The week celebrates the 60th anniversary of diplomatic relations between the two countries and the 45th anniversary of the signing of the Laos-Vietnam Treaty of Friendship and Cooperation. - Vietnam News/Asia News Network
VIENTIANE (Vietnam News/Asia News Network): The Lao market remains a top destination for many Vietnamese investors as the two countries are neighbours and Laos recognises most quality certifications from exporting countries, according to Le Thị Phuong Hoa, Vietnamese Trade Counsellor in Laos.
In addition, Vietnamese goods exported to Laos are eligible for zero tariffs and vice versa under the Asean Trade in Goods Agreement (ATIGA), the Vietnam-Laos trade agreement and border trade agreements, Hoa said.
Vietnam and Laos share a borderline of more than 2,300km running through 10 cities and provinces of each nation. Last year, two-way trade reached US$1.37bil (RM6bil), a surge of 33.3% against 2020, data from the Vietnamese Ministry of Industry and Trade showed.
Vietnam’s exports to Laos totalled US$594.7mil (RM2.6bil), up 4% year-on-year while imports from Laos jumped 69.8% to US$778.2mil (RM3.4bil).
In the first half of this year, imports from Laos soared 45.3% year-on-year to US$514.6mil (RM2.2bil). Key imported items included rubber, wood and timber products, fertilisers, vegetables, ores and minerals.
Exports edged down 6% year-on-year to just US$309.4mil (RM1.3bil) during the period. Việt Nam mostly shipped to Laos iron and steel products, vehicles and parts, machinery and components, fertilisers, plastics and vegetables.
Vietnam has so far invested some US$4.3bil (RM19bil) in 417 projects in Laos, making it the third largest investor there. Laos has given priority to Vietnamese investors in multiple areas, including clean agriculture, and processing and manufacturing.
One of the biggest Vietnam-funded projects in Laos is Vinamilk Lao-Jagro dairy complex, worth some US$66.4mil (RM295mil), in Xiangkhouang. Vinamilk, Vietnam’s leading milk producer, has recently imported 1,000 Holstein-Friesian dairy cows from the US for its farm in Laos.
The two countries are believed to have huge potential to expand cooperation in electricity and mining. They are striving to raise bilateral trade by 10-15% this year after two years suffering from economic fallout caused by the Covid-19 pandemic.
