Positive shifts in Viet Nam - Laos trade cooperation

At the invitation of Prime Minister of the Lao People's Democratic Republic Saleumxay Kommasith, Prime Minister Le Minh Hung and a high-ranking delegation of the Vietnamese Government will pay an official visit to Laos from October 8-9, 2026. This will be Prime Minister Hung's first official visit to Laos, reaffirming the high importance and priority that the Party, State and Government of Viet Nam attach to the neighbouring country and contributing to further deepening the Viet Nam - Laos relationship of "great friendship, special solidarity, comprehensive cooperation and strategic cohesion."

In recent years, Viet Nam - Laos relations have continued to develop strongly, achieving substantive results across various fields. Political relations, in particular, have grown increasingly substantive and been reinforced through high-level visits and exchanges between the two countries.

Against this backdrop, economic and trade cooperation between Viet Nam and Laos has maintained positive momentum. Speaking to the Newspaper of Industry and Trade, Tran Thi Tu Anh, Commercial Counsellor at the Viet Nam Trade Office in Laos, said one of the most notable highlights has been the steady growth in bilateral trade.

In 2025, two-way trade reached USD 2.9 billion. In the first nine months of 2026, despite the impact of global geopolitical uncertainties, bilateral trade still exceeded USD 1.6 billion.

According to the Trade Office, the structure of goods traded between the two countries has increasingly reflected their complementary strengths. Viet Nam has stepped up exports to Laos of its strong products, including petroleum, iron and steel and related products, machinery and equipment, means of transport and consumer goods. In the opposite direction, Laos supplies Viet Nam with important raw materials, agricultural products and minerals, including ores, coal, rubber, timber, maize and electricity.

Notably, Commercial Counsellor Tran Thi Tu Anh said trade cooperation has undergone changes that are making business activities more favourable. The implementation of the Memorandum of Understanding on the Development and Connectivity of Border Trade Infrastructure, together with the upgrading of infrastructure and improvement of mechanisms at border gates, has helped shorten customs clearance times and reduce logistics costs.

Alongside more favourable mechanisms, businesses from the two countries have become increasingly proactive in their cooperation. Commercial ties are no longer confined to the exchange of goods but are gradually expanding into production and supply chain linkages and the development of distribution networks in each other's markets. This provides an important foundation for further tapping potential, expanding the scale and improving the quality of Viet Nam-Laos economic and trade cooperation in the coming period.

Also highlighting economic and trade cooperation as a pillar of Viet Nam - Laos bilateral relations, Lao Ambassador Extraordinary and Plenipotentiary to Viet Nam Khamphao Ernthavanh said at the opening ceremony of the Viet Nam-Laos Products Week, organised by the Domestic Market Management and Development Department in Hanoi on October 1, that trade relations between Laos and Viet Nam have continued to develop over recent years, recording positive growth and becoming increasingly important to both countries.

Alongside trade, Vietnamese investment in Laos has continued to grow in both scale and quality, focusing on such sectors as energy, agriculture, services and export-oriented manufacturing. Viet Nam currently ranks second among 53 countries and territories investing in Laos, with 435 projects and total licensed investment capital of approximately USD 8 billion.

Identifying key growth drivers

In the coming period, the two countries aim to continue promoting bilateral trade growth in 2026, with a view to reaching USD 10 billion by 2030 and beyond. This is a strategic target that reflects the strong political determination of the senior leaders of the two Parties and States, while seeking to bring economic cooperation commensurate with the special political relationship between Viet Nam and Laos.

According to the Viet Nam Trade Office in Laos, this is a challenging target, but one that has a practical basis for achievement. First, the two Governments are continuing to review and address difficulties and improve the bilateral Trade Agreement and Border Trade Agreement, thereby creating more favourable conditions for the flow of goods between the two countries.

In addition, there remains considerable room for cooperation in new supply chains as consumption, production and export demand in both economies continues to expand. Stronger connectivity in transport and logistics infrastructure, including roads, railways and seaports, is expected to facilitate the flow of goods, shorten transport times and expand the scale of trade.

Another source of momentum comes from large-scale Vietnamese investment projects in Laos in energy, minerals and high-tech agriculture. Once these projects enter stable operation, they will generate additional large-scale supplies of goods for export to Viet Nam and third-country markets.

