In the first 4 months of 2022, Vietnam-Laos commercial urban area reached 558.2 million USD, up 20.2% over the same period in 2021; In which, Vietnam's exports to Laos reached 192.2 million USD, down 11.8%.
Since the establishment of friendly relations, Vietnam and Laos have continuously developed and achieved many achievements in all fields, regaining real benefits for the two peoples.

In particular, trade relations and cooperation between the two countries have always developed in a positive direction, becoming more and more substantive and in-depth. Therefore, the official visit to Laos by National Assembly Chairman Vuong Dinh Hue from May 15-17 is an important occasion for the two sides to exchange orientations and major measures to promote bilateral cooperation between the two countries. continue to develop in the new phase.

Steady growth

According to experts, in the 2016-2020 period, trade turnover between Vietnam and Laos will grow steadily and reach the target of over 1 billion USD/year. After 2 years of being affected by the COVID-19 epidemic and natural disasters and floods, trade between Vietnam and Laos faced many obstacles and difficulties.

However, since the beginning of 2021, trade between the two sides has grown strongly, so it is possible to balance exports and imports relatively balance. Therefore, the structure of goods import and export changes in a sustainable way, the list of goods exchanged between the two countries is increasingly expanded, diversified and richer.

This is the result of the political determination of the senior leaders of the sea, the direction to resolve the authorities, promptly solve and solve the problems, creating the maximum conditions for maritime enterprises to adapt quickly to the context of the COVID-19 pandemic.

According to statistics from the Asia-Africa Market Department under the Ministry of Industry and Trade, Vietnam-Laos trade in 2020 will reach more than 1 billion USD, down 11.5% compared to 2019; in which, Vietnam's exports to Laos reached 571.7 million USD, down 18.5% over the previous year. In contrast, Vietnam's import turnover from Laos reached 458.1 million USD, down 0.7%.

In 2021, Vietnam-Laos commercial urban area will reach 1.37 billion USD, up 33.3% over the previous year. Of these, Vietnam's exports to Laos reached $594.7 million, up 4% year-on-year, and Vietnam's metal imports from Laos reached $778.2 million, up 69.8%.

[Developing the great friendship and special solidarity between Vietnam and Laos]

Particularly in the first 4 months of 2022, Vietnam-Laos commercial urban area reached 558.2 million USD, up 20.2% over the same period in 2021; in which, Vietnam's exports to Laos reached 192.2 million USD, down 11.8% over the same period last year.

The main export transport items include products from iron and steel, means of transport and spare parts, machinery, equipment, tools, other spare parts, division of types, plastic products, vegetables and fruits.

Ms. Le Hoang Oanh - Director of the Asia-Africa Market Department said that the reason for Vietnam's exports to Laos decreased recently was because Vietnamese enterprises focused on exporting products from iron and steel to the market. EU, reaching 269 million USD, increased by nearly 40% due to lack of supply, the impact of the conflict between Russia and Ukraine.

In addition, Vietnam's import turnover from Laos reached 366 million USD, up 48.5% over the same period in 2021. The main imported items include rubber, wood and wood products, all kinds of fertilizers, vegetables, nets and products. Therefore, it is forecasted that in May 2022, the total export turnover between Vietnam and Laos will reach 717.1 million USD, up 23.5% over the same period last year.

Evaluating Vietnam-Laos relations, Minister of Industry and Trade Nguyen Hong Dien emphasized that since the 11th Conference on Border Trade Cooperation and Development between the two countries until 2018 until now, trade relations in general and border trade between the two countries in particular has made new developments.

This can be reflected in the impressive metal growth, not so with Vietnam-Laos trade in previous years but also with the growth of trade turnover between Vietnam and many other countries in the region. area.

However, the potential for the development of trade relations between the two countries is still very large and the 12th Vietnam-Laos Border Trade Development Cooperation Conference is one of the important steps to contribute to the development of the border trade between the two countries. unleash that potential.

In particular, the goal of anti-trade metals between the two countries is not only to grow at 10-15% per year, but also to let trade between the two countries develop stably and sustainably. Minister of Industry and Trade affirmed.
Along with that, the two sides need to exploit potentials and advantages to contribute to hunger eradication, poverty reduction, and improvement of people's living standards; build a border of peace and friendship and contribute more to the socio-economic development of both Vietnam and Laos.

