Encouraging Investment Along the Vietnam-Laos Border: Promoting Cooperation and Sustainable Development

Vietnam and Laos are neighboring countries with a special relationship forged through a shared history of revolutionary struggle, deep solidarity, and close cooperation in various fields. In an increasingly competitive global economy, promoting investment along the border not only enhances local economic development but also plays a strategic role in strengthening comprehensive cooperation between the two nations.

To realize this shared vision, the Vietnam-Laos Investment Cooperation Conference 2025 was held on January 9, 2025, in Vientiane, Laos. The conference was co-chaired by Vietnamese Prime Minister Pham Minh Chinh and Laotian Prime Minister Sonexay Siphandone, with the particitoiwpation of ministries, sectors, and numerous businesses from both countries.

Economic Cooperation Achievements Between Vietnam and Laos

The year 2024 marked significant progress in economic, trade, and investment relations between Vietnam and Laos. Vietnam’s registered investment in Laos reached USD 191.1 million, a 62.1% increase compared to 2023. To date, Vietnam has 267 investment projects in Laos, with a total capital of USD 5.7 billion, making it one of the largest foreign investors in the country.

Bilateral trade turnover in 2024 reached USD 2.2 billion, an increase of nearly 34% from the previous year, with Laos enjoying a trade surplus of approximately USD 732.7 million. Major exports from this country to Vietnam include minerals, electricity, and agricultural products, while Vietnam supplies industrial products, machinery, construction materials, processed food, and financial services to Laos.

Investment Cooperation Along the Border: Opportunities and Challenges

With a border stretching over 2,300 km across multiple provinces in both countries, the Vietnam-Laos border region plays a crucial role in the cooperation and development strategy. Investing along the border not only facilitates trade but also improves the economic livelihood of local communities, particularly in underdeveloped areas.

Key Investment Priorities

Infrastructure Development

• Major projects such as the Hanoi-Vientiane Expressway and the Vung Ang-Vientiane railway are being expedited to enhance cargo transportation capacity and economic connectivity.
• Road and international border crossings will be upgraded to improve trade and tourism flows.

Establishing Economic and Industrial Zones

• Both governments are exploring the establishment of cross-border economic zones, allowing businesses to leverage advantages from both sides in terms of labor, tariffs, and logistics.
• The development of eco-industrial zones utilizing clean energy is a key initiative to ensure sustainable growth.

Agriculture and Energy Cooperation

• High-tech agriculture, livestock farming, and agricultural processing projects are being encouraged to take advantage of Laos’ vast land resources and Vietnam’s growing market demand.
• Vietnam is increasing investments in Laos’ hydropower sector, not only to meet Laos’ domestic energy needs but also to supply electricity to Vietnam, ensuring energy security.

Tourism and Cross-Border Services Development

• Enhancing tourism infrastructure along the border, developing eco-resorts, and strengthening connectivity between tourist destinations in both countries.
• Expanding logistics, financial, and telecommunications services to facilitate business and trade activities.

Strategies to Promote Investment Along the Border

To encourage investment in border areas, both governments have committed to creating a more favorable business environment, including:

• Enhancing investment incentive policies, such as tax exemptions and reductions, support in land access and infrastructure, and financial incentives.
• Simplifying administrative procedures, reducing investment licensing time, and assisting businesses in project implementation.
• Cooperating in workforce training, to enhance skills for local workers and meet the demands of investing businesses.
• Mobilizing international financial institutions to support funding for major infrastructure projects, ensuring stable financial resources for long-term development plans.

Vietnam-Laos Friendship: A Foundation for Economic Cooperation

Beyond being mere trade partners, Vietnam and Laos share a deep-rooted political, cultural, and social bond. The strong cooperation between the two nations is built not only on economic interests but also on a tradition of solidarity and mutual support in all circumstances.

Promoting investment along the border not only strengthens bilateral relations but also contributes to regional stability and shared development. Both countries share a vision of a thriving border region, where trade, tourism, and production flourish in harmony with environmental protection and improved living standards for local populations.

Conclusion

Encouraging investment along the Vietnam-Laos border is not only a significant step in economic cooperation strategy but also a testament to both nations’ commitment to building a sustainable and prosperous future together. With strong leadership support and favorable policies, border investments will continue to be a key driver for economic growth and the reinforcement of the traditional Vietnam-Laos friendship for years to come.

Sources: thesaigontimes, consosukien, tuoitre, mpi, vov