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Laos-Vietnam economic ties strengthen
Laos and Vietnam have actively developed their trade links in recent years as they seek to enhance their special and comprehensive relationship.
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| The Hoang Anh Attapeu Hotel in the provincial capital is one of Vietnam's largest investment projects in the southern province. |
Under a revised agreement between the Lao and Vietnamese ministries of industry and commerce, the two nations will continue to offer each other preferential import-export taxes as part of efforts to boost bilateral trade to US$2 billion in 2015.
The tax reductions also aim to create better conditions for Lao and Vietnamese investors in each country, leading to more job opportunities for local people. Laos also expects to source funding and technology from Vietnam to drive economic development.
During a courtesy visit by Vietnam's Deputy Prime Minister Nguyen Xuan Phuc last month, Prime Minister Thongsing Thammavong said the Lao government would continue to support and create the most favourable conditions for Vietnamese investors.
The government believes that increasing foreign direct investment will not only enhance economic cooperation between the two nations but also contribute to Laos' social and economic development as well as ensuring social security for its people.
Mr Thongsing suggested that Vietnam organise trade promotion conferences and meetings for government officials and businesses to review developments and find timely solutions as business problems arise.
The 34th session of the Laos-Vietnam Intergovernmental Committee on Socio-economic, Scientific and Technological Cooperation in Vientiane agreed to revise the investment protection agreement that came into effect in 1996. The agreement aims to make Vietnamese investors more confident about doing business in Laos.
Among the main areas of cooperation between the two countries are the implementation of the trade development scheme for 2008-2015, finishing the Laos-Vietnam border trade development master plan, and coordinating with Cambodia to sign the tripartite road transport agreement.
One of the best indicators of the growing economic cooperation between Laos and Vietnam has been the growth of bilateral trade in recent years.
In the first 11 months of 2011, bilateral trade reached US$636 million, a 48 percent increase over the same period in 2010. Trade turnover is expected to reach US$2 billion in the next four years, in keeping with the revised agreement.
At present, Laos mainly imports petroleum products, steel and iron, apparel and footwear from Vietnam, while exporting agricultural products, mining commodities and timber to Vietnam.
Vietnamese firms are among the top foreign investors in Laos and have invested more than US$3.5 billion. Most companies operate in the mining and hydropower industries, resulting in a significant boost in investment by Vietnam.
vientiane times
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