Vietnam and Laos are reinforcing their time-tested friendship through strengthened economic, political, and strategic cooperation. With significant achievements in 2024, both nations are now setting ambitious goals for 2025, aiming to raise bilateral trade by 10–15% compared to the previous year and ultimately reach a trade value of $5 billion in the near future.

High-Level Meeting Sets Strategic Direction

On January 9, 2025, Vietnamese Prime Minister Pham Minh Chinh and Lao Prime Minister Sonexay Siphandone co-chaired the 47th Meeting of the Vietnam–Laos Intergovernmental Committee in Vientiane, Laos. This annual session served as a critical platform to review bilateral cooperation and to chart a roadmap for deeper collaboration across key sectors.

Both leaders underscored the enduring and unique friendship between Vietnam and Laos, characterized by profound political trust, close coordination on regional and international platforms, and comprehensive support in areas ranging from national defense and security to economics, culture, and education.

Trade and Investment See Strong Growth

One of the most notable outcomes of the Vietnam–Laos partnership in 2024 was the surge in bilateral trade. Total trade turnover surpassed $2.2 billion, reflecting a remarkable 33.9% increase from 2023. This impressive growth provides a strong foundation for both countries to move toward the shared goal of reaching $5 billion in trade volume.

Vietnamese enterprises continue to play a critical role in Laos’s economic development. As of late 2024, Vietnamese companies had invested in 267 projects in Laos, with total registered capital of $5.7 billion. Approximately $2.8 billion of this capital has already been disbursed, indicating the practical implementation of commitments made over the years.

More importantly, 2024 saw a resurgence in Vietnamese investment into Laos, with new registered capital reaching $191.1 million—a substantial 62.1% increase compared to 2023. This positive trend signals a shift toward more sustainable and strategic investments, focusing on sectors such as infrastructure, energy, mining, and healthcare.

In addition, Vietnamese businesses operating in Laos have contributed significantly to the Lao state budget. Over the past five years, their average annual contributions through taxes and financial obligations have totaled approximately $200 million.

Key Projects Reflect Strategic Vision

At the meeting, the two Prime Ministers reviewed the progress of ongoing projects and outlined a series of priorities to further enhance cooperation. Some of the major projects discussed include:

·       The Vietnam–Laos Friendship Hospital in Vientiane, a symbol of healthcare cooperation;

·       Vung Ang Port projects (No.1, 2, and 3) in central Vietnam, which are vital for Laos’s access to the sea;

·       Power cooperation, including energy production, transmission, and cross-border electricity trading;

·       Infrastructure connectivity, particularly the development of the Hanoi–Vientiane expressway and the Vientiane–Vung Ang railway, key to boosting trade and logistics;

·       The Kali salt mining and processing project in Laos, crucial for both nations’ economic goals;

·       Tourism collaboration, including a trilateral program titled “One Journey – Three Destinations” linking Vietnam, Laos, and Cambodia.

Beyond these projects, both countries committed to enhancing cooperation in digital transformation, population and citizen ID management, and financial integration. In particular, they agreed to promote the use of local currencies in bilateral transactions—a step aimed at boosting financial independence and regional resilience.

Another important initiative is the Vietnam–Laos Friendship Park project in Vientiane, which aims to strengthen cultural and people-to-people ties. The two sides also pledged to prioritize education and training, with a special focus on scholarships, curriculum development, and vocational training for Lao students in Vietnam.

Political and Regional Cooperation Strengthened

Prime Minister Pham Minh Chinh emphasized the importance of results-driven cooperation, highlighting the motto: “What we commit to, we must deliver; and every action must produce concrete outcomes.” He called for more efficient implementation of signed agreements, particularly the Joint Declaration and various cooperation documents adopted during this 47th session.

In addition to bilateral efforts, Vietnam and Laos are preparing for an upcoming trilateral summit between the ruling parties of Cambodia, Laos, and Vietnam. The Prime Minister urged both sides to coordinate closely and ensure substantial outcomes from this high-level engagement.

Another long-standing area of collaboration is the joint effort to locate and repatriate the remains of Vietnamese volunteer soldiers who laid down their lives in Laos during wartime. Both governments reaffirmed their dedication to this humanitarian mission, which remains a powerful symbol of their historical bond.

A Stronger Future for Vietnam–Laos Relations

The 47th meeting of the Vietnam–Laos Intergovernmental Committee marked a significant milestone in the bilateral relationship. It not only reflected the deep trust and shared vision between the two governments but also laid the groundwork for practical, impactful cooperation in the coming years.

With mutual determination, strategic alignment, and a forward-looking approach, Vietnam and Laos are well on their way to achieving their $5 billion trade target—and more broadly, to building a resilient, prosperous, and sustainable future together.