New milestone in Vietnam-Laos energy cooperation

The MoU creates a legal framework to increase Vietnam-Laos cooperation in the field of coal for mutual benefits.

The signing ceremony of the MoU on cooperation in the field of coal between the Vietnamese Ministry of Industry and Trade and the Lao Ministry of Energy and Mines - Photo: Can Dung

At the signing ceremony, Minister Nguyen Hong Dien said that in recent years, energy cooperation between Vietnam and Laos, especially in the field of electricity, has been intensified. The two governments have signed an MoU on cooperation in developing hydropower projects, connecting power grids and electricity imports from Laos. The two sides have promoted trade in electricity. These activities have benefited both countries and contributed to deepening the special solidarity between the two Parties, States and peoples, as well as between the Vietnamese Ministry of Industry and Trade and the Lao Ministry of Energy and Mines.

However, Minister Dien said that the achieved cooperation results remain incommensurate with the potential and advantages of each side. The room for further cooperation in the field of energy is still large and should be tapped to bring Vietnam-Laos relations to a new high, contributing to realizing the commitments and political determination of high-ranking leaders.

The MoU targets the export of 20 million tonnes of coal from Laos to Vietnam annually, boosting investment cooperation in coal exploitation, processing and export, and increasing experience sharing in the field of coal. The MoU will be effective within five years and facilitate trade in coal between the two countries.

The MoU will contribute to ensuring national energy security in each country, helping Vietnam accelerate energy transition in accordance with its international commitments, while helping Laos tap its potential and advantages to boost socioeconomic development and ensure social security and national defense.

After the signing ceremony, the two ministers agreed to assign technical officials to completing necessary domestic procedures for the MoU to be implemented effectively. They said that businesses should promote cooperation and report achieved results to relevant authorities of each country to seek timely support for their efforts to deal with problems arising in the implementation process. Relevant ministries and sectors of the two countries should maintain tight coordination with the Vietnamese Ministry of Industry and Trade and the Lao Ministry of Energy and Mines to facilitate cooperation between the two business communities. The two ministers asked the State Bank of Vietnam and the Bank of the Lao People’s Democratic Republic to provide guidance for commercial banks of the two countries to provide businesses with preferential loans through credit support programs.

The MoU reflects the willingness of the Vietnamese Ministry of Industry and Trade and the Lao Ministry of Energy and Mines to make joint efforts to promote mutual development and strengthen the traditional friendship between the two countries.