Hoang Anh Gia Lai International Agriculture Company recently announced plans to invest in large-scale fruit cultivation combined with cattle farming in Attapeu and Sekong provinces, Laos.

The project will cover a total area of nearly 27,400 hectares, with a total investment capital of nearly VND 18.1 trillion ($750 million USD). The project will be executed by the Southern Laos Agriculture Investment and Development Co., Ltd., a wholly-owned subsidiary of HAGL Agrico. The agricultural company owned by billionaire Tran Ba Duong has committed to contributing 100% of its own capital of VND 9.65 trillion for the project, with the remaining VND 8.44 trillion to be raised from domestic and international banks and credit institutions. The project complex is expected to be completed by 2028.

Upon completion of the project in Laos, HAGL Agrico aims to annually export 624,000 tons of fresh fruit, with processed fruit exports reaching 25,000 tons, supply 12,000 breeding cattle, and export 17,000 tons of beef. Annual revenue is projected to reach VND 13.5 trillion ($550 million USD), generating a profit of VND 2.45 trillion, equivalent to a profit margin of approximately 18%.

In reality, not only HAGL Agrico but also many Vietnamese enterprises have made significant investments in Laos across key sectors such as agriculture, telecommunications, energy, mining, and financial services.

Hoang Anh Gia Lai is another enterprise with numerous investment projects in the neighboring country. This company began investing in Laos in 2007 and currently holds approximately 2,000 hectares of agricultural land in the country, primarily used for growing bananas, durians, and livestock, including pigs and chickens. Previously, they also invested in several hydropower projects such as Nam Kong 2, Nam Kong 3, Lower Sekong, Se Sou, and Nam Et but exited these investments by 2019, selling two Attapeu sugar companies in 2016, along with HAGL Attapeu Hospital.

Another company with substantial agricultural investments is the Vietnam Rubber Group. This state-owned enterprise manages a total area of nearly 26,900 hectares in Laos, mostly comprising rubber plantations. The group currently operates six companies in the neighboring country, including Viet-Lao Rubber, Dau Tieng - Viet-Lao Rubber, Quasa Geruco, Bolykhamxay Ha Tinh, VRG Oudomxay, and Quavan Rubber, spread across five border provinces. Additionally, they are piloting a wood processing plant in Laos.

Vinamilk has a large-scale dairy and beef cattle farming project in Xiangkhouang Province through Lao-Jagro Xiangkhouang Joint Development Company, established in 2019. The project has a total investment capital of approximately $500 million, covering an area of 15,000-20,000 hectares, with a herd of 100,000 cattle and a large-scale milk processing and storage facility. Phase 1 of the project has an initial investment of $120 million, with a herd of 24,000 cattle.

Beyond large-scale projects in agriculture and livestock, Vietnamese companies are also making significant inroads into other sectors in the land of a million elephants.

In telecommunications, Star Telecom (Unitel) stands as a prime example of economic cooperation between Vietnam and Laos. This joint venture, established in 2008 between Viettel Group and Lao Asia Telecom, has become a leading telecommunications company in Laos. It holds a 58% market share in mobile services, with over 3.5 million subscribers and a nationwide network covering 3G, 4G, and 4.5G, employing over 27,000 local workers.

In the financial sector, Vietnam is represented by six banks operating in Laos: Vietcombank, VietinBank, SHB, MB, Sacombank, and the Lao-Viet Joint Bank (a partnership between BIDV and Lao Foreign Trade Bank).

Vietnam Bank for Investment and Development Insurance (BIC), established in 2008, is a major player with its joint venture, Lao-Viet Insurance, holding the second-largest market share in Laos. Other notable entrants include Post Insurance (PTI) through Lane Xang Insurance, Military Insurance Corporation (MIC), and Saigon-Hanoi Insurance (BSH).

In the energy sector, Vietnam's two largest petroleum companies, Petrolimex and PV OIL, have opened hundreds of retail outlets. PV OIL Laos began operations in 2010 after acquiring Shell’s distribution network, while Petrolimex Laos was established in 2011.

Additional investments include VietLao Power’s Sekaman Hydropower Project, Viet Phuong Group’s alumina processing plant, Cavico’s mining projects, and the iron ore mining project by Cooperative Economic Group.

In May 2023, HAGL Agrico transferred the Nong Khang Airport project to the Laos Civil Aviation Authority, which has a capacity of 100,000 passengers per year. The project, with a total investment of $82 million funded by HAGL, was later taken over by Thaco following its acquisition of HAGL Agrico.

According to the Ministry of Planning and Investment, in 2023, Vietnamese investment in Laos reached $116.6 million, marking a 65% increase compared to 2022. To date, Laos remains the top destination among 80 countries and territories for Vietnamese overseas investment, with 245 projects and a total registered capital of approximately $5.5 billion.

Many Vietnamese projects have become operational, significantly contributing to the Lao budget and improving infrastructure in various regions. In terms of social welfare, Vietnamese enterprises have contributed over $150 million in Laos.