Laos, Vietnam govts agree to expedite economic cooperation

The governments of Laos and Vietnam have agreed to speed up economic cooperation with the intention of placing economic engagement at a level that matches their special political ties.
At the 45th meeting of the Laos-Vietnam Intergovernmental Committee held in Vientiane on Thursday, the two sides resolved to push for greater trade cooperation, particularly border trade.

Prime ministers Dr Sonexay Siphandone (seated, right) and Pham Minh Chinh witness the signing of cooperation documents in Vientiane on Thursday.

Co-chaired by Prime Minister Dr Sonexay Siphandone and his visiting Vietnamese counterpart Pham Minh Chinh, the meeting agreed to encourage more investment by Vietnam in clean agriculture, technology, and the manufacture of consumer goods in Laos.
Leaders of the two countries stressed the need to strengthen connectivity through the development of road, rail and air links, as well as telecommunications and energy, as a means to expand areas of cooperation and development.
The two governments will continue to push for greater cooperation in infrastructure connectivity to ensure that all approved cooperation projects are finalised as planned.
For instance, construction of the new Nongkhang airport in Xamneua district, Huaphan province, at a cost of at more than US$74 million is expected to be complete in April.
Vietnam is a key trading partner of Laos, with the value of two-way trade exceeding US$1.49 billion in 2022, an increase of 23 percent compared to the previous year.
The leaders of the two countries have agreed to maintain an annual trade growth of 10-15 percent as well as expand investment and cooperation with a focus on development projects in border areas.
Vietnam is the third largest foreign investor in Laos after China and Thailand, with Vietnamese companies involved in 238 operational projects in Laos with total pledged capital of US$5.34 billion.
 The two governments agreed to support one another’s economic recovery post-pandemic and to build an extensively integrated economy.
Over the past year, the governments of Laos and Vietnam have supported businesses to expand border trade, while Vietnamese companies have been encouraged to invest in areas of potential in Laos.
Vietnam has pledged to support Laos when the country assumes the Asean chairmanship in 2024, as well as in other international affairs. The two sides agreed to strengthen cooperation in the fields of culture, education, healthcare, and science and technology, and to maximise the potential of investment while promoting socio-economic infrastructure development in Laos.
The two premiers witnessed the signing of the Minutes of the 45th meeting of the Laos-Vietnam Intergovernmental Committee and the Laos-Vietnam cooperation plan for 2023.
In addition, Dr Sonexay and Pham Minh Chinh co-chaired an investment meeting designed to provide opportunities for Lao and Vietnamese businesses to meet and discuss cooperation. The opportunity and challenges facing businesses were scheduled for discussion, with the governments of two countries working to provide assistance as needed.

By Somsack Pongkhao
 (Latest Update January 13, 2023)