Green forest fire notification in Laos

Supply-chain Risk Briefing: Laos Forest Fires

1. Summary

Forest fires in Laos have been ongoing for approximately two weeks from April 2 to 15, assessed as moderate-level risk. Due to Laos' geographical characteristics as a landlocked Southeast Asian country, the situation could impact air quality and agricultural production in neighboring countries.

2. Supply-chain impact

• Agricultural commodities: Production areas for Laos' major agricultural exports including rice, coffee, and rubber are exposed to risks of air pollution and soil damage from fire smoke
• Timber supply: Potential temporary disruption or quality degradation in sourcing Laotian timber within Southeast Asian timber supply chains
• Regional logistics: Increased transportation delays and safety risks due to visibility issues in Mekong River waterway transport and overland shipping
• Power supply: Potential indirect impact on Laos' hydroelectric facility operations and electricity exports to neighboring countries
• Tourism industry: Reduced demand in service industry-related supply chains due to regional tourism sector contraction

3. Watch points

• Fire suppression status: Tracking compliance with the April 15 projected end date and confirmation timing of actual damage scale
• Spread to neighboring countries: Monitoring smoke spread and air quality deterioration in adjacent countries including Thailand, Vietnam, and Cambodia
• Agricultural season impact: Confirming potential disruptions to agricultural production plans during the overlap with pre-rainy season planting period