Stable growth

Positioned on the East-West Economic Corridor, the 2,330 km-long border between Vietnam and Laos cuts through ten provinces and cities on either side. In all, there are nine border economic zones along the length of the Vietnam-Laos border, as well as nine international border gates, six main gates, eighteen subordinate gates, and twenty-seven openings. Among the many advantageous circumstances for commerce and service operations between the border provinces of Vietnam and Laos is this.

Through the signing of the Vietnam-Laos Trade Agreement (in March 2015) and the Vietnam-Laos Border Trade Agreement (in June 2015), the Vietnamese and Laotian governments established a legal corridor to facilitate trade and economic cooperation. As part of their cooperation, the Vietnam and Laos border market network planning was finalized. The two sides also maintained their annual meetings and exchanges of government officials, and they planned trade promotion activities, like trade fairs, to increase trade between the two nations.

The two nations' joint efforts have paid off, as bilateral trade between Vietnam and Laos is flourishing. Vietnamese and Laotian exports and imports barely amounted to 165 million USD in 2005. The projected growth rate is a factor of nearly ten, reaching $1.6 billion by 2022. There was an average annual growth rate of almost 18% in the two countries' bilateral commerce between 2011 and 2015, according to the statistics. Vietnam and Laos have maintained a steady trade turnover over the past three years. By 2021, the two nations' trade turnover will have increased by 33.3% from 2020 levels, reaching 1.373 billion USD. Rising 18.9 percent from 2021 to 2022, this amount will reach 1.63 billion USD in 2022. The projected total turnover of bilateral trade in 2023 is approximately $1.6 billion USD. The primary exports of Vietnam to Laos consist of iron and steel goods, automobiles and their components, tools, machinery, equipment, and other components, as well as fertilizers of various types, plastic goods, vegetables, and other veggies. All types of fertilizers, fruits, vegetables, ores, minerals, and wood (and wood products) are among the most common imported goods.

With 241 investment projects in Laos and a total registered capital of 5.47 billion USD by 2023, Vietnam will still be the third country or territory to invest in Laos. Contrarily, as of this writing, 18 Laotian investment projects in Vietnam totaling more than 110 million USD are firmly underway.

A breakthrough is required

There is a lot of room for growth in the areas of mining, pharmaceuticals, construction, tourism, technology applications (e.g., investing in Laos's agricultural projects, working together on wind power), and general business cooperation between Vietnam and Laos, according to Vietnamese and Laotian professional agencies.

Due to the good trading relationship between Vietnam and Laos, the Vietnamese Ministry of Industry and trading has stated that Vietnamese exports to Laos may continue to rise in the future. Household appliances, processed foods, building materials, industrial gear and equipment, agricultural products, tourism services, education, and so on are all goods that Vietnam can boost its exports to Laos. Conversely, Laos has a lot of items that Vietnam may import, including rubber, timber, fertilizers, electricity, minerals, wood products, and wood.

Vietnam and Laos have held numerous meetings, debates, and signed cooperation agreements to boost bilateral economic and commercial cooperation. During the Vietnam - Laos Cooperation Investment Conference on January 7, 2024, Lao Prime Minister Sonexay Siphandon expressed his hope that Vietnamese businesses would keep learning about Laos and investing in clean energy, agricultural product processing, minerals, and clean agriculture, among other areas where Laos excels.

Prime Minister Pham Minh Chinh underlined the importance of economic and investment cooperation between Vietnam and Laos, saying that it is a strategic necessity. He also said that the two countries should prioritize promoting their unique strengths so that they can build their own independent, self-reliant, proactive, and internationally integrated economies. This would be in line with the great friendship and solidarity between the two countries and would ultimately benefit their people and businesses.

A breakthrough is imminently required in the two nations' economic and investment cooperation, according to the prime minister. Infrastructure development and economic connectivity between the two countries necessitates public-private partnerships; this is particularly true for projects like the Hanoi–Vientiane road and the Vung Ang–Vientiane railway, which will link Laos to the sea; aviation cooperation; and infrastructure linking border checkpoints.

The two governments of Vietnam and Laos decided to keep organizing discussions between Vietnamese companies and Laotian authorities, during the 46th session of the Intergovernmental Committee on bilateral cooperation that took place on January 7. Get down to the business of fixing all the problems, hurdles, and unfinished business in the investment and collaboration initiatives. Large and important projects of Vietnamese firms are given preferential treatment by the Laotian government. Strive to maintain a ten to fifteen percent increase in trade turnover between the two nations in 2024 compared to 2023 and encourage robust growth in this area. Prioritize problem-solving and push for the integration of traffic infrastructure. Think of agricultural support and rural infrastructure as cornerstones of the two nations' economic partnership.

In addition, the two sides reached an agreement on ways to boost tourism linkages between their respective nations and the "One journey, 3 destinations" initiative that unites Vietnam, Laos, and Cambodia. The promotion of efficient and realistic exchanges and collaboration across all domains is ongoing among ministries, branches, and municipalities. Additionally, the two prime ministers reaffirmed their commitment to ensuring that all relevant government agencies, departments, localities, businesses, and units work closely together to carry out their respective responsibilities and obligations, and to further cultivate an environment that is conducive to investment, production, and business cooperation between the two nations./.