Vietnamese and Lao officials have relaunched a $492 million potash development in Laos, with commercial output targeted for 2028. Fertilizer Daily reported that the October 12 restart in Khammouane province followed a construction suspension lasting almost a decade. The Viet-Laos Chemical and Salt venture, part of Vietnam National Chemical Group (Vinachem), plans annual production of 500,000 tonnes of potassium chloride.
Citing Archyde’s account of Thai and Vietnamese media reports, Fertilizer Daily said the project occupies 1,000 hectares in Nongbok district and has estimated potassium reserves of 32 million tonnes. Construction had reached 57% when work was suspended in 2017 following a dispute over payments to contractors. Completing the unfinished works on schedule remains the immediate challenge for meeting the planned start of commercial production.
Environmental requirements are also part of the restart. According to the report, authorities have stipulated rigorous management of tailings, alongside monitoring for groundwater contamination and land subsidence. Those requirements follow earlier sinkhole incidents in the surrounding area. Lao Deputy Minister of Industry and Commerce Phouthavanh Outhavong said processing mineral resources domestically would generate greater value and provide secure employment.
The development would bring additional regional muriate of potash supply to Southeast Asia, which Fertilizer Daily described as dependent on imports for almost all its potash needs. Output from Khammouane would therefore compete with material supplied by Canada, Russia and Belarus. However, the outlet characterised the proposed 500,000-tonne annual contribution as modest against a global market where additional Belarusian supply and BHP’s Jansen project are already putting pressure on price expectations.
Elsewhere in the region, Thai potash developments remain delayed. Dan Khun Thod in Nakhon Ratchasima, in which Bangchak holds a 65% stake, is targeting 100,000 tonnes a year from late 2026 or early 2027, but faces lawsuits, Fertilizer Daily reported. The outlet also said the Udon Thani and Chaiyaphum projects remain stalled.