Vietnam and Laos step up cooperation in finance, infrastructure and energy

Vietnam and Laos step up cooperation in finance, infrastructure and energy

The mid-term conference of the Vietnam-Laos Cooperation Committee for 2026 and the 19th meeting of the Steering Committee for the Cooperation Programme between the Vietnamese and Lao Ministries of Finance were held in Danang on August 27.

The mid-term conference of the Vietnam-Laos Cooperation Committee for 2026. Photo: Chau An (MoF)

The conference was co-chaired by Vietnamese Minister of Finance and Chairman of the Vietnam-Laos Cooperation Committee Ngo Van Tuan and Lao Deputy Prime Minister and Minister of Finance, and Chairman of the Laos-Vietnam Cooperation Committee Santiphab Phomvihane.

The two sides reviewed the implementation of the 2026 Vietnam-Laos Cooperation Plan Agreement during the first eight months of the year, assessed achievements and discussed obstacles. They also agreed on key priorities for advancing bilateral cooperation in the remaining months of 2026.

Minister Tuan said implementation of the plan had broadly met its objectives, contributing to political stability, socioeconomic development, national defence and security, while strengthening the great friendship, special solidarity and comprehensive cooperation between both sides.

He said that defence and security cooperation has continued to be strengthened and remains an important pillar of bilateral relations. The two countries have coordinated in implementing signed protocols and cooperation agreements, contributing to political stability, security and social order and safety, as well as building a peaceful, stable, friendly, cooperative and developing Vietnam-Laos border.

Lao Deputy Prime Minister and Minister of Finance Santiphab Phomvihane. Photo: Chau An (MoF)

DPM and Minister Phomvihane agreed with Vietnam's MoF assessment. "Rapid and complex geopolitical developments have affected global economic growth and slowed the development process of individual countries, including Laos and Vietnam," he said.

He said Laos was focusing on maintaining budgetary balance, accelerating economic growth and increasing revenue to meet expenditure needs and secure funding for infrastructure investment.

The Lao government has issued directives on strategic projects connecting Laos with Vietnam to facilitate bilateral trade, including Routes 6 and 12, Vientiane-Hanoi Expressway and the expressway linking the Cha Lo border gate with Vung Ang Port.

"Finance is of paramount importance to Laos, and we need substantial resources to meet our needs. Laos hopes Vietnam will provide expert support for relevant areas of work," he said.

He also highlighted progress in energy cooperation, noting that the two sides had signed agreements on electricity and coal purchases with a combined trade value of $1.3 billion. "Cooperation in education has also continued to develop, with Vietnam providing many scholarships to Lao students," he said.

Minister Ngo Van Tuan. Photo: Chau An (MoF)

Regarding the potash mining and processing project in Khammouane province, Laos, which is being developed by Vietnam National Chemical Group, Laos called on Vietnam to pay greater attention to the project and accelerate its implementation.

Laos also asked Vietnam to provide further support, particularly for businesses seeking access to credit, and to help accelerate relevant projects in an effective manner.

For the remaining months of 2026, the conference agreed to continue its high-level agreements and the 2026 cooperation plan between the two sides.

Priority areas will include stronger political and diplomatic cooperation, defence and security cooperation, economic connectivity and greater complementarity between the Vietnamese and Lao economies, as well as connectivity among the three economies of Vietnam, Laos and Cambodia.

Both sides will also strengthen cooperation in institutional affairs, finance, transport, energy, telecommunications and tourism, while promoting investment by Vietnamese businesses in areas where Laos has demand and competitive strengths.

Attention will be given to strengthening dialogue and coordinating efforts to resolve difficulties faced by businesses and investors. The two countries will also continue boosting trade growth and energy cooperation, while prioritising education, training and human-resource development.

This is expected to provide a foundation for the two countries to organise cooperation activities in the future, particularly in 2027, which will mark the 65^th anniversary of the establishment of Vietnam-Laos diplomatic relations.

Photo: Chau An (MoF)

According to Vietnam's MoF, in the first seven months of 2026, Vietnam had 20 investment projects in Laos with the total registered capital of $638.3 million, 4.2 times higher than in the same period of 2025.

Laos remained Vietnam's largest overseas investment destination, with 300 projects and the total registered capital of $7.04 billion. Two-way trade reached $1.3 billion in the first six months of 2026.

In 2026, the Vietnamese government is providing 1,300 scholarships for Lao students at more than 170 educational institutions in Vietnam. The two sides are also actively coordinating on the implementation of the Laos-Vietnam Friendship University project.

The Vietnamese government has allocated $44 million in aid to the Lao government for 2026, as part of a total $390 million aid package for 2026-2030 to implement programmes and projects and provide training for Lao officials and students. Seven projects are currently under implementation, with most on schedule.

VIR