Vietnam, Laos target $5bn trade
Vietnam, Laos target $5bn trade
Vietnam and Laos pledged to increase bilateral trade to US$5 billion and beef up their multifaceted cooperation given the signing of four cooperative documents during an intergovernmental session on Thursday.
Vietnamese Prime Minister Pham Minh Chinh (L) speaks at the Vietnam-Laos Intergovernmental Committee in Vientiane, January 9, 2025. Photo: Doan Bac / Tuoi Tre |
The two sides made the pledge while Vietnamese Prime Minister Pham Minh Chinh and his Laotian counterpart Sonexay Siphandone co-chaired the 47th meeting of the Vietnam-Laos Inter-Governmental Committee in Vientiane as part of Chinh’s visit to Laos.
The two PMs expressed their pleasure at the results of cooperation between the two countries in multiple fields, especially in trade and investment, over the past several years, according to the Ministry of Foreign Affairs.
Despite regional and global economic challenges that have led to a decline in consumer demand, trade between Vietnam and Laos in 2024 increased nearly 34 percent year on year to reach $2.2 billion, with Laos enjoying a trade surplus of $732.7 million, a 30-percent surge from 2023.
Based on the impressive trade growth, the two leaders agreed to take steps to achieve a 10-15-percent rise in two-way trade in 2025 compared to 2024, and move toward $5 billion in bilateral trade in years to come.
In recent times, Vietnam’s investment in Laos has shown a tendency to climb in a more sustainable manner, with Vietnamese investors registering $191.1 million in investments in Laos in 2024, up 62.1 percent from 2023.
Over the past five years, Vietnamese businesses have contributed around $200 million per year on average in taxes and other financial obligations to the Lao government.
In addition to trade and investment, the two countries have achieved their energy cooperation goals for the 2021-25 period, with many large-scale projects being developed and hurdles facing them having been removed.
Cooperation between localities in the two countries, especially in border locales, continues to be effective, contributing to improved general cooperation between both sides.
Regarding orientations for cooperation in the near future, the two PMs pledged to continue promoting and deepening political and diplomatic relations, thereby providing a strategic framework for Vietnam-Laos cooperation.
Both countries will strengthen the connectivity between their economies and take measures to expand investment and trade cooperation.
Accordingly, meetings will be organized between the Lao government and the Vietnamese business community to review and promote Vietnam's investment projects in Laos.
The Lao government will also offer favorable conditions to key projects developed by Vietnamese investors in Laos, including adjustments to investment timelines for hydropower and mining investment projects.
The two PMs agreed to address challenges in infrastructure connectivity and prioritize agriculture and rural development as a pillar of their economic cooperation.
They discussed measures to promote cooperation in major projects such as the Vietnam-Laos Friendship Hospital and the Hanoi-Vientiane Expressway, as well as develop power production and trade initiatives.
Additionally, the two countries have plans to promote the early completion of the Vung Ang 1, 2 and 3 port projects in Ha Tinh Province on the border with Laos, contributing to the implementation of the initiative to turn Laos from a landlocked nation into a sea-connected country.
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| An overview of the 47th meeting of the Vietnam-Laos Intergovernmental Committee in Vientiane, January 9, 2025. Photo: Doan Bac / Tuoi Tre |
Relevant agencies from both countries will consider the possibility of building industrial parks, economic zones, economic models of border gates, and oil and gas depots in border areas.
Both PMs agreed to continue prioritizing and enhancing cooperation in education, training, and human resource development.
Accordingly, the Vietnamese government will provide 1,160 scholarships for Laotian officials and students to study in Vietnam and continue sending teachers to Laos to teach the Vietnamese language.
Both sides reaffirmed their determination to create favorable conditions for businesses from the two countries to strengthen cooperation in investment and business activities.
After the meeting, the two leaders oversaw the signing and exchange of key cooperation agreements between the two countries.
These included the meeting minutes, a 2025 intergovernmental cooperation plan, an agreement on electricity purchases from coal-fired power plants, and a 2025 collaboration plan between Vietnam's Ministry of Education and Training and Laos' Ministry of Education and Sports.
