Promoting the substance of the “strategic engagement” between Vietnam and Laos.

The Vietnam-Laos relationship has always been nurtured, developed, and strengthened, becoming a great friendship, a special solidarity, comprehensive cooperation, and deep strategic ties. Based on a foundation of exceptional political trust, economic, trade, and investment cooperation is increasingly becoming an important pillar, contributing to the development of each country.

Vietnam and Laos are two neighboring countries with a great friendship, special solidarity, and comprehensive cooperation, meticulously nurtured by generations of leaders and people of both countries. Recently, in addition to strengthening cooperation in politics, defense, and security, both sides have strived to elevate and create breakthroughs and significant changes in economic cooperation, especially in the effective implementation of key projects connecting the two economies, particularly in transportation (including highways and railways), energy, trade, investment, training, development of high-quality human resources, and building sustainable supply chains. Economic, trade, and investment cooperation is increasingly affirming its role as an important pillar and a solid foundation for promoting the substantive "strategic engagement" between the two countries.

Bilateral economic cooperation between Vietnam and Laos is recording impressive growth figures. Vietnam currently has 289 investment projects in Laos with a total registered capital of US$6.7 billion. Notably, in the first six months of 2026, total Vietnamese investment in Laos reached nearly US$600 million, an increase of more than 4.2 times compared to the same period in 2025, focusing on key sectors such as hydropower, mining, high-tech agriculture, and telecommunications (Unitel). Many projects are operating efficiently, making positive contributions to Laos' budget and social welfare.

Vietnam has advantages in its port system, logistics network, and international connectivity; while Laos has a strategic location in the Greater Mekong Subregion, playing an important bridging role between ASEAN and the Asian interior. Laos's lack of a coastline makes transportation links with neighboring countries particularly crucial for trade and economic development. Vietnam, with its port system and transportation network leading to the East Sea, has the potential to become an important gateway for Lao goods to reach international markets.

Developing transportation routes connecting Vietnam and Laos is considered one of the priorities of bilateral economic cooperation. Routes from Laos, through border crossings to Vietnam's economic centers and seaports, if comprehensively invested in, will contribute to shortening transportation time, reducing logistics costs, and enhancing the competitiveness of goods. The Lao government is striving to implement a strategy to transform Laos from a landlocked country into a regional hub connecting the Mekong Subregion and ASEAN, opening up new development opportunities for cross-border industries, agriculture, and trade.

To realize this vision, Laos is implementing the “Action Plan to Facilitate Trade and Transport 2025-2030,” and hopes that Vietnam will share its experience and promote the linkage of warehousing infrastructure to remove the bottleneck of transportation costs and open up access to the sea through the Vung Ang port cluster (Ha Tinh). A seamless transportation system will create a foundation for businesses to be more proactive in organizing supply chains and expanding markets. Beyond connecting the two countries, these transportation routes have a broader significance as they contribute to the formation of economic corridors connecting Laos with Vietnam and, from there, with the sea, while also expanding linkages with other countries in the region.

In the context of a rapidly shifting regional economy, strengthening intra-regional economic linkages between Vietnam and Laos, leveraging geographical advantages, border infrastructure, and bilateral and multilateral trade agreements, is a strategic requirement. This is not only aimed at expanding markets but also at forming production and logistics chains, creating new development opportunities, and bringing tangible benefits to the people of both countries.