Hanoi: Vietnam and Laos are working towards enhancing their trade relations, focusing on making their ties more effective and sustainable. State President Luong Cuong’s recent state visit to Laos marks a significant step in advancing bilateral cooperation, particularly in trade, between the two neighboring countries.
According to Lao News Agency, Vietnam and Laos share a strategically positioned border of over 2,300 kilometers, which serves as a key component of the East-West Economic Corridor. This corridor offers considerable potential for development. The two nations have established an extensive network of border crossings, including nine international border gates and several economic zones, facilitating trade and economic interactions.
The Vietnam-Laos Border Trade Agreement, initially signed in 2015, has been extended to 2024, and a new bilateral trade agreement was signed in April 2024, taking effect in February 2025. Additionally, a new agreement on coal and electricity trade was signed in January 2025, highlighting the growing economic collaboration between the two countries.
Trade between Vietnam and Laos has seen substantial growth, with bilateral trade surpassing 2 billion USD in recent years. The two nations aim to increase this figure to 5 billion USD, with an average annual growth rate of around 12%. In 2024, trade reached 2.25 billion USD, marking a 38.2% increase from the previous year. The first quarter of 2025 saw a remarkable two-way trade surge of 105.5% compared to the same period in 2024.
Vietnam’s export structure to Laos is undergoing a transformation, with industrial goods, chemicals, and construction materials now taking precedence. In contrast, imports from Laos include raw materials such as rubber, coal, and minerals, essential for Vietnam’s domestic industries.
Investment from Vietnamese businesses in Laos is also noteworthy, with 267 projects and a total registered capital of 5.7 billion USD. These projects have significantly contributed to Laos’s socio-economic development. At the 47th meeting of the Vietnam-Laos Inter-Governmental Committee in January 2025, both sides signed important cooperation documents and awarded investment licences worth approximately 1.8 billion USD.
Despite these achievements, some challenges remain. Infrastructure development, particularly roads and logistics near border areas, needs improvement to facilitate smoother trade flows. Vietnam’s Ambassador to Laos, Nguyen Minh Tam, emphasized the importance of enhancing economic collaboration through better infrastructure, clean energy projects, and financial integration.
Vietnam’s Trade Office in Laos is actively promoting trade through annual programs, including the Vietnam-Laos Trade Expo, which provides a platform for businesses to connect and establish partnerships. Minister of Industry and Trade Nguyen Hong Dien has also called for effective cooperation in trade, energy, and mineral resources, urging Vietnamese corporations to finalize long-term coal purchase agreements with Lao suppliers.
In conclusion, Vietnam and Laos are making significant strides in strengthening their trade relationship, with new agreements and initiatives paving the way for more robust economic cooperation. The focus remains on addressing existing challenges and exploring opportunities for further investment and collaboration in various sectors.
