Green forest fire notification in Laos

Supply-chain Risk Briefing

1. Summary

Wildfires in Laos that persisted for approximately two weeks from March 29 to April 13 are classified as medium-risk and are being monitored. These fires occurred in forested areas of the landlocked Southeast Asian country and could potentially impact regional ecosystems and agricultural production.

2. Supply-chain impact

• Agricultural commodities: Risk of reduced productivity in production areas of major Laotian exports such as rice, cassava, and rubber due to fire smoke and deteriorating air quality
• Timber and forest products: Potential disruptions in sourcing Laotian timber within Southeast Asian timber supply chains, concerns over reduced timber exports to neighboring Vietnam and Thailand
• Hydroelectric power: Instability factor in Mekong River basin power supply chains if wildfires spread around hydroelectric facilities, which are Laos's main electricity export source
• Overland transportation: Possibility of temporary logistics delays due to fires near overland transport routes between Laos-Vietnam and Laos-Thailand
• Air quality impact: Regional air quality deterioration from fire smoke indirectly affecting nearby manufacturing operations and worker health

3. Watch points

• Fire suppression status: Need to track whether fires are completely extinguished after April 13 and potential for recurrence
• Scale of agricultural damage: Monitor assessment results of damage scope to major crop cultivation areas and impact on harvest yields
• Rainy season onset: Simultaneous observation of natural fire suppression effects from Southeast Asian rainy season onset and subsequent flood risks