On the Vietnamese side, attending the talks were: Vietnam's Ambassador to Laos Nguyen Ba Hung; leaders and representatives from various departments under the Ministry of Industry and Trade; and representatives of enterprises involved in investment, trade, and industry in Laos. On the Laos side, attending the talks were the Deputy Minister of Industry and Trade of Laos, leaders of relevant departments, and representatives of several enterprises. Minister Nguyen Hong Dien began the meeting by extending his best wishes to Minister Malaithong Kommasith, the Deputy Ministers, and the staff of the Laos Ministry of Industry and Trade on the occasion of the traditional Laos New Year, Bunpimay.

The Minister affirmed that cooperation in the field of Industry and Trade is a crucial pillar in the relationship between Vietnam and Laos. Therefore, the two sides need to meet and exchange frequently to resolve difficulties and promote cooperation in industry, trade, and services. Minister Nguyen Hong Dien highlighted that Vietnam has recently become a global manufacturing hub, with import-export turnover exceeding USD 735 billion. The country is among the top 20 largest foreign trade economies in the world and one of the most attractive destinations for FDI.

Consequently, Vietnam has a significant demand for importing raw materials and electricity from various countries, including Laos. The two ministers acknowledged the positive growth in bilateral trade over the past years. Since 2012, with substantial efforts from both governments and businesses, the two sides have consistently achieved the annual trade growth target of 10-15%, as set by the senior leaders of the two countries (excluding the COVID-19 period due to global circumstances). Minister Nguyen Hong Dien praised the improvement in Laos' production capacity in recent years. Laos is gradually becoming a vital supplier of products and raw materials for ASEAN countries in general and Vietnam in particular.

However, the trade volume between Vietnam and Laos currently stands at $1.65 billion, accounting for only 10% of Laos' total foreign trade and 0.2% of Vietnam's total foreign trade. This does not reflect the potential and special relationship between the two countries. To harness the potential for trade cooperation, the two ministers agreed on specific solutions to implement the commitments and agreements reached by the senior leaders of both nations, as outlined in the Cooperation Plan Agreement between the Governments of Vietnam and Laos and the minutes of the 46th meeting of the Vietnam-Laos Intergovernmental Committee. These solutions include:

(i) Promoting the export of goods between the two countries to increase trade volume: Both ministers acknowledged that effective implementation of trade cooperation commitments depends greatly on the close cooperation between businesses of the two nations. Therefore, they agreed to enhance activities such as business forums, trade connection conferences, trade fairs, and market information seminars to strengthen business connections.

(ii) Enhancing cooperation in developing border trade infrastructure: The ministers recognized the significant role of border trade, which currently accounts for over 90% of the total trade between the two countries. To further boost border trade, they agreed to effectively implement the Memorandum of Understanding on the development and connection of border trade infrastructure signed in January 2024, and to review and amend the 2007 Hanoi Agreement and the Vietnam-Laos Border Trade Agreement to suit the current context. They also agreed to organize the 13th Vietnam-Laos Border Trade Conference in Vietnam to address emerging border trade issues and discuss future cooperation directions.

(iii) Maximizing the efficiency of existing industrial zones and border economic zones: The ministers stressed the necessity of exploring the development of industrial zones and border economic zones but agreed to first maximize the potential of existing zones. They also emphasized the need to improve legal frameworks for cross-border industrial cooperation. Both ministers tasked their respective departments with negotiating and finalizing a Memorandum of Understanding on developing industrial supply chains between the two countries.

(iv) Ensuring the stability of the Laotian fuel market: Minister Malaithong Kommasith requested Vietnam’s support in managing the fuel market and stabilizing fuel supply. Minister Nguyen Hong Dien assured that Vietnam is committed to assisting Laos in this regard and will continue to encourage Vietnamese fuel businesses to connect with Laotian companies. He also highlighted the need for long-term solutions to address fuel standards and exchange rate mechanisms to ensure market stability.

(v) Strengthening cooperation in market management and e-commerce development: Minister Nguyen Hong Dien assigned the General Department of Market Management to share expertise and support Laos in enhancing market management capabilities, combating smuggling, and fraud in both traditional and e-commerce sectors. He also directed the Department of E-commerce and Digital Economy to collaborate with Laotian counterparts to share experiences and promote e-commerce development.

Following the meeting, Minister Nguyen Hong Dien and Minister of Industry and Commerce of Laos Malaithong Kommasith signed the new Vietnam-Laos Trade Agreement. They also witnessed the signing of several Memorandums of Understanding (MOUs), including an MOU between the General Department of Market Management (Vietnam Ministry of Industry and Trade) and the Department of Competition and Trade Inspection (Laos Ministry of Industry and Trade), and an MOU on cooperation in building warehouses and coal transport systems among GP Holdings, the Institute of Mechanical Research, and Phonesack Group. These MOUs are expected to deepen the cooperation between the two countries.

The Vietnam-Laos Trade Agreement was first signed in 2015. The governments of Vietnam and Laos tasked their respective ministries of industry and trade with negotiating revisions to create a new agreement that aligns with the current context. After three years of negotiations, both sides agreed on the content of the new agreement. The new agreement aims to strengthen and further solidify the special friendship and comprehensive cooperation between Vietnam and Laos, promote market access for goods and services, and foster sustainable, long-term development. The provisions are based on principles that comply with each country's respective laws, regulations, and policies; promote equality and mutual benefits; and facilitate maximum ease in exporting, importing goods, and providing services, while granting each other special trade preferences.

The agreement comprises five chapters, with 15 articles and five annexes, covering critical issues in bilateral trade cooperation. These include market access regulations for goods and services, trade facilitation, trade promotion and e-commerce applications, cooperation against smuggling, trade fraud, money laundering, and illegal cross-border transport. Once signed and implemented, the new Vietnam-Laos Trade Agreement will address issues that arose during the implementation of the 2015 agreement. It will further enhance the legal framework for Vietnam-Laos trade activities, particularly by reviewing and offering tariff preferences ahead of the ASEAN tax reduction schedule for Vietnam and Laos, thereby facilitating smoother export-import operations and boosting trade relations between the two countries.