Vietnam and Laos expand economic cooperation for US$10 billion trade

The relationship continues to develop within the framework of the great friendship, special solidarity, comprehensive cooperation and strategic connectivity shared by the two countries. Leaders from both sides have reaffirmed their commitment to long-term cooperation that aligns economic development with sustainable growth objectives.

Notably, trade and economic cooperation has become a major driver of bilateral relations, particularly as both economies integrate more deeply into ASEAN's regional supply chains.

Strategic location expands shared economic space

Vietnam and Laos share a border of more than 2,300 kilometers, stretching across 19 provinces in the two countries and forming a natural economic corridor with significant potential for logistics, cross-border trade and industrial connectivity.

The border is supported by a network of international, principal and auxiliary border gates, together with border economic zones that are gradually being upgraded to facilitate the movement of goods and strengthen regional supply chains.

Geographical proximity, cultural similarities and well-established transport links also enable products from both countries to enter each other's markets more easily than many other regional markets.

Bilateral trade maintains strong growth

The effective implementation of bilateral trade agreements, the ASEAN Trade in Goods Agreement (ATIGA) and cross-border trade mechanisms has continued to support growing commercial exchanges.

Two-way trade reached nearly US$3 billion in 2025, representing a year-on-year rise of 32.4% - the highest level on record, reflecting a strong recovery and sustained expansion in economic exchanges.

Growth has continued into 2026. During the first five months of the year, two-way trade exceeded US$1 billion, indicating stable demand and an increasingly diversified trade structure.

According to Lao authorities, bilateral trade is becoming more balanced as both exports and imports continue to expand, laying a stronger foundation for long-term economic cooperation.

“Trade and the exchange of goods between our two countries have expanded steadily, while imports and exports are relatively balanced and stable, providing a solid foundation for long-term and sustainable economic cooperation,” Lao Minister of Industry and Commerce Malaythong Kommasith said.

Vietnamese investment is a cornerstone

Laos is the largest destination for Vietnam's outward investment, with cumulative registered capital exceeding US$6.6 billion, accounting for a substantial share of Vietnam’s overseas investment portfolio.

Vietnamese investment is concentrated in strategic sectors, including hydropower, mining, agriculture and services, helping build integrated production and business networks between the two economies.

Many projects are now operating successfully, contributing to economic growth, creating jobs, raising local incomes and supporting government revenues as well as social welfare programmes in Laos.

Beyond their economic contributions, these investments also strengthen production linkages, expand business opportunities and reinforce the strategic partnership between the two neighbouring countries.

Against the backdrop of deeper international integration, Vietnam and Laos consider cooperation in industry, trade and investment a strategic priority that should be further strengthened. To this end, the governments of Vietnam and Laos have tasked their respective ministries of industry and trade with upgrading existing trade agreements, improving transport and trade infrastructure, and creating more favorable conditions for businesses engaged in cross-border commerce.

These efforts are expected to lay a stronger foundation for long-term economic cooperation and support the shared goal of increasing bilateral trade to US$10 billion by 2030.

Property project realizes Vietnam-Laos investment commitments

VOV.VN - KN Vientiane Group Co., Ltd and Real Concept Real Estate Sole Co., Ltd officially signed a strategic cooperation agreement on June 28 in Vientiane, to develop a real estate project in the Long Thanh-Vientiane Special Economic Zone.