Vietnam - Laos towards sustainable and long-term trade relations

Prime Minister Pham Minh Chinh (left) and Lao General Secretary and President Thongloun Sisoulith. Photo: VNA

Vietnam and Laos share a border of more than 2,300km long, passing through the administrative boundaries of 10 provinces and cities of each side, an area with development potential and a strategic location on the East-West Economic Corridor axis.

Trade between the two countries benefits from the reduction of tariff rates to 0% for most goods under the ASEAN Trade in Goods Agreement, the Vietnam-Laos Bilateral Trade Agreement and the Vietnam-Laos Border Trade Agreement.

Furthermore, the Lao market does not have strict requirements on product quality and most Lao consumers have good opinions about Vietnamese products.

During a recent working session with Lao Ambassador to Vietnam Khamphao Ernthvanh, Vietnamese Minister of Industry and Trade Nguyen Hong Dien highlighted the outstanding results in Vietnam - Laos trade relations in 2024 with bilateral trade turnover estimated at 2.2 billion USD - an increase of nearly 34% compared to 2023 and surpassing the 2 billion USD mark for the first time.

Regarding the Vietnam - Laos Trade Agreement, the Ministry of Industry and Trade of Vietnam and Laos completed the necessary procedures for the two governments to approve and sign on April 8, 2024 and prepare for implementation.

Cooperation in the fields of energy and minerals - two pillars playing a key role in Vietnam - Laos economic relations - achieved many very positive results in 2024.

Lao Ambassador to Vietnam Khamphao Ernthvanh. Photo: KPL

Lao Ambassador to Vietnam Khamphao Ernthvanh shared his views with Minister Nguyen Hong Dien on the impressive achievements that Vietnam and Laos have achieved in recent times, on the growth of import-export turnover and Vietnam's industry.

The goods of the two countries not only compete but also complement each other. Currently, Vietnam exports to Laos chemicals, petroleum, machinery, equipment, tools, means of transport, and steel products while importing from Laos rubber, coal, wood and wood products, fertilizers, ores, and minerals.

Notably, many investment projects of Vietnamese enterprises in Laos operate effectively, contributing positively to the socio-economic development of the locality, creating jobs and increasing income for thousands of workers, supplementing revenue for the Lao state budget, especially in the fields of telecommunications, banking, rubber planting and processing, and food production.

According to the Lao Ministry of Planning and Investment, as of December 2024, there were 417 Vietnamese projects in Laos with a total value of over 4.9 billion USD. Of which, projects with 100% registered capital from Vietnam were 4.6 billion USD, mainly in the fields of agriculture (680 million USD), electricity (980 million USD) and mineral exploitation (1 billion USD).

Source: https://baoquangnam.vn/viet-nam-lao-huong-toi-quan-he-thuong-mai-ben-vung-lau-dai-3147390.html