Significant Investment Projects

Directly exporting numerous commodities to the Lao market, Mr. Phung Quang Hiep, Chairman of the Vietnam National Chemical Group (Vinachem), noted that the group's import-export turnover with Lao enterprises is currently estimated at 70 million USD per year. Laos is not only a potential market for agriculture with a high demand for fertilizers, tires, and batteries, but the two countries also share many opportunities for investment cooperation in mineral extraction and processing. For Vinachem, a potassium salt mining and processing project in Laos with a scale of nearly 500 million USD has received the support of both governments and is currently maintaining its scheduled progress. Mr. Hiep expressed hope that the state visit and high-level government meetings will promptly address proposals to facilitate the project's implementation through preferential mechanisms, specific tax policies, and investment incentives to maximize corporate resources.

Cooperation in the energy sector also holds immense potential as large-scale Vietnamese projects in Laos approach fruition. A prime example is the Truong Son Wind Power Plant, which represents Vietnam's largest investment in Laos at 1 billion USD, implemented by the Viet-Lao Power and Investment Joint Stock Company (VLE). This is a key project invested in under the electricity purchase and sale policy between the two governments, based on the Agreement on Cooperation for the Development of Electric Energy and Mining Projects. Once operational, this 600MW capacity project will supplement Vietnam's electricity supply during peak load periods, helping to reduce the risk of power shortages in northern provinces. Furthermore, VLE is implementing livelihood programs for local residents, supporting social security, and contributing over 500 billion VND to upgrade the Nam On (Laos) - Thanh Thuy (Vietnam) border gate infrastructure as a foundation for the Hanoi - Vientiane expressway.

Similarly, the South Laos Investment Company has invested 750 million USD in the agricultural sector, currently managing a cultivation area of over 31,000 hectares for fruit products such as bananas. To enhance efficiency, during this state visit, the company plans to expand its investment in several categories, including processing facilities and bonded warehouses to serve agricultural production and import-export activities.

Strengthening Industrial Linkage Chains

According to the Ministry of Industry and Trade, a highlight of this state visit in terms of investment and trade promotion is the signing of a memorandum of understanding between the two ministries on developing industrial linkage chains. This initiative aims to form a close network across all stages of the value and supply chains, including raw material supply, production, processing, manufacturing, design, and product distribution. Priority is given to cooperation among small and medium-sized enterprises within industrial parks and economic zones along the border of the two countries.

The Ministry of Industry and Trade expects that these linkage chains will enable manufacturing, import-export, and trading enterprises—particularly in priority sectors such as agricultural processing and light industry—to collaborate more effectively, creating a breakthrough in bilateral trade turnover. To realize this, Minister of Industry and Trade Nguyen Hong Dien has directly instructed relevant units to develop specific plans, proactively coordinate with Lao partners, and identify key locations to implement the action program.

Mr. Nguyen Anh Son, Director of the Import-Export Department, noted that in-depth and substantive investment cooperation will consolidate bilateral trade relations, especially since the trade structures of the two countries are highly complementary. Vietnam's primary exports are industrial products such as chemicals, machinery, steel, and fertilizers. Conversely, imports from Laos contribute to a stable supply of raw materials for production, including ores, minerals, timber, rubber, and coal.

To achieve the 10 billion USD bilateral turnover goal in the near future, Mr. Son emphasized the need to continue effectively implementing documents signed by the two governments. Priority should be given to upgrading border gate systems and infrastructure to shorten customs clearance times and reduce logistics costs. Both countries must also focus on strengthening links between localities, associations, and business communities, while boosting trade promotion activities and product introductions. There is also a need for policies that attract and increase investment in production, commodity processing, and tourism development.