In addition, Vietnamese goods exported to Laos are eligible for zero tariffs and vice versa under the ASEAN Trade in Goods Agreement (ATIGA), the Vietnam – Laos trade agreement and border trade agreements, Hoa said.
Vietnam and Laos share a borderline of more than 2,300km running through 10 cities and provinces of each nation. Last year, two-way trade reached USD 1.37 billion, a surge of 33.3% against 2020, data from the Vietnamese Ministry of Industry and Trade showed.
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Lao Bao International Border Gate in the central province of Quang Tri which borders with Laos |
Vietnam’s exports to Laos totaled USD 594.7 million, up 4% year-on-year while imports from Laos jumped 69.8% to USD 778.2 million.
In the first half of this year, imports from Laos soared 45.3% year-on-year to USD 514.6 million. Key imported items included rubber, wood and timber products, fertilizers, vegetables, ores and minerals.
Exports edged down 6% year-on-year to just USD 309.4 million during the period. Vietnam mostly shipped to Laos iron and steel products, vehicles and parts, machinery and components, fertilizers, plastics and vegetables.
Vietnam has so far invested some USD 4.3 billion in 417 projects in Laos, making it the third largest investor there. Laos has given priority to Vietnamese investors in multiple areas, including clean agriculture, and processing and manufacturing.
One of the biggest Vietnam-funded projects in Laos is Vinamilk Lao-Jagro dairy complex, worth some USD 66.4 million, in Xiangkhouang. Vinamilk, Vietnam’s leading milk producer, has recently imported 1,000 Holstein-Friesian dairy cows from the U.S. for its farm in Laos.
The two countries are believed to have huge potential to expand cooperation in electricity and mining. They are striving to raise the bilateral trade by 10 – 15% this year after two years suffering from economic fallout caused by the COVID-19 pandemic.
Source: VNA