Vietnam will supply Laos with 50 million litres of fuel after Thailand cut exports by 25 percent amid the Middle East conflict.
Lao Minister of Industry and Commerce Malaithong Kommasith sealed the deal on 20 March in Hanoi, meeting his Vietnamese counterpart Le Manh Hung.
The crisis has already forced Laos to cut the school week for higher education institutions to three days, encouraged civil servants to work from home, and triggered emergency measures nationwide.
How the Crisis Unfolded
Thailand suspended all refined oil exports on 1 March, exempting only Laos and Myanmar.
Thai Prime Minister Anutin Charnvirakul confirmed on 21 March that exports to Laos will continue but have dropped 25 percent, to 5.29 million litres per day. Myanmar now receives 300,000 litres per day, down 20 percent.
Thailand supplies over 97 percent of Laos’ refined fuel. Anutin defended the continued exports by pointing to energy ties with Laos.
As of 11 March, 1,068 of Laos’ 2,538 petrol stations had shut, according to government data.
Vietnam Steps In
Laos moved to find alternatives amidst the ongoing crisis. On 21 March, Vietnam assigned a state fuel company to deliver the 50 million litres directly. Hanoi also agreed to let Laos transit fuel from third countries through Vietnamese territory.
The two ministers also agreed on a broader package. Vietnam will buy more electricity from Laos. Both sides will develop cross-border power infrastructure and build fuel storage facilities and pipelines along the border to cut transport costs.
On trade, both countries are targeting USD 5 to 10 billion in bilateral trade by 2030. Two flagship infrastructure projects on the agenda are the Vientiane–Hanoi expressway and a railway linking Laos to Vietnam’s Vung Ang port.
