains. Furniture and construction materials industries require monitoring
• Hydroelectric power: Laos serves as a Mekong River basin hydroelectric hub; fire damage to watershed forests could potentially reduce long-term power generation capacity
• Overland logistics: Possible temporary rerouting of transport along Laos transit routes, which are key overland connections between China and Southeast Asia

3) Watch points

• Track Laos Ministry of Agriculture and Forestry announcements on damage scale and crop outlook updates
• Monitor potential fire spread to neighboring Vietnam and Thailand, and overall drought conditions across the Mekong River basin
• Check additional fire risk levels and potential haze spread across Southeast Asian region before rainy season begins in May