Green forest fire notification in Laos

Supply-chain Risk Briefing

1) Summary Forest fires occurred in Laos from April 2nd to 16th, lasting approximately 2 weeks. This fire, classified as medium grade, is assessed to have occurred during Southeast Asia's dry season. The specific scale of damage and location are currently unconfirmed.

2) Supply-chain impact

• Agricultural commodities: Laos is a major producer of rice, coffee, rubber and other agricultural products, with potential impact on agricultural production infrastructure near fire-affected areas
• Timber & pulp: Supply chain disruptions in timber due to forest fires and expected upward pressure on Southeast Asian timber prices
• Hydroelectric power: Potential indirect impact on electricity exports to neighboring countries if forests around hydroelectric facilities, Laos's main power source, are damaged
• Overland transport: Possible temporary traffic restrictions or need for detour transport on major overland transport networks in the Mekong River basin
• Regional manufacturing: Expected minor delay impacts on Laos-based component supply chains for manufacturers in neighboring countries such as Thailand and Vietnam

3) Watch points

• Monitor official announcements from the Laos government on fire suppression completion timing, actual damaged area, and scope of impact on major industrial facilities
• Track potential for additional forest fires due to continued Southeast Asian dry season in April-May and fire spread trends across the Mekong River basin