Vietnam-Laos trade and investment cooperation needs a breakthrough.

Prime Minister Pham Minh Chinh and Lao Prime Minister Sonexay Siphandone co-chaired the Vietnam-Lao Investment Cooperation Conference - Photo: VGP/Nhat Bac

Also attending the conference were: Minister of Planning and Investment Nguyen Chi Dung, Chairman of the Vietnam-Laos Cooperation Committee; representatives of leaders from ministries, departments, central agencies, and representatives of associations and businesses from Vietnam and Laos.

Earlier on January 6th, the two Prime Ministers held a very successful meeting covering many important topics, including strengthening and promoting effective investment cooperation between the two countries. At the conference, delegates reviewed the achievements of the past years and discussed the direction of investment cooperation between the two countries in the coming period.

Total registered investment capital in Laos reached nearly 5.5 billion USD.

The conference heard Minister of Planning and Investment Nguyen Chi Dung assess the situation of Vietnam-Laos investment cooperation, and Lao Minister of Planning and Investment Khamjane Vongphosy introduce the investment environment and investment attraction policies of Laos.

The delegates focused on analyzing the situation and potential for cooperation and investment between businesses of the two countries in key areas such as mining, medicinal herbs, construction, tourism, application of technology in investment and development of agricultural projects in Laos, wind power cooperation, etc.; while also raising some obstacles and making recommendations.

Prime Minister Pham Minh Chinh emphasized that economic and investment cooperation between the two countries is an objective necessity and has strategic significance. - Photo: VGP/Nhat Bac

In the first 11 months of 2023, Vietnam had 7 newly licensed projects and 2 projects with increased capital, with a total registered capital of over US$114 million (a 71.7% increase compared to the same period). Also during the 11 months, bilateral trade reached US$1.5 billion.

To date, the total registered investment capital from Vietnam to Laos has reached nearly 5.5 billion USD. Laos consistently maintains its position as the leading destination among 80 countries and territories where Vietnamese businesses invest abroad. Vietnam also consistently ranks among the top 3 largest direct investors in Laos.

Many projects by Vietnamese businesses are operating effectively, making positive contributions to Laos' socio-economic development in various fields; at the same time, they create jobs for tens of thousands of workers, improve living standards, and supplement revenue for the Lao state budget (an average of about 200 million USD per year).

In addition, many Vietnamese businesses in Laos have fulfilled their social responsibilities well, actively sponsoring the community, building schools, clinics, roads, resettlement housing, etc., for people in project areas and poor people in remote areas (with a total value of approximately 150 million USD), contributing to strengthening the good traditional friendship and comprehensive cooperation between the two countries.

Conversely, Laos currently has 18 investment projects operating stably in Vietnam with a total registered capital of over 110 million USD. Lao businesses are always facilitated by Vietnamese authorities during the investment and business process.

Prime Minister Sonexay Siphandone stated that the maturity of Vietnamese businesses investing in Laos in recent years has contributed to promoting Laos' development. - Photo: VGP/Nhat Bac

The Lao side highly appreciates Vietnam's investment.

Lao Minister of Planning and Investment Khamjane Vongphosy highly appreciated the activities of Vietnamese businesses, noting that they not only bring economic benefits but also make significant contributions to the socio-economic development of Laos, with the majority of investments located in remote, disadvantaged areas.

Highly appreciating the significance of the conference, Lao Prime Minister Sonexay Siphandone highly agreed with the practical assessments of the investment and business situation in Laos; he acknowledged the feedback on obstacles and proposed measures to support businesses in overcoming difficulties and developing.

Prime Minister Sonexay Siphandone stated that the maturity of Vietnamese businesses investing in Laos in recent years has contributed to stimulating development, achieving socio-economic goals, and building an independent and self-reliant economy in Laos. He added that in the future, the governments, businesses, and people of both countries need to continue their efforts and determination to create new breakthroughs, strive to implement new cooperation projects, and concretize and effectively implement the agreements between the two Politburos of Vietnam and Laos, so that the Vietnam-Laos cooperation relationship will increasingly develop in depth, substance, and effectiveness.

Prime Minister Sonexay Siphandone stated that the Lao government has recently focused on building and perfecting institutions, including investment incentive policies; developing plans, including the planning of 12 economic zones and industrial parks nationwide; and is requesting ministries and agencies to continue researching and supplementing investment incentive policies suitable for each stage. At the same time, the government continues to listen to and resolve difficulties and obstacles to facilitate business development.

