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20 August 2024

Vientiane’s New Strategic Returns To Hanoi – Analysis

Collins Chong Yew Keat

Vietnam’s President To Lam made a first trip abroad since taking office with a visit to Laos in July last month, in enhancing a 62-year relationship between the two neighbours.

This serves as a message of intent and strong trust building capacity to preserve and elevate the values-based approach and basis of the bilateral ties between the two nations, as both share similar governance systems and external challenges and threats.

The visit is in response to the invitation from his Lao counterpart Thongloun Sisoulith, who is also Secretary General of the Lao People’s Revolutionary Party Central Committee.

With different agreements signed, it signals the intent by both sides to deepen the ties that will be firstly pinned on economic and trade enhancement and interdependence, and by using this as a basis and the fundamental platform for deeper ideological and political coordination and linkages.

As the first primary factor, Hanoi will want to consolidate regional economic friendshoring as a solid fundamental factor to build on more rapport and trust in securing security and geopolitical interests.

As Hanoi is traditionally dependent upon China and the greater archipelago members of the Southeast Asian nations for trade, investment and economic advancement, and with Russia and the US for the greater security and defence support, the Mekong region remains critical and strategic for Hanoi to increase its fallback and leverage options.

Two-way trade between Laos and Vietnam in the first quarter of 2024 reached US$476.8 million, an increase of 12 percent as compared to last year.

With a total registered capital of US$5.5 billion, Vietnam is among the top three foreign investors in Laos.

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