Ties blossom with Laos and Cambodia
Ties blossom with Laos and Cambodia
Vietnam has strongly beefed up its bilateral cooperation in many sectors with Laos and Cambodia, including a focus laid on investment and trade.
Vietnamese State President To Lam and General Secretary of the Lao People’s Revolutionary Party Central Committee and President of Laos Thongloun Sisoulith, during the former’s state visit to Laos last week, underscored that both countries will increase economic cooperation. They also aim to strengthen bilateral cooperation in defence, security, and fighting against transnational crimes.
According to freshly issued statistics from the Ministry of Industry and Trade, total exports from Vietnam to Laos in the first six months of this year amounted to $293.5 million, a 9 per cent increase from $269.3 million in the same period last year.
Meanwhile, Vietnam’s total imports from the neighbouring nation reached $646.2 million, up 14.2 per cent on-year. Last year, total trade between the two countries amounted to $1.54 billion, down 1.4 per cent from the previous year.
In the context of complex regional and global developments, Vietnam and Laos have agreed on plans to bolster cooperation across various sectors.
They are determined to resolve obstacles and expedite the implementation of key joint projects, and infrastructure projects connecting roads and railways. Additionally, they aim to expand and enhance the effectiveness of cooperation in education, training, culture, and people-to-people exchanges.
Vietnam’s Ministry of Foreign Affairs (MoFA) reported that bilateral cooperation in economics, trade, and investment between Vietnam and Laos continues to see positive changes.
The two nations have signed an MoU on developing and connecting border trade infrastructure, along with the Vietnam-Laos Trade Agreement. They have also been effectively implementing the Vietnam-Laos Border Trade Agreement to facilitate conditions for enterprises and individuals from both countries.
Currently, Vietnamese businesses have invested in 241 projects in Laos with a total registered capital of more than $5.5 billion, positioning Vietnam as the third-largest foreign investor in Laos, following China and Thailand. These projects are focused on banking, finance, real estate, forestry, agriculture, services, and telecommunications. However, only over $2.5 billion has been disbursed so far.
The two governments have assigned relevant authorities to review all Vietnamese projects in Laos to promptly address obstacles and ensure timely implementation. Some key projects are encountering difficulties.
Many significant Vietnamese projects and businesses are currently operating successfully in Laos, including the Xekaman 1 hydropower plant, Muong Thanh Vientiane hotel, Viettel’s telecommunications project, Ha Do’s Nong Tha urban area, Lao-Vietnam Bank, and projects by Vietnam Rubber Industry Group and Hoang Anh Gia Lai.
According to the MoFA, these Vietnamese investments in Laos have been effective, profitable, and have made positive contributions to the development of both countries.
Vietnam and Laos are also focusing on infrastructure development to facilitate trade and investment ties. They are expanding the Vung Ang 1-3 port projects in the central province of Ha Tinh under an agreement signed between both governments.
The capacity of transporting containers at the Vung Ang deep seaport is being strengthened to accommodate vessels ranging from 5,000 to 100,000 tonnes and provide services for between 50,000 and 1.2 million containers, handling goods between three million and 20 million tonnes by 2030.
For Laos, Vung Ang seaport plays a crucial role in promoting maritime transport and regional connectivity to boost Laos’ economic growth through transportation and trade exchanges.
Both nations have also agreed to seek investment capital for constructing strategic transport projects, including the Hanoi-Vientiane Expressway and the Vientiane-Vung Ang railway.
During President To Lam’s state visit to Cambodia last week, both nations deepened political links and furthered bilateral trade and investment cooperation, committing to removing impediments for businesses and investors.
According to the MoFA, economic, trade, and investment cooperation between Vietnam and Cambodia has flourished with encouraging results. Bilateral trade reached $10.57 billion in 2022, marking an almost 11 per cent increase from the previous year, before decreasing to $8.6 billion last year due to difficulties.
The figure stood at $3.9 billion in the first four months of this year, marking a 16.8 per cent increase on-year. Vietnam is now Cambodia’s third-largest trade partner, after China and the US, and is also the largest trade partner of Cambodia within ASEAN.
Currently, Vietnamese enterprises have invested in 205 projects in Cambodia with a total registered capital of $2.94 billion, leading among ASEAN countries and ranking in the top five nations and territories with direct investment in Cambodia.
“Business and investment activities of Vietnamese businesses in Cambodia have been making positive contributions to social security and the prosperous development of Cambodia,” said the MoFA.
Vietnam is currently constructing an expressway running from Soc Trang province’s Tran De port to An Giang province in the Mekong Delta region, as well as another expressway running from Ho Chi Minh City to the southeastern province of Tay Ninh.
These two expressways are connected with border gates to Cambodia and other expressways.
The two countries have also established a Cambodia-Vietnam aviation joint venture, a fertiliser producing factory, Metfone Telecommunications, and a factory to produce sugar, ethanol, and a thermoelectric plant in Cambodia.
