Laos Seeks New Balance: Shifting Away from China, Towards Vietnam

Laos Shifts Foreign Policy Focus from China to Vietnam Amidst Debt Concerns VIENTIANE, LAOS – Laos is quietly re-evaluating its foreign policy, shifting its focus from China to Vietnam. This strategic move is largely driven by concerns over Laos' burgeoning debt to China and the potential loss of control over key strategic assets. The situation is raising concerns about the economic stability and sovereignty of Laos. "Laos is facing a difficult choice," explains an analyst from the Southeast Asia Research Center. "China's investment, while significant, has come with strings attached, leading to a growing debt burden." The video highlights several large-scale Chinese projects in Laos, including the China-Laos high-speed railway and the Boten Special Economic Zone. These projects, while boosting infrastructure, have also saddled Laos with considerable debt, creating a risk of losing control over these strategic areas. In contrast, Vietnam is presented as a more stable and reliable partner, offering a less demanding approach to cooperation. Recent agreements between Laos and Vietnam cover not only economic collaborations but also education, defense, and security, emphasizing a long-term strategic partnership. This re-alignment reflects Laos' desire to diversify its economic relationships and reduce its dependence on any single nation. The move towards Vietnam signals a pragmatic approach to managing economic risks and safeguarding national interests.