Green forest fire notification in Laos

Supply-chain Risk Briefing: Laos Forest Fires

1. Summary

Forest fires that began on April 9 in Laos have continued for a week, lasting until April 16. Classified as medium-grade fires, they are impacting local environmental and agricultural activities, though they are assessed as not reaching the level of major supply-chain disruption.

2. Supply-chain impact

• Agricultural production: Potential for reduced yields and quality deterioration of major crops such as rice, corn, and coffee if fires occur near cultivation areas in Laos
• Timber industry: Direct fire damage causing timber supply interruption and expected timber quality grade decline for several months ahead
• Overland logistics: Potential delays in Vietnam-Thailand overland transportation if smoke causes visibility restrictions on major road networks in the Mekong River basin
• Water resources: Short-term impact on agricultural and industrial water supply if water quality contamination occurs in nearby river basins during fire suppression efforts
• Tourism: Reduced accessibility to tourist areas in northern Laos leading to contraction of regional economy and service industry-related supply chains

3. Watch points

• Spread scope: Need to assess agricultural production impact based on fire suppression completion status and scale of damaged area
• Cross-border impact: Monitor for traffic and logistics disruptions due to smoke spread to border areas with neighboring countries (Vietnam, Thailand, Myanmar)
• Rainy season outlook: Track additional fire occurrence potential and suppression work progress until the start of rainy season in May-June