HCM City, Lao provinces strengthen trade, investment ties

HCM City, Lao provinces strengthen trade, investment ties

Việt Nam and Laos have immense potential for cooperation across multiple sectors, particularly in education and training, information technology, trade promotion, investment, culture, and tourism, delegates emphasised at the Lao-Việt Nam Trade and Investment Promotion Conference held in Savannakhet Province, Laos, on April 2.

At the Lao-Việt Nam Trade and Investment Promotion Conference held in Savannakhet Province, Laos, on April 2. — Photo courtesy of ITPC

Organised as part of the fifth Exhibition of HCM City and Friendship Provinces and Cities in Savannakhet, the conference sisa key activity in the cooperation between HCM City and Savannakhet Province,. It providesbusinesses from both countries with opportunities to connect, exchange information, and explore investment prospects. 

Speaking at the conference, Đào Minh Chánh, deputy director of the Investment and Trade Promotion Centre of HCM City (ITPC), reaffirmed HCM City's commitment to fostering business ties with Laos.

He proposed several initiatives to enhance economic engagement, including organising a HCM City Product Week in Laos, seminars to provide information on the Bilateral Trade Agreement, business networking events and investment promotion conferences for Lao enterprises in HCM City.

Over the years, the cooperation between Việt Nam and Laos, particularly between HCM City and Lao provinces such as Savannakhet, has flourished across various fields, with trade and investment being the most prominent.

He noted that as of 2024, Laos remains Việt Nam's top overseas investment destination, ranking first among the 82 countries and territories Việt Nam has invested. Việt Nam is currently the third-largest foreign investor in Laos, with 269 projects and a total registered capital of US$5.66 billion. Vietnamese investments span across various regions of Laos, covering sectors such as finance, banking, telecommunications, services, and agroforestry.

Bilateral trade between the two countries reached $2.2 billion in 2024, marking a nearly 34 per cent increase from the previous year and surpassing the $2 billion threshold for the first time, he said.

Việt Nam’s key exports to Laos include machinery, construction materials, pharmaceuticals, processed agricultural products, and consumer goods, while Laos exports minerals, timber, seafood, and agricultural products to Việt Nam, he added. 

Delegates at the conference agreed that the two countries still have significant untapped potential for cooperation, such as education and training, information technology, trade promotion, investment, culture, and tourism, especially in emerging fields such as e-commerce. With its expertise in e-commerce and IT, HCM City could serve as a strategic partner for Savannakhet Province in these areas.

Dr. Sanesack Soulisack, Vice Governor of Savannakhet Province, highlighted the province's strategic geographical position and strengths in agriculture, forestry, manufacturing, and mineral resource extraction (gold and copper), logistics and tourism services.

Savannakhet boasts a well-connected regional and international transportation network, two international border gates, and the Savannakhet Special Economic Zone (SEZ), making it an attractive destination for investment in industry, agriculture, and services, he said.

He emphasised that the investment environment in Savannakhet is highly favourable, especially in the SEZ, which has successfully attracted numerous domestic and foreign investors and created thousands of jobs for local residents.

The conference holds great significance, not only in leveraging the existing potential and strengths of Lao provinces, HCM City, and other Vietnamese localities, but also in encouraging Vietnamese enterprises to conduct in-depth research to identify new opportunities for cooperation and investment with Lao enterprises in general, and in Savannakhet Province in particular, he said.

Exhibition of HCM City and Friendship Provinces

At the Lao-Việt Nam Trade and Investment Promotion Conference held in Savannakhet Province, Laos, on April 2. — Photo courtesy of ITPC

The fifth Exhibition of HCM City and Friendship Provinces and Cities in Savannakhet is held from April 2 to 6, featuring 250 booths. 

Organised by ITPC in coordination with relevant departments and agencies from HCM City and Savannakhet Province, the expo has attracted over 130 businesses from Việt Nam, including those from HCM City, Quảng Bình, Quảng Trị, Long An, and Gia Lai, 50 businesses from seven Lao provinces, and Vietnamese companies from Australia, Thailand, Laos, and Cambodia. 

A wide range of Vietnamese products is on display at the event, including processed food, consumer goods, household appliances, pharmaceuticals, handicrafts, textiles, footwear, and agricultural products.

One of the highlights of the event is the Vietnamese-Lao traditional culinary zone, along with nightly cultural exchange performances, drawing significant attention from Laotian visitors.

The event is expected to welcome approximately 55,000 visitors this year. 

Nguyễn Trần Phượng Trân, deputy head of HCM City’s National Assembly delegation, underscored the event’s critical role in strengthening partnerships among localities of both nations.

She expressed confidence that the active participation of businesses would unlock new opportunities and drive sustainable economic growth. 

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