Vietnam - Laos Aiming for US$10 Bln in Trade

The State visit to Laos by Party General Secretary To Lam and the high-level Vietnamese delegation, marking the 50th anniversary of the Lao People’s Democratic Republic, occurred at a time of rapidly expanding bilateral economic cooperation. The visit is especially significant, not only reinforcing the political foundation but also advancing practical cooperation mechanisms to raise Vietnam-Laos trade to an initial target of US$5 billion and eventually toward US$10 billion.

Party General Secretary To Lam and his spouse attend the ceremony marking the 50th National Day of the Lao People’s Democratic Republic

At Pha That Luang Square, the center of the 50th anniversary celebration of the Lao People’s Democratic Republic, the presence of top leaders from both countries highlighted a major diplomatic milestone and set a favorable stage for subsequent negotiations. Immediately after the ceremony, General Secretary To Lam met with General Secretary and President of Laos Thongloun Sisoulith, followed by discussions with Prime Minister Sonexay Siphandone and National Assembly President Saysomphone Phomvihane. These high-level engagements led to the signing of several key cooperation documents in trade, infrastructure, energy, law, education and training, and defense and security, establishing a new legal framework to accelerate bilateral economic integration.

General Secretary To Lam and General Secretary and President Thongloun Sisoulith acknowledged the special relationship between the two countries and highlighted that strengthening comprehensive cooperation, including in infrastructure, energy, and trade, is vital for Laos’ socio-economic development. General Secretary and President Thongloun Sisoulith expressed gratitude for “the consistent and timely support of the Party, State, and people of Vietnam” for Laos’ development, noting that regional connectivity projects and new cooperation mechanisms “will create new growth opportunities and help bilateral trade progress toward the agreed targets.”

According to the Asia-Africa Market Department of Vietnam’s Ministry of Industry and Trade, Vietnam-Laos trade in the first 11 months of 2025 reached approximately US$2.6 billion, up 50.4% compared to the same period in 2024. Vietnam’s exports to Laos increased strongly in light industrial goods, construction materials, and processed agricultural products, while Laos continued expanding exports of electricity, agricultural goods, and minerals to Vietnam, supporting stable supply and directly benefiting Vietnam’s domestic industries.

General Secretary To Lam and Lao Party General Secretary and President Thongloun Sisoulith witness the exchange of a series of bilateral cooperation documents between Vietnam and Laos in Vientiane, December 1, 2025

In terms of investment, Vietnam’s total registered investment in Laos to date exceeds US$6.21 billion. In the first 11 months of 2025 alone, Vietnam's investment in Laos surpassed US$590.3 million, up 7.5 times compared with the same period in 2024.

Leaders of both countries agreed to advance strategic infrastructure projects, including upgrading international border gates, expanding logistics centers along the border, and accelerating research and implementation of rail-road connectivity corridors along the East-West Economic Corridor. Both sides also agreed to prioritize digitization of cross-border trade procedures and expedite key transport projects to reduce logistics costs.

According to the Vientiane Times, Vietnam is emerging as a partner that can help Laos lead new supply chains through improved connectivity infrastructure and expanded access to ASEAN markets, demonstrating that bilateral cooperation has progressed from traditional exchanges to deeper value-chain integration. This is particularly evident in renewable energy, agricultural processing, and supporting industries, where Vietnamese enterprises are accelerating their investments in Laos.

Speaking at the Vietnam-Laos Economic Cooperation Forum in Vientiane, General Secretary To Lam emphasized that Vietnam prioritizes creating a model of practical, effective, and sustainable economic cooperation that reflects the special Vietnam-Laos relationship and expands growth opportunities for businesses in both countries. This statement reinforced confidence among Vietnamese investors working on projects in energy, border trade, logistics, high-tech agriculture, and education and training.

On the Lao side, Party and State leaders affirmed their commitment to significantly improving the investment environment, standardizing the legal framework, reducing administrative costs, and ensuring security for long-term Vietnamese projects. Expanding border economic zone planning, increasing transparency in licensing, and accelerating digitalization of public services are expected to help businesses from both countries seize new opportunities as Laos advances its economic transformation.

The visit by General Secretary To Lam to Laos represented a strategic advance in Vietnam-Laos economic cooperation, reinforcing political trust and completing key implementation mechanisms. The US$10 billion trade target is not only a quantitative milestone but also a symbol of the deepening integration between the two economies. The alignment of political will and market demand provides a strong foundation for expanding cooperation more sustainably and effectively in the coming years.

By Giang Tu, Vietnam Business Forum