Vietnam and Laos, as friendly neighboring countries, share a comprehensive partnership across various sectors, with economic cooperation being particularly notable. Trade through the border crossings plays a crucial role in enhancing economic collaboration between the two nations, contributing significantly to their socio-economic development.

In recent years, trade between Vietnam and Laos has experienced substantial growth, as evidenced by a marked increase in the volume of goods traded through their border crossings. The border crossing system has been progressively improved, and the favorable policies from both governments have facilitated two-way trade.

According to data from the General Department of Customs, in 2022, trade between Vietnam and Laos reached an impressive $1.65 billion, marking a 24.1% increase compared to the previous year. By the end of November 2023, this figure had continued to grow, reaching $1.5 billion, with Vietnamese exports to Laos amounting to $485 million and imports from Laos totaling $977 million.

Consumer goods, industrial products, construction materials, agricultural products, and processed foods from Vietnam have strong export potential to Laos. Additionally, services such as tourism, education, and consulting are expanding. Conversely, Vietnam imports rubber, wood, fertilizers, corn, fruits, vegetables, and metals from Laos. Notably, to ensure energy security, Vietnam plans to increase coal imports from Laos.

Building on these achievements, the Ministry of Industry and Trade has worked to refine legal frameworks to support trade development. This includes two key bilateral trade agreements: the Vietnam-Laos Trade Agreement and the Vietnam-Laos Border Trade Agreement. The Vietnam-Laos Border Trade Agreement, signed in 2015 and initially effective until the end of 2018, has been extended through to the end of 2024. Both sides are currently negotiating amendments and additions to the Vietnam-Laos Trade Agreement.

The border gate system along the Vietnam-Laos border stretches over 2,000 kilometers and includes 8 pairs of international border gates, 7 main gates, and 18 auxiliary gates, significantly boosting trade and service activities. Notable border gates and economic zones include Lao Bao, Cau Treo, and Bo Y. Lao Bao Border Gate, located in Huong Hoa District (Quang Tri), stands out as a model border gate on the Vietnam-Laos border, connecting with neighboring countries such as Laos, Thailand, Myanmar, and Central Vietnam. The Lao Bao Economic and Trade Zone, approved by the Prime Minister, is one of nine key border economic zones receiving comprehensive infrastructure development, regulations, measures, and policies. The Lao Bao International Border Gate and the Den Savanh International Border Gate (Laos) are crucial nodes on the East-West Economic Corridor (EWEC).

Over 25 years, the Lao Bao Economic and Trade Zone has attracted over 880 billion VND in government investment for infrastructure development, encompassing 50 projects. Additionally, it has drawn nearly 3,700 billion VND from businesses for production and commercial projects, with nearly 60 projects underway.

In recent years, preferential policies have significantly transformed the infrastructure and services of the Lao Bao Economic and Trade Zone. The volume of imported and exported goods, as well as the movement of people and vehicles through this special economic zone, has steadily increased. This growth has stimulated trade along the EWEC through the Lao Bao International Border Gate, boosting state revenue, creating jobs, and making a substantial contribution to local socio-economic development and regional and international connectivity.

Similarly, the Lao Bao Economic and Trade Zone and the Densavan Border Trade Zone have played a role in changing the landscape of the Vietnam-Laos border region, particularly the border areas of Quang Tri and Savannakhet provinces. Another notable border gate is the Cau Treo International Border Gate in Ha Tinh, which is also among the nine key border economic zones between the two countries. Cau Treo has become a major trade hub with Laos, especially through the Nam Phao Border Gate. Established at the end of the French Indochina War in 1954 and officially upgraded to an international border gate in 1997, Cau Treo plays a vital role in the economic and social development of Ha Tinh Province.

The Bo Y International Border Gate in Kon Tum is another lively trade point between the two nations. As the final traffic junction on Vietnam’s National Route 40, connecting to Laos’s National Route 11, Bo Y serves as a critical trade link between Attapeu Province in Laos and Vietnam. In recent years, activities such as import-export, immigration, and transit through the Bo Y International Border Gate have shown steady growth. By the end of 2023, the Bo Y International Border Gate Customs Department had contributed 313.4 billion VND to the state budget, exceeding the target by 6.97%. Trade between the two countries continues to expand. The robust growth of trade through Vietnam-Laos border gates contributes significantly to the socio-economic development of both nations. With an increasingly refined border gate system and substantial cooperation potential, Vietnam-Laos trade is expected to continue thriving in the future.