In a remarkable demonstration of deepening economic cooperation, two-way trade between Vietnam and Laos reached an impressive USD 980.1 million in the first quarter of 2025, marking a substantial year-on-year increase of 105.5% compared to the same period in 2024.

Vietnam’s exports to Laos recorded significant momentum, surging to USD 346.4 million, representing a sharp 138.6% increase, while imports from Laos also experienced solid growth, rising by 91.1% to USD 633.6 million. These figures not only reflect the economic dynamism between the two nations but also underscore the growing interdependence that continues to characterize Vietnam–Laos trade relations.

A Border of Strategic Importance

Vietnam and Laos share a land border stretching more than 2,300 kilometers, cutting across 10 provinces in each country. This long and strategically positioned frontier forms part of the East-West Economic Corridor—an emerging axis for trade and development in Southeast Asia. Along this border, the two countries have developed a comprehensive network of cross-border infrastructure, consisting of nine international border gates, six primary checkpoints, 18 auxiliary control stations, and 27 designated customs clearance points. These border facilities are pivotal in facilitating the growing volume of trade and people-to-people exchange between the two nations.

Institutional Framework Supporting Trade Growth

The growing trade flows are supported by robust bilateral legal and institutional frameworks. A key pillar in this cooperation is the Vietnam–Laos Border Trade Agreement, originally signed in 2015 and extended through 2024. Recognizing the evolving nature of bilateral trade, the two sides signed a new Bilateral Trade Agreement on April 8, 2024, which officially comes into effect on February 24, 2025. This updated agreement is expected to further liberalize trade, streamline customs procedures, and encourage more diversified cross-border economic activity.

In addition, on January 9, 2025, a notable energy trade agreement was signed between the Vietnamese Ministry of Industry and Trade and the Lao Ministry of Energy and Mines. The deal covers coal and electricity cooperation, and took effect immediately upon signing. This strategic pact is anticipated to boost energy security and industrial synergy between the two neighbors—sectors that are increasingly critical in the post-pandemic recovery and energy transition era.

Vietnam’s Investment Footprint in Laos

Beyond trade, Vietnam continues to be one of Laos’s top foreign investors, with 267 active projects amounting to a total registered capital of USD 5.7 billion. As of now, approximately USD 2.8 billion has been disbursed, contributing significantly to infrastructure development, job creation, and economic transformation in Laos. Many of these projects—spanning sectors such as agriculture, mining, telecommunications, and energy—have yielded tangible socio-economic benefits and exemplify the long-standing spirit of solidarity and shared development.

Looking Ahead

The trade and investment figures from the first quarter of 2025 paint an optimistic picture of Vietnam–Laos economic engagement. With new agreements taking effect and trade volumes rising steadily, both countries are poised to deepen their cooperation across multiple dimensions. This trajectory not only strengthens bilateral ties but also reinforces regional integration efforts in mainland Southeast Asia.

As Vietnam and Laos continue to align their strategies, harmonize regulations, and invest in infrastructure and human capital, the vision of a mutually beneficial, resilient, and inclusive economic partnership is becoming increasingly attainable—bringing prosperity to both peoples along their shared path of friendship and cooperation.