Vietnamese businesses register more than US$5.4 billion into Laos projects

Many Vietnamese invested projects have operated effectively, contributing to socio-economic development, creating jobs and increasing incomes for thousands of workers in Laos, said Investment Minister Nguyen Chi Dung at the mid-term conference reviewing the implementation of an agreement on Vietnam – Laos cooperation for 2021-2025.

These projects, he said, have generated a source of revenue for the Lao budget, especially in the fields of telecommunications, banking, rubber growing and processing, food production and processing, and dairy product production.

Notably, the first eight months of 2023 alone saw Vietnamese businesses pour US$114 million into nine projects in Laos, representing an increase of 71.7% in capital value over the same period in 2022. Among them were the Nam Sum 1 hydroelectric power plant project valued at US$83.6 million, and a crop cultivation and livestock project worth US$9.9 million in Sekong province.

The minister said the two countries’ relevant agencies have worked closely together to remove obstacles to key projects such as Xekaman 3 hydroelectric power plant, Alumina mining project, Nong Khang airport, and potassium salt mining and processing project.

The two sides have also cooperated closely in seeking capital sources for key transport projects, including an expressway connecting Hanoi and Vientiane, and a rail route linking Vung Ang - Tan Ap - Thakhek – Vientiane.

They are now promoting the implementation of the 2018 investment cooperation agreement between the Governments of Vietnam and Laos in developing ports 1, 2, 3 of Vung Ang port. The Vietnamese side has pledged to create favourable conditions for Laos to export and import goods through all Vietnamese seaports.

Amid difficulties, the minister said Vietnam has pledged VND3.6 trillion in non-refundable aid for Laos in the 2021-2025 period. An average of about VND730 billion/year has been allocated during the past three years, and 10 projects have been completed to date.

Minister Dung reaffirmed Vietnam’s consistent policy of valuing and giving the highest priority to preserving and developing the special relationship with Laos, considering this an invaluable asset of the two countries.

Lao Investment Minister Khamjane Vongphosy for his part thanked the Government of Vietnam for its valuable assistance, helping Laos surmount difficulties.

“I totally believe that backed by the special solidarity and brotherly cooperation, cooperation between the two Ministries of Planning and Investment will increasingly bear fruit in the time tocome,” said Minister Vongphosy.

The two sides agreed that the 46th session of the Vietnam – Laos Inter-government Committee will be held in Laos in either late 2023 or early 2024.