Hanoi:Economic and trade relations between Vietnam and Laos are experiencing significant growth, with bilateral trade increasing by over 20% annually on average from 2021 to 2025. This growth is supported by various frameworks, including the Vietnam-Laos Border Trade Agreement signed in 2015 and the Vietnam-Laos Trade Agreement from April 2024, which came into effect in February 2025.
According to Vietnam News Agency, the two countries have been working to enhance their border trade infrastructure and market management, with agreements signed in 2024 contributing to this effort. Initiatives such as the 2007 Hanoi Agreement facilitate the movement of people, vehicles, and goods through international border gates, with proposed amendments expected by 2027.
Vietnam’s exports to Laos include petroleum, iron and steel, machinery, transport vehicles, and consumer goods, while imports from Laos consist of ores, coal, rubber, timber, maize, electricity, and other agricultural products. Improved border infrastructure and customs mechanisms have reduced logistics costs, and business cooperation is expanding into production and supply-chain linkages.
Vietnamese investment in Laos, focusing on energy, agriculture, services, and export-oriented manufacturing, is expanding. Vietnam ranks as the second-largest investor in Laos, with 435 projects and a registered capital of about $8 billion. The two countries aim to boost bilateral trade to $10 billion by 2030, with large Vietnamese projects expected to contribute significantly.
The two ministries prioritize areas such as electricity, coal, petroleum, minerals, and agricultural products. They are also enhancing trade promotion and supply-chain connectivity. Laos’ strategic location and resources complement Vietnam’s manufacturing and logistics capabilities, offering potential for deeper cooperation and expansion into third markets.