Expanding trade and investment space

In recent years, alongside strengthening their friendship and special solidarity, Viet Nam and Laos have continuously expanded economic, trade and investment cooperation. In this process, economic diplomacy has increasingly affirmed its role as an important bridge, helping to put high-level agreements and commitments between the two countries into practice, supporting businesses, promoting local-level connectivity, and expanding the space for cooperation between the two economies. This is also one of the important elements in giving concrete substance to the "strategic connectivity" between Viet Nam and Laos.

Given the requirement to make economic cooperation deeper, more substantive and more effective, economic diplomacy has been identified by the Embassy of Viet Nam in Laos as one of its priority focuses. Speaking ahead of the 33rd Diplomatic Conference, Vietnamese Ambassador to Laos Nguyen Minh Tam said that in the first half of 2026, the Embassy continued to focus on carrying out economic diplomacy activities to create breakthroughs in Viet Nam-Laos cooperation.

Ambassador Nguyen Minh Tam stressed: "The first priority is to promote the implementation of agreements and accords between the senior leaders of the two Parties and the two countries."

Specifically, the Embassy regularly holds discussions with Laos' ministries, sectors and localities to monitor, urge and promote the effective implementation of agreements and accords; coordinates with the Lao side to organize working delegations to inspect projects in order to resolve difficulties and speed up progress; and maintains exchange and coordination mechanisms, which is one of the key factors ensuring the continuity, stability and effectiveness of economic cooperation.

Along with that, the Embassy has stepped up investment promotion, business connections, and support in resolving difficulties for cooperation projects. In the first half of the year, the Embassy helped Vietnamese businesses explore investment opportunities in Laos in the fields of energy, mining, agriculture, electric vehicle manufacturing and biotechnology in healthcare; and connected Vietnamese businesses and corporations to survey and expand investment in Laos in fields linked to green transition, digital transformation and sustainable development. Cooperation between localities was also promoted in education, healthcare, culture, irrigation, infrastructure development and social welfare.

Ambassador Nguyen Minh Tam said: "The results achieved in economic diplomacy in the first half of the year are highly significant, helping to create a favorable foundation for realizing the 'strategic connectivity'. The most notable achievement is the increase in investment, trade, and the number of projects that have had their difficulties resolved."

On the Lao side, Somsay Nonglad, Economic and Trade Counsellor at the Embassy of the Lao People's Democratic Republic in Viet Nam, also highly valued the progress of economic, trade and industrial cooperation between the two countries. According to him, there have been many important milestones reflecting the strong and substantive development of this cooperative relationship.

First is that the two countries have continuously improved the legal framework for economic cooperation, most notably the Viet Nam-Laos Bilateral Trade Agreement and the Viet Nam-Laos Border Trade Agreement. This is an important foundation that facilitates the flow of goods, investment and business connections between the two countries.

In addition, cooperation in energy, mining, agricultural processing, logistics and connective infrastructure development has achieved many positive results. Many Vietnamese businesses have invested effectively in Laos, helping to create jobs, increase budget revenue and promote Laos' socio-economic development.

Counsellor Somsay Nonglad said: "I am also particularly impressed by the growth of bilateral trade in recent years, despite the difficulties facing the global economy. That shows the complementary nature and increasingly close connection between the two economies."

From improving the cooperation framework to connecting businesses, localities and markets, economic diplomacy is gradually becoming an important channel for turning potential into concrete cooperation results, contributing to the goal of strengthening ties and deepening the Viet Nam - Laos economic relationship.

Focusing on infrastructure, energy and local cooperation

In the second half of 2026, according to Ambassador Nguyen Minh Tam, the Embassy of Viet Nam in Laos will continue to carry out economic diplomacy in a proactive, supportive, substantive and effective manner, with businesses and localities as the central focus of its service.

Ambassador Nguyen Minh Tam stressed: "To broadly implement the substance of 'strategic connectivity', economic diplomacy work in the second half of 2026 carries special importance. This is not only a period for continuing to implement high-level agreements, but also a time to create more substantive changes to make economic cooperation one of the most important driving forces of the bilateral relationship."

The Embassy will continue to promote its role as a bridge and advisory channel in implementing agreements reached at the annual meeting between the two Political Bureaus, the 48th session of the Viet Nam-Laos Intergovernmental Committee, and agreements reached during high-level visits; and will proactively advise on solutions to resolve difficulties and strengthen connectivity between the ministries, sectors and localities of the two countries.

The Embassy of Viet Nam in Laos will continue to accompany the community of Vietnamese businesses in Laos, maintaining regular exchanges, keeping abreast of actual conditions, and coordinating to resolve difficulties, while also organizing business forums, investment promotion conferences and trade connection programs. According to Ambassador Nguyen Minh Tam, if businesses are effectively supported and grow successfully, they will be the force directly contributing to the goal of raising bilateral trade and investment turnover to USD 10 billion in the coming period.

Another priority is promoting strategic infrastructure connectivity projects. According to Ambassador Nguyen Minh Tam, once completed, these projects will help expand the development space of the two economies, reduce logistics costs, and enhance competitiveness, while also creating conditions for the formation of cross-border economic corridors and value chains.

The two countries also have great room to expand cooperation in the digital economy, digital transformation, the green economy, renewable energy, innovation and the development of high-quality human resources. Among these, energy continues to be a field of strategic complementarity.

In addition, according to Counsellor Somsay Nonglad, Laos and Viet Nam have great potential for cooperation in hydropower, wind power, solar power and regional power grid connectivity. Laos has abundant power generation potential, while Viet Nam has growing electricity demand to serve its socio-economic development. As a result, power trading cooperation between the two countries brings practical benefits to both sides.

At the local level, economic diplomacy will continue to promote cooperation between localities, especially border provinces and localities with twinning relationships. In addition, aid programs and cooperation projects using Vietnamese assistance funding for Laos will continue to be promoted, ensuring progress, quality and long-term effectiveness. These projects hold not only socio-economic value but also serve as vivid symbols of the special solidarity between Viet Nam and Laos.

From improving the legal framework and expanding trade and investment to promoting infrastructure, energy and local cooperation, economic diplomacy is increasingly demonstrating its role as a bridge that brings high-level agreements to life. Accompanying businesses, removing bottlenecks and expanding new areas of cooperation will help realize the substance of "strategic connectivity," making economic cooperation one of the important driving forces of the Viet Nam - Laos relationship in the new period of development.