He is accompanied by head of the Presidential Office Nguyen Van Chien, Minister of Transport Ho Nghia Dung, Minister of Agriculture and Rural Development Cao Duc Phat and other senior officials.

The visit takes place at a time when the Parties, States and people of Vietnam and Laos are entering into the second year of implementing Party resolutions in both countries.

The visit aims to further consolidate the trust and close relationship between the two countries, contributing to the development of the friendship, special solidarity and comprehensive cooperation between the two Parties, States and people.

The traditional friendship, solidarity and comprehensive cooperation between the two Parties, States and people have been constantly strengthened and developed in various areas. The two sides strengthened contact and visit exchanges and held regular Political Bureau meetings to outlines orientations for bilateral ties. Particularly, the Vietnam visit by Lao President and Party leader Sayasone from June 19-22, 2006 and a reciprocal visit to Laos by Vietnamese Party leader Nong Duc Manh from October 10-13 opened a new period for bilateral ties after the two countries successfully organized their National Party Congress and made several personnel changes in Party and State apparatus.

The two countries’ Ministries of Foreign Affairs have so far conducted four exchanges bringing about practical results. The fifth exchange is expected to take place in mid-2007. In addition, the Vietnam-Laos Inter-governmental Committee for Joint Cooperation has also organized 29 sessions to map out development plans for bilateral cooperation.

Two-way trade value has increased considerably in recent years, reaching US$679 million in the 2001-2005 period or US$137.5 million on average. Thanks to incentive policies, bilateral trade value fetched US$162 million and US$230 million in 2005 and 2006 respectively.

Progress has also been seen in investment. To date Vietnam has invested nearly US$500 million in Laos, focusing on hydro-electricity, mining, transport and forestry sectors. In addition, private Vietnamese enterprises have also increased investment in Laos, mostly in agro-forestry and fisheries sectors. Vietnam now ranks second among the biggest foreign investors in Laos. The former is helping Laos build Sekaman 3 hydro-electric power plant with a total investment capital of US$300 million. Feasibility studies of several other hydro-electric power plant projects are under way in Laos. Vietnam is also helping Laos develop rubber plantation projects in the southern part of the country.

Education and training is also given top priority in bilateral cooperation strategy, making up nearly 50 percent of Vietnam’s total development aid to Laos. Vietnam received 130 students from Laos in 2001 and the figure rose to 225 in 2005. Many of those students who once studied in Vietnam are now keeping important posts in Laos’s ministries and sectors.

The two countries have also cooperated closely in such areas as healthcare, agriculture and rural development and infrastructure construction.

Vietnam has pledged to provide VND900 billion in aid to Laos during the 2006-2010 period.

Regarding bilateral cooperation in national security and defence, the two countries have regularly exchanged information and experience in building forces and coordinating closely to pervade hostile forces’ schemes.

Cooperation between localities has also been enhanced. In recent times, border localities have made every effort to tackle arising issues to build a common borderline of peace, stability and development.

However, bilateral cooperation has not matched their potential, particularly in trade and investment. It is hoped that President Triet’s current visit to Laos will give fresh impetus to bilateral ties in the coming time.