Leaders of Nghe An province attend the conference on Vietnam - Laos border trade development cooperation

On the morning of April 11, in the capital Vientiane (Laos), the 12th Vietnam - Laos Border Trade Development Cooperation Conference took place under the co-chair of Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Lao Minister of Industry and Trade Khampheng Xaysompheng. Also attending the conference were representatives of the Department of Industry and Trade, leaders of provinces sharing the border between the two countries; representatives of relevant ministries and branches and many representatives of businesses from the two countries.

Comrade Le Hong Vinh - Member of the Provincial Party Standing Committee, Permanent Vice Chairman of Nghe An Provincial People's Committee - Head of Nghe An delegation attended and delivered an important speech at the Conference.

Conference overview.

Since the Development Cooperation Conferenceborder tradeSince the 11th Bilateral Trade Agreement between the two countries in 2018, trade relations in general and border trade between the two countries in particular have had new developments, demonstrated by the positive growth in import-export turnover between the two countries despite the significant difficulties and challenges caused by the COVID-19 pandemic.

Specifically, in 2021, two-way trade turnover reached 1.37 billion USD, an increase of 33.3% compared to 2020, far exceeding the target set by the two countries' senior leaders for the industry and trade sectors of the two countries (10%). Of which, Vietnam's import turnover from Laos reached nearly 780 million USD, an increase of 70% compared to 2020. This is considered an extremely impressive growth rate, not only compared to Vietnam - Laos trade in previous years but also compared to the growth of trade turnover between Vietnam and many other countries in the region.

Many advantages of cooperation in developing border trade

As for Nghe An - the province with a natural area of ​​16,493 km2, the largest in the country, Nghe An has an East-West trans-Asia route connecting Myanmar - Thailand - Laos - Vietnam along National Highway 7 to Cua Lo Port; Vinh International Airport with a capacity of 3 million passengers/year, has 7 domestic routes and international routes to Vientiane (Laos) and Bangkok (Thailand). With 82 km of coastline, Nghe An has many large seaports with a total cargo volume through the ports reaching over 6.3 million tons/year. The North-South railway line is 96 km long; Vinh Station is a class 1 station, the largest passenger and transport station in Vietnam.

Delegates follow the conference.

Nghe An's industrial production has grown significantly over the years; the proportion of processing industry is increasingly high; construction materials are one of Nghe An's production advantages, and have been exported to many countries around the world, including:Export to Laos marketreach 15-20 million USD/year;

Fuel is also one of the advantageous products of Nghe An, with leading enterprises in trading this product as well as specialized port systems and warehouses of companies such as Thien Minh Duc Joint Stock Company (DKC), Petrolimex... increasingly meeting the requirements of the Lao market, with export turnover reaching 5-10 million USD/year. In addition, traditional products of Nghe An such as: rice, cooking oil, fertilizer, furniture, seafood...) have long been familiar to consumers in Laos.

Regarding education, Nghe An has 6 universities (30,210 students), 8 colleges (13,402 students), 70 vocational schools...; has trained many generations of Lao students, currently there are about 750 Lao students studying at universities and colleges in Nghe An.

The border area of ​​Nghe An province accounts for 62.21% of the province's total area, mainly mountainous areas. The border area of ​​Nghe An and Laos has many similarities in natural conditions, population density, etc. Border residents travel back and forth, trade and exchange goods through the border markets of the two countries: Din Dam market (Bo Ly Kham Xay province), Thanh Thuy market (Thanh Chuong), Thong Thu market (Que Phong district)....;

Vehicles waiting to transport goods at Nam Can International Border Gate (Ky Son, Nghe An). Photo courtesy of Tien Dong

Regarding cooperation in developing border trade, on the basis of signed bilateral trade agreements and legal documents issued by the Government, the Provincial People's Committee has directed the provincial authorities to organize the implementation to create favorable conditions for people and traders on both sides to exchange, buy and sell, import and export goods. In the period from 2018 to the first quarter of 2022, the total import and export turnover between Nghe An and Laos reached 139.1 million USD, of which exports reached 132.3 million USD, imports reached 6.8 million USD and hundreds of thousands of people and vehicles traveled back and forth to visit relatives, work, exchange and buy goods, and visit and travel.

