Green forest fire notification in Laos

Supply-chain Risk Briefing - Laos Wildfire

1. Summary

A wildfire occurred in Laos lasting 8 days from April 2nd to 10th, and has now ended. This wildfire, classified as medium grade by GDACS, is estimated to have caused damage to forest areas within Laos.

2. Supply-chain impact

• Agricultural commodities: Potential indirect damage from smoke or disaster to production areas of agricultural products such as rice, coffee, and cassava, which are Laos's major export items
• Timber supply chain: As Laos is one of Southeast Asia's timber exporting countries, concerns over timber resource losses from forest fires and future supply reduction
• Power infrastructure: Direct impact on electricity production (hydroelectric power), a major export commodity of Laos, is limited, but infrastructure inspection of transmission lines is necessary
• Land logistics: Possibility of transportation delays due to temporary smoke impact on Mekong River basin road networks or cross-border transport routes
• Regional manufacturing: Concerns over production disruptions in textile, processed food and other manufacturing facilities within Laos due to deteriorating air quality

3. Watch points

• Damage scale assessment: Need to analyze medium to long-term supply impact through confirmation of accurate burned area and agricultural/forestry damage status
• Cross-border spread: Monitoring smoke spread or additional fire occurrences to neighboring countries Thailand, Vietnam, and Cambodia