During the state visit by Vietnamese Party General Secretary To Lam to the Lao People's Democratic Republic, marking the 50th anniversary of Laos' National Day (02/12/1975 – 02/12/2025), top leaders from both parties and states witnessed the signing of several important cooperation documents on December 1st.
The documents include the Memorandum of Understanding (MoU) between the two Ministries of Industry and Trade on developing an industrial chain linkage, aiming to upgrade their economic cooperation model, effectively leveraging each country's comparative advantages, and creating new momentum for bilateral trade and investment.
The MoU outlines six main areas of cooperation:
Firstly, to establish the Vietnam-Laos industrial chain linkage. This model promotes multi-dimensional cooperation among businesses from both countries in manufacturing and commercial activities, creating a tightly-knit network across all stages of the value and supply chains. This includes, but is not limited to, raw material supply, production, processing, manufacturing, design, and product distribution in domestic and international markets of both countries. The industrial chain encourages active participation from small and medium enterprises and businesses in industrial parks, special economic zones, and border economic cooperation zones of both countries.
Secondly, to develop the industrial chain linkage on the basis of equality and mutual benefit, respecting each other's national independence, sovereignty, and territorial integrity, in accordance with each country's laws and international treaties to which they are members. Both sides agree to build and develop the industrial chain to encourage and enhance cooperation among manufacturing, import-export, and commercial businesses, contributing to a breakthrough in boosting bilateral trade turnover, making the Vietnam-Laos relationship more substantive and effective. The development of the industrial chain aims to maximize the potential and comparative advantages of both sides, promote technology, innovation, and create breakthroughs in improving productivity and quality for businesses. Additionally, it aims to enhance the capacity of businesses to participate more deeply and valuably in the global supply chain.
Thirdly, to establish specific mechanisms and policies to identify and develop industrial chain linkages, ensuring focus and priority, initially selecting to develop business cooperation models that have established production and commercial relationships. When identifying and selecting linkage projects, both sides will encourage consideration of priority industries and regions, such as agricultural processing, light industry, businesses in special economic zones, and border economic cooperation zones. Pilot studies on industrial chain models for certain products in priority industries based on competitive advantages, specialization, and value chains between the two sides are encouraged. Creating a favorable investment and business environment, promoting trade development between the two countries, and encouraging cooperation in customs procedures to facilitate trade activities at border gates and logistics connections between Vietnam and Laos, including production corridors connecting Laos with Vietnamese seaports, are also emphasized.
Fourthly, in the period up to 2030, both sides will select the following industrial chain models to encourage development in fields such as materials (cement, iron, steel, etc.), chemicals, textiles and footwear, mechanical production, transportation vehicles, dairy industry, electronics (electronic components, hardware, etc.), processing industries (agricultural, forestry, aquatic products, food, etc.), mineral extraction and processing, renewable energy (hydropower, wind power, solar power), as well as electricity transmission and business.
The MoU also specifies that during the implementation of the Vietnam-Laos industrial chain, both sides commit to supporting each other in implementing key initiatives such as jointly developing a pilot model of the Vietnam-Laos Industrial Park and coordinating research to provide information and serve the policy development of the Vietnam-Laos industrial chain.
Fifthly, Vietnam will organize training programs for Lao officials, civil servants, and businesses in related fields to develop the Vietnam-Laos industrial chain. Laos will be responsible for identifying and selecting participants for training courses in Vietnam.
Lastly, the implementation of training programs will be coordinated by the Institute for Industry and Trade Strategy and Policy (VIOIT) of the Ministry of Industry and Trade of Vietnam and the Institute of Industry, Commerce, and Energy (IICE) of the Ministry of Industry and Trade of Laos. To ensure effective and prompt cooperation, a Joint Working Group may be established, co-chaired by VIOIT and IICE, to coordinate the implementation of the MoU, develop annual or biennial work plans, and submit periodic reports to the ministers of both sides.
The MoU between the Ministry of Industry and Trade of Vietnam and the Ministry of Industry and Trade of Laos on developing an industrial chain linkage is considered a strategic step in restructuring bilateral economic cooperation towards a more substantive and sustainable direction.
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