Neighbourly love to drive greater trade ties

Laos imports a wide range of goods to help empower its economy

During his three-day official second visit to Laos last week, President Nguyen Minh Triet agreed with Laotian leadership that the two governments would continue deepening their traditional relationship and comprehensive cooperation, particularly in the economic, commercial and investment fields.

The two governments also committed to boost the implementation of agreements to intensify cooperation in health care, agriculture and rural development, infrastructure construction, tourism, culture, post and telecommunications, national security and cross-border crime control.

The Vientiane Times cited Laotian Communist Party General Secretary and President Choummaly Sayasone as proposing both sides urge their relevant sectors to quickly establish a Lao-Viet joint venture aviation company, and implement other cooperation projects as well as taking specific measures to multiply bilateral trade turnover in the future.

The two countries’ two-way trade turnover in 2010’s first half sat at $212 million and is expected to rise to $2 billion by 2015.

“To achieve these goals, I understand that we have to work harder and have appropriate tangible measures in place,” Choummaly said.

At present, the two governments are completing a new cooperation strategy for 2011-2020, known as “The joint strategy in economic, cultural, scientific and technical cooperation between 2011-2020”, instead of the existing strategy for economic, cultural, scientific and technologic cooperation.

During a working visit to Laos in July 2009, Vietnam’s Deputy Minister Nguyen Sinh Hung and Laos’ government officials committed to cement the two countries’ special relationship through a new strategy for 2011-2020.

During Choummaly’s visit to Vietnam in April, 2009, the two countries released an eight point joint communiqué.

Under the communiqué, the two governments jointly set up a Vietnam-Laos cooperation strategy during 2011-2020. The two countries would encourage businesses to invest in trade, transport, energy, mining, oil and gas exploration, post, telecommunications and tourism.

Also on Triet’s visit to Laos, deputy minister of Industry and Trade Nguyen Thanh Bien and his Laotian counterpart Khemmani Pholsena met, with a  free trade area agreement in the mix.

At present, Vietnam exports petroleum, steel and iron, apparel and footwear to Laos, while imports agricultural products, mining commodities and timber.

Vietnam has exempted 16 categories taxes for products imported from Laos such as spare automobile and motorbike parts. The country also gives preferential quotas to a number of goods originating from Laos in order to increase the volume of goods from this country to Vietnam.

Laos also waives 87 lines of taxes for many products from Vietnam.

Vietnam ranks third in the list of foreign countries investing in Laos. Up to May this year, there were nearly 220 Vietnamese projects licenced by Laos’ government, with total investment capital of over $2.4 billion. These projects are being implemented in 16 Laos provinces, focusing on key sectors such as finance, banking, energy, mineral exploitation, service and agro-forestry.