Laos is currently the 7th largest trading partner of Vietnam in ASEAN, the scale of trade in goods is constantly expanding; This is the fulcrum for the two countries to expect to soon reach the USD 2 billion mark
The 60th anniversary of the establishment of diplomatic relations (September 5, 1962 - September 5, 2022) marks the time when the two neighboring countries have always accompanied and developed strongly; Especially, the trade relationship is moving in a positive direction, becoming more and more in-depth, substantive and effective.

In particular, Laos is currently the 7th largest trading partner of Vietnam in ASEAN, the scale of trade in goods is constantly expanding. This is the fulcrum for the two countries, Vietnam and Laos, which are expected to soon reach the USD 2 billion mark in the near future.

Expand the scale of goods

Laos is considered an important gateway for domestic enterprises to develop markets into ASEAN countries. Not only that, Vietnam and Laos are geographically close, convenient for transportation, and have many similarities in culture and consumption.

In particular, the two countries share a border of more than 2,300 km, passing through the administrative boundaries of 10 provinces and cities of each side, an area with potential for development, strategically located on the Economic Corridor. East-West economy.

Notably, the whole Vietnam-Laos border route has 9 international border gates, 6 main border gates, 18 auxiliary border gates, 27 openings and 9 border gate economic zones...

Vietnam is always among the top 3 investors in Laos, the two countries' trade turnover increases every year. Specifically, 2021 will reach 1.37 billion USD, an increase of 33.32% compared to 2020 and the highest in the past 10 years.

Commenting on the Lao market, Mr. Do Quoc Hung, Deputy Director of the Asia-Africa Market Department under the Ministry of Industry and Trade, said that from 2016-2021, Vietnam-Laos trade turnover increased from 823.4 million USD from 2016 to 2021. to 1.37 billion USD, achieving an average growth rate of over 10%/year.

In 2021 alone, bilateral turnover reached 1.37 billion USD, up 33.3% compared to 2020 despite difficulties caused by the COVID-19 epidemic. Among them, Vietnam's exports to Laos reached 594.7 million USD, up 4% compared to 2020. Vietnam's import turnover from Laos reached 778.2 million USD, up 69.8% compared to 2020.

Particularly in 7 months of 2022, bilateral trade turnover reached 948.9 million USD, up 24.2% over the same period in 2021; in which, Vietnam's exports to Laos reached 362.9 million USD, down 1.6% over the same period in 2021.

[60 years of Vietnam-Laos relations: Mission of cooperation and development]

Main export items include petrol and oil; Products from iron and steel; steels; means of transport and spare parts; machinery, equipment, tools and spare parts; fertilizers of all kinds; plastic products; fruit and vegetable goods.

In the opposite direction, Vietnam's imports from Laos reached 586 million USD, up 48.2% over the same period in 2021. Accordingly, the main imported items include rubber; wood and wood products; fertilizers of all kinds; fruit and vegetable products; ores and minerals.

In addition, the two sides have completed the negotiation and signed the Vietnam-Laos Trade Agreement (2015); Vietnam-Laos border trade agreement signed in 2015.

According to Mr. Do Quang Hung, businesses of the two sides have made good use of the preferential frameworks of the agreements. The evidence is that in the past 7-8 years, the trade turnover between the two countries has grown positively and is higher than 10% per year.

Mr. Do Quang Hung pointed out that, for example, the Vietnam-Laos Border Trade Agreement, although there are many incentives for businesses when investing in border provinces between the two countries.

Along with that, these incentives can include bringing goods back to Vietnam exempt from VAT, exempt from many restrictions and exempt from quarantine. These are extremely special and unprecedented offers.

However, the number of applications of this incentive is still limited because Vietnamese enterprises do not have a firm grasp of the information; labor difficulties due to regulations from Laos.

Sharing at the Vietnam-Laos Trade Fair 2022 (VIETLAO EXPO 2022) recently in the capital Vientiane of Laos, Deputy Minister of Industry and Trade Do Thang Hai said that in the context of Vietnamese goods, they have to compete fiercely with other goods. products of Thailand and China in the Lao market, Vietnamese enterprises participated in the fair with good quality products, with a methodical investment from market research to product development, network building. distribution and brand promotion.

Therefore, most businesses have achieved the goals and plans set out in restoring and expanding the market after more than 2 years of interruption due to the impact of the COVID-19 epidemic as well as learning about trade policies. trade and investment in Laos.

