Plenty of scope remains for trade ties between Vietnam and Laos

Despite the impacts caused by the COVID-19 pandemic and natural disasters, two-way trade between Vietnam and Laos has regained its growth momentum.

The visit of Prime Minister Phạm Minh Chính and the 45th meeting of the Vietnam-Laos Intergovernmental Committee are expected to help promote the sustainable development of bilateral ties.

Statistics show that the trade value jumped from about $1 billion in 2020 to $1.37 billion in 2021 and $1.63 billion last year, making it a bright spot in bilateral relations.

Vietnam’s exports to Laos increased from $571.7 million in 2020 to $594.7 million in 2021. Its main export items included steel, means of transportation and accessories, machinery, plastic products, and vegetables.

Vietnamese Industry and Commerce Minister Nguyễn Hồng Diên said the two industry and commerce ministries have worked together to maintain annual growth of at least 10%, as set by senior leaders since 2012.

The two sides have also closely coordinated in building a complete and comprehensive trade framework and offered special incentives to each other through the Vietnam-Laos Trade Agreement and the Vietnam-Laos Border Trade Agreement in 2015.

Regarding energy, the two governments signed a memorandum of understanding on cooperation in the development of hydroelectric projects in Laos, the connection of electrical systems and energy trade between the two countries.

Vietnam’s exports to Laos increased from $571.7 million in 2020 to $594.7 million in 2021

Given the complex and unexpected developments in the regional and global economy, Diên suggested that Vietnam’s and Laos’ industry, energy and mining sectors strengthen their connectivity and continue to support each other to overcome difficulties and develop sustainably.

Pointing out the limitations in two-way trade, the experts said that policies to attract investment in production, manufacturing, infrastructure, transportation and logistics at the border gates are not effective.

Standard Chartered forecasts Vietnam’s GDP growth in 2023 of 7.2

Other problems lie in the infrastructure, especially the routes leading to the border gates and connecting the districts, which have failed to meet the demand for good exchanges in the border areas.

The MoIT’s Asia-Africa Market Department noted that with the current rate of growth, trade between Vietnam and Laos is expected to reach $2 billion soon.

The department suggested Vietnamese companies invest in building their own brands, fully understand the rules set out in trade agreements and use trade promotion programs to find partners.

Laotian Industry and Trade Minister Malaythong Kommasith also said trade cooperation is not yet up to the potential of both nations and their political ties.

Other problems lie in the infrastructure, especially the routes leading to the border gates and connecting the districts, which have failed to meet the demand for good exchanges in the border areas.

The two ministries have agreed to actively coordinate on the implementation of measures to boost trade ties, shortly conclude negotiations and the signing of a memorandum of understanding on the development of border trade infrastructure and connectivity, and complete the adjustments of the bilateral trade agreement. to facilitate the operations of Vietnamese and Laotian companies.

Article republished from the Vietnamese state media VNA in the framework of an agreement between both parties to share content. Link to the original article:https://vietnamnews.vn/economy/1449284/ample-room-remains-for-viet-nam-laos-trade-ties.html