As part of the State visit to the Lao People’s Democratic Republic, on the occasion of the 50th anniversary of the National Day of the Lao PDR and the high-level meeting between the Communist Party of Vietnam and the Lao People’s Revolutionary Party, at noon on December 1, immediately after their talks, General Secretary To Lam and General Secretary and President of Laos Thongloun Sisoulith, together with senior delegations of both countries, witnessed the handover of cooperation documents.

The Memorandum of Understanding between the two ministries on developing the Vienam–Laos industrial linkage chain includes the following key components:

The Vietnam–Laos industrial linkage chain

The Vietnam–Laos industrial linkage chain is a multidimensional cooperation model between enterprises of both countries in the production of goods and commercial activities. The model aims to establish a closely connected network throughout all stages of the value and supply chains, including but not limited to raw material supply, production, processing, assembly, manufacturing, and design, as well as product distribution in both domestic markets, the region, and the world.

The linkage chain encourages the active participation of small and medium-sized enterprises, as well as businesses operating in industrial parks, special economic zones, and cross-border economic cooperation zones of both sides.

Development principles of the Vietnam-Laos industrial linkage chain

The two sides will develop the industrial linkage chain on the basis of equality and mutual benefit, with full respect for national independence, sovereignty and territorial integrity, in line with the laws of each country and international treaties to which both are parties.

The establishment and development of the industrial linkage chain aims to encourage and deepen cooperation among manufacturing, import–export, and commercial enterprises, thereby creating breakthroughs in promoting bilateral trade and bringing the Viet Nam–Laos relationship toward greater substance and effectiveness.

In developing the industrial linkage chain, both sides acknowledge, respect, and fully adhere to the objective rules of the market economy, in line with their respective development conditions.

The linkage chain seeks to maximize the potential and comparative advantages of each side, foster technological advancement and innovation, and create breakthroughs in productivity and quality for businesses in both countries.

It also aims to strengthen the capacity of enterprises to engage more deeply and meaningfully in global supply chains.

Cooperation objectives in developing the Vietnam-Laos industrial linkage chain

The two sides will establish specific mechanisms and policies to identify and develop industrial linkage chains in a focused and prioritized manner. Priority will first be given to cooperation models involving enterprises that have already formed production and commercial partnerships. In identifying and selecting linkage projects, both sides are encouraged to consider priority industries and industrial zones of each country, such as agricultural processing, light industry, businesses in special economic zones, and cross-border economic cooperation areas.

Pilot studies on industrial linkage chain models will be conducted for selected products within priority industries based on competitive advantages, specialization, and value-chain complementarity between the two countries.

The two sides will create a favorable investment and business environment and promote trade facilitation. They will strengthen cooperation in customs procedures, trade facilitation at border gates, and logistics connectivity between Vietnam and Laos, including production corridors linking Lao production zones with Vietnamese seaports.

Both sides will encourage enterprises to participate in developing the Vietnam–Laos industrial linkage chain and will develop criteria and methodologies for evaluating its performance.

Cooperation in developing the Vietnam-Laos industrial linkage chain

From now until 2030, the two sides will prioritize the development of the following industrial linkage models: materials (including cement, iron, steel); chemicals; textiles and footwear; mechanical manufacturing and transport equipment; dairy; electronics (including components and hardware); processing industries (including agricultural, forestry and aquatic products, food processing); mineral extraction and processing; and renewable energy (hydropower, wind power, solar power), as well as electricity transmission and power trading.

During the implementation process, both sides commit to supporting each other in carrying out the following key initiatives: joint development of the Vietnam-Laos Industrial Park pilot model; and joint research to provide information and serve policymaking for the development of the industrial linkage chain.

Training and capacity building for Lao officials and enterprises

The Vietnamese side will organize training and capacity-building programs for Lao officials, civil servants, public employees, and enterprises in relevant fields to support the development of the linkage chain. The Lao side will be responsible for identifying and selecting participants for training courses in Vietnam.

Implementation arrangements

Both sides designate the Viet Nam Institute of Industry and Trade Strategy and Policy (VIOIT) under the Ministry of Industry and Trade of Vietnam and the Institute of Industry, Commerce and Energy (IICE) under the Ministry of Industry and Trade of Laos as focal points responsible for coordinating the implementation of the Memorandum. A Joint Working Group, co-chaired by VIOIT and IICE, may be established to coordinate activities, develop annual or biennial work plans, and submit periodic reports to the Ministers of both countries.

Economically, the Memorandum is expected to create strong momentum for bilateral growth by linking industries from resource extraction and deep processing to supporting industries and product consumption, forming a shared value chain that optimizes costs and enhances the added value of exported goods.

At the same time, the promotion of two-way trade, combined with the development of connecting infrastructure such as highways, railways and dry ports, will shorten transport times, reduce logistics costs and increase the competitiveness of Vietnam-Laos products in regional and global markets.

Socially, the agreement is poised to generate tens of thousands of new jobs, particularly in border areas and key economic regions. Workers from both countries will not only benefit from stable employment but will also have opportunities to improve their skills through training, technology transfer and exposure to modern production processes. In parallel, the development of interconnected industrial zones will drive the growth of services, logistics, education, healthcare and tourism, thereby improving the overall quality of life.

Most importantly, successful industrial cooperation will further strengthen the longstanding friendship, trust and solidarity between the peoples of the two nations, laying a firm social foundation for stability and sustainable development. The agreement is therefore expected to deliver comprehensive and positive impacts across multiple dimensions, contributing directly to economic growth, social progress and the long-term strategic partnership between Vietnam and Laos.