Vietnam requested assistance from Laos to stabilize petroleum supply.

Vietnam requested assistance from Laos to stabilize petroleum supply.

The Lao Ministry of Industry and Trade has reached out to the Vietnamese side for assistance in stabilizing and ensuring a steady supply for the country’s petroleum market. Petroleum has seen significant growth and has become a major export from Vietnam to Laos in recent years. In fact, in January alone, petroleum exports to Laos represented approximately 20% of total turnover, amounting to $11.5 million USD, the highest since January 2023.

During talks on April 8, Lao Minister of Industry and Trade Malaithong Kommasith recommended that Vietnam continue to support and share experiences in managing the petroleum market to help stabilize the supply in Laos. In response, Minister of Industry and Trade Nguyen Hong Dien expressed readiness to support Laos in ensuring petroleum supply. The Ministry has encouraged Vietnamese wholesale traders to collaborate with Lao businesses to increase supply and help stabilize the petroleum market in the country.

Minister Dien also shared that Vietnam has released the National Petroleum and Gas Storage and Supply Infrastructure Plan for the period of 2021-2030 to facilitate cooperation in building petroleum depots between the two countries. Minister Nguyen Hong Dien emphasized the importance of maintaining stable exchange rates as well as favorable business conditions to ensure profitability for petroleum wholesalers and consistent supply for the market.

Petroleum is one of the key goods that is encouraged to increase exports to take advantage of the trade potential between Vietnam and Laos. The two countries have been experiencing a consistent growth in trade turnover, reaching $1.63 billion USD in 2023, with Vietnam exporting $533 million USD to Laos and importing $1.1 billion USD from the country.

To further explore this potential, the two sides have agreed on solutions to boost the export of goods, such as promoting trade, connecting businesses through forums, conferences, and fairs, and collaborating in developing border trade infrastructure and industrial parks. Additionally, with the rise of e-commerce, revenue is projected to reach $433 million USD by 2028, and Minister of Industry and Trade has urged Laos to develop policies that support businesses in this sector.

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