Vietnam and Laos share a long border that passes through 10 provinces and cities of both countries, with nine pairs of international border gates, six pairs of main border gates, and 18 pairs of secondary border gates, along with 27 border crossings and nine border economic zones. Therefore, senior leaders of Vietnam and Laos have paid attention to facilitating economic exchange, as well as travel and the import, export of goods between the two countries.

On October 14, the first batch of VF5 Plus cars from GSM arrives at Lao Bao international border gate to complete necessary procedures for official presence in Laos

Economic cooperation has become a long-term foundation of bilateral relations and is developing in a more effective manner. Vietnam has been a top-three trading partner of Laos for many years.

On April 8, 2024, Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Lao Minister of Industry and Commerce Malaithong Kommasith signed a new Vietnam-Laos Trade Agreement, aiming to further strengthen the special friendship and comprehensive cooperation between the two countries, promote market access for goods and services, and establish connectivity for stable, sustainable, and long-term development. The agreement also seeks to maximize facilitation for the export and import of goods and services, granting each other special trade preferences.

The new agreement contributed significantly to the strong growth of bilateral trade in the first eight months of 2024. Data from the Asia-Africa Market Department of the Ministry of Industry and Trade (MoIT) show that in the first eight months of 2024, the total value of trade between Vietnam and Laos reached US$1.3 billion, a year-on-year increase of 24 percent.

The sum included US$429.5 million worth of Vietnam’s exports to Laos, up 20.7 percent, and US$915.2 million worth of Lao exports to Vietnam, up 25.7 percent.

Major Vietnamese exports to Laos included chemicals, with value reaching US$47.7 million, up 1,560.6 percent; petroleum (US$45.7 million, up 19.6 percent); machinery, equipment, tools, and other parts (US$35.8 million, up 32.9 percent); iron and steel (US$32.2 million, up 22.4 percent); and vehicles and spare parts (US$27.6 million, down 6.5 percent).

Vietnam’s imports from Laos included rubber with value reaching US$140.7 million, up 31.6 percent; coal (US$93.5 million, down 25.1 percent); timber and wood products (US$65.4 million, down 3.8 percent); fertilizers (US$62.1 million, down 5.7 percent); and ores and other minerals (US$50.8 million, up 23.6 percent).

Regarding investment, so far, Vietnamese businesses have invested in Laos through 245 projects with the total registered capital of US$5.5 billion. Many Vietnamese investment projects in Laos are operating effectively, contributing significantly to Laos’ socioeconomic development, creating jobs and increasing income for thousands of local workers. These investments also create a source of revenue for the Lao state budget, especially in sectors, such as telecommunications, banking, rubber cultivation and processing, as well as food and dairy production and processing.

Given the positive results of bilateral trade, the Asia-Africa Market Department predicted that Vietnam’s exports to Laos will continue growing. Vietnamese businesses can export to Laos more consumer goods, food, industrial products and construction materials.

During the ASEAN Summit and related meetings held in Vientiane, Laos, from October 8-11, 2024, Prime Minister Pham Minh Chinh emphasized the special relationship between Vietnam and Laos at a meeting with staff from the Vietnamese Embassy and other Vietnamese representative offices in Laos. He noted that despite the complex developments in the global and regional situation, the special relationship between Vietnam and Laos continues to develop, with cooperation in all areas becoming increasingly deep, substantive, and effective.

“While political ties are the core of the Vietnam-Laos relationship, we must promote cooperation in economic development, education, workforce training, and other areas, in order to consolidate and nurture bilateral relations in all fields for the benefits of the people of both countries,” the Prime Minister emphasized. He urged representative agencies to promote bilateral economic cooperation, enhance business connectivity, create favorable conditions for investment, and ensure effective implementation of projects, focusing on prioritized ones.