Customs clearance of goods, vehicles, entry and exit... are coordinated smoothly by both sides, creating favorable conditions for businesses and people of the two countries to exchange and trade goods.

Need to continue to effectively exploit the potential of both sides

In addition to the achieved results, the development of border trade between Nghe An province and the provinces of Laos still faces many difficulties and limitations. The structure of import and export goods between Nghe An and Laos still has many shortcomings, is not sustainable, and is not commensurate with the potential and advantages of both sides. The export turnover of goods from Nghe An to Laos has a small proportion, accounting for only 1.7% of the total turnover of Nghe An province in 2021. The technical infrastructure of the border gate area and the opening of the Nghe An - Laos border is still weak and outdated. Traders participating in border trade activities are mainly small and medium-sized enterprises, with small shipments, of a commercial nature, and without a long-term development strategy. The situation of smuggling and trade fraud is complicated while the area is large and the forces of both sides are still weak...

Vice Chairman of the Provincial People's Committee Le Hong Vinh spoke at the conference.

Speaking at the Conference, Permanent Vice Chairman of Nghe An Provincial People's Committee Le Hong Vinh emphasized: The potential for cooperation in developing border trade between Vietnam - Laos in general and Nghe An and Lao provinces in particular still has a lot of room for development. That first of all stems from the tradition of good, loyal, and pure friendship between the governments and people of the two countries; the dynamism and creativity of the business community of both sides to effectively exploit the potential of both sides.

With the goal of "Developing Nghe An rapidly and sustainably; striving to become a fairly developed province in the Northern region by 2025 and a fairly developed province in the whole country by 2030", Nghe An has become a destination for domestic and international investors; Building Nghe An into an important development pole in the East-West economic corridor connecting Vietnam - Laos - Thailand - Myanmar, thereby exploiting Laos' export potential with agricultural and forestry products and Nghe An's potential in providing advantageous products such as: construction materials, seafood, machinery and equipment...

Permanent Vice Chairman of Nghe An Provincial People's Committee Le Hong Vinh

In order for border trade activities between Nghe An and Lao provinces to have new developments in the coming time, the Vice Chairman of the Provincial People's Committee suggested that the two sides need to study and review the border trade development policy mechanism and propose that the governments of the two countries have special investment incentive policies in border infrastructure development, focusing on the policy of developing land border trade infrastructure of the province; Promote socialization in investment and construction of border trade infrastructure.

Strengthen bilateral consultations and exchanges on issues arising in management, construction of border gates, openings, and freight transport... Invest in building telecommunications and internet transmission stations for border and mountainous areas, especially at border gates, openings, and towns... to eliminate "low-lying areas" for mobile and internet coverage; gradually bring banking services directly to border gates; invest in national grid electricity to border gates, openings, and towns, combined with implementing the Renewable Energy Development Program for people in border areas without grid electricity for lighting.

Nghe An Department of Industry and Trade was awarded a certificate of merit by the Lao Ministry of Industry and Trade for its outstanding achievements in developing Vietnam - Laos border trade.

Regarding some solutions to develop Vietnam - Laos border trade, the Vice Chairman of the Provincial People's Committee, on behalf of the provincial leaders, proposed that the Government and relevant ministries and branches of the two countries actively seek investment capital sources.construction of Hanoi - Vientiane expresswayvia Thanh Thuy border gate. Propose that the Lao Ministry of Industry and Trade propose that the Government soon announce Nam On border gate (Bolykhamxay province) as the main border gate, creating favorable conditions to promote import-export and immigration activities. Pay attention to allocating investment capital, upgrading and building market systems, infrastructure, and commercial technical facilities for Vietnam - Laos border gates in general and Nghe An - Laos in particular, especially technical infrastructure at Thanh Thuy, Thong Thu, Cao Veu, Tam Hop border gates, etc.

On the occasion of Laos' traditional New Year Bun Pi May, Vice Chairman of the Provincial People's Committee Le Hong Vinh respectfully sent his best wishes to all levels of government, businesses and people of Laos for a happy New Year, and for the Vietnam - Laos friendship to be "forever green, forever sustainable" and to be constantly strengthened and developed.

On this occasion, Nghe An Department of Industry and Trade was awarded a Certificate of Merit by the Lao Ministry of Industry and Trade for its outstanding achievements in developing Vietnam - Laos border trade.