Deputy Prime Minister and Minister of Foreign Affairs, Mr Thongsavan Phomvihane, talks to reporters on Friday.

Laos, Vietnam push for mega project beyond paper

Laos and Vietnam are advancing detailed plans for expressway, railway and energy projects following Vietnamese Prime Minister Le Minh Hung’s official visit to Laos, with both sides seeking to turn long-standing proposals into reality.
“We are no longer talking only on paper. We have gone deep,” Deputy Prime Minister and Minister of Foreign Affairs Thongsavan Phomvihane told reporters when outlining the outcomes of the talks.
Mr Thongsavan said the two governments were discussing the details of major infrastructure projects, including possible routes and ways to attract joint investment, reflecting progress in bringing these plans to fruition.
The Vietnamese prime minister’s visit also produced 11 cooperation documents covering transport, energy, education, finance, security, and cooperation between provincial administrations.
Mr Thongsavan described the visit, which took place on October 8-9, as an important step in advancing the two countries’ special relationship, built on a shared history of struggle for independence and decades of political and diplomatic cooperation.
The visit was particularly significant because Mr Le chose Laos for his first bilateral visit after taking office as Vietnam’s Prime Minister.
It also came shortly after Mr Saleumxay Kommasith was elected as Laos’ Prime Minister, with the Vietnamese leader being the first foreign guest he received in his new role, Mr Thongsavan said.
He stressed that while political, defence and security cooperation remained important, economic and trade relations should become a stronger foundation for the partnership.
Major infrastructure projects featured prominently in discussions, particularly plans for an expressway to link the two countries’ capitals and a railway connecting Laos with Vung Ang port in Vietnam’s central Ha Tinh province.
Mr Thongsavan said the two countries had discussed the expressway for a long time, but negotiations were now examining the details, including routes and possible joint investment.
Mr Thongsavan said the railway would enable Laos to make full use of the port and its access to sea routes, and help make the transport and management of goods more efficient.
However, the only sections of the planned road and rail links disclosed so far are an expressway from Pakxan district in Bolikhamxay province to the Laos-Vietnam border, and a railway from Thakhaek in Khammuan province to the border at Mu Gia.
Alongside these larger proposals, the two governments signed an agreement on the Laos-Vietnam Friendship Road project, providing a formal basis for collaboration on road connectivity.
Mr Thongsavan said infrastructure links were central to Laos’ ambition to expand on its landlocked location and become a land-linked country connecting regional economies.
Energy cooperation was another priority, with discussions covering electricity trading, clean energy and fuel supplies.
The two governments signed a Memorandum of Understanding on petroleum supply infrastructure as they explore plans to build a pipeline to reduce reliance on road transport.
“Until now fuel has been transported only by road, which is very wasteful,” Mr Thongsavan said, adding that the two sides were actively considering ways to make the pipeline proposal a reality.
He said progress had been made in discussions, with practical arrangements still needed.
Beyond infrastructure and trade, the Vietnamese prime minister’s visit advanced several other agreements.
These include the planned Laos-Vietnam Friendship University to enhance skilled workforce capacity, the handover of a modern population-management system, and a memorandum on cybersecurity.
Provincial cooperation was also strengthened, with new agreements linking Hai Phong city and Ninh Binh province with Vientiane and Oudomxay provinces.
Investment and trade expansion remains central to the bilateral agenda. Mr Thongsavan said Vietnam ranked as the largest foreign investor in Laos, with registered investment capital exceeding US$4.7 billion out of a total US$8.57 billion recorded in the first nine months of 2026.
The two nations have also set an ambitious target to increase annual bilateral trade to US$10 billion by 2030, while Vietnam’s government reported that bilateral trade reached nearly US$3 billion in 2025.
Looking ahead, Laos and Vietnam are preparing to mark the 65th anniversary of diplomatic relations and the 50th anniversary of the Treaty of Amity and Cooperation in 2027.
Mr Thongsavan said the two countries expected to observe a Year of Friendship to mark these milestones and help advance projects agreed between them.
Mr Thongsavan said Prime Minister Le Minh Hung’s visit had reinforced the special relationship between Laos and Vietnam and strengthened their commitment to expanding cooperation.
During his visit, PM Le Minh Hung met with several senior Lao leaders, including General Secretary of the Lao People’s Revolutionary Party and President of Laos Thongloun Sisoulith and President of the National Assembly Sonexay Siphandone. He also held bilateral talks with his Lao counterpart, Prime Minister Saleumxay Kommasith.

By Phonepaseuth Volakhoun
 (Latest Update October 12, 2026)