The Hanoi Department of Industry and Trade has carried out a directive from the Hanoi leaders to organize the "2023 Trade Promotion and Craft Village Delegation in Laos" in an attempt to strengthen and expand trade ties between Hanoian and Laotian businesses.

The "Hanoi-Vientiane 2023 Raw Material Development and Product Consumption Connection Conference," which the two cities jointly organized, was one element of this endeavor. From agricultural goods to handicrafts and cottage industry items, the event showcased a wide range of Vietnamese and Laotian products at its exhibition booths. Companies from both nations were able to learn more about the tastes and products of each other at this trade show. Tours of the Laotian capital and provinces specializing in handicraft and cottage industry production were also part of the delegation's schedule, as were field surveys of agricultural regions growing ginger, chili, bananas, rattan, and bamboo.

Hanoi hopes that by facilitating its businesses' understanding of Laos' strengths and connecting them with Laotian enterprises, this program will make investment, cooperation, and business expansion more likely, especially in relation to the development of raw material regions in Laos.

Twelve MOUs were signed between Hanoi and Laotian businesses as a result of the program, indicating that it was successful. Specifically, the Vietnam Cinnamon Production and Export Joint Stock Company and Laos' Buakhame LLC signed the first memorandum of understanding (MOU), which aimed to develop raw material regions for coffee, chili, ginger, and chili peppers in Vietnam while simultaneously transferring crop varieties and cultivation techniques from Laos to Vietnam. Tre Viet Trading and Production Co., Ltd of Vietnam and the Vientiane Bamboo Industrial Factory Sole of Laos collaborated on the second MOU, which facilitated the acquisition of bamboo raw materials from Laos for the manufacture and export of products like cutting boards, tissue boxes, and tea trays.

By signing these memorandums of understanding, the companies on both sides have committed to working closely together in areas such as the exchange of crop varieties and cultivation methods, the development of new regions to source raw materials, and the purchase of finished goods. Production, business, and export activities will all benefit from this partnership.

“Vietnam is experiencing a shortage of raw materials for handicraft production such as rattan, bamboo, wood, sedge, kaolin, and horn due to the shrinking of raw material areas,” said Nguyen Van Trung of Hoa Son Fine Arts Co., Ltd., adding that this is happening despite the increasing demand for these products both domestically and abroad.

When compared to other raw material-developing regions, Laos's vast, concentrated land areas are ideal for industrial and agricultural production on a grand scale, giving the country great potential. On top of that, Hanoi businesses can make use of Laos's gypsum and kaolin resources to make ceramics, handicrafts, and home goods.
Stats show that Laotian businesses have invested a total of USD 10.5 million into Hanoi's service industries, with a particular emphasis on commerce, banking, insurance, and real estate.

Hanoi and Laos have been able to trade positively despite the COVID-19 pandemic's devastating effects. Hanoi exported electronic components, computers, minerals, and machinery to Laos in 2022, with a projected turnover of USD 200 million. On the flip side, Laos supplied Hanoi with goods worth USD 211 million, mostly food, fertilizers, and agricultural products.

The government of Laos is hoping that the craft villages around Vientiane and the surrounding areas will keep getting great support and helpful advice from the handicraft businesses in Hanoi so that they can improve and raise the quality of their products. Laos is also expected to take measures to ease business operations and attract investment from Vietnamese companies, especially in the agricultural sector. These measures could include easing the transfer of crop varieties, cultivation techniques, and modern processing technology for crops.

An official from the Hanoi People's Council named Phung Thi Hong Ha made the following statement: "These trade promotion activities have created opportunities for authorities and businesses on both sides to interact, exchange and share valuable experiences in developing craft villages, connecting consumption of handicrafts, cottage industry products, and agricultural foodstuffs..." As a result, there will be more chances for both countries to work together, which will lead to better exports and boost the economies of both capitals.