International Business News – Since the establishment of diplomatic relations between Vietnam and Laos 60 years ago, the two countries have been walking side by side and have achieved vigorous development; bilateral trade relations have been actively developed, becoming increasingly in-depth and pragmatic. Laos is Vietnam’s seventh largest trading partner in ASEAN, and the scale of trade in goods continues to expand. This is the goal of Vietnam and Laos to achieve bilateral trade volume of 2 billion US dollars as soon as possible.
Further expand the scale of trade in goods
Vietnam and Laos have similar geographical locations, convenient transportation, and many similarities in culture and consumption habits. The common border line between the two countries is 2,300 kilometers long and passes through 10 provinces and cities in each country. It is an area with development potential and a strategic position on the East-West Economic Corridor.
There are 9 international ports, 6 national ports, 18 local ports, 27 passages and 9 port economic zones along the Vietnam-Laos border.
Vietnam is one of the three major sources of investment in Laos, and the bilateral trade volume between the two countries has gradually increased. In 2021, the bilateral trade volume will reach 1.37 billion US dollars, an increase of 33.32%, a new high in 10 years.
Du Guoxing, director of the Asian and African Market Department of the Ministry of Industry and Trade of Vietnam, said that from 2016 to 2021, the bilateral trade between Vietnam and Laos will increase from 823 million to 1.37 billion US dollars, with an average annual growth rate of 10%. In 2021, the bilateral trade volume will reach US$1.37 billion, a year-on-year increase of 33.3%. In the first seven months of this year, the bilateral trade volume between Vietnam and Laos reached US$948.9 million, a year-on-year increase of 24.2%. Among them, Vietnam’s exports to Laos reached US$362.9 million, a year-on-year decrease of 1.6%; imports from Laos reached US$586 million, a year-on-year increase of 48.2%.
Vietnam exports major products such as refined oil, steel products, vehicles and parts, fertilizers, plastic products, fruits and vegetables to Laos, and imports major products such as rubber, wood and wood products, fertilizers, fruits and vegetables, minerals and minerals from Laos.
Du Sheng Hai, Deputy Minister of Industry and Trade of Vietnam, said that from 2021 to the present, the economic and trade relations between the two countries have been improving and flourishing with the determination of the leaders of the two countries and the close cooperation of various departments and localities. The import and export structure is changing in a sustainable direction, and the list of trade goods between the two countries is expanding and becoming more and more diverse.
Broad room for cooperation
Du Guoxing, director of the Asian-African Market Department of the Ministry of Industry and Trade of Vietnam, commented on the bilateral import relationship, saying that the bilateral trade volume between Vietnam and Laos has grown rapidly in recent years, so the goal of bilateral trade volume of US$2 billion may be completed ahead of schedule.
In order to promote trade relations, Director Du Guoxing believes that companies need to grasp the provisions of various trade agreements to avoid obstacles in customs clearance. In addition, companies need to make full use of trade matching and promotion programs to find partners.
The Vietnamese ambassador to Laos emphasized that he will continue to work closely with the Ministry of Industry and Trade to achieve the goal of bilateral trade volume and improve the legal framework on trade cooperation between the two countries.
The ambassador also said that in order to assist enterprises and investors of the two countries, the embassy will carry out exchanges and cooperation activities between the Ministry of Industry and Trade of Vietnam and its counterparts in Laos, and carry out trade and investment promotion activities in the field of industry and trade.
Deputy Minister Du Sheng Hai said that under the complex and volatile world economic and political situation, the Ministry of Industry and Trade of Vietnam is willing to share experience and carry out cooperation with Laos. In particular, if the two sides maintain the current growth momentum, the goal of bilateral trade volume reaching US$2 billion is just around the corner. The Ministry of Industry and Trade of Vietnam will maintain active cooperation with the Ministry of Commerce of Laos to carry out measures to promote bilateral trade relations.