Vietnam and Laos vow to increase ties

General Party Secretary and State President To Lam (right) with General Secretary of the Lao People’s Revolutionary Party Central Committee and President Thongloun Sisoulith, Photo VNA

During last week’s state visit to Vietnam by General Secretary of the Lao People’s Revolutionary Party Central Committee and President Thongloun Sisoulith, the two countries reached consensus on increasing cooperation in defence and security as important pillars of the bilateral relationship, ensuring a solid foundation for each other to effectively cope with increasingly diverse and complex security challenges.

They will also actively and effectively implement protocols and cooperation plans in defence and security, contributing to maintaining political stability in each country. Vietnam and Laos also underlined common perception of promoting joint efforts to create new breakthroughs and better the effectiveness of economic, cultural, and scientific-technical cooperation based on maximising each nation’s potential and strengths.

They underscored the need to promote substantial connectivity between the two economies in terms of institutions, infrastructure, transportation, telecommunications, and tourism, in order to foster long-term cooperation and development of both nations, and also to promote connectivity among the three economies of Vietnam, Laos, and Cambodia, especially in institutions, finance, transport infrastructure, energy, telecommunications, and tourism.

Vietnam and Laos committed to enhance the effectiveness of economic and trade cooperation, further facilitating investment and business of each other’s businesses. In addition, they also pledged to continue supporting each other in building an independent and self-reliant economy going forward.

Fresh figures from the General Department of Vietnam Customs showed that in the first seven months of this year, bilateral trade hit more than $1.1 billion, up 17 per cent on-year. In which, Vietnam’s exports were worth $355.3 million, up 14.4 per cent as compared to the same period last year. Laos’ exports were valued at $763.8 million, representing an on-year rise of 17.8 per cent.

In the 2013-2023 period, Vietnam’s export turnover from Laos reached $6.1 billion. Last year, total trade sat at $1.54 billion, down 1.4 per cent on-year.

In the context that the situation in the region and the wider world is featured with complicated developments, Vietnam and Laos will also work closely to remove difficulties and impediments to effectively implement key joint projects.

Vietnam’s Ministry of Foreign Affairs (MoFA) reported that bilateral ties between Vietnam and Laos in economics, trade, and investment “continues to see positive changes.”

“The two nations have inked an MoU on developing and connecting border trade infrastructure and the Vietnam-Laos Trade Agreement, while also effectively implementing the Vietnam-Laos Border Trade Agreement in order to create best conditions for enterprises and individuals from both countries,” the MoFA stated.

At present, Vietnamese enterprises have funded over 240 projects in Laos, registered at more than $5.5 billion, making Vietnam the third-largest foreign investor there after China and Thailand. These projects are focused on banking, finance, property, forestry, agriculture, services, and telecommunications. However, only around $2.5 billion has been disbursed so far.

The two governments have tasked relevant authorities to review all Vietnamese projects in Laos so as to remove all obstacles in a timely manner, so that implementation can be ensured as scheduled. Some projects, especially key ones in the sectors of hydropower, mining, and rubber plantation, are facing difficulties.

At present, many big Vietnamese projects and businesses are performing effectively in Laos, such as Xekaman 1 hydropower plant, Muong Thanh Vientiane hotel, Viettel’s telecommunications project, Ha Do’s Nong Tha urban area, Lao-Vietnam Bank, Vietcombank, VietinBank, and Sacombank, and a number of projects by Vietnam Rubber Industry Group and Hoang Anh Gia Lai.

Many Vietnamese projects in Laos have become effective and profitable, and have made positive contributions to both countries’ development, according to the MoFA.

Vietnam and Laos are also focusing on investment in infrastructure, and are expanding Vung Ang 1-3 ports in the central province of Ha Tinh under a deal signed between the two governments.

The capacity of transporting containers at Vung Ang deep seaport has been strengthened to receive vessels of up to 100,000 tonnes, and provide services for as much as 1.2 million containers, handling goods of up to 20 million tonnes by 2030.

Vietnamese, Lao central banks discuss cooperation in using local currencies in bilateral trade The State Bank of Vietnam and the Bank of Laos have jointly organised a conference to share experience in promoting the use of respective domestic currencies in bilateral trade and investment cooperation activities to prevent external risks.

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Vietnamese community aids Laos’s post-typhoon recovery efforts A delegation of the Vietnamese community in Laos, led by Chargé d'Affaires of the Embassy of Vietnam Phan Minh Chien, on September 16 came to the Lao Prime Minister’s Office to hand over financial aid to support those affected by Typhoon Yagi in the country’s northern region.