The year 2024 marked a watershed moment in the economic and investment relationship between Vietnam and Laos, signaling a renewed trajectory of strategic alignment, sustainable development, and resilient bilateral trade. Overcoming persistent structural challenges, the two nations have taken significant steps to deepen economic collaboration, laying the foundation for a transformative phase in regional growth.

Strengthening Bilateral Commitments for a Sustainable Future

At the Vietnam-Laos Investment Cooperation Conference 2025, held on January 9 in Vientiane, Vietnamese Minister of Planning and Investment Nguyễn Chí Dũng reaffirmed the shared vision of the two governments in building a dynamic, inclusive, and sustainable partnership. Centered around the theme "Jointly Promoting Sustainable and Prosperous Development", the event served as a strategic dialogue platform for policymakers and the business community to reimagine the future of bilateral economic relations.

The conference highlighted both nations' commitment to leveraging their complementary strengths and addressing challenges through policy innovation, private-sector engagement, and regional connectivity.

Robust Growth in Vietnamese Investment Activities

Vietnam's investment footprint in Laos has grown substantially, reaching USD 191.1 million in 2024—a 62.1% increase over the previous year. This surge reflects a clear shift toward sectors aligned with sustainable development, such as renewable energy, high-tech agriculture, mineral resource management, and advanced processing industries.

To date, Vietnamese enterprises have launched 267 active investment projects in Laos, with a cumulative registered capital of USD 5.7 billion. These investments span vital sectors, including energy, mining, forestry, agro-processing, telecommunications, finance, and tourism. Significantly, Vietnamese businesses have established a presence in 17 out of 18 Laotian provinces, demonstrating a widespread and strategic economic engagement.

This diversified investment profile not only contributes to Laos' socio-economic development but also reflects Vietnam’s strategic intention to foster green growth and inclusive industrialization across its regional partnerships.

Bilateral Trade Reaches New Heights

In addition to investment gains, bilateral trade between Vietnam and Laos posted impressive figures in 2024. Total two-way trade turnover hit USD 2.2 billion, up 33.9% year-on-year. This upswing is partly driven by the expanding operations of Vietnamese-invested enterprises operating within Laos, which have significantly contributed to local export capacity.

Of note, Laos recorded a trade surplus of USD 732.7 million with Vietnam—a strong indicator of the growing interdependence and complementarity between the two economies.

Recognizing Bottlenecks and Bridging Gaps

While acknowledging these achievements, Minister Nguyễn Chí Dũng underscored that the current level of economic cooperation still lags behind the depth of the long-standing political and diplomatic ties between the two nations. Despite notable progress, several large-scale projects—particularly those tied to cross-border transport infrastructure and logistics corridors—have faced delays due to regulatory complexities, financial limitations, and coordination challenges.

Such stagnation, if not addressed, could hinder broader integration efforts under regional frameworks such as ASEAN connectivity and the Greater Mekong Subregion (GMS) program.

Strategic Directions to Unlock Potential

In response to these persistent challenges, the Minister outlined four key strategic directions to guide the next phase of Vietnam-Laos investment cooperation:

1. Reinforcing Political Solidarity and Policy Synchronization: Both countries should maintain close coordination to ensure macroeconomic stability and policy alignment. Sharing best practices in institutional reform, economic governance, and business climate enhancement will be essential.

2. Promoting Investment and Trade in Sustainable Sectors: Policymakers should incentivize high-quality, long-term investments, especially in environmentally friendly and technology-driven sectors, to generate shared economic value.

3. Fostering Business-Led Connectivity and Infrastructure: The private sector should be empowered to lead in planning and executing transport infrastructure projects that connect Laos to Vietnamese seaports, thereby enhancing Laos' access to international markets and supply chains.

4. Accelerating Domestic Reforms to Attract Investment: Laos must continue to refine its investment environment by ensuring transparency and consistency in tax, labor, land, and financial regulations. Supporting foreign and domestic private investors will be pivotal in catalyzing inclusive growth.

2025: A Critical Juncture for Bilateral Cooperation

Looking ahead, 2025 is poised to be a pivotal year as both countries work to fulfill their commitments under the Vietnam-Laos Bilateral Cooperation Agreement (2021–2025) and prepare to chart a strategic roadmap for the next decade.

Minister Dũng concluded with an optimistic outlook:

“With our enduring special friendship, mutual political trust, and a shared vision for the future, we are confident that a new generation of impactful, high-value investment projects will arise—propelling the Vietnam-Laos partnership to new heights and contributing meaningfully to sustainable development in the region.”