Vietnam and Laos have had comprehensive cooperation in various fields, particularly in economic development. Trade through border crossings has significantly helped promote the bilateral economic cooperation, as well as the two countries’ socioeconomic development.

In recent years, the bilateral trade has been steadily increasing, while the related border crossing systems have been increasingly improved, and bilateral trade facilitation policies have been adopted by the two countries.

Impressive growth

According to data from the General Department of Vietnam Customs, the bilateral trade hit US$1.65 billion in 2022 (up 24.1 percent from 2021) and US$1.5 billion in the first 11 months of 2023, the latter of which included Vietnam's exports worth US$485 million and the country’s imports worth US$977 million.

Vietnamese consumer goods, industrial products, construction materials, farm produce and processed food have the huge potential for export to Laos. Vietnam imports rubber, timber, fertilizers, corn, fruits and vegetables, and metals from Laos. Vietnam plans to increase coal imports from Laos to ensure its energy security.

The Ministry of Industry and Trade completed the Vietnam-Laos Trade Agreement and the Vietnam-Laos Border Trade Agreement (signed in 2015, taking effect until 2018 and extended to the end of 2024). The two sides are negotiating to amend and supplement the Vietnam-Laos Trade Agreement.

Border gates and border economic zones

The border gate system along the Vietnam-Laos border stretches over 2,000km and comprises 8 pairs of international border gates, 7 main border gates, and 18 auxiliary border gates, significantly contributing to the promotion of trade and services. Among them, notable border gates and border economic zones include Lao Bao, Cau Treo, and Bo Y.

Vietnam’s central region can trade with regional countries such as Laos, Thailand and Myanmar via the Lao Bao border gate located in Quang Tri Province’s Huong Hoa District. The Lao Bao Special Economic and Commercial Zone has been approved by the Prime Minister as one of the 9 border economic zones to be built with synchronized infrastructure. Lao Bao international border gate and Den Savanh international border gate (Laos) serve as important nodes along the East-West Economic Corridor.

Lao Bao International Border Crossing in Quang Tri Province - photo: VNA

Over the past 25 years, the Lao Bao Special Economic and Commercial Zone has attracted over VND880 billion of investment from the State budget into its infrastructure system, including 50 projects. Additionally, it has attracted nearly VND3.7 trillion from businesses investing in nearly 60 projects production and trading projects.

In recent years, the Lao Bao Special Economic and Commercial Zone has undergone significant changes in infrastructure and services thanks to preferential policies. The volume of goods and vehicles as well the number of people entering and exiting the special economic and commercial zone has increased, promoting trade activities along the East-West Economic Corridor through the Lao Bao international border gate. This has contributed to increased budget revenue, job creation, and local economic and social development, fostering regional and international connectivity.

In addition, the Lao Bao - Densavan joint cross-border economic and trade zone has contributed to changing the appearance of Vietnam - Laos border areas in general, and the development in the border areas of Quang Tri and Savannakhet provinces in particular.

Next is Cau Treo international border gate in Ha Tinh Province, which is also in the list of nine key border gate economic zones between the two countries. The Cau Treo border gate has now become a key place that promote trade exchanges with the neighboring Laos, especially through Nam Phao border gate. The Cau Treo gate was built at the end of the French war in 1954; was officially upgraded to an international border gate in 1997, and now holds an important position in the socioeconomic development of Ha Tinh Province.

Another border gate that also has vibrant trade exchanges between Vietnam and Laos is Bo Y international border gate in Kon Tum Province. This is the last traffic junction on Vietnam's National Highway 40 adjacent to Laos’ National Highway 11. The Bo Y border gate is a particularly important trade bridge between Attapeu Province of Laos and Vietnam.

Over the past years, import-export, immigration, and transit activities through Bo Y International Border Gate have seen steady growth.

Bo Y International Border Crossing - photo: kontum.gov.vn

According to statistics by the end of 2023, the Customs Sub-Department of Bo Y international border gate has paid VND313.4 billion to the state budget, exceeding 6.97 percent of the assigned plan.

It can be seen that Vietnam - Laos trade exchanges via the border gates are witnessing strong growth, contributing to the socio-economic development of both countries. Thanks to more complete border gate systems and great bilateral cooperation potential, Vietnam - Laos trade exchange promises to continue to grow strongly in the future.