Hanoi:The upcoming official visit to Laos by Prime Minister Le Minh Hung is anticipated to usher in a new era of cooperation and development between Vietnam and Laos.
According to Lao News Agency, economic and trade relations between the two nations have seen robust growth, with bilateral trade increasing by more than 20% annually on average during 2021-2025. The trade structure has become more complementary, focusing on industrial products, chemicals, and machinery. Several agreements, including the Vietnam-Laos Border Trade Agreement and the Vietnam-Laos Trade Agreement, have been established to facilitate trade. Additionally, the two countries are working on amendments to the 2007 Hanoi Agreement to further ease movement through international border gates.
In 2025, bilateral trade reached $2.9 billion, and in the first nine months of 2026, it exceeded $1.6 billion. Vietnam exports various goods to Laos, including petroleum and machinery, while importing resources such as ores and agricultural products. Improved border infrastructure and customs mechanisms have reduced logistics costs and clearance times.
Vietnamese investment in Laos is expanding, particularly in sectors like energy and agriculture. Vietnam ranks second among countries investing in Laos, with about 435 projects valued at $8 billion. The two nations aim to increase trade to $10 billion by 2030 by enhancing border-trade mechanisms and logistics connectivity.
Large Vietnamese projects in energy, minerals, and high-tech agriculture are expected to boost supply for Vietnam and other markets. The focus is on sectors like electricity, coal, and consumer goods to achieve ambitious trade targets. Laos' strategic position could transform it into a logistics hub, improving connectivity through projects such as the Vientiane-Hanoi expressway.
Laos seeks to increase exports to Vietnam and encourages Vietnamese investment in various sectors. By leveraging their respective strengths, the two countries aim to deepen economic ties and explore third-market opportunities.