Over the past 60 years, the close-knit and friendly relationship between Vietnam and Laos has continually strengthened, achieving significant milestones in economic, social, and diplomatic areas. This enduring cooperation has expanded across various sectors, further solidifying the bond between the two countries.  In the energy sector, both Vietnam and Laos recognize the vast potential for mutually beneficial collaboration, especially in electricity. Vietnam, with its large population, steady economic growth, and high electricity demand—coupled with its commitment to achieving net-zero emissions by 2050—is actively working to meet its energy needs while transitioning towards green, clean, and sustainable energy sources. Meanwhile, Laos possesses significant energy potential, particularly in hydroelectric power, although its domestic energy demand remains low. This creates a natural synergy for energy cooperation between the two nations.

To enhance bilateral energy cooperation, particularly in electricity, the governments of Vietnam and Laos have been actively pursuing initiatives based on directives from their respective Prime Ministers. The Ministry of Industry and Trade of Vietnam has organized numerous meetings and exchanges with Lao counterparts, leading to the signing of several cooperative agreements and memorandums. These include agreements on hydroelectric projects, grid interconnection, and the import of electricity from Laos. Efforts have also been made to support the development of hydroelectric projects in Laos and to facilitate electricity trade.

Since 2022, Vietnamese Minister of Industry and Trade Nguyen Hong Dien has engaged in multiple discussions with Lao Minister of Energy and Mines regarding energy collaboration between the two countries. During Lao Prime Minister's official visit to Vietnam from January 8-10, 2022, Minister Nguyen Hong Dien held a series of crucial meetings with Lao counterparts, including signing a Memorandum of Understanding on the Cooperation Plan for 2022 between the Ministry of Industry and Trade of Vietnam and the Ministry of Industry and Trade of Laos. The meetings also involved discussions with the Lao Minister of Energy and Mines. Minister Nguyen expressed confidence that the energy sector would become a key driver of revenue for Laos in the future. Both ministers reviewed the progress in electricity trade, praised the efforts of businesses from both countries in promoting electricity imports from Laos to Vietnam, and addressed challenges to facilitate business cooperation in the energy sector.

On April 10, 2022, during an official visit to Laos, Minister Nguyen Hong Dien continued discussions with the Lao Minister of Energy and Mines to further strengthen bilateral cooperation in electricity and minerals. In February 2023, Minister Nguyen Hong Dien met with the Lao Minister of Energy and Mines at the Ministry of Industry and Trade headquarters in Vietnam. Throughout these engagements, Minister Nguyen Hong Dien consistently emphasized the potential for further developing mutually beneficial energy cooperation. He affirmed that to meet Laos's coal export needs and Vietnam's coal import requirements, the Ministry of Industry and Trade of Vietnam is prepared to facilitate information exchange between Vietnamese and Lao coal companies to enhance coal trade between the two nations.

In July 2023, a significant advancement was made in energy cooperation between Vietnam and Laos. The Vietnamese Minister of Industry and Trade, alongside the Lao Minister of Energy and Mines, signed a Memorandum of Understanding (MOU) on coal cooperation. This MOU outlines several key objectives aimed at strengthening bilateral collaboration in the coal sector. Notably, it includes a target of exporting 20 million tons of coal annually from Laos to Vietnam, depending on market conditions and demand from both sides. The agreement also promotes investment in coal mining, processing, and export activities, and enhances experience-sharing to improve capabilities in coal extraction and processing. Additionally, the MOU is expected to facilitate coal trade between businesses from both countries.

"This is an important document with practical significance for both countries," emphasized Minister Nguyen Hong Dien. He noted that the signing of the MOU not only underscores the commitment of both the Vietnamese Ministry of Industry and Trade and the Lao Ministry of Energy and Mines to implement the directives of their respective senior leaders but also contributes to the enhancement of the cooperative framework between Vietnam and Laos. It strengthens the special solidarity and friendship between the parties and supports national energy security, Vietnam's energy transition commitments to the international community, and Laos's efforts to harness its resources effectively for economic and social development and national security. Following the MOU, on December 9, 2023, Minister Nguyen Hong Dien chaired a conference to advance coal trade cooperation between Vietnam and Laos. During the meeting, he directed relevant units to promptly address any challenges and expedite the progress of ongoing and future projects to effectively implement the directives from both governments on enhancing cooperation in the energy sector, specifically the import of electricity and coal from Laos.

Following recent meetings between leaders of Vietnam's Ministry of Industry and Trade and the Lao Minister of Energy and Mines, and with the close oversight of Minister Nguyen Hong Dien, the energy cooperation between Vietnam and Laos, particularly in the electric power sector, has seen significant progress. To date, Vietnam's imports of electricity from Laos have largely met the targets set for the 2021-2025 period. The Vietnam Electricity Group (EVN) has signed 19 power purchase agreements (PPAs) with investors to procure electricity from 26 hydroelectric power plants in Laos, with a total capacity of 2,689 MW. Additionally, longstanding challenges and issues in several key projects have been effectively resolved. These achievements have deepened the special solidarity between the parties, as well as the relationship between Vietnam's Ministry of Industry and Trade and Laos's Ministry of Energy and Mines.

From April 6-8, 2024, a delegation from Vietnam's Ministry of Industry and Trade, led by Minister Nguyen Hong Dien, will visit Vientiane, Laos. Accompanying the Minister will be leaders and representatives from various departments within the Ministry of Industry and Trade, including the Office of the Ministry, the General Department of Market Management, the Department of E-commerce and Digital Economy, the Department of Electricity and Renewable Energy, the Electricity Regulatory Authority, the Department of Import and Export, the Institute of Industrial Strategy and Policy Research, the Institute of Mechanical Research, the Office of the International Economic Integration Steering Committee, and the Industry and Trade Newspaper. During the visit to Vientiane, Minister Nguyen Hong Dien and the delegation are scheduled to meet with the Lao Minister of Industry and Commerce and the Minister of Energy and Mines. The discussions will focus on: (i) Measures to enhance bilateral cooperation in trade (e-commerce, market management, import-export, economic integration), energy (electricity trade, development of power linkages, investment in energy projects), and minerals (coal trading); (ii) Signing of the amended Vietnam-Laos Trade Agreement of 2015.