Vietnam – Laos Investment Cooperation Conference 2025

On the afternoon of January 9, in Vientiane (Laos), at the Vietnam – Laos Investment Cooperation Conference 2025, Prime Minister Pham Minh Chinh and Lao Prime Minister Sonexay Siphandone witnessed agencies and partners of the two countries handing over licenses, documents, and cooperation agreements to implement projects worth billions of USD.

Bilateral cooperation situation between Vietnam – Laos

On January 9, at the 2025 Vietnam-Laos Investment Cooperation Conference with the theme of “Promoting Sustainable Development and Prosperity” held in Vientiane, Laos, Minister of Planning and Investment Nguyen Chi Dung said that in 2024, economic, investment, and trade cooperation between Vietnam and Laos should be focused on and promoted by the two countries, focusing on overcoming long-standing difficulties and obstacles and achieving many important results. Therefore, Vietnam’s investment in Laos shows a trend of growing again in a more sustainable way.

In 2024, Laos’ registered investment capital is US$191.1 million, an increase of 62.1% over 2023, with key areas: clean energy, high-tech agriculture, mineral mining, deep processing, etc. So far, Vietnam has invested in 267 projects in Laos with a total investment of US$5.7 billion, with key areas: energy, mining, agriculture and forestry, food production and processing, telecommunications, banking, tourism, etc. Vietnamese companies have invested in 17/18 provinces and cities in Laos.

In terms of trade, 2024 is a milestone year, with the total trade volume between the two countries reaching US$2.2 billion, an increase of 33.9% over 2023, of which Laos has a trade surplus of US$732.7 million with Vietnam, including a huge contribution from Vietnamese companies investing and doing business in Laos.

Minister Nguyen Chi Dung said that despite the recent success of economic and investment activities between the two countries, there are still some shortcomings, limitations, and obstacles that need to be resolved as soon as possible. Economic, investment, and trade cooperation is not yet in line with the good political relations and potential between the two countries. Some large strategic projects, especially transportation projects connecting the two countries, have been slow to progress due to difficulties in mechanisms, policies, funding sources, etc.

Minister Nguyen Chi Dung reiterated that 2025 is a breakthrough year for the successful implementation of the contents of the bilateral cooperation agreement for 2021-2025. At the same time, it is also a year to determine new directions for cooperation in the new development period.

Bilateral cooperation and development plan in 2025

Regarding the cooperation priorities in 2025, the two sides will strengthen promotion, deepen political and diplomatic relations, improve efficiency, and connect the overall Vietnam-Laos cooperation relationship.

At the same time, strengthen economic ties between the two countries and promote investment and trade cooperation between Vietnam and Laos. Accordingly, leaders of the Lao government and leaders of the Vietnamese business community will meet to review and promote Vietnamese investment projects in Laos and cooperation between enterprises of the two countries.

The Lao government will create favorable and preferential conditions for large and important projects of Vietnamese enterprises, and review and adjust the implementation period regulations for hydropower and mining investments in accordance with the new situation. The two sides will promote strong growth in trade and strive to increase bilateral trade volume by 10% to 15% in 2025 compared with 2024 and achieve the goal of US$5 billion as soon as possible. Agriculture and rural development are considered one of the pillars of economic cooperation between the two countries. Encourage the use of local currency for payments in bilateral relations.

Minister Nguyen Chi Dung said that despite the recent success of economic and investment activities between the two countries, there are still some shortcomings, limitations, and obstacles that need to be resolved as soon as possible. Economic, investment, and trade cooperation is not yet in line with the good political relations and potential of the two countries. Some large strategic projects, especially transportation projects linking the two countries, are progressing slowly due to difficulties in mechanisms, policies, funding sources, etc.

The Lao macro-economy is unstable and investor confidence is unsteady. Many companies are worried about the lack of human resources in Laos, which are already scarce, and now will become more difficult as many Lao workers move abroad (Thailand, Vietnam, South Korea, China, etc.) to work.

Vietnam, Laos exchange cooperation and investment agreements worth billions of dollars at bilateral conference

Accordingly, three companies received investment certificates for three projects. Among them, SDVC Wind Power Company’s Savan1 wind power project increased its capital to US$32 million.

Vietnam Dairy Products Joint Stock Company (Vinamilk) increased its investment in the Lao Dai Farm Complex Project to US$85.2 million.

Military Bank (MB) increased its capital to 229.9 billion Lao kip through the MB Lao Bank Project. MB also signed an agreement with partners to finance the Savan1 wind power plant and Xekong thermal power plant projects.

The Lao Ministry of Planning and Investment awarded Viet Phuong Investment Group Joint Stock Company a contract annex for a Lao bauxite mining project and the construction of an alumina processing plant. The project is planned to produce 1 million tons of alumina per year with a total investment of approximately US$1 billion. The ministry also awarded Viet Phuong Group a contract to develop five small hydropower projects (with a total capacity of 180 MW) in Ka Lum District, Sekong Province, with an investment capital of US$197 million.

The Lao Ministry of Energy and Mines has granted Vietnam Chemical Group a construction license for a potash mining and processing project with an investment of US$522.4 million.

Sovico Group and Transport Design Consultants have awarded a consulting contract to the Lao Ministry of Public Works and Transport and Lao Airports to study and develop a master plan for the Lao Airport System Development Project with a term of up to 2030 and a vision of up to 2050.

Sources: multiple sources