Vietnam And Laos Sign New Trade Agreement

At the signing ceremony. Photo: VNA

In his opening remarks, Lao Minister of Industry and Commerce Malaithong Kommasith appreciated the role of Minister Nguyen Hong Dien in promoting and deepening the relationship between the two ministries, as well as the two countries Vietnam-Laos.

Minister Malaithong Kommasith said that to promote trade between the two developed countries, the two Ministries have five main tasks, of which priority is given to the task of promoting trade and investment, striving to increase trade turnover between the two countries by 10-15% compared to 2023.

Reviewing the trade cooperation between Vietnam and Laos in recent times, Minister Nguyen Hong Dien said that cooperation in the field of Industry and Trade is a pillar of the relationship between the two countries.

From 2012 to the present, the two sides have continuously completed the target of growing trade turnover by 10-15% per year (except for the Covid-19 pandemic period).

In 2023, bilateral trade turnover between the two countries reached US$1.63 billion, down 4.3% compared to 2022. Of which, Vietnam's exports to Laos reached US$533 million, down 18.7%, and Vietnam's imports from Laos reached US$1.1 billion, an increase of 4.7%.

It is estimated that in the first 3 months of 2024, trade turnover between the two countries reached US$417.8 million, down 1.8% compared to the same period in 2023.

Of which, Vietnam's exports to Laos are estimated at US$148.3 million, up 16%, and Vietnam's imports from Laos are estimated at US$270 million, down 9.5%.

Petroleum, iron and steel, machinery and equipment are Vietnam's main exports to Laos. In the opposite direction, Vietnam continues to import rubber, wood, ore and minerals from Laos.

Minister Nguyen Hong Dien said that after the year of 2023 full of unpredictable developments, the world economy in the first months of 2024 has witnessed more positive signs.

Consumer demand shows signs of recovery, inflation is better controlled in many economies. This is a favorable condition for Vietnam and Laos to promote cooperative activities, especially in the fields of economics and trade.

According to Minister Nguyen Hong Dien, in recent years, Laos has changed from a trade deficit to a trade surplus with Vietnam. This shows that Laos' production capacity is gradually increasing.

Laos is gradually becoming one of the important sources of products, and raw materials for Vietnam in ASEAN.

Meanwhile, recently, Vietnam has become the world's factory with import-export turnover reaching more than US$735 billion.

Vietnam is in the group of 20 countries with the largest foreign trade scale in the world, and the group of most attractive markets in attracting FDI. Therefore, Vietnam has a huge need to import materials and electricity from other countries, including Laos.

However, according to the Minister, Vietnam-Laos trade turnover has only reached US$1.65 billion, only equal to 10% of Laos' total foreign trade turnover, and 0.2% of Vietnam's total foreign trade turnover.

It is not commensurate with the potential and special relationship between Vietnam and Laos.

Photo: congthuong.vn

At the meeting, both sides agreed to hold more trade promotion activities such as business forums, networking conferences, trade fairs, and market information seminars, as well as develop border trade infrastructure.

They called for effectively implementing the Memorandum of Understanding on the development and connectivity of the Vietnam-Laos border trade infrastructure signed in January 2024 while reviewing to amend and supplement the 2007 Hanoi Agreement and the Vietnam-Laos Border Trade Agreement to align with the current realities.

Following the talks, the two ministers signed the new Vietnam-Laos trade agreement and witnessed the signing of a Memorandum of Understanding (MoU) between the General Department of Market Surveillance (GDMS) and the Department of Business Competition and Trade Inspection under the Lao Ministry of Industry and Commerce, and another MoU between the GP Holdings - the National Research Institute of Mechanical Engineering and Phonesack Group on building warehouses and conveyor belts for coal transportation.

The signing and implementation of the agreement to amend the Vietnam-Laos trade agreement in 2015 will contribute to resolving problems that arise after a period of implementing the agreement.

It continues to improve the legal basis for trade activities between Vietnam and Laos, creating favorable conditions for import and export activities, and further promoting Vietnam-Laos trade relations.

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