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| Photo: MoIT |
The MoU was exchanged between the Ministries of Industry and Trade of the two countries on December 1, in a ceremony witnessed by Vietnam’s Party General Secretary To Lam and Laos’ General Secretary and President Thongloun Sisoulith. The event took place during To Lam’s state visit to Laos, coinciding with the 50th anniversary of the country’s National Day and a high-level meeting between the Communist Party of Vietnam and the Laos People’s Revolutionary Party.
The Vietnam-Laos industrial linkage chain is a comprehensive cooperation model connecting enterprises from both countries across the production and commercial sectors. It aims to create an integrated network covering all stages of the value and supply chains, including raw material supply, production, processing, assembly, manufacturing, design, and the distribution of products in domestic, regional, and global markets.
The linkage chain encourages the active participation of small and medium-sized enterprises, as well as businesses operating in industrial parks, special economic zones, and cross-border economic cooperation zones of both sides.
Under the MoU, the two sides will develop the industrial linkage chain based on equality and mutual benefit, with full respect for national independence, sovereignty and territorial integrity, in line with the laws of each country and international treaties to which both are parties.
The initiative aims to encourage and deepen cooperation among manufacturing, import–export, and commercial enterprises, thereby creating breakthroughs in encouraging bilateral trade and bringing the Vietnam–Laos relationship towards greater substance and effectiveness.
Additionally, the linkage chain seeks to maximise the potential and comparative advantages of each side, foster technological advancement and innovation, and create breakthroughs in productivity and quality for businesses in both countries. It also aims to strengthen the capacity of enterprises to engage more deeply and meaningfully in global supply chains.
From now until the end of the decade, Vietnam and Laos will focus on developing industrial linkage models in key sectors, including materials such as cement, iron and steel; chemicals; textiles and footwear; mechanical manufacturing and transport equipment; dairy; electronics, including components and hardware; processing industries covering agricultural, forestry and aquatic products as well as food processing; mineral extraction and processing; and renewable energy, including hydropower, wind and solar, alongside electricity transmission and power trading.
During implementation, both countries have pledged to support each other in key initiatives, including the joint development of a Vietnam-Laos Industrial Park pilot model and collaborative research to provide data and inform policymaking for the industrial linkage chain.
Both countries have designated the Vietnam Institute of Industry and Trade Strategy and Policy (VIOIT) and the Lao Institute of Industry, Commerce and Energy (IICE) as focal points to coordinate the implementation of the memorandum. A joint working group, co-chaired by VIOIT and IICE, may be formed to oversee activities, develop annual or biennial work plans, and submit periodic reports to the ministers of both countries.
