Vietnam and Laos are entering a new chapter in their long-standing economic partnership, with trade and industrial cooperation reaching unprecedented levels. Despite persistent volatility in the global economy — from fluctuating commodity prices to shifting trade patterns and supply chain disruptions — the two neighbors have managed to achieve exceptional growth in bilateral commerce.

Recent statistics underscore the scale of this achievement. In the first half of 2025 alone, total import–export turnover between Vietnam and Laos reached an impressive USD 1.78 billion. This figure represents a dramatic year-on-year increase of 92.2 percent compared to the same period in 2024. Such growth, achieved within just six months, has not only surpassed expectations but has also positioned the bilateral relationship for another record-breaking year.

The success builds on remarkable momentum from 2024, a year in which bilateral trade reached USD 2.25 billion — an increase of 38.2 percent compared to 2023. It was a milestone year, marking the first time in history that Vietnam–Laos trade exceeded the USD 2 billion threshold. For both nations, this achievement was more than an economic metric; it was proof of the enduring strength of a partnership that has weathered decades of regional and global changes.

Strengthening political and economic ties

Against this backdrop of impressive figures, the economic relationship has been further reinforced through high-level political engagement. Deputy Minister of Industry and Trade Nguyễn Sinh Nhật Tân recently joined a senior Vietnamese delegation led by Deputy Prime Minister Nguyễn Chí Dũng on an official visit to the Lao People’s Democratic Republic. The visit, undertaken at the invitation of Lao Deputy Prime Minister Saleumxay Kommasith, demonstrated the commitment of both governments to sustain and deepen cooperation.

Over the course of the visit, Deputy Minister Tân participated in a full schedule of diplomatic and business engagements alongside Deputy Prime Minister Dũng. These included high-level talks between the two Deputy Prime Ministers, a Vietnam–Laos Business Forum attended by government leaders and prominent enterprises from both countries, and courtesy calls with some of Laos’s most senior leaders — Lao Party General Secretary and State President Thongloun Sisoulith, Lao Prime Minister Sonexay Siphandone, and Mr. Phet Phomphiphak, Member of the Lao Party Central Committee and Chief of the Party Central Office.

The tone of these meetings reflected both warmth and pragmatism. Leaders on both sides celebrated recent achievements but also took a candid look at the practical steps needed to ensure that cooperation remains effective and mutually beneficial.

Ambitious goals for the future

During their official talks, the two Deputy Prime Ministers reviewed the strong trade performance in the first half of 2025. They noted that bilateral turnover was already approaching the USD 2 billion mark — a figure once considered a full-year target. With this rapid pace of growth, both sides reaffirmed their ambition to increase bilateral trade to USD 5 billion in the coming years.

To achieve this, they agreed to accelerate the implementation of signed agreements and long-term strategies, tackle persistent bottlenecks, and introduce new initiatives capable of creating genuine breakthroughs. These include enhancing transport connectivity, improving customs clearance procedures, facilitating cross-border investments, and supporting business partnerships in key industries such as agriculture, manufacturing, energy, and services.

Energy cooperation as a strategic pillar

One of the visit’s most significant outcomes was the formal exchange of the Protocol amending the Agreement on Coal and Electricity Trading between the Governments of Vietnam and Laos. Representing the Vietnamese Minister of Industry and Trade, Deputy Minister Nguyễn Sinh Nhật Tân, together with Lao Minister of Industry and Trade Malaythong Kommasith, conducted the exchange in the presence of both Deputy Prime Ministers.

The original agreement, signed in Laos on January 9, 2025, came into effect immediately. However, early implementation revealed certain technical and operational challenges. The amended protocol aims to address these issues head-on, ensuring smoother cooperation in the coal and electricity sectors. Energy collaboration is seen as a strategic pillar of the Vietnam–Laos relationship, with the potential to not only meet the domestic needs of both countries but also contribute to regional energy security.

Removing barriers and fostering enterprise cooperation

During the visit, Deputy Prime Minister Nguyễn Chí Dũng stressed the importance of creating a more enabling environment for businesses. He called for the full and effective implementation of existing legal and institutional frameworks — including the Vietnam–Laos Bilateral Trade Agreement, the Agreement on Coal and Electricity Trading, and the Memorandum of Understanding on the Development and Connection of Border Trade Infrastructure.

Both governments pledged to review and adjust policies that currently hinder bilateral trade and investment. This includes harmonizing customs procedures, simplifying documentation requirements, and addressing infrastructure gaps along the border. By removing such obstacles, Vietnam and Laos hope to encourage more private-sector engagement, stimulate investment in cross-border industrial zones, and expand cooperation into emerging sectors such as renewable energy, digital trade, and sustainable agriculture.

A partnership built on history, driven by the future

The Vietnam–Laos economic relationship is not merely transactional; it is rooted in decades of shared history, mutual support, and political solidarity. What makes the current phase unique is the combination of strong political will, rapidly expanding trade volumes, and a focus on diversifying areas of cooperation.

Both countries are conscious that sustained success will require not only expanding the scale of trade but also improving its quality — shifting from predominantly raw material and commodity exchanges to more high-value, technology-driven, and environmentally sustainable projects.

Looking ahead

As Vietnam and Laos continue to invest in modern infrastructure, deepen energy cooperation, and remove barriers to business, they are creating a partnership resilient enough to withstand global uncertainties. The strategic goal is clear: to turn bilateral cooperation into a powerful driver of national development, regional stability, and shared prosperity.

With trade volumes climbing, industrial collaboration broadening, and political trust at an all-time high, the Vietnam–Laos relationship is poised to set new records in the years to come. It stands as a model of how neighboring countries, bound by both geography and friendship, can work together to deliver concrete benefits for their people while contributing to peace and development across Southeast Asia.