Lao rice products on display at Vietnam-Laos Product Week held early this month. The two countries have established various frameworks to facilitate trade and investment. — VNA/VNS Photo

HÀ NỘI — The upcoming official visit to Laos by Prime Minister Lê Minh Hưng is expected to help shape a new phase of cooperation and development between Việt Nam and Laos.

Bright spots

Economic and trade ties between Việt Nam and Laos have maintained strong growth. Bilateral trade rose by more than 20 per cent annually on average during 2021-25, while the commodity structure has become increasingly complementary, with industrial products, chemicals, raw materials, machinery and equipment gaining a larger share.

The two countries have established various frameworks to facilitate trade, including the 2015 Vietnam-Laos Border Trade Agreement and the Vietnam-Laos Trade Agreement that was signed in April 2024 and came into effect in February 2025.​

They have also implemented the 2007 Hanoi Agreement on facilitating the movement of people, vehicles and goods through four pairs of international border gates. In August 2026, the two Ministries of Industry and Trade agreed to propose amendments to the agreement, targeting completion in 2027.

Agreements on border trade infrastructure connectivity and market management, signed in 2024, have strengthened the foundation for advancing bilateral trade.

Speaking at the recent Vietnam-Laos Product Week, Deputy Minister of Industry and Trade Nguyễn Viết Sơn said the two ministries have maintained close coordination, contributing to deeper economic and trade cooperation.

Lao Ambassador to Vietnam Khamphao Ernthavanh said the event helped bring products closer to consumers while creating opportunities for businesses to connect directly and translate high-level cooperation agreements into concrete outcomes.

Bilateral trade reached US$2.9 billion USD in 2025 and exceeded $1.6 billion in the first nine months of 2026, according to Trần Thị Tú Anh, Trade Counsellor and head of the Việt Nam Trade Office in Laos.

Việt Nam exports petroleum, iron and steel, machinery, transport vehicles and consumer goods to Laos, while importing ores, coal, rubber, timber, maize, electricity and other agricultural products and raw materials.

Improved border infrastructure and customs mechanisms have helped shorten clearance times and reduce logistics costs. Meanwhile, business cooperation is expanding beyond goods trading to production, supply-chain linkages and distribution networks.

Towards ambitious targets

Vietnamese investment in Laos continues to expand in both scale and quality, focusing on energy, agriculture, services and export-oriented manufacturing. Việt Nam ranks second among 53 countries and territories investing in Laos, with 435 projects and registered capital of about $8 billion.

The two countries aim to boost bilateral trade in 2026 towards the milestone of $10 billion by 2030, a target the Việt Nam Trade Office in Laos said is challenging but feasible as both Governments work to remove trade barriers, improve border-trade mechanisms, and strengthen transport and logistics connectivity.

Large Vietnamese projects in energy, minerals and high-tech agriculture are expected to create additional supply for Việt Nam and third markets once fully operational.

At a recent meeting with his Lao counterpart, Vietnamese Minister of Industry and Trade Lê Mạnh Hùng said the two sides should identify specific growth drivers by sector, product group and project to raise bilateral trade to $4 billion, then $5 billion and ultimately $10 billion.

The two ministries agreed to prioritise electricity, coal, petroleum, minerals, construction materials, machinery, chemicals, agricultural products and consumer goods, while strengthening trade promotion, business and supply-chain connectivity. Energy cooperation, especially electricity, and deeper processing of minerals will also receive greater attention.

According to Tú Anh, significant potential remains in infrastructure, energy, high-tech agriculture and services. Laos’ strategic location could help turn the landlocked country into a land-connected logistics hub, while stronger economic corridors, the Vientiane-Hà Nội expressway and access to Vietnamese seaports such as Vũng Áng could improve connectivity.

Counsellor and Head of the Economic and Trade Office at the Lao Embassy to Việt Nam Somsay Nonglard said Laos hopes to increase exports to Việt Nam while encouraging Vietnamese businesses to invest in agriculture, agro-processing, industry, energy, logistics, trade and services.

With Laos’ strengths in resources, agriculture, energy and connectivity complementing Việt Nam’s manufacturing, processing, distribution and logistics capabilities, the two countries can deepen value-chain links and jointly expand into third markets, he added. — VNA/VNS