FOREIGN RELATION NEWS
Both sides have committed to purchasing 3,000 MW of electricity by 2025 and 5,000 MW by 2030.
On October 21, at the Government Office, Deputy Prime Minister and Minister of Foreign Affairs Bui Thanh Son met with Phosay Sayasone, the Lao Minister of Energy and Mines, who was on an official visit to Vietnam from October 19-21.
Deputy Prime Minister and Minister of Foreign Affairs Bui Thanh Son and Lao Minister of Energy and Mines Phosay Sayasone.
Extending congratulations to Laos for successfully chairing ASEAN 44, 45, and AIPA 45, Deputy Prime Minister and Minister of Foreign Affairs Bui Thanh Son emphasized that Laos is a responsible member whose role and voice are increasingly respected. Laos actively contributes to the stable and sustainable development of the region while promoting cooperation between ASEAN and its partners for peace, stability, and prosperity in the region and the world.
In recent times, the cooperation between Vietnam and Laos has continued to make significant and practical strides. Political trust has been strengthened, highlighted by the annual high-level meetings between the two countries’ leaders (September 2024) and mutual visits. Defense and security cooperation has also been enhanced, while economic and trade connections have been promoted. The two-way trade turnover is estimated to reach $1.7 billion in the first 10 months of 2024, and it is expected to meet the goal of a 10-15% increase, as set in the cooperation plan between the two governments. Cooperation in other areas has also seen notable results.
"Vietnam always places great importance on and gives the highest priority to the special relationship between Vietnam and Laos," Deputy Prime Minister Bui Thanh Son emphasized.
Particularly, he praised the positive outcomes in energy and mining cooperation between Vietnam and Laos, which has seen active and continuous development. He noted that this sector will be one of the key pillars of economic cooperation between the two countries moving forward.
To implement the agreement between the two Politburos in September 2024 and prepare for the 47th Vietnam-Laos Intergovernmental Committee meeting in early 2025, co-chaired by both Prime Ministers, Deputy Prime Minister Son urged both sides to accelerate the execution of assigned tasks in electricity and coal trading and increase investment between the two nations.
Specifically, regarding electricity trade, both parties need to focus on implementing the 2006 Memorandum of Understanding on electricity trade. Should Vietnam’s electricity import capacity from Laos exceed 5,000 MW by 2030, Deputy Prime Minister Son requested that Vietnam’s Ministry of Industry and Trade and Laos’ Ministry of Energy and Mines promptly report to the respective governments to consider adjusting the content of the MoU related to hydropower projects and electricity trading to suit the actual situation.
He also suggested that the Lao Ministry of Energy and Mines direct a comprehensive review of potential electricity projects in Laos aiming to export electricity to Vietnam from 2025 to 2030, and send this information to Vietnam’s Ministry of Industry and Trade for research and reporting to the government. Should any issues arise during implementation, both ministries should closely coordinate and report any challenges beyond their authority for government review.
Regarding the price of imported electricity after 2025, the Vietnamese government has authorized the Minister of Industry and Trade to decide on the price framework for electricity imports from Laos for 2026-2030, based on principles of balanced benefits, shared risks, and market mechanisms. The Minister of Industry and Trade has already issued the price framework for electricity imports from Laos for this period (as of October 8, 2024). However, based on recent discussions between Prime Minister Pham Minh Chinh and senior Lao leaders at the ASEAN Summit, the Prime Minister has tasked the Ministry of Industry and Trade with recalculating an appropriate electricity purchase price in consultation with Laos.
Deputy Prime Minister Son welcomed the Ministry of Industry and Trade’s swift formation of a task force on electricity trading between Vietnam and Laos, led by ministry officials, which demonstrates Vietnam's strong commitment to advancing bilateral energy cooperation.
As for coal cooperation, Lao coal will be a crucial input for Vietnam’s electricity production in the near future. The Vietnamese government has approved the policy of importing coal from Laos, following market mechanisms and regulations. On this basis, Deputy Prime Minister Son urged both ministries to expedite the research, negotiation, and signing of a coal trade cooperation agreement during the upcoming 47th Intergovernmental Committee meeting.
He also commended the collaboration between Vietnamese and Lao businesses in constructing a conveyor belt system between the two countries. "I am confident that there will be more partnerships between our businesses to implement key projects, contributing to the growth of trade and industry relations between Vietnam and Laos, and boosting the economic growth of both nations," Deputy Prime Minister Son expressed.
On the Lao side, Minister of Energy and Mines Phosay Sayasone thanked the Vietnamese government for its continued support and emphasized that many Vietnamese businesses are investing in energy and mining in Laos.
Notably, both sides have committed to purchasing 3,000 MW of electricity by 2025 and 5,000 MW by 2030. Vietnam has approved the import of 2,939 MW of electricity from Lao projects, with contracts already signed for 2,239 MW, meeting 74.3% of the 2025 target.
Minister Phosay Sayasone suggested that both countries continue discussions at all levels to ensure energy and mining remain a strong area of cooperation, expressing confidence that future collaboration will yield even greater results.
Ngoc Mai