Vietnam's registered investment capital in Laos hits $5.5 bln

Vietnamese enterprises have invested in 256 projects in Laos, with total registered capital of $5.5 billion, in the fields like telecommunications, banking, rubber planting and processing, food production, and dairy.

The figures were released at a bilateral cooperation review conference on Friday in the central Vietnam province of Nghe An. The event sought to evaluate implementation of the Vietnam-Laos cooperation plan for 2024 and set orientations and tasks to execute the 2021-2025 bilateral cooperation agreement.

Since 2021, Laos has granted investment licenses to Vietnamese projects worth a total of $869.9 million. In the first half of 2024 alone, the country issued licenses for six new Vietnamese projects with a combined capital of $339 million.

These include one each in the mining and electricity sectors and four in the health sector, according to Lao Minister of Planning and Investment and chairman of the Laos-Vietnam Cooperation Committee, Phet Phomphiphak.

Vietnamese enterprises' disbursed capital in Laos to date stands at about $2.8 billion. Many of these projects are operating effectively, contributing positively to socio-economic development, creating jobs, and boosting the Lao state budget, said Phomphiphak.

Bilateral trade has also been on the rise, reaching $927.8 million in the first half of 2024, up 11.1% year-on-year. Laos imported $289.2 million worth of goods from Vietnam and exported $638.6 million worth of goods to Vietnam. From 2021 to 2023, the average growth rate of bilateral trade was 17.7%.

The two countries have signed a memorandum of understanding on feasibility studies for cooperation projects in the transportation and construction sectors.

Several projects including the Vientiane-Hanoi Expressway and the Vientiane-Tha Khek-Tan Ap-Vung Ang Railway are currently being studied. Both sides are also working on implementing agreements and protocols related to the development of Vung Ang ports I, II and III.

Improving cooperation effectiveness

Phomphiphak emphasized the need for strengthened cooperation between the two ministries. This would include promoting and managing investment activities, coordinating joint ventures, and resolving issues with licensed projects.

Vietnamese Deputy Minister of Planning and Investment Tran Quoc Phuong noted that despite rapid and complex global and regional changes affecting both Vietnam and Laos, the two countries' ministries, sectors, and localities have proactively coordinated activities to achieve practical results.

The cooperation plan agreement for the first half of 2024 has largely met its goals, contributing to political stability, socio-economic development and national defense, and deepening of the special friendship and comprehensive cooperation, he said.

Phuong emphasized Vietnam's commitment to preserving and enhancing its special relationship with Laos, viewing it as a priceless asset vital to both nations' revolutionary causes.

Looking ahead, both sides agreed to focus on the implementation of agreements between senior leaders, conclusions from annual meetings between the two politburos. and annual cooperation plans.

Vietnam and Laos agreed to boost economic cooperation and connectivity, including infrastructure developments like the Hanoi-Vientiane Expressway and the Vung Ang-Vientiane Railway that will connect Laos to the sea, as well as aviation cooperation and border gate infrastructure.

Strengthening high-quality human resource development will also be a priority, aiming for breakthroughs in economic and investment cooperation in the future, especially in areas like high-tech manufacturing, mining, high-tech agriculture and e-commerce.

Both sides agreed to continue increasing bilateral trade turnover in line with commitments made at the 46th session of the Vietnam-Laos intergovernmental committee.

This includes the memorandum of understanding on development and connection of Vietnam-Laos border trade infrastructure and the Vietnam-Laos trade agreement.

Vietnam remained committed to purchasing electricity from Laos as outlined in the MoU. To further enhance energy cooperation, a plan will be formulated to connect the power grids between the two countries as well as integrating power grids of Cambodia, Laos, and Vietnam.