In recent years, the Trade Promotion Agency of Vietnam’s Ministry of Industry and Trade has played a pivotal role in fostering and advancing digital trade between Vietnam and Laos. Since the establishment of diplomatic relations on September 5, 1962, the two countries have achieved numerous milestones across various fields. From 2016 to 2021, trade turnover between Vietnam and Laos has seen stable growth, consistently exceeding the $1 billion mark annually. In 2022, trade turnover reached $1.632,2 million, marking an 18.9% increase compared to 2021.

As of June 2023, the bilateral trade turnover between Vietnam and Laos stood at $835 million, a 1.3% increase from the same period in 2022. Vietnam currently ranks third in foreign investment into Laos, following China and Thailand, with over 400 direct investment projects.

Despite the opportunities in the Vietnam-Laos trade relationship, significant challenges persist. The Fourth Industrial Revolution is exerting a profound and powerful global influence, presenting considerable challenges for economies, including the trade sector. The ubiquity of digital technology has made the buying and selling of goods and services faster and more convenient, transcending national boundaries. Digital trade is becoming an essential trend for the future, and nations are adjusting their strategies and policies to adapt to the digital era, including in the realm of digital trade.

TREND OF DIGITAL TRADE PROMOTION

The Trade Promotion Agency’s activities in digital trade promotion have become indispensable in developing and promoting the digital trade sector globally and between Vietnam and Laos in particular.

On November 22, 2021, the Prime Minister issued Decision No. 1968/QĐ-TTg, approving the project "Promoting IT application and digital transformation in trade promotion activities for the period 2021-2030."

To implement the construction of a digital trade promotion ecosystem under Decision No. 1968, the Trade Promotion Agency has developed IT tools and platforms to boost digital trade activities. These applications include a digital trade connection platform to support the search for information and business opportunities domestically and internationally; a virtual reality technology-based fair and exhibition platform; and an electronic identification platform for trade promotion enterprises. The developed platforms include a specialized trade promotion database system, an online training system (E-learning) with various basic modules, and a trade promotion traceability system (iTrace247).

In cooperation with domestic and international e-commerce platforms, the Trade Promotion Agency has established a "National Trade Promotion Program" storefront on e-commerce platforms such as Lazada, Tiki, Shopee, Sendo, Postmart, Voso to support potential products from provinces. This helps ensure quality management and transparency of product information on the platforms, as well as guides enterprises on product traceability.

The Trade Promotion Agency has also partnered with Alibaba.com and Amazon.com, two of the world’s largest trading platforms. With Alibaba.com, the two sides have implemented training for cooperatives and enterprises across many provinces and launched the “Vietnam National Pavilion” to support businesses in building their image, promoting their brand, and enhancing international business connections. With Amazon.com, the Trade Promotion Agency has coordinated activities with Amazon Global Selling to support enterprises in accessing global markets and training in global sales skills on Amazon.com.

To enhance digital trade promotion capabilities for localities, enterprises, and cooperatives, the Trade Promotion Agency has collaborated with e-commerce platforms such as Lazada, Shopee, Amazon.com, Alibaba.com, TikTok to organize over 60 training courses in localities to improve digital trade promotion capabilities for businesses, especially small and medium-sized enterprises. These training sessions have attracted significant participation from local cooperatives, providing essential knowledge and skills to promote products and interact with customers in the digital environment. Most participants have mastered how to present their products and engage with customers post-training.

ADVANCING DIGITAL TRADE PROMOTION

Looking ahead, Vietnam and Laos will continue to focus on information technology and digital transformation in trade promotion, specifically:

Utilizing Digital Advertising and Marketing Platforms: Leveraging online marketing tools, digital advertising, and social media channels to enhance product and service promotion, thereby increasing recognition and credibility of Laotian products and brands in the Vietnamese market and internationally.

Applying Online Payment Systems: Creating safe and convenient payment methods to facilitate trade transactions between the two countries.

Building Training and Support Platforms: Developing online training courses or learning resources to improve understanding and skills in e-commerce and digital techniques for businesses and individuals in both countries.

Establishing Data Management and Analytics Systems: Using technology to collect and analyze market data, contributing to strategic decision-making and improving advertising campaigns.

Optimizing Logistics and Transportation Platforms: Enhancing logistics and transportation systems through technology to improve efficiency and reduce costs in delivery and logistics processes.

Developing Customer Information and Support Systems: Establishing online customer support systems to provide product and service information and consultation for consumers from both countries.

With the potential for trade cooperation between Vietnam and Laos, especially through the use of IT and digital transformation in trade promotion, these diverse activities are garnering interest and support from trade promotion agencies and enterprises. This creates opportunities for extensive cooperation between the trade promotion management agencies of the two countries. Importantly, it also opens up new collaborative spaces for businesses from both nations, contributing to the promotion of economic and trade cooperation between Vietnam and Laos, taking it to new heights in the development process.