A delegation of the Lao Government, led by Bouasone Bouphavanh, Politburo member of the Lao People's Revolutionary Party Central Committee and Prime Minister of Laos is on an official friendship visit to Vietnam from August 29-31.

This is the first visit by Bouasone Bouphavanh to Vietnam in his capacity as Prime Minister of Laos.

Vietnam and Laos have a close relationship and it developed through the two nations' glorious struggles for national independence, freedom, and prosperity. The friendship was fostered by President Ho Chi Minh, President Kasone Phomvihane and the two Parties and peoples.

Recently, Vietnam-Laos friendly relations have seen strong development steps and have been strengthened and promoted at various levels and in various forms. The two sides have made regular contacts between leaders of the two Parties to reach unanimity and worked out orientations for further development of the special traditional friendship, solidarity and comprehensive cooperation between the two countries.

They have paid attention to strengthening relations between localities, particularly border localities of the two countries to help ensure social security in border areas to contribute to making the borderline one of peace, stability and development.

They have taken many measures to encourage mutual trade and investment relations, including preferential policy, creating a favorable environment for investors, reduction of import tax on goods originated from each other by 50 percent, and building stronger border economic zones and border markets. The trade value and total investment between the two countries have increased annually.

The 2001-2005 period saw remarkable progress in the investment and trade between the two countries, with their trade value estimated at US$687.8 million or an average of US$137.5 million a year.

Vietnam has had 69 investment projects in Laos with a combined capital of almost US$500 million. They are focused on agriculture, forestry, mineral exploration and mining, electricity, and transport.

Laos has invested US$16.7 million in seven projects on transport, posts and communication, finance, and banking in Vietnam.

The two countries' cooperation in education, personnel training, health care, agriculture, rural development, infrastructure construction and security has been developed markedly in years.

Between 2001-2005, Vietnam provided Laos US$36.9 million in non-refundable aid and completed eight investment projects, 19 planning programmes and preparations for investment, and 15 support projects for sectors and localities in Laos.

VNA