Promoting border trade is one of the important solutions to increase two-way trade between Vietnam and Laos.
Vietnam - Laos trade continues to flourish
In recent years, the economic and trade cooperation between Vietnam and Laos has been increasingly flourishing and growing strongly. With the potential for development of existing advantages, in recent years, the governments of the two countries have always set the target of Vietnam - Laos trade turnover not only growing at a rate of 10% - 15% per year but also aiming for stable and sustainable development.
According to the Import-Export Department - Ministry of Industry and Trade, Vietnam and Laos are geographically close, have advantages in convenient transportation, as well as closeness in culture and consumption. The two countries share a border of more than 2,300 km, passing through the administrative boundaries of 10 provinces and cities of each side, an area with development potential, with a strategic position on the East-West Economic Corridor. The entire Vietnam - Laos border has 9 international border gates, 6 main border gates, 18 secondary border gates and 27 openings and has established 9 border gate economic zones...
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| Lao Bao international border gate connects Vietnam - Laos trade (Photo: Dan Toc Newspaper) |
Statistics from the General Department of Vietnam Customs show that in the first 9 months of 2024, the total import-export turnover between Vietnam and Laos reached 1.5 billion USD, up 25.5% over the same period in 2023. Laos continues to maintain a trade surplus with Vietnam. Exports to Laos reached 491.9 million USD, up 24% over the same period in 2023; imports from Laos reached 1 billion USD, up 26.2% over the same period in 2023. This is a very positive growth rate in the context that the Lao economy is still facing many difficulties.
The main import items from Laos include rubber, wood and wood products, ores and minerals. In the opposite direction, the main export items to Laos include iron and steel products, means of transport and spare parts, machinery, equipment, tools, etc.
However, the current Vietnam-Laos trade turnover has only reached 1.65 billion USD, only 10% of Laos' total foreign trade turnover and 0.2% of Vietnam's total foreign trade turnover. According to the Ministry of Industry and Trade, this result is not commensurate with the potential and special relationship between Vietnam and Laos.
Therefore, in order 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 the two countries to negotiate, amend and supplement to build a new Vietnam - Laos Trade Agreement suitable to the current context. After a 3-year negotiation process, the new Vietnam - Laos Trade Agreement was signed by the Ministers of Industry and Trade of the two countries on behalf of the Governments of the two countries on April 8, 2024. The Agreement covers important issues in trade cooperation between the two countries, including: Regulations on market access for goods and services; trade facilitation; trade promotion and e-commerce application; cooperation in combating smuggling, trade fraud, anti-money laundering and illegal cross-border transportation.
Increase border trade, promote bilateral trade
To enhance Vietnam-Laos trade, especially border trade, the Ministry of Industry and Trade stated that in the coming time, units need to focus on disseminating and implementing international treaties and relevant legal documents, especially newly issued documents.
In addition, the development of border trade between Vietnam and Laos needs to be based on market demand for the two countries' main import and export products. For Vietnam, in the immediate future, the export products to Laos are still iron and steel products, means of transport and spare parts, machinery, equipment, tools, etc. The main import products from Laos are mainly rubber, wood and wood products, ores and minerals.
At the same time, build a flexible and effective border trade and import-export management mechanism from the central to local levels; reasonably decentralize the management of border trade and import-export activities to local border provinces.
To promote border trade between the two countries, Deputy Prime Minister Bui Thanh Son has just signed Decision No. 1247/QD-TTg dated October 23, 2024 promulgating the Plan to implement the Memorandum of Understanding on developing and connecting border trade infrastructure between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic (Plan).
The purpose of the Plan is to effectively implement the Memorandum of Understanding on the Development and Connectivity of Border Trade Infrastructure between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic (the Memorandum).
At the same time, facilitate coordination between ministries, branches, and border localities of Vietnam and between competent authorities of Vietnam and competent authorities of Laos in implementing the Memorandum of Understanding through the Focal Points of the two countries.
Contribute to promoting the development of border trade infrastructure between the two countries. Serve as a basis for Vietnam's border provinces to develop plans for border trade infrastructure development in border provinces.
The plan clearly states that the content of the Memorandum of Understanding and related legal regulations of Vietnam and Laos will be disseminated to individuals, organizations and traders of Vietnam and Laos on mass media, communication channels, publications, and specialized pages related to the development of border trade infrastructure; conferences, seminars, talks, and training courses related to the content of the Memorandum of Understanding.
At the same time, the study proposes policies to develop border trade infrastructure in line with the potential of the Vietnam - Laos border provinces; support traders to bring goods into the distribution chain in the form of border trade. Promote the development of various types of border trade infrastructure in the Vietnam - Laos border provinces.
Review the types of border trade infrastructure that need to be upgraded, renovated and the list of border trade infrastructure that needs priority investment and construction. The focal agency will discuss and agree with the Lao side on the list of border trade infrastructure that needs priority construction in accordance with the planning of each border locality in each period; select at least 01 type of border trade infrastructure that needs priority investment and construction to report to the Government for decision.
The plan also indicates that the two sides will continue to discuss and agree to strengthen activities to organize and promote investment in building border trade infrastructure in the border areas of Vietnam and Laos at least once a year.
Implement incentives for Vietnamese and Lao traders to participate in investing in building border trade infrastructure according to current regulations.
Build a mechanism to connect information between traders and border residents operating in border areas; connect Vietnamese traders with Lao traders.
Strengthen information exchange, training, and resource development for state management agencies; develop a team of traders investing and doing business in border areas; The Ministry of Industry and Trade of Vietnam and the Ministry of Industry and Trade of Laos are the focal agencies of the two sides, coordinating with ministries, branches and border provinces of the two sides to implement the Memorandum of Understanding.
Source: https://congthuong.vn/thuc-day-thuong-mai-bien-gioi-tang-cuong-quan-he-thuong-mai-viet-nam-lao-354565.html
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