Prime Minister Pham Minh Chinh emphasized that each cooperation program and project is not only of purely economic significance but also has profound political significance - Photo: VGP/Nhat Bac

The Prime Minister of Laos expressed his desire for Vietnamese businesses to continue exploring and investing in Laos in areas where Laos has strengths, such as clean agriculture, agricultural product processing, minerals, and clean energy.

He stated that in 2024, Laos will assume the ASEAN chairmanship with the theme "Strengthening Connectivity and Resilience," and the Lao government hopes that Vietnam in general, and the Vietnamese business community in particular, will support Laos in successfully fulfilling its role; and hopes to welcome more Vietnamese people to visit Laos, especially during the 2024 Lao Tourism Year.

Economic and investment cooperation between Vietnam and Laos is an objective necessity and has strategic significance.

For his part, Prime Minister Pham Minh Chinh emphasized that the great friendship, special solidarity, and comprehensive cooperation between Vietnam and Laos are developing well in all fields.

In his remarks, the Prime Minister emphasized that economic and investment cooperation between the two countries is an objective necessity; it has strategic significance; and it needs to be prioritized to further promote the unique potential, outstanding opportunities, and competitive advantages of each country, contributing to building an independent, self-reliant, proactive, and internationally integrated economy, commensurate with the potential and stature of the great friendship and special solidarity between Vietnam and Laos, for the practical benefit of the people and businesses of both countries.

Delegates focused on analyzing the situation and potential for cooperation and investment between businesses of the two countries in key areas, while also raising some obstacles and making recommendations. - Photo: VGP/Nhat Bac

Highly appreciating the results of cooperation in the past, Prime Minister Pham Minh Chinh said that economic and investment cooperation between the two countries in the coming time needs breakthroughs. In particular, it is necessary to promote public-private partnerships to develop infrastructure and connect the two economies, especially the Hanoi-Vientiane expressway, the Vung Ang-Vientiane railway line to connect Laos to the sea, cooperation in aviation, and infrastructure connecting border gates.

Furthermore, creating a breakthrough in the development of high-quality human resources on both sides should be considered a key task in the relationship between the two countries in the coming period; focusing on promoting cooperation in priority areas such as: high-tech industry, innovation, energy, mining, high-tech agriculture, e-commerce, etc.

Laos has abundant raw materials, while Vietnamese businesses have processing capabilities. Furthermore, Vietnam has a vast market with dozens of signed free trade agreements (FTAs), which can help Lao goods access these markets, the Prime Minister pointed out.

The head of the Vietnamese government proposed that ministries, localities, and businesses from both sides coordinate to resolve outstanding projects and obstacles; prioritize and promote investment. The governments of each country should continue to develop policies, improve institutions, create a legal framework, and a favorable investment environment; increase public investment to attract private investment; continue to reform administrative procedures to reduce compliance costs and input costs for businesses; and, in particular, implement appropriate preferential policies for businesses in both countries, based on the principles of "harmonious benefits, shared risks," and "harmonizing the interests of the State, the people, and businesses."

Prime Minister Pham Minh Chinh and Lao Prime Minister Sonexay Siphandone witnessed the signing ceremony of investment certificates and memoranda of cooperation between agencies, investors, and businesses of Vietnam and Laos - Photo: VGP/Nhat Bac

Prime Minister Pham Minh Chinh emphasized that each cooperation program and project has not only purely economic significance but also profound political significance. The success of investment cooperation programs and projects affirms and strengthens political trust, contributes to socio-economic development, brings material wealth and an increasingly happy and prosperous life to the people of each country; consolidates and strengthens the great friendship and special solidarity between Vietnam and Laos; and contributes to building an environment of peace, cooperation, and development in the region and the world.

The Prime Minister expressed confidence that the results of Vietnam-Laos investment cooperation in 2024 will be higher than in 2023, creating a foundation for even better results in 2025 than in 2024, and for this term to surpass the previous term.

The directives from the two Prime Ministers will serve as the basis for ministries, agencies, and businesses of both countries to incorporate and refine the cooperation plan between the two governments for 2024 and organize the implementation of specific cooperation activities from the beginning of 2024.

At the conference, Prime Minister Pham Minh Chinh and Lao Prime Minister Sonexay Siphandone witnessed the signing ceremony of investment certificates and memoranda of cooperation between agencies, investors, and businesses of Vietnam and Laos in the fields of finance, agriculture, and mineral exploitation.

Source: https://baotainguyenmoitruong.vn/hop-tac-thuong-mai-dau-tu-viet-nam-lao-can-co-dot-pha-368799.html