Prime Minister Hun Manet (left) meets with Laos President Thongloun Sisoulith in Vientiane on March 25. STPM
Prime Minister Hun Manet announced a $1 million aid package to Laos in preparation for the 2024 ASEAN Summit and related meetings, demonstrating full support for Laos’ chairmanship of ASEAN in 2024.
Manet made the announcement during a joint press conference with Lao Prime Minister Sonexay Siphandone where they also witnessed the signing of bilateral cooperative agreements on the afternoon of March 25.
“I wish to reaffirm Cambodia’s complete support for Laos in chairing ASEAN in 2024. Accordingly, Cambodia contributed $1 million to Laos for the successful organisation of the 2024 ASEAN Summit and related summits,” Manet said.
On the same afternoon, Manet met with Khambai Damlat, president of the Lao-Cambodian Friendship Association, in Vientiane, as reported on Manet’s social media.
Khambai emphasised that Manet’s visit would bolster bilateral relations and cooperation between the two nations.
Manet commended the association for its role in enhancing people-to-people connections, particularly along the border.
“The interaction between our peoples is crucial, potentially boosting trade, tourism and other key sectors of both countries,” he said, adding that the association should further facilitate connectivity.
ASEAN is chaired by Laos in 2024, following Indonesia in 2023 and Cambodia in 2022. This marks the third time Laos has chaired the bloc.
Manet paid a courtesy visit to Lao President Thongloun Sisoulith on March 26.
During the meeting, Thongloun expressed his belief that the legacy of relations built by older generations forms a solid foundation for new generation leaders to nurture.
He was pleased with the outcomes of the discussions between Manet and Sonexay, noting their profound significance for bilateral relations.
Thongloun affirmed Laos’ commitment to resolving outstanding issues, particularly in energy, border affairs and enhancing bilateral cooperation.
“Laos is fortunate to share a border with Cambodia. We hope our two countries will continue to maintain our traditional relations and historical ties, jointly addressing challenges to further strengthen our relationship for the best interests of both peoples,” he added.
Seng Vanly, a lecturer of international relations and a regional political observer, commended the aid provided by Cambodia as a significant gesture of neighbourliness and ASEAN solidarity to ensure a smooth summit. He fully endorsed Manet’s decision to offer the support.
“This doesn’t imply that Cambodia is wealthier than Laos or that Laos lacks funds. Countries in the Greater Mekong Subregion [GMS] routinely assist each other with meetings, whether through financial or technical support,” he stated.
“Laos had also provided technical assistance to Cambodia when it chaired ASEAN in 2022,” he noted.
Vanly observed that the aid helps alleviate the economic strain on Laos, considering the country’s current economic crisis and public debt challenges, especially in relation to organising this year’s summit.
Hong Vanak, an economist at the Royal Academy of Cambodia’s International Relations Institute, also viewed the aid positively.
He noted that Cambodia had previously supported Laos during the Covid-19 pandemic, considering Laos’s debt crisis, particularly its indebtedness to China.
Vanak mentioned that Laos relies heavily on hydropower-run energy and certain agricultural sectors.
He said the Lao economy has not yet attained a higher GDP and remains slow in the free market, with its tourism and industrial sectors needing improvement.
“These factors made Laos hesitant to take up the chair of ASEAN, but due to the necessity of rotation within [the bloc], Cambodia provided financial assistance. This is our way of kick-starting ASEAN 2024 with a generous heart,” he added.
