Laotian visit lifts co-operative relationship

A visit by Laos’ top leader has cemented economic ties between the neighbouring nations - Photo: VNA

A joint statement released during the visit affirmed that “All Vietnamese-backed projects in Laos must be implemented on schedule and to high standards. The connection between the two economies must be strengthened, so that the two countries can continue working together on road infrastructure and energy development projects.”

In a bid to increase the flow of Vietnamese investment into the neighbouring country, during Vorachith’s visit leaders from both sides agreed that priority would be placed on implementing the Vietnam-Laos Bilateral Co-operation Agreement for 2016 and the Vietnam-Laos Co-operation Agreement for 2016-2020.

“Creating a scheme to link the two economies must be completed as soon as possible,” said Vietnam’s newly-elected Prime Minister Nguyen Xuan Phuc.

According to Vietnam’s Ministry of Planning and Investment, Laos is Vietnam’s largest foreign investment market. Vietnamese investors have poured almost $5 billion into Laos thus far, with 258 investment projects employing over 30,000 workers. Key investors include Vietnam’s state-run chemical giant Vinachem, Hoang Anh Gia Lai, Viettel, Petrolimex, BIDV, and Long Thanh Golf Investment and Trading JSC.

Vietnam’s largest Laos-based investment project, a facility to exploit and process potassium salt, began construction last September. The $522.46-million project, financed by Vinachem, will use potassium salt as a material to produce potassium fertilizer.

In May last year, Hoang Anh Gia Lai inaugurated the $36 million Attapeu International Airport in Laos’ southernmost province of Attapeu. The airport was constructed under a build-transfer model and took two years to complete. Also in 2015, Hoang Anh Gia Lai reaped a total revenue of VND2.31 trillion ($105.2 billion) in Laos.

In addition, Unitel, a joint venture between Viettel and Lao Asia Telecom, currently occupies over 53 per cent of Laos’ telecommunications market.

Chairman of the Association of Vietnamese Investors in Laos Tran Bac Ha said that Vietnamese enterprises in Laos have contributed over $250 million to Laos’ coffers and provided over $70 million for the country’s social security programmes.