State visits strengthen regional links

President Tran Dai Quang visited close neighbours Laos and Cambodia to cement ties between the three countries

The trips, made at the invitation of Lao Party General Secretary and President Bounnhang Vorachith, and Cambodian King Norodom Sihamoni, were the first overseas trips by Tran Dai Quang since he took office as Vietnam President in April.

“The overseas tours, which took place from June 12-16, were vital to the Indochinese nations’ year-long relationship, contributing to the shared long-standing friendship and special solidarity that we enjoy with Laos. Furthermore, our wish is to further cement our comprehensive co-operation with our neighbour Cambodia, and we look forward to bringing this mutually beneficial relationship to new heights,” said Vu Hong Nam, Vietnam’s Deputy Minister of Foreign Affairs.

“Vietnam pays special attention to fostering and promoting the traditional friendship that exists with our two neighbours,” he noted.

During his stay in Laos from June 12-14, Quang met with Lao Prime Minister Thongloun Sisoulith, National Assembly Chairwoman Pany Yathotou, and other Lao party and government leaders.

The meetings focused on reinforcing political trust, and enhancing the fields of politics-diplomacy, defence-security, and economy, trade and investment, as well as regional issues of mutual concern.

“The visit demonstrated the importance that the Party, State, and Government of Vietnam and the president himself, attach to the Vietnam-Laos special relationship. It will help to strengthen and develop the time-honoured friendship, unique solidarity, and future co-operation between the two countries,” noted Lao Prime Minister, Thongloun Sisoulith.

While in Cambodia, the Vietnamese state leader held talks with leaders of the Cambodian legislature and government, including Senate President Say Chhum, National Assembly Chairman Heng Samrin, and Prime Minister Hun Sen. “The Vietnamese Party, State, and people continue to benefit from the existing friendship, solidarity, and co-operation it enjoys with Cambodia,” he noted.

The two countries issued a Joint Statement in which they pledged to continue to strengthen and advance bilateral relations, and implement Treaties, Agreements, and memoranda of understanding on border issues. They agreed to continue promoting bilateral trade, investment, and economic connectivity.

Trade and investment has improved the relationship between Vietnam, Laos, and Cambodia, which has grown stronger over the years.

Laos and Cambodia are two Southeast Asian markets in which Vietnamese firms wish to expand their presence in an effort to cash in on favourable geographical position and policy incentives.

According to statistics from Vietnam’s Ministry of Planning and Investment’s Foreign Investment Agency, investment capital flows from Vietnam to Laos rose robustly from 2011-2015, in both the number of projects and committed capital volume. Vietnamese businesses have invested nearly $5 billion in 258 projects in Laos, focusing on hydropower, mining, transport and industrial forestry. The two sides aim to increase bilateral trade to $2 billion in the years to come.

Vietnam is Cambodia’s third-largest trade partner, with two-way trade reaching $3.37 billion in 2015, and $944.6 million in the first quarter of this year alone. The two countries have targeted $5 billion in bilateral trade in the near future.

Vietnamese investment can be seen in 16 out of the 25 Cambodian cities and provinces with 183 projects, worth $2.85 billion in total committed capital in Cambodia, placing Vietnam among its top five investors. Most of the projects are in agro-forestry, energy, finance, banking, and insurance, post and telecommunications, healthcare, and construction.

A project on promoting investment co-operation between Vietnam, Laos, and Cambodia is being penned, and is expected to further facilitate Vietnamese investment flows as well as accelerate Vietnamese capital disbursement in these two countries.