A number of companies from Hanoi and Vientiane on November 24 inked nine memoranda of understanding (MoU) to enhance cooperation between the two business communities.

Companies from Hanoi and Vientiane sign memoranda of understanding on November 24. Photos: The Hanoi Times

Under the MoUs, local enterprises in the two capitals will exchange information, help each other expand market coverage, and support each other in goods consumption and transportation.

Of the nine agreements, one will allow businesses in Hanoi and Vientiane to study and expand markets, develop material sources, and transfer technology.

Another agreement will facilitate enterprises of the two nations to strengthen their road logistics. Seven others will enhance their ability to sell and consume their products in local markets.

The agreements were signed as part of a conference held in Vientiane, the capital of Laos, to further promote trade relations between the two capitals. The conference was hosted by the Hanoi Department of Industry and Trade and its Vientiane counterpart.

It aims to enhance the implementation of the MoU ratified by the Party Committees and Governments of Hanoi and Vientiane to foster their decentralized relations in 2022-2025.

The event was also an opportunity for enterprises from the two capitals to discuss their cooperation and seek opportunities to expand their market coverage and investments in the two localities.

Nguyen Manh Quyen, Vice Chairman of the Hanoi People's Committee, said that Hanoi has advantages in producing farm produce, food, consumer goods, garments, handicrafts, and OCOP products.

Businesses in the two capitals have forged new ties, he said, citing the results of the conference on the development of material resources and consumption of goods held in the Lao city in April 2023.

At the conference, Nguyen Manh Quyen, Vice Chairman of Hanoi, visits a business pavilion.

Thirteen MoUs were signed at the April conference in the areas of transferring techniques, technologies, and breeds, developing and collecting materials, and providing support for end-use.

"Today's conference will open a new door for businesses in Hanoi and Vientiane to boost relations between the two capitals and their growth, thus facilitating their higher socio-economic performance," the Hanoi Vice Chairman said.

Official data at the conference showed that Hanoi and Vientiane have achieved better results in their bilateral relations, based on the long-standing traditional friendship and comprehensive cooperation between the two neighboring countries.

Laos is one of the largest recipients of Vietnamese investment. In 2022, Vietnamese enterprises invested US$180 million in Laos, up 52.5% year-on-year. To date, they have undertaken 214 projects in Laos with a total registered capital of US$5.3 billion.

Vietnam is now the third largest foreign investor in Laos with many effective projects in hydropower, infrastructure development, aviation, finance and banking, telecommunications, and agriculture.

On the other hand, Lao companies have executed five new projects in Hanoi with a cumulative registered capital of $4.3 million, bringing the total Lao investment in Hanoi to $10.5 million. Lao investors also bought shares in Hanoi companies for $6.2 million.

In 2022, Hanoi recorded a total trade value of $411 million with Lao partners. In January-October 2023, Hanoi exported about $95 million worth of goods to Laos. Major exports include minerals, electronic parts, chemicals, petroleum, food, fishery products, and garments.

Hanoi companies imported some $200 million worth of Lao products in January-October 2023, focusing on agricultural products, fertilizers, food, and wood articles.

On the night of November 23, the Hanoi delegation led by Vice President Quyen attended the opening ceremony of Laos National Tourism 2024 to explore potential opportunities in tourism. Laos aims to welcome 2.7 million foreign tourists and earn about $400 million in 2024.