Earlier, during talks with Lao Minister of Industry and Commerce Malaithong Kommasith on July 31, 2026, Vietnamese Minister of Industry and Trade Le Manh Hung stressed that, to realise the goal of soon raising bilateral trade to USD 4 billion, then USD 5 billion and eventually USD 10 billion in line with the direction of the two countries' senior leaders, the two sides need to move from setting overall targets to clearly identifying growth drivers for specific commodity groups, sectors and projects.

Minister Hung asked relevant units of the two ministries to promptly review import and export performance by commodity group and analyse the causes of increases and declines, on that basis developing concrete action plans for each month and quarter. He also called for closer direct engagement with the business community to address difficulties, expand markets and effectively tap remaining potential for cooperation.

During the talks, the two ministers agreed to continue prioritising areas with considerable potential, including electricity, coal, petroleum, minerals, construction materials, machinery and equipment, chemicals, agricultural products and consumer goods. The two sides will also strengthen trade promotion, business connectivity, supply chain linkages and distribution networks between the two countries.

Notably, the two ministers also agreed to continue advancing energy cooperation, with a focus on the power sector, while expanding industrial and mineral cooperation towards effectively harnessing potential, linking extraction with deep processing, increasing added value and promoting sustainable development.

Fresh momentum for Viet Nam - Laos trade cooperation

In the new phase of cooperation, Commercial Counsellor Tran Thi Tu Anh said Viet Nam - Laos trade still has considerable room for growth, particularly through expanded infrastructure connectivity, energy cooperation, high-tech agriculture and trade in services.

Elaborating on the potential, Tu Anh said that in terms of transport and logistics infrastructure, Laos is located at the heart of the Indochinese Peninsula and is transforming itself from a landlocked country into a land-linked connectivity hub. Enhanced connectivity along the East-West Economic Corridor, the Vientiane - Hanoi Expressway and the use of Vietnamese seaports, such as Vung Ang Port, are expected to generate additional logistics advantages for both countries.

Energy and minerals will also remain among the key pillars of cooperation. The potential for electricity imports from Laos into Viet Nam, together with cooperation in the deep processing of essential minerals, is expected to continue making a significant contribution to bilateral trade.

In high-tech agriculture and processing, Laos possesses abundant land resources and favourable soil conditions, while Viet Nam has experience, technology and market access. The two sides can strengthen cooperation in developing clean raw-material zones and connecting agricultural processing chains that meet international standards, serving domestic consumption as well as exports to major markets.

Trade in services and tourism also holds considerable potential, including through the promotion of the "One Journey - Multiple Destinations" model and stronger connectivity between road and air travel routes linking the two countries.

The Viet Nam Trade Office in Laos also believes that Prime Minister Le Minh Hung's official visit to Laos will provide fresh impetus and generate new momentum for bilateral relations, with economic, trade and investment cooperation continuing to serve as a core pillar.

Accordingly, the visit is expected to generate concrete new drivers for cooperation, first and foremost through breakthroughs in policies and mechanisms. Direct guidance from the two Prime Ministers is expected to help resolve outstanding difficulties and bottlenecks affecting several key cooperation projects, while paving the way for more favourable mechanisms for border trade and bilateral investment.

The visit is also expected to advance strategic connectivity commitments and further translate agreements on transport infrastructure, energy and e-commerce into concrete action, thereby narrowing geographical distances and optimising business costs for enterprises in both countries.

Another important source of momentum will be strengthened confidence within the business community. The attention of the two Governments' leaders is expected to reinforce confidence among Vietnamese investors to further expand their operations in Laos, while encouraging Lao enterprises to seek more partners and broaden their presence in the Vietnamese market.

During the visit, Prime Minister Le Minh Hung and senior Lao leaders are expected to hold in-depth discussions on concrete measures to advance cooperation, particularly in practical areas that serve the interests of both countries. These efforts are expected to create further momentum for Viet Nam - Laos cooperation, making relations between the two neighbouring countries increasingly substantive and effective, while contributing to peace, stability, cooperation and development in the region.

This article was written by Hoang Hoa, a reporter with the Trade and Integration Department of the Newspaper of Industry and Trade.