Vietnam to strengthen trade and investment cooperation with Lao and Cambodia

Friday - 19/08/2016 05:26
tải xuống
tải xuống

During the national level visit to Lao and Cambodia from 12-16 June, 2016, President Tran Dai Quang and his counter parts agreed on promoting economic, trade and investment development between Vietnam and Lao and Vietnam and Cambodia.

Strengthen trade and investment cooperation with Lao

During his visit to Lao, President Tran Dai Quang had talks with Lao's General Secretary-President Bounnhang Vorachith and other meetings with Lao Prime Minister Thongloun Sisoulith and Lao Chairman of National Assembly Pany Yathotou.

n the talks, the two sides reinforced commitments to effectively implement the new trade agreement and the Vietnam-Lao Border Trade agreement (signed in 2015), continue strengthening and improving the connection and mutual support between the two economies, construct roads to connect key economic zones of the two nations.

At the meeting, President Thongloun Sisoulith pledged his support for consolidating coordination to review and remove barriers, facilitating enterprises of the two countries to deploy joint venture investment projects.

Mr. Pany Yathotou, Chairman of Lao National Assembly also committed to support cooperation with Vietnam National Assembly to increase the monitoring and implementation of agreements between the two countries; review legal documents to facilitate Vietnamese community in Lao in working, doing business, studying and living, contributing to the socio-economic development of Lao.

During the visit, in the afternoon of June 13th, President Tran Dai Quang visited Champasak province in the South of Lao.

According to Mr. Bunthong Divixay, member of the Lao People's Revolutionary Party Central Committee cum Governor of the Lao's province of Champasak, the province is one of the biggest rice producing area of Lao. Other notable potentials are tourism, minerals, natural resources and agroforestry.

 

He also noted that Champasak has been working with many provinces and cities of Vietnam and the province's highest share of FDI was attributed to Vietnam. It is estimated that 3,597 Vietnamese are currently living and working in the province. Vietnam's 44 FDI projects into Champasak, accounting for 51% of the total share (equivalent to USD 326 million), is said to effectively contribute to the economic development of the province. So far, four Vietnamese banks have opened branches in the province.

Mr. Bunthong expressed hope for the strengthened multi-faceted cooperation with provinces of Vietnam, attracting more FDI projects from Vietnam.

Mr. Bunthong and President Tran Dai Quang agreed that Champasak is a shining example for the cooperation development between and among provinces of the two nations, which actively contributed to the promotion of special solidarity and comprehensive cooperation between the two nations. The two leaders also insisted on the high importance of the consolidation and strengthening relationships among provinces of the two countries.

President Tran Dai Quang requested support from province's authorities to facilitate Vietnamese enterprises' investment and business in the region as well as generate favorable conditions for Vietnamese community to live, do business in the province which will ultimately result in the socio-economic development of the province.

Statistics by the Foreign Investment Department (MoIT) showed that out of the accumulated FDI into Vietnam which is due by the end of April, 2016, there are 10 projects by Lao's enterprises, equivalent to USD 75.1 million.

Calculation for Vietnam's FDI by the end of the first quarter in 2016 recorded USD 4.9 billion for Lao, placing the country on top of the list of 68 nations and territories with business activities by Vietnamese enterprises. Meanwhile, Vietnam ranked second among countries of highest FDI into Lao.

So far, many investment projects by Vietnamese enterprises in Lao have been effectively deployed and contributed largely to the socio-economic development of the country receiving acknowledgement and appreciation by Laos government, such as: investment projects by Hoang Anh Gia Lai Corporation, bank branches and joint venture banks from Vietnam, telecommunication projects by Viettel, construction projects for petroleum distribution by Petro Vietnam Oil and Petrolimex, a complex project on golf court, hotel, resident apartment by Long Thanh investment and trade joint stock company.

Regarding trade cooperation, according to the statistics by the General Department of Custom, in 2015, two-way trade revenue between Vietnam and Lao was more than USD 1.2 billion. Out of this, Vietnam's export revenue to Lao reached USD 534.7 million, and Vietnam's import revenue from Lao was recorded at USD 586.7 million.

In the first four months of 2016, trade revenue between Lao and Vietnam was USD 310.5 million. Out of which, Vietnam's export revenue to Lao was USD 152 million and Vietnam's import revenue to Lao was USD 158.5 million. As the result, in the first four months of this year, Vietnam experienced a trade deficit with Lao.

Vietnam's key exports to Lao are: iron and steel, products from iron and steel, assorted petroleum products, means of transportation and devices... In contrast, Vietnam's key imports from Lao are: wood and products from wood, assorted fertilizers, ores, products from ore...

In order to promote trade between the two countries, targets have been set towards 20% increase in two-way trade revenue in 2016, against that of 2015.

Strengthening economic cooperation with Cambodia

Economic, trade and investment cooperation between Vietnam and Cambodia has achieved positive results in recent years.

Particularly, in the first five months of this year, there have been three newly registered projects by Cambodian enterprises in Vietnam with registered capital of USD 3.1 million.

On the other hand, Vietnam's investment in 16/25 provinces and cities of Cambodia has increased continuously year on year. There have been 172 accumulated FDI projects by Vietnam in Cambodia until the end of May 2016, leaving Vietnam at the fifth place out of 50 FDI investors into Cambodia.

Vietnam FDI into Cambodia focuses on agroforestry, energy, finance, banking, insurance, postal, telecommunication, processing, manufacturing, warehouse transportation, exporting and importing, healthcare, construction...

As for trade cooperation, trade revenue between the two countries had notable achievements. Two-way trade revenue was USD 3.37 billion in 2015.  Statistics recorded for the first quarter of 2016 was USD 944.6 million (up 4.3% against the same period of 2015). Industrial goods such as products from iron and steel, fertilizers, textile, machineries and devices, plastic...) accounts for the highest share of Vietnam export revenue to Cambodia.

 

In the meeting between President Tran Dai Quang and Cambodia Prime Minister Hun Sen in the afternoon of June 15th, 2016, the two leaders have agreed on reviewing policies to quickly achieve the USD 5 billion target of trade revenue in the time to come. While at the same time, the two side to accelerate "the agreement on double taxation", develop plan to link the two economies, especially the promotion of border trade.

Source: Vietrade

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