Vietnam and Laos are striving for significant advancements in their economic and investment partnership. In the coming years, both nations aim to break new ground in cooperation by focusing on infrastructure development and connecting their economies more closely. Critical projects on the agenda include the Hanoi-Vientiane Expressway, the Vung Ang-Vientiane Railway, increased collaboration in aviation, and the enhancement of infrastructure linking border gates. These efforts will not only strengthen bilateral relations but also provide a foundation for deeper regional integration.

The conference, held on August 16, 2024, in Cua Lo, Nghe An, sought to examine the execution of the Vietnam-Laos Cooperation Agreement for 2024. The meeting was called to discuss the implementation of the agreement. Among the topics discussed at the gathering was an update on the progress of the bilateral cooperation agreement from 2021 to 2025. The meeting was co-chaired by distinguished executives from both countries' Ministries of Planning and Investment, and delegates included representatives from many federal agencies, province administrations (Nghe An, Thanh Hoa, and Ha Tinh), and other ministries. The conference focused on essential components of the two nations' partnership framework.

Given the present circumstances on a global and regional scale, the meeting's organizers emphasized the need for establishing economic ties. Since 2021, Laos has awarded investment permits to Vietnamese enterprises totaling $869.9 million. These licenses have been issued to a number of Vietnamese enterprises. Laos authorized six new projects worth $339 million for the first half of 2024. The endeavors encompassed healthcare potential, power generation, mining, and others. Vietnamese enterprises are more confident in the Lao market, and new projects demonstrate their commitment to long-term economic collaboration.

Currently, Vietnamese firms are investing in Laos via 256 separate projects, with a total registered capital of about $5 billion. The total amount of capital implemented so far is around $2.8 billion. Not only have many of these initiatives been tremendously successful, but they have also contributed significantly to Laos' economic and social development. Notable industries include banking and communications, food production, dairy processing, and rubber plantations. These industries have contributed to growing Laos' economy, resulting in greater earnings for workers and more tax income for the government. They've also produced thousands of jobs.

Both nations have seen a steady expansion in investment and business connections. In the first half of 2024, total commerce between Vietnam and Laos was $927.8 million, up 11.1% over the same period in 2023. Vietnam provided Laos with commodities worth $289.2 million, while Laos exported to Vietnam $638.6 million. Bilateral economic ties have gradually improved, with an average annual growth rate of 17.7% between the two countries from 2021 to 2023. Trade flourished between these two countries.

Both administrations have and will continue to prioritize the construction of new infrastructure. There have been many agreements struck between the two countries to improve connectivity. As part of these agreements, feasibility studies will be done for key projects like the Vientiane-Hanoi Expressway and the Vientiane-Thakhek-Tan Ap-Vung Ang Railway, which seek to link Laos and Vietnamese seaports more directly. Vung Ang Ports 1, 2, and 3 will be critical in growing Laos' transportation and commerce, and both sides are committed to establishing them. These ports are located in the southeast portion of the nation. The implementation of these projects is projected to result in increased bilateral commerce and better access to international markets for Laos via Vietnam's ports.
Phet Phomphiphak, Laos' Minister of Planning and Investment, emphasized the need for close coordination between the two nations to guarantee that these projects are carried out successfully. He underlined the significance of Laotian and Vietnamese firms working more closely together, particularly on joint ventures, and ensuring that all agreements are carried out as intended. Ongoing project issues must be handled, and new initiatives must be kept in motion; these are among the most important responsibilities.

Infrastructure aid and energy cooperation are anticipated to be the primary areas of emphasis. The Vietnamese government has pledged to continue buying power from Laos under the terms of previous agreements. Building a comprehensive plan to connect their power networks is now being researched as a way for both nations to strengthen their energy links. The ultimate objective is to integrate Vietnam, Laos, and Cambodia's electrical networks. Indeed, this kind of cooperation will benefit the regional economy while also increasing energy security.

Human resource development and education are critical components of the Vietnam-Laos collaboration. To better prepare the next generation of leaders and strategic thinkers, the two countries have agreed to collaborate in the classroom. To ensure that the next generation of professionals can make significant contributions to their respective economies, the two nations will collaborate to raise overall educational standards. Vietnam has vowed to continue assisting Laos in two areas: scholarship funding and high-quality training for Laotian students.

Vietnam has also agreed to continue providing financial help to Laos, with the primary goal of ensuring that money is spent efficiently. Joint task groups are often created to supervise the development of Vietnamese-funded projects. This ensures that projects are finished on schedule and at the desired quality level. Furthermore, the two parties are exploring the possibility of combining these monies with other lawful resources to support large-scale, significant initiatives that might benefit Laos' economy and society.

When new challenges occur along the route of economic cooperation between Vietnam and Laos, the Vietnam-Laos Cooperation Committee will be ready to assist. To ensure that investment and economic partnerships grow, both governments have vowed to increase collaboration in all areas. The administrations of the two countries are working together to improve their relationship and ensure that the advantages of their extensive collaboration are fully realised.

The economic and investment relations between Vietnam and Laos are currently facing a critical juncture. By completing important initiatives in energy, education, commerce, and infrastructure, both nations are building the framework for future cooperation. Strategic projects are being implemented to aid in the success of these objectives. By solving problems together, they are establishing a precedent for regional economic cooperation, which is likely to benefit everyone.