AKP Phnom Penh, July 31, 2026 —
The Lao Government, during its regular meeting for July, instructed relevant ministries, sectors and localities to urgently study investment options for an oil pipeline linking Laos and Vietnam, aiming to strengthen national energy security amid growing volatility in the global fuel market.
Relevant agencies have been tasked with finalising investment options for the proposed pipeline and submitting them to the Lao Government in August.
The move comes as governments of regional countries closely monitor escalating tensions in the Middle East, which have heightened concerns over global fuel supplies and rising oil prices. As a landlocked country heavily dependent on imported fuel, Laos remains vulnerable to external supply disruptions and price fluctuations.
​By pursuing a direct oil pipeline from Vietnam, the Lao Government aims to secure a more stable and reliable fuel supply while reducing long-term transport costs.
At the meeting, the cabinet also asked relevant agencies to closely monitor global oil prices and prepare contingency measures against possible fuel shortages or sharp price increases.
Alongside the pipeline proposal, Laos reaffirmed plans to promote the use of electric vehicles and renewable energy to reduce reliance on imported fuels. It also called for stronger oversight of hydropower dam safety; improved water management at hydropower projects; repairs to ageing transmission lines, transformers and power grids; and emergency response plans to minimise the impact of potential power outages.
As part of its broader economic reform agenda, the Lao Government agreed in principle to reduce the number of business activities subject to regulation under the Investment Promotion Law from 44 to 20, to streamline investment regulations and encourage both domestic and foreign investment.
The meeting also approved in principle the submission of 16 draft laws to the second session of the 10th National Assembly, including two new laws and 14 amended ones, as well as four other legislative proposals.

AKP-VNA