 
Producing wooden furniture for export to the EU market at Woodsland Tuyen Quang Joint Stock Company.
According to Deputy Minister Do Thang Hai, from the beginning of 2021 onwards, with the political determination of the two countries' senior leaders, close coordination between ministries, branches and localities, economic cooperation relations, Trade between the two countries is flourishing and growing strongly.

This helps the balance of exports and imports to be relatively balanced, 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. .

Lots of room for cooperation

Assessing bilateral relations in the near future, Mr. Do Quang Hung said that the bilateral turnover between Vietnam and Laos has increased rapidly recently, so it is likely that the milestone of USD 2 billion can be achieved soon. the purpose.

In terms of exports, manufactured products, construction materials, iron and steel, cement and seafood have good potential as Laos is landlocked. Processed food products also have a lot of room in this market.

However, Vietnamese businesses need to invest and persevere in branding and distribution to compete with goods of other countries. In contrast, wood and wood products, coal, minerals, fertilizers... are potential products that Vietnam can import.

To promote trade relations, Mr. Do Quoc Hung recommended that businesses need to understand the provisions of trade agreements to avoid problems when completing customs clearance procedures. In addition, businesses need to take advantage of trade connection and trade promotion programs to find partners and customers.

In order to promote Vietnam-Laos relations, Electricity of Vietnam (EVN) has continuously expanded cooperation with Lao enterprises in the field of electricity; actively promote power purchase and sale cooperation activities with Electricity of Laos (EDL) and Electricity Generation Corporation of Laos (EDL-Gen) under the policy of cooperation in energy development between the two countries.

Currently, EVN is selling electricity through voltage levels of 220kV-22kV-35kV through 9 locations near the border between the two countries with commercial electricity output of about 50 million kWh/year.

The coordination, operation and protection of security and safety of the power grid are well done by both parties, contributing to improving the material and spiritual life of the localities of Laos when your national grid has not yet expanded. next. Power supply activities also contribute to tightening and consolidating the special friendship between the two countries.

Viet Nam-Lao, I'm still living in the middle of the night, with 2 billion USD 
Minister of Industry and Trade of Laos Malaythong Kommasith and delegates visited Vietnamese products at the fair. 
In the energy sector, the Governments of the two countries consider that there is still plenty of room to develop mutually beneficial cooperation in the electricity sector.

With a large population, stable economic growth, high demand for electricity; especially, with a commitment to achieve net zero emissions by 2050, Vietnam is making efforts to ensure that its electricity demand is met for socio-economic development, while at the same time shifting energy towards green, clean and sustainable.

In order to strengthen cooperation in power supply, the Ministry of Industry and Trade of Vietnam and the Ministry of Energy and Mines of Laos held talks and agreed to work closely to speed up the investment progress and complete transmission line projects. electricity grid connection between the two countries.

In addition, the two sides also studied demand calculation, technical and commercial solutions in grid connection to ensure efficiency and savings; report to the Governments of the two countries to consider increasing the amount of electricity supplied in accordance with the needs and capacity of the two sides. Environmental aspects also need to be carefully considered in the process of electricity supply cooperation.

Vietnamese Ambassador to Laos Nguyen Ba Hung affirmed that he will continue to work closely with the Ministry of Industry and Trade in realizing the goals of bilateral trade turnover, perfecting the legal framework for trade cooperation between the two countries.

On the other hand, in order to support businesses and investors of the two countries, according to Mr. Nguyen Ba Hung, the Embassy will implement cooperation and exchange activities between the Ministry of Industry and Trade of Vietnam and partner ministries in Laos, promote trade and investment promotion in the field of industry and trade.

Deputy Minister Do Thang Hai said that the Ministry of Industry and Trade of Vietnam is willing to share experiences, cooperate and support Laos to overcome difficulties in the complicated world economic and political context.

In particular, bilateral trade can reach 2 billion USD if the current growth momentum is maintained. Therefore, the Ministry of Industry and Trade of Vietnam and the Ministry of Industry and Trade of Laos will actively coordinate to implement measures to further promote trade relations between the two sides.

In addition, the Ministry of Industry and Trade of the two countries agreed to soon complete negotiations and sign a Memorandum of Understanding on development and connection of Vietnam-Laos border trade infrastructure; complete the amendment of the Bilateral Trade Agreement to ensure the interests of Vietnamese and Laotian businesses, towards creating maximum advantages for businesses of the two countries to develop strongly and sustainably.