On October 17, 2024, a conference on managing the Vietnam-Laos land border, held in Quảng Nam, brought together leaders from Vietnam’s Ministry of Industry and Trade, Lao officials, and representatives from 10 border provinces of both nations. The event highlighted the growing need to maximize the advantages of Vietnam-Laos border trade, focusing on economic cooperation and cross-border trade development.

Promising Developments in Vietnam-Laos Border Trade

Mr. Trần Quốc Toản, Deputy Director of the Department of Import-Export (Ministry of Industry and Trade), provided information about the development of border trade between Vietnam and Laos.

At the conference, Tran Quoc Toan, Deputy Director of the Import-Export Department of Vietnam’s Ministry of Industry and Trade, emphasized that Vietnam-Laos economic cooperation has been flourishing due to strong efforts from both governments, ministries, and local authorities. The collaboration has been particularly significant along the 2,300 km shared border, which spans 10 provinces in each country. This strategic region plays a vital role in the East-West Economic Corridor, offering promising opportunities for regional trade expansion.

Both Vietnam and Laos benefit from a comprehensive infrastructure system along the border, featuring 9 international border gates, 6 primary gates, 18 secondary gates, and 27 auxiliary crossings. Additionally, 9 border economic zones have been established to facilitate smoother trade and economic activities. Trade between the two countries has been boosted by reduced tariffs under the ASEAN Trade in Goods Agreement, the Vietnam-Laos Bilateral Trade Agreement, and the Vietnam-Laos Border Trade Agreement, resulting in a 0% tariff on most traded goods.

In the first nine months of 2024, bilateral trade between Vietnam and Laos reached $1.5 billion, marking a 25.5% increase from the same period in 2023. Vietnamese exports to Laos amounted to $491.9 million, while imports from Laos reached $1 billion, showing growth rates of 24% and 26.2%, respectively. Key imports from Laos include rubber, wood products, ores, and minerals, while Vietnam's primary exports to Laos include steel products, vehicles, machinery, and equipment.

Overcoming Challenges for Sustainable Border Trade Growth

Despite these positive developments, the conference noted several challenges hindering Vietnam-Laos border trade. These include insufficient investment in border infrastructure, limited processing facilities, and inadequate logistics services, which constrain the full potential of cross-border commerce. Furthermore, some connectivity projects, including roads linking districts to border gates, have faced delays, failing to meet the growing demand for cross-border trade.

Tran Quoc Toan stressed the need to address these issues by improving border infrastructure, especially transportation networks connecting border economic zones. Enhancing logistics, streamlining trade procedures, and encouraging businesses to invest in processing and manufacturing facilities near the border areas are also essential. These measures aim to create a sustainable trade environment that supports economic growth and development in both countries.

Future Directions for Vietnam-Laos Border Trade

The Ministry of Industry and Trade outlined strategies to promote modern, efficient, and secure border trade between Vietnam and Laos. One of the main goals is to establish a flexible management system that aligns central and local regulations, ensuring smoother import-export activities. Encouraging businesses to adopt formal export channels and developing stronger logistics networks are also priorities. This approach aims to reduce costs associated with warehousing, transport, and handling, while ensuring compliance with safety and health measures.

Nam Giang - Đắc Tà Oọc International Border Gate.

Moreover, efforts will be made to optimize the natural and geographical advantages of the Vietnam-Laos border, enhancing trade with remote and mountainous regions of both countries. This includes developing smarter and more automated production and trading systems at border gates, while preserving the cultural heritage of border communities and ensuring national security.

Proposed Solutions to Enhance Border Cooperation

To further strengthen Vietnam-Laos border trade, the Ministry of Industry and Trade proposed several solutions:

1. Improving Bilateral Communication: Both sides are encouraged to regularly exchange information on market demand, key products, and trade policies to ensure transparency and support informed decision-making.
2. Facilitating New Agreements: Vietnam and Laos plan to negotiate new agreements aimed at boosting economic cooperation. This includes simplifying customs procedures, enhancing border clearance efficiency, and ensuring seamless trade operations.
3. Organizing Trade Events: The governments will support the organization of trade forums, fairs, and exhibitions along the border to foster business connections. Funding will be provided to promote participation in these events, enhancing the visibility of Vietnamese and Lao products.
4. Supporting Logistics Development: Efforts will be made to attract logistics service providers to support businesses engaged in border trade. This includes developing better storage facilities, reducing transportation costs, and expanding distribution networks into the interior markets of both countries.
5. Promoting National Brands: Vietnamese products that have achieved national brand status will be promoted in trade fairs, exhibitions, and economic events in Laos. Meanwhile, Lao businesses interested in investing in Vietnam will receive support to explore Vietnam's industrial zones, strengthening bilateral business ties.

Deputy Director Tran Quoc Toan also called for greater Lao cooperation in sharing market information and coordinating efforts to facilitate effective trade promotion activities. He emphasized the importance of supporting national brands and ensuring effective participation in economic events.

Enhance trade connections and the exchange of goods between the two countries.

The Vietnam-Laos border trade holds immense potential for growth, benefiting from strategic geographical proximity and strong bilateral ties. By addressing infrastructure, logistics, and regulatory challenges, both countries aim to create a modern, dynamic, and mutually beneficial trade environment. Enhanced collaboration, backed by strategic policies and effective agreements, will help maximize the full potential of border trade and contribute to broader regional development.