Wildfire in Laos — Green alert

Supply-chain Risk Briefing

1) Summary Forest fires that began on April 4 in Laos have persisted for approximately 11 days until April 15, generating moderate-level risk. While GDACS (Global Disaster Alert and Coordination System) has classified this as a Green level event, the prolonged fire duration poses potential impacts on regional supply chains.

2) Supply-chain impact

• Agricultural production disruption: As Laos is a major producer of rice, coffee, rubber and other agricultural products, smoke and air quality deterioration from the forest fires could disrupt operations in nearby agricultural areas
• Timber and forest product supply: Potential temporary constraints on sourcing Laotian timber and forest products within Southeast Asian timber supply chains
• Overland logistics delays: Risk of delivery delays due to visibility restrictions or rerouting on China-Southeast Asia overland transport routes through the Mekong River basin
• Power supply instability: Potential indirect impact on power supply to nearby industrial complexes and manufacturers if fires spread around Laos's hydroelectric infrastructure

3) Watch points

• Fire suppression completion timing: Need to confirm actual extinguishing status and damage scale after the expected end date of April 15
• Cross-border spread: Need to monitor fire spread and smoke impact to border regions with Vietnam, Thailand, Cambodia