Hanoi (VNA) - Prime Minister Pham Minh Chinh and his Lao counterpart, Sonexay Siphandone, co-chaired an investment cooperation conference in Vientiane on January 9, as part of the Vietnamese leader’s trip to the neighbouring country.
In his remarks, PM Chinh stressed that the Party and State of Vietnam always highly evaluate and prioritise the preservation and development of the friendship with Laos. High-ranking leaders of both countries are resolved to enhance economic and investment cooperation as a strong pillar of the bilateral ties, ensuring it truly aligns with the potential and stature of the great friendship, comprehensive cooperation, and special solidarity.
According to the PM, at the 47th meeting of the Vietnam–Laos Intergovernmental Committee which took place earlier the same day, investment cooperation was also a key topic of discussion between the two sides.
Highlighting the special relationship between the two countries, PM Chinh said it requires a unique approach – the one rooted in sincerity and genuine heart.
The leader suggested the two Parties, countries, and people of Vietnam and Laos strengthen their solidarity and unity, noting this is both responsibility and duty of each resident. He also emphasised the role of the two countries’ businesses in driving rapid and sustainable development for each side.
Pointing out limitations in infrastructure connectivity, especially in transport infrastructure, he said ministries and agencies of the two countries should work together to remove obstacles to projects, while seeking opinions from enterprises throughout the process.
The PM also suggested promoting the connectivity of production and supply chains, connecting businesses from a third country, and jointly developing industrial parks in each country.
He urged enterprises to rejuvenate traditional growth drivers and promote new engines and production forces, particularly in emerging sectors and the areas where each side has its strengths.
The leader noted his hope that Vietnamese and Lao enterprises will seize opportunities to step up investment and expand operations in both countries, emphasising that their investments should be driven not only by profit but also by a sense of responsibility and mutual affection.
Agreeing with PM Chinh, PM Sonexay Siphandone commended the concerted efforts of both governments in recent years to develop infrastructure, particularly transport networks, to connect their economies and promote their regional integration, paving the way for enhanced trade and investment. The joint work has encouraged Vietnamese enterprises to invest in priority sectors aligned with Laos’s development plans.
The two governments agreed that they need to focus on transport infrastructure development for greater integration and connectivity, said the Lao PM. He mentioned key projects such as railway and roadway connectivity as well as Vung Ang seaport clusters, underscoring the importance of bolstering aviation cooperation.
PM Sonexay urged Vietnamese and Lao businesses to explore further opportunities for collaboration, particularly in industrial park development to help Laos enhance its deep processing capabilities for raw materials. He said clean energy and wind power development are also promising areas for investment.
The Lao PM called for more forums and conferences between the two countries to foster stronger economic ties to be on a par with their special relations.
Speaking at the event, Vietnamese Minister of Planning and Investment Nguyen Chi Dung outlined key directions for the time ahead, including a focus on encouraging Vietnamese businesses to invest in sectors aligned with Laos's priorities like agriculture, forestry, aquaculture, energy, mining, and eco-tourism.
In addition, both sides should work together to study the building of industrial clusters and parks, economic zones, or other suitable forms of cooperation in trade and industry along the shared border to facilitate the production and export of goods from Laos to Vietnam, he added.
Greater efforts are needed to raise two-way trade by 10-15% per year, he said, highlighting the importance of trade promotion, brand building, and distribution channels for goods in each country to ensure stable presence and sustainable market access.
At the conference, 13 investment certificates and cooperation agreements were exchanged between Vietnamese and Lao businesses. The Vietnamese side presented certificates for domestic companies’ overseas investment in Laos to SDVIC Wind Power JSC with Savan 1 wind power plant project, Vietnam Dairy Products JSC (Vinamilk) with a dairy farm complex, and Military Commercial Joint Stock Bank (MB Bank) with MB Bank Laos project.
Meanwhile, the Lao side granted a construction permit to the Vietnam National Chemical Group’s potassium salt mining and processing project, a contract for the Savan 1 wind power plant, a contract addendum for Viet Phuong Investment Group’s bauxite mining and aluminum processing plant in Laos and a contract for the group to develop five small hydropower projects in Sekong province.
Six agreements and memorandums of understanding were also exchanged, covering the realms of aviation, wind power, thermal energy, fisheries, and workforce training.
Following the conference, under the witness of the two PMs, the State Bank of Vietnam and the Bank of the Lao PDR announced a framework for local currency payments and bilateral retail payment connectivity via QR code technology.
With this framework, supported by robust legal and infrastructural readiness in the banking sector, both sides encouraged their businesses to adopt local currencies in their trade and investment activities. The bilateral QR code payment system was officially launched, expected to boost tourism, consumption, and people-to-people exchanges, while promoting the use of local currencies in retail transactions.
Economic, trade, and investment cooperation between the countries witnessed remarkable achievements last year, with Vietnam’s investment in Laos showing a sustainable upward trend.Vietnam's registered investment in Laos reached 191.1 million USD, up 62.1% year-on-year.
Cumulatively, Vietnamese enterprises have invested in 267 projects in Laos with total registered capital of 5.7 billion USD, of which 2.8 billion USD has been disbursed. This positions Vietnam as the third-largest foreign investor in Laos, following China and Thailand.
Over the past five years, Vietnamese businesses have contributed an average of 200 million USD annually in taxes and other financial obligations to Laos. However, Lao investments in Vietnam remain relatively limited in comparison.
Also in 2024, bilateral trade reached a new milestone, with total volume surpassing 2.2 billion USD, a 33.9% increase from 2023. Notably, Laos achieved a trade surplus with Vietnam, amounting to approximately 732.7 million USD./.