Take advantage

Looking back at the limitations and reasons why Vietnam-Laos trade has not developed commensurately, the analysis limits only policies to attract investment in production, processing, infrastructure, and transport. , logistics at the border gate inefficient.

Moreover, the development of infrastructure, especially the construction of roads connecting to the border gate, inter-district roads in some areas is slow and not commensurate with each other. demand of activities of buying, selling, exchanging and circulating goods in border areas.

To be able to take advantage and promote opportunities, overcome difficulties and challenges, especially the negative impacts of the COVID-19 epidemic, according to experts, Vietnamese businesses need to improve their initiative to exploit them all. advantages of exporting to Laos, increasing export scale.

Specifically, businesses need to properly position the importance of the Lao market, identify the potentials and advantages of Vietnamese businesses that can exploit when entering this market to have an appropriate business strategy.

On the basis of the very good political-diplomatic relationship with Vietnam, the Lao Government strongly supports and creates favorable conditions for Vietnamese enterprises to participate in the investment and business process in Laos.

With 8 pairs of international border gates, 7 pairs of main border gates and 18 pairs of secondary border gates, economic exchanges as well as travel, import and export of goods and labor between Vietnam and Laos are very favorable. .

In addition, the two countries' trade benefits from the reduction of tax rates to 0% for most of the two countries' products under the ASEAN Trade in Goods Agreements, the Vietnam-Laos Bilateral Trade Agreement, and the ASEAN Trade Agreement. Border Trade Agreement between Vietnam and Laos. Other advantages such as Laos market does not have strict requirements on product quality, consumers have a lot of sympathy for goods from Vietnam.

On the other hand, enterprises need to take advantage of the wave of investment from Vietnam to Laos to increase the scale of exports. Notably, Vietnam is the third largest investor in Laos, and vice versa, Laos is the country receiving the largest source of investment capital from Vietnamese enterprises. Major investment projects focus on the energy industry, banking, industrial crops, garment...

Vice Chairman of Lao National Council of Trade and Industry presented certificates of merit to the representative of Vietnam Rubber Group in Laos. (Photo: Pham Kien/Vietnam+)
Currently, Laos continues to call for foreign businesses to invest in infrastructure construction, cultivation and livestock development to exploit the full potential of land in North and South Laos.

Along with the wave of investment, Vietnamese enterprises have the opportunity to increase exports of items such as iron and steel, means of transport and spare parts, machinery, equipment, fertilizers, and animal feed.

In particular, it is necessary to strengthen linkages, form production and supply chains, and build brands of Vietnamese goods in Laos, creating a firm foothold for Vietnamese goods in Laos.

In the immediate future, Vietnam-Laos enterprises can coordinate to build and form production-supply chains of products that the two countries have advantages. Such as harvesting, processing and exporting wood and wood products; manufacturing and exporting rubber, coffee, cashew nuts, textile products... branded with Vietnamese goods.

The Ministry of Industry and Trade always accompanies Vietnamese businesses in finding and expanding markets. In addition, the Ministry of Industry and Trade has been closely coordinating with relevant agencies to ensure favorable border trade and trade activities, bring benefits to businesses, and contribute to the growth of trade. trade between the two countries.

Regarding border trade development, Minister Nguyen Hong Dien said that Vietnam and Laos will study and propose breakthrough incentive mechanisms and policies to attract infrastructure investment capital in the economic zone. border economy, production and trade activities in border areas. In addition, the two sides promoted negotiations to sign a Memorandum of Understanding on the development and connectivity of border trade infrastructure between the Government of Vietnam and the Government of Laos.

In addition, the two sides will review, study, amend and supplement signed documents such as the Vietnam-Laos Bilateral Trade Agreement and the 2007 Hanoi Agreement to suit reality.

On the other hand, propose a plan to solve difficulties and obstacles in the process of implementing the Vietnam-Laos Border Trade Agreement; creating favorable conditions for goods of each country to circulate and consume in each other's markets, especially agricultural products.

In particular, the two sides will continue to work together to prevent and combat smuggling, trade fraud, and illegal cross-border transportation of goods, creating a healthy environment for border trade to develop.