Log in
Vietnam

Vietnam, Laos boost construction of road linking two capital cities

There should be special mechanisms for economic ties between the two countries.

The governments of Vietnam and Laos are closely working on the construction of the Hanoi-Vientiane expressway project that will facilitate sea access to land-locked Laos.

 Chairman of Vietnam’s National Assembly Vuong Dinh Hue speaks with Vietnamese businesses in Laos on May 15. Photos: Quochoi

The information was released by Chairman Vuong Dinh Hue of Vietnam’s National Assembly who is on his three-day visit to Lao starting on May 15.

Hanoi-Vientiane expressway, which is being built with funding from Japan, will enable Laos to access the sea in Vung Ang Seaport, Vietnam’s central province of Ha Tinh.

Launched in 2016, the 725-km project, with an estimated investment of US$4.5 billion, is expected to boost economic connectivity between the two countries and Thailand’s northeast. 

Hue said the two countries' economic ties need to be boosted to become commensurate to the strong political relations, calling on both sides to harness their potential to increase the trade values beyond the curent modest amount of US$1.3 billion.

 Chairman Hue meets representatives of the Vietnamese community in Laos.

Tightening political links

This is Hue’s first official visit to Laos since he took office in February 2021. He is also the first guest of the Lao National Assembly since the Lao People’s Revolutionary Party Congress in January 2021.

Hue is also the first Vietnamese top leader to visit the neighboring country in the Friendship Year 2022 when the two countries celebrate 60 years of diplomatic relations and 45 years of the Lao-Vietnamese Treaty of Friendship and Cooperation, demonstrating Vietnam’s top priority in strengthening the relationship that is called “especially pure and extremely solid.”

The visit also affirmed the importance and vitality of the Vietnam-Laos relationship in ensuring political stability, defense and security, and socio-economic development as well as boosting political trust between the two parties and the peoples. At the same time, it reiterates Vietnam’s strong and comprehensive support for the implementation of the Lao socio-economic development plan 2021-2025.

Hue’s agenda in Laos includes meeting with Lao top leaders to review cooperation results of the two parliaments, discuss measures to complete the legal framework, supervise the execution of common projects, and seek support for post-pandemic recovery.

On the first day in Laos, Hue met the Vietnamese community, of which many people have settled down for generations. During the meeting, the expatriates asked Vietnam to increase scholarships for Lao students of Vietnamese origin, and create more jobs for the community. 

Hue asked related ministries to process the recommendations, including labor cooperation for Vietnamese businesses working in Laos.  

 Lao Deputy Prime Minister Sonexay Siphandone at the meeting with Vietnamese investors. 

Economic ties in focus

Boosting economic ties is one of the issues on Hue’s agenda in Laos where he met Lao senior officials and Vietnamese businesses investing in Laos on May 15.

Addressing the meeting, Hue said there should be special mechanisms for the special relations to facilitate Vietnamese investors in Laos while asking Vietnamese companies to boost their competitiveness.

At the meeting, Lao Deputy Prime Minister Sonexay Siphandone said Laos has been amending its legal system to improve the investment environment and draw domestic and foreign private investment. He noted that the Lao legal framework has been much improved in the business environment eased thanks to agreements signed with Vietnam. Currently, the related agencies are joining hands to facilitate the license of overseas investment. 

Representatives of Vietnamese businesses requested smooth transport between Vietnam, Lao and regional countries; building mechanisms for using and exchanging Lao kip (LAK) and Vietnam dong (VND) in investment and trade; revising laws on investment and business; soft loans from Vietnam to development projects in Laos, mostly in remote areas; and improving the capacity of Vietnamese banks in Laos to better support Vietnamese investors there.

On the same day, Hue met executives of Lao-Viet Bank (LVB), the commercial representative of the Bank for Investment and Development of Vietnam (BIDV) in Laos.

LVB is currently the third-largest in the Lao banking system with total assets worth $1.1 billion from $100 million since its establishment in 1999. With the presence in nine out of 18 cities and provinces across Laos, the bank is tasked with promoting Vietnam’s investment in Laos.

Over the past years, LVB has been among the top contributors to the Lao budget. Taking the lead in digital banking, it has provided tax and fee collection services to the government of Laos. 

Reactions:
Share:
Trending
Most Viewed
Related news
Innovative approaches key to forest protection in Vietnam

Innovative approaches key to forest protection in Vietnam

The novel methods will deepen awareness of forests' vital role in food production, security, and nutrition.

International Day of Forests 2025 observed in Vietnam

International Day of Forests 2025 observed in Vietnam

Different stakeholders including government officials, international experts, academia, and students gathered at the event which was held at Vietnam’s leading university of forestry by the United Nations’s specialized agency Food and Agriculture Organization (FAO).

Over 5,000 students in Mekong Delta get access to clean water

Over 5,000 students in Mekong Delta get access to clean water

The project provides six schools in Tra Vinh City with solar-powered water filters, improving clean water access and raising climate awareness for 5,000 students in a saltwater-intruded area.

Vietnamese and Chinese youths strive to boost friendship

Vietnamese and Chinese youths strive to boost friendship

With their professional skills and sense of responsibility, Vietnamese and Chinese youth work as young cultural ambassadors to strengthen the friendship.

Vietnam welcomes continued US efforts in post-war recovery

Vietnam welcomes continued US efforts in post-war recovery

Vietnam and US joint efforts in war legacy recovery serves as a fundamental pillar in bilateral relations.

First beauty pageant for women with disabilities to be held

First beauty pageant for women with disabilities to be held

The contest is a platform to convey inspirational stories about extraordinary will of disabled women who overcome adversity.

International Francophonie Day: Showing respect for cultural diversity

International Francophonie Day: Showing respect for cultural diversity

With the theme "I educate myself, therefore I act," International Francophonie Day is an opportunity to affirm the Francophone community’s commitment to common values ​​of peace, solidarity, cooperation, and respect for cultural diversity.

Vietnam focuses on protecting citizens at Myanmar-Thailand border

Vietnam focuses on protecting citizens at Myanmar-Thailand border

Vietnam’s Foreign Ministry has provided updates on efforts to protect Vietnamese citizens following crackdowns on online scam networks along the Myanmar-Thailand border.