Green forest fire notification in Laos

Supply-chain Risk Briefing: Laos Forest Fires

1. Summary

Forest fires persisted in Laos for approximately two weeks from March 28 to April 12, and are currently understood to be extinguished. Classified as moderate-level fires, large-scale infrastructure damage is expected to be limited, but there is potential for some impact on regional agriculture and timber supply.

2. Supply-chain impact

• Agricultural supply: Laos is a major producer of rice, coffee, rubber and other agricultural products, with potential crop losses or quality degradation in farmland near fire-affected areas
• Timber and pulp: Concerns over temporary supply disruptions of Laotian timber and wood products in Southeast Asian timber supply chains
• Power supply: Potential indirect impact on electricity production and power exports to neighboring countries when forest fires occur around Laos' hydroelectric facilities
• Transportation logistics: Temporary delays possible on overland transport routes between Vietnam and Thailand due to regional road restrictions from firefighting operations and smoke

3. Watch points

• Damage assessment: Monitor official announcements from the Laos government on forest area lost to fires and extent of agricultural damage
• Rainy season preparation: Track potential for additional fires until the start of the rainy season in April-May and agricultural production recovery after the rainy season