🇱🇦 Laos

Laos is a landlocked Southeast Asian country of 7.5 million with a GDP of about $15 billion. The country is betting everything on hydropower — it aims to be the "battery of Southeast Asia," with over 80 dams built or planned on the Mekong and its tributaries. Chinese investment has poured in, including the $6 billion Laos-China Railway that opened in 2021, connecting Vientiane to Kunming. Laos is the most heavily bombed country per capita in history — the US dropped more bombs on Laos during the Vietnam War than on Germany and Japan combined in WWII. About 80 million unexploded bombs remain. The country is one of the last communist states, ruled by the Lao People's Revolutionary Party since 1975.

Hydropower, mining (copper, gold), and agriculture (rice, coffee) are the main sectors. China and Thailand are the dominant trade partners. The Laos-China Railway has boosted tourism and trade but also increased debt — Laos owes China an estimated $5+ billion, roughly a third of GDP. The kip has collapsed, losing about 50% of its value since 2022, and inflation has spiked. The country is in debt distress, and the IMF has warned of sustainability risks.

The Plain of Jars in Laos contains thousands of massive stone jars, some weighing several tonnes, dating back 2,000 years — their purpose remains a mystery. Laos has the youngest population in Southeast Asia, with a median age of 24. The country's Kuang Si Falls near Luang Prabang, with its turquoise cascading pools, is one of the most photographed waterfalls in Asia.

Laos's hydropower strategy makes geographic sense but the Chinese debt burden is crushing. The currency crisis is a warning sign — without debt relief, the "battery of Asia" dream could short-circuit.