Country Report Laos June 2011

Outlook for 2011-12: International relations

Laos will continue its policy of regional and international integration in 2011-12. Its traditionally close ties with the communist government in Vietnam have been strained by the Lao authorities' plan to build a dam on the lower Mekong river, although they now appear to have ceded to Vietnamese pressure to postpone the project, ensuring that Laos will continue to benefit from aid and training from its neighbour. The government's stance on international affairs is firmly based on the principles of non-interference and peaceful co-operation. The leadership places great emphasis on regional prosperity, and it will support efforts by China and other countries to improve trade arrangements with the Association of South-East Asian Nations (ASEAN), of which Laos is a member. Ties with the US have also strengthened, and in July 2010 the foreign minister, Thongloun Sisoulith, led the first official visit to that country by a high-ranking Lao official since the 1975 revolution. However, pressure will continue to be applied in relation to the Lao authorities' human rights record. The overarching desire of the government to attract investment and aid means that it will attempt to avoid becoming entangled in contentious international issues, such as political repression in neighbouring Myanmar.

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