Iron and steel are among Vietnam's major export items to Laos. (Photo: VNA)During the 2016-2020 period, the two-way trade saw stable expansion and reached the target of over 1 billion USD, but then suffered from the impact of the COVID-19 pandemic and natural disasters.
The Asia-Pacific Market Department at the Vietnamese Ministry of Industry and Trade (MoIT) said that the bilateral trade exceeded 1 billion USD in 2020, down 11.5 percent year-on-year, of which Vietnam’s exports were worth 571.7 million USD, down 18.5 percent.
However, thebilateral trade bounced back since early 2021, surging 33.3 percent to 1.37 billion USD for the year, with Vietnam’s export revenue reaching 594.7 million USD, a rise of 4 percent from 2020, and its import hitting 778.2 million USD, up 69.8 percent.
The results are attributable to the political resolveby Vietnamese and Lao leaders and the drastic management of competent agenciesto remove obstacles facing businesses of the two countries and create optimalconditions for them to quickly adapt to the new situation.
In the first four months of this year, the two-waytrade was valued at 558.2 million USD, representing a year-on-year increase of20.2 percent, of which Vietnam’s export was 192.2 million USD, down 11.8percent.
Vietnam mainly shipped iron and steel, means oftransport and accessories, machinery, equipment, tools, fertilizers, plasticproducts and vegetables to Laos.
Le Hoang Oanh, head of the department, explainedthat domestic firms have focused on iron and steel export to the EU, thus resulting in the recent decrease in shipments to Laos.
In the four-month period, Vietnam imported 366million USD worth of goods from the neighbour, up 48.5 percent year-on-year.Its major import items included rubber, wood and timber products, fertilizers,vegetables, ore and minerals.
Minister of Industry and Trade Nguyen Hong Dien saidsince the 11th conference on border commerce cooperation in 2018,the bilateral trade ties have made new strides.
The two countries aim to increase their tradeby 10-15 percent each year in a stable and sustainable manner, Dien noted.
Experts, however, pointed out that the policies thatare intended to attract investments in production, manufacturing,infrastructure, transport and logistics at border gate areas have yet to provetheir effectiveness.
According to them, with eight pairs of internationalborder gates, seven pairs of main gates and 18 others of auxiliary gates,Vietnam and Laos have favourable conditions to boost their trade ties.
The two countries have also benefited from tradeagreements in the Association of Southeast Asian Nations (ASEAN) along withtheir bilateral trade deals. Moreover, Vietnamese goods have been favoured inthe neighbouring country.
Vietnamese exporters should also ride the wave of Vietnamese investment in Laos to boost export, experts said, noting that Vietnam is currently the third biggest investor inLaos, while Laos is Vietnam’s largest recipient of Vietnam’s outboundinvestment, mainly in energy, banking, the planting of industrial trees, andgarment-textile.
Minister Dien said Vietnam and Laos will work on preferentialbreakthrough mechanisms and policies to lure more investments in infrastructurein border gate economic zones, and in production and trade activities in border areas, while pushing ahead with negotiations of a memorandum ofunderstanding on border trade infrastructure development and connectivitybetween the two governments.
Apart from amending and supplementing the signeddocuments like the Vietnam-Laos trade agreement and the 2007 Hanoi agreement,the two sides will further coordinate in the fight against smuggling and tradefraud to create a healthy environment for border trade, he said./.
The results are attributable to the political resolveby Vietnamese and Lao leaders and the drastic management of competent agenciesto remove obstacles facing businesses of the two countries and create optimalconditions for them to quickly adapt to the new situation.
In the first four months of this year, the two-waytrade was valued at 558.2 million USD, representing a year-on-year increase of20.2 percent, of which Vietnam’s export was 192.2 million USD, down 11.8percent.
Vietnam mainly shipped iron and steel, means oftransport and accessories, machinery, equipment, tools, fertilizers, plasticproducts and vegetables to Laos.
Le Hoang Oanh, head of the department, explainedthat domestic firms have focused on iron and steel export to the EU, thus resulting in the recent decrease in shipments to Laos.
In the four-month period, Vietnam imported 366million USD worth of goods from the neighbour, up 48.5 percent year-on-year.Its major import items included rubber, wood and timber products, fertilizers,vegetables, ore and minerals.
Minister of Industry and Trade Nguyen Hong Dien saidsince the 11th conference on border commerce cooperation in 2018,the bilateral trade ties have made new strides.
The two countries aim to increase their tradeby 10-15 percent each year in a stable and sustainable manner, Dien noted.
Experts, however, pointed out that the policies thatare intended to attract investments in production, manufacturing,infrastructure, transport and logistics at border gate areas have yet to provetheir effectiveness.
According to them, with eight pairs of internationalborder gates, seven pairs of main gates and 18 others of auxiliary gates,Vietnam and Laos have favourable conditions to boost their trade ties.
The two countries have also benefited from tradeagreements in the Association of Southeast Asian Nations (ASEAN) along withtheir bilateral trade deals. Moreover, Vietnamese goods have been favoured inthe neighbouring country.
Vietnamese exporters should also ride the wave of Vietnamese investment in Laos to boost export, experts said, noting that Vietnam is currently the third biggest investor inLaos, while Laos is Vietnam’s largest recipient of Vietnam’s outboundinvestment, mainly in energy, banking, the planting of industrial trees, andgarment-textile.
Minister Dien said Vietnam and Laos will work on preferentialbreakthrough mechanisms and policies to lure more investments in infrastructurein border gate economic zones, and in production and trade activities in border areas, while pushing ahead with negotiations of a memorandum ofunderstanding on border trade infrastructure development and connectivitybetween the two governments.
Apart from amending and supplementing the signeddocuments like the Vietnam-Laos trade agreement and the 2007 Hanoi agreement,the two sides will further coordinate in the fight against smuggling and tradefraud to create a healthy environment for border trade, he said./.
VNA
