Should Vietnam import more power to Laos?

Hanoi may see both economic and strategic rationales for importing more power from its neighboring ally: In addition to boosting Vietnam’s own energy security, it would provide essential revenue to Laos that would ease its economic reliance on China, which Vietnam regards warily.

Will Vietnam become a bigger buyer of Laotian electricity?

Vietnam in particular is well placed to become a bigger buyer of Laotian electricity, given its growing population of 101 million and the need to import more energy to meet the needs of its manufacturing industries.

Does Laos need more energy?

More broadly, Laos is betting on future demand across the region, with regional energy demand set to triple by 2050. Currently, 83 percent of Southeast Asia’s energy needs are met by coal, oil and gas, but ASEAN states are committed to transitioning toward cleaner sources.

How are dams financed in Laos?

Most dam projects in Laos have been financed via high-interest loans from China and Thailand, with some additional credit from other sources, including Vietnam, Malaysia and multilateral development banks.

How much money will Laos generate from hydropower dams?

Currently, electricity accounts for 15 percent of Laos’ exports, having generated $980 million in 2024. The potential is vast, as projected revenue could surpass $12 billion by 2055. But for now, the money from hydropower dams is a drop in the bucket compared to the country’s debt burden, which reached $13.8 billion in 2023—the same as its GDP.

Does Laos have a shortage of electricity?

A more immediate concern is that despite electricity production increasing, Laos’ national grid continues to experience annual shortages during the dry season from November to April, when domestic demand is greatest.