The Lao Bao International Border Gate of Vietnam's Quang Tri province is situated on the shared borderline with Laos (Photo: VNA)Vietnam’s Ministry ofIndustry and Trade (MoIT) reported that bilateral trade has posted stablegrowth between 2016 and 2020, reaching the target of over 1 billion USD peryear.
Export and import have stayedrelatively balanced, with goods traded between the two countries diversified.
Trading activitiesencountered certain difficulties in 2020 as a result of the COVID-19 pandemic,but they have bounced back strongly since the beginning of 2021.
By the end of May, tradeturnover between Vietnam and Laos reached 570.7 million USD, up 39.3 percentyear on year and 16.7 percent from the same period of 2019, before the pandemicbroke out.
That included 280.3 millionUSD worth of Vietnamese exports and 290.4 million USD of imports from Laos, respectivelyrising 23.5 percent and 58.9 percent from a year earlier, statistics show.
The figures were attributedto the political resolve of the countries’ senior leaders and drastic moves by authorisedagencies to address obstacles and assist their businesses to quickly adapt tothe COVID-19 pandemic.
Experts forecast the traderevenue will continue increasing in June but at a slower pace as the pandemichas yet to be completely under control in both countries.
At a recent working session,Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Lao AmbassadorSengphet Houngboungnuang discussed measures for strengthening cooperation intrade, industry, and energy, believed to provide an important basis for furtherenhancing bilateral multifaceted ties in the time to come.
To optimise developmentchances and overcome difficulties, especially the COVID-19 pandemic’s impacts,the MoIT has recommended enterprises of Vietnam proactively tap into advantagesto boost exports to Laos.
Given the sound political anddiplomatic relations with Vietnam, the Lao Government has also supportedstrongly and created optimal conditions for Vietnamese firms to invest and dobusiness in the country.
The eight pairs ofinternational border gates, seven pairs of main border gates, and 18 pairs ofauxiliary ones between the two nations have helped guarantee smooth bilateraleconomic activities, labour export, as well as travel.
Trade between Vietnam andLaos has also benefited much from zero-percent tariffs for most of theircommodities under the ASEAN Trade in Goods Agreement, the bilateral tradeagreement, and the bilateral border trade deal, according to the MoIT.
The ministry also suggestedVietnamese firms make use of the wave of Vietnamese investment in Laos to stepup shipments to this market, noting that Vietnam is currently the third largestinvestor in Laos, which in turn ranks first among foreign investmentdestinations of Vietnamese companies.
Major investments have beenpoured into the energy, banking, industrial tree cultivation, and apparelproduction industries. Laos is also calling for more foreign investment ininfrastructure development, crop production, and animal husbandry.
Thanks to this investmentwave, businesses of Vietnam has opportunities to boost the export of such itemsas steel, transport vehicles and spare parts, machinery, equipment, fertiliser,and animal feed, the MoIT noted, adding that it has been working closely withrelevant agencies to keep smooth and fruitful bilateral trading activities soas to contribute to overall Vietnam - Laos trade growth./.
VNA
