Laos registers surplus of US$400 mn in trade with Vietnam

Laos recorded a surplus of more than US$400 million in its two-way trade with Vietnam during the first six months of this year, excluding the figure for electricity trade.

The Lao Bao International Border Gate leads to Vietnam’s Quang Tri province.                                                   --Photo VNA

The country’s exports to Vietnam were worth around US$620 million while imports were valued at US$216 million, according to the Ministry of Industry and Commerce.
Two-way trade between Laos and China during this period included US$1.13 billion in exports and US$680 million in imports. Bilateral trade between Laos and Thailand included US$565.5 million in exports and US$1.6 billion in imports.
After China and Thailand, Vietnam is a major foreign investor and a key trading partner for Laos.
In 2021, Laos-Vietnam trade was worth US$1.37 billion, up by 33.3 percent from the figure for 2020, the Vietnamese Minister of Industry and Trade, Mr Nguyen Hong Dien, said at the 12th Vietnam-Laos border trade development cooperation conference held in Vientiane in April.
Vietnam imported goods worth nearly US$780 million from Laos in 2021, an annual increase of 70 percent, he said.
Vietnam’s major export items include iron and steel, oil and gas, fertilisers, fruits and vegetables, ceramics, electrical wires and cables, paper, textiles and garments.
Its main imports are ore and other minerals, fertilisers, wood and timber products, rubber, and fruits and vegetables, according to the Vietnamese Trade Office in Laos.
The governments of the two sides recently agreed to increase the value of year-on-year two-way trade by 10 percent to 15 percent this year.
During the Vietnam-Laos border trade development cooperation conference held in April, stakeholders pointed out bottlenecks such as ineffective policies to attract investment in production, infrastructure, transport and logistics in border areas, and slow construction of infrastructure projects, particularly inter-district roads. 
The two sides agreed to step up cooperation in seven areas. As part of these efforts, they will study and propose more effective policies to attract investments, and promote negotiation for signing a memorandum of understanding on border infrastructure development and connectivity by the Vietnamese and Lao governments.
Documents signed between the two nations, such as the Vietnam-Laos free trade agreement and the 2007 Hanoi Agreement, will be reviewed and amended to make them more relevant to the current situation.
The two sides also agreed to facilitate the flow of products into each other’s markets, particularly farm produce, and to team up to combat smuggling, commercial fraud and illegal transportation of goods via the shared border.
Vietnam agreed to continue to assist the investment sector in Laos, especially through technical training for planning and investment officials.
It will also continue to be a bridge for mobilising and attracting more qualified investors from Vietnam.

By Times Reporters
(Latest Update July 8, 2022)