China, Laos agree special fund under Mekong cooperation framework
Laotian President Thongloun Sisoulith attends a meeting with Russian President Vladimir Putin at the Kremlin in Moscow, Russia, on May 9, 2026.
PHOTO: Reuters
BEIJING - China and Laos have signed a co-operation agreement for a special Chinese-backed fund under the Lancang-Mekong Cooperation (LMC) mechanism established in the Mekong sub-region, Chinese state news agency Xinhua said on Thursday (June 18).
- The 2026 special fund will improve the well-being of people across the region, Xinhua cites Chinese Ambassador to Laos Fang Hong as saying.
- Report does not say how much would be allocated, nor what types of projects would be supported.
- Announcement comes after Laos President Thongloun Sisoulith made a state visit to China earlier this month, during which Chinese President Xi Jinping called for increased co-operation in various fields and accelerated railway connectivity between China, Laos and Thailand.
- Fund offers grants for small and medium-sized projects in Thailand, Cambodia, Laos, Myanmar and Vietnam that take around 3-5 years to complete.
- Fund accepts proposals annually, typically through local Southeast Asian governments, with priorities around technology, regional connectivity and co-operation, green transition and digitalisation.
- LMC was formally launched in 2016 as a framework for the six countries connected to the Mekong river to address regional challenges and collaborate on socioeconomic development opportunities.
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