Based on the longstanding solidarity and bond between them, the governments of Vietnam and Laos are working hard to promote trade cooperation with the goal of achieving a bilateral trade turnover of over 2 billion USD per year. The recently signed Vietnam-Laos Trade Agreement will serve as a favourable leverage for both countries to reach this goal soon.

 With a system of 33 border gates and 9 border economic zones, trade cooperation, especially in border trade between Vietnam and Laos, still has plenty of room for development.

Vietnam and Laos have a long-standing historical relationship characterized by special solidarity. Throughout the history of nation-building and defence, the two peoples have always helped and supported each other to develop and progress together. They have signed numerous agreements, documents, and cooperation agreements, including the Vietnam-Laos Trade Agreement in 2015, the Vietnam-Laos Cooperation Strategy Agreement for the period 2021-2030, and the Vietnam-Laos Cooperation Agreement for the period 2021-2025, as well as agreements between the two governments and cooperation agreements at the 46th session of the Intergovernmental Committee. Simultaneously, both sides have strengthened guidance, inspection, and timely exchange to remove difficulties and obstacles to find new ways to promote cooperation in various economic fields. The implementation of these agreements and cooperation arrangements has laid the foundation for advancing trade relations between the two sides, achieving significant results.

Vietnam and Laos share a land border of over 2,300 km, passing through the administrative boundaries of 10 provinces and cities in both countries, with a system of 33 pairs of border gates of various types, along with 27 openings and 9 economic border gates. Overall, the long-standing solidarity relationship between Vietnam and Laos shows that trade cooperation between the two countries has made significant strides. Economic exchanges, as well as travel and the import and export of goods and labour between Vietnam and Laos, have always received the attention of the high-level leadership of both countries, facilitating development over many years.

Since 2012, the trade turnover between the two countries has primarily seen positive growth. In 2018, the bilateral trade turnover reached 1 billion USD. Particularly, after the COVID-19 pandemic, trade between Vietnam and Laos has developed more vigorously. In 2021, the bilateral trade turnover between the two countries reached 1.37 billion USD. In 2022, this figure rose to 1.65 billion USD, the highest ever recorded. In 2023, the bilateral trade turnover reached 1.63 billion USD, with Vietnam's exports to Laos amounting to 533 million USD (a decrease of 18.7%), and imports from Laos reaching 1.1 billion USD (an increase of 4.7%). In the first six months of 2024 alone, the Vietnam-Laos trade turnover reached 927.8 million USD, an increase of 11.1% compared to the same period in 2023. Vietnamese exports to Laos primarily consist of petroleum, steel, machinery, and equipment. Conversely, Vietnam mainly imports rubber, timber, ore, and minerals from Laos. The average growth rate of trade between the two countries during the period from 2021 to 2023 was 17.7%.

In terms of investment cooperation, Vietnam has consistently ranked among the top three largest trading partners of Laos for many years, after China and Thailand. According to information from the mid-term conference assessing the Vietnam-Laos Cooperation Plan Agreement for 2024 and reviewing the promotion of the bilateral cooperation agreement for the period 2021-2025, as of now, Vietnam has invested in 256 projects in Laos, with a total registered capital of about 5.5 billion USD, and a cumulative realized capital of approximately 2.8 billion USD. Many of these projects have been effective, contributing positively to socioeconomic development, creating jobs, and improving the income of thousands of workers while supplementing revenue for Laos' state budget, especially in telecommunications, banking, rubber planting and processing, food production and processing, and dairy production.

 Officials from the Cha Lo International Border Guard Station, under the Quang Binh Border Guard, coordinated with authorities at the checkpoint to inspect vehicles passing through the Cha Lo International Border Gate.

However, the trade turnover between Vietnam and Laos has only reached 1.65 billion USD, accounting for just 10% of Laos' total foreign trade and 0.2% of Vietnam's total foreign trade. According to the Ministry of Industry and Trade, this result does not reflect the potential and special relationship between Vietnam and Laos. Therefore, to continue promoting trade and economic cooperation between the two countries, the governments of Vietnam and Laos have assigned the ministries of industry and trade of both countries to negotiate, amend, and supplement in order to establish a new Vietnam-Laos Trade Agreement that is suitable for the current context. After a three-year negotiation process, the new Vietnam-Laos Trade Agreement was signed on April 8, 2024, by the ministers of industry and trade of both countries on behalf of their governments. The agreement consists of 5 chapters, corresponding to 15 articles and 5 appendices, covering important issues in trade cooperation between the two countries, including: regulations on market access for goods and services; trade facilitation; trade promotion and the application of e-commerce; cooperation against smuggling, trade fraud, money laundering, and illegal transportation across borders.

The new trade agreement aims to further strengthen and consolidate the special friendship and comprehensive cooperation between Vietnam and Laos, promote market access for goods and services, and create a stable, sustainable, and long-lasting development connection. The provisions of the agreement are based on principles that align with the respective laws, regulations, and policies of each country; equality and mutual benefit; and a common goal of maximizing facilitation in the export and import of goods and the provision of services, granting each other special trade advantages for goods and services.

According to the Ministry of Industry and Trade, the new Vietnam-Laos Trade Agreement, once signed and implemented, will help resolve issues arising after a period of implementing the 2015 Vietnam-Laos Trade Agreement; continue to improve the legal framework for trade activities between Vietnam and Laos; especially, reviewing and offering preferential import tax rates ahead of Vietnam and Laos' tax reduction roadmap in ASEAN will facilitate import and export activities, further promoting Vietnam-Laos trade relations.

To exploit the potential for trade cooperation based on the newly signed trade agreement, leaders of the Ministry of Industry and Trade of Vietnam and the Ministry of Industry and Trade of Laos have met, exchanged ideas, and agreed to promote various trade activities, connecting businesses from both countries through business forums, business matchmaking conferences, trade fairs, trade promotion forums, and market information seminars. Additionally, they will encourage cooperation in developing cross-border trade infrastructure between Vietnam and Laos, focusing on maximizing the effectiveness of existing industrial zones and economic border gates in the two countries' border regions; coordinating closely to ensure the stability of Laos' petroleum market. At the same time, they will strengthen cooperation in market management and enhance collaboration in developing e-commerce.