Official visits spur neighbouring ties

May 01, 2017 | 09:00
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To expand trade and investment ties between Vietnam and neighbouring countries Cambodia and Laos, many deals were inked throughout Prime Minister Nguyen Xuan Phuc’s first visit to these nations.
Vietnam is currently Laos’ biggest investor Photo: VNA

According to a joint statement released during Phuc’s April 26-27 visit to Laos, he and his counterpart, Thongloun Sisoulith, cut a ribbon to inaugurate the Crowne Plaza Vientiane Hotel – the first five-star hotel in Laos to meet international standards.

The two leaders also witnessed the signing of nine co-operative deals (see table).

It has been the aim of both leaders to raise two-way trade turnover by 10 per cent during the 2017 financial calendar. The two also wish to see increased connectivity between the two economies, particularly in the transport and energy sectors.

Bilateral turnover reached over $823.4 million last year, but this figure was a 26.7 per cent drop on-year.

Both leaders pledged to timely deploy the contents of the signed agreements, particularly the protocol on co-operation in defence and security 2016-2020; the protocol on border line and national border markers; the agreement on border and border gate management regulations; the memorandum of understanding (MoU) on bilateral transport co-operation strategy 2016-2025 with a vision towards 2030; and the agreement on building the Vientiane-Pacxan-Thanh Thuy-Hanoi highway.

Vietnam is Laos’ biggest investor. As of February 2017, Vietnam had 408 valid investment projects with a total registered capital of approximately $3.7 billion in Laos, according to Vietnam’s Ministry of Planning and Investment.

During the prime minister’s April 24-25 visit to Cambodia, Phuc and his counterpart, Hun Sen, participated in the inauguration ceremony for the new Chrey Thom-Long Binh Bridge. The bridge connects Cambodia’s Kandal province and Vietnam’s An Giang province, and was funded by the Vietnamese government through concessional loans.

The two prime ministers also witnessed the signing of four MoUs on promoting the study and construction of the Ho Chi Minh City-Moc Bai, and Phnom Penh-Bavet expressway projects; building a voluntary, community-based treatment service centre for drug addiction in Cambodia’s Preah Sihanouk province; increasing bilateral co-operation in the fisheries sector; and supporting the construction of Phnom Penh-Hanoi friendship boulevard.

According to a joint statement released during Phuc’s Cambodia visit, both nations agreed to continue fostering co-operation in a number of sectors including education and training, border trade, tourism, telecommunications, aviation, banking, natural resources, agriculture, and power generation.

The agreements solidify both countries’ commitment to hit a goal of $5 billion in bilateral trade volume in the coming years. In 2016, the bilateral trade totalled $2.93 billion.

Nine co-operation deals inked between Vietnam and Laos

- Agreement on a joint venture project to develop Vung Ang Port as a Lao-Vietnamese port.

- Agreement on the construction of a railway stretching from Vientiane through Thakhek, Mayu, and Ton Ob to Vung Ang.

- Agreement on the construction of the Phouthid Pheung Road between Luang Prabang and Naxone, which borders Dien Bien.

- Agreement on completing feasibility studies for upgrading roads, including Road No.18 B in Attapeu; a road stretching between Poungtha, Thama, and Phialy in Xaysomboun; and a road stretching between Xaysomboun, Tebele, Phoukongkhao, and Samhopadong in Xaysomboun.

- Sub-agreement on amending the agreement on Laos-Vietnam border trade.

- Sub-agreement on education co-operation.

- MoU on the construction of a bonded oil warehouse in Hon La and oil pipeline between Hon La and Khammouane.

- MoU on the purchase of electricity generated by a thermal power plant in Xekong between Electricity of Vietnam and Phonesack Group.

- Agreement on financial co-operation.

Vietnam currently has 190 valid investment projects in Cambodia, with a total registered capital of $2.89 billion. Vietnamese companies including the likes of Viettel, Vietnam Rubber Group, and Electricity of Vietnam are well-placed in the Cambodian market. For example, the joint Metfone-Viettel venture has contributed over $400 million to Cambodia’s state coffers in the past decade.

On April 28, after his visit to Laos and Cambodia, Phuc headed to the Philippines to attend the 30th ASEAN Summit.

By By Khoi Nguyen

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