Green forest fire notification in Laos

Supply-chain Risk Briefing: Laos Wildfires

1. Summary

Wildfires that began in Laos on April 2nd have continued for approximately two weeks until April 15th, classified as medium-level risk. The wildfires in Laos, a landlocked Southeast Asian country, could potentially impact regional agricultural production and logistics networks in the Mekong River basin.

2. Supply-chain Impact

• Agricultural Commodities: Potential impact on production and quality of Laos' major exports including rice, coffee, and timber
• Hydroelectric Power: Concerns over power supply instability due to operational disruptions at hydroelectric facilities in the Mekong River basin
• Overland Logistics: Possibility of temporary disruption to China-Southeast Asia overland transportation networks
• Air Quality: Risk of aviation and overland transport delays due to haze spread to neighboring Vietnam, Thailand, and other countries
• Timber Supply: Disruption to timber and pulp raw material supply due to damage to Laos' forest resources

3. Watch Points

• Fire Suppression Status: Whether actual extinguishing is completed after the scheduled April 15th end date and potential for additional spread
• Mekong River Water Level Changes: Impact of watershed ecosystem changes from wildfires on logistics and agriculture in downstream countries
• Regional Haze Index: Degree of air quality deterioration in neighboring countries and duration of transportation network operational disruptions