Vietnam Boosts ‘Special Relationship’ with Laos in President’s First Visit

In June, newly-elected Vietnamese President Tran Dai Quang made Laos his first overseas destination in yet another signal of the commitment by both sides to strengthen their “special relationship” following leadership transitions in the two countries.

On April 2, the Vietnamese National Assembly swore in Quang – an ex-public security minister and police general – as the country’s president following the country’s quinquennial Party Congress that determines leadership transitions in the communist state. Laos itself had gone through a similar transition, which saw Bounnhang Vorachith clinch the presidency. Since then, both sides have been exchanging visits, with the Lao president making Vietnam his first official visit from April 25 to April 27, followed by the Lao foreign minister and prime minister.

On June 12, Quang began his own three-day state visit to Laos, with Vietnamese officials stressing that this was yet another sign of the importance of the “special relationship” between the two nations as they prepare to commemorate the 55th anniversary of the establishment of their diplomatic relationship next year. During his visit, the president met with several high-ranking Lao officials – including his counterpart Bounnhang Vorachith, Prime Minister Thongloun Sisoulith, and National Assembly Chairwoman Pany Yathotou – with both sides pledging to cement bilateral relations in several areas.

The key focus was on enhancing economic ties. Vietnam is already one of Laos’ top trading partners and investors, and both sides signed a key border trade agreement last year designed to help improved ties. The two sides discussed how to advance this dimension of the relationship, including through policies and mechanisms to create a clearer legal corridor for Vietnamese investors. For instance, to emphasize the importance of boosting investment, Quang himself convened a workshop with Vietnamese businesses operating in Laos during his visit, stressing that both governments would offer better assistance to business with priority areas including energy, minerals, agriculture, and infrastructure development.

On the defense side, the key item of focus was managing the border that the two neighbors share. They signed two important legal documents – the Protocol on Borderline and Border Markers and the Agreement on Regulations on the Management of Border and Border Gates on Land. The two sides also reaffirmed the importance of continuing to search for and repatriate the remains of Vietnamese volunteer soldiers and experts who died in Laos. In addition, they pledged to ensure further implementation of the protocol on bilateral defense and security cooperation for 2016-2020.

Other aspects of bilateral relations, including people-to-people and cultural ties, also featured as part of the visit, which both sides highlighted as testament to their commitment to promoting wide-ranging cooperation. For instance, in the area of education, at present, close to 9,300 Lao officials and students are studying in Vietnam while 425 Vietnamese students are learning in Laos, according to official Vietnamese data. To signal the importance of investing more in this area, in addition to discussing measures to promote collaboration in education training and human resource development, the Vietnamese President also presented Sekong Province of Laos a school worth $1 million. Quang also met the Vietnamese community in Laos and said that he had asked the Lao government to consider amending several laws on the granting of citizenship and long-term residence cards to Vietnamese residents in Laos.

Vietnam and Laos also discussed subregional and regional issues as well. Chief among them was the sustainable management of the Mekong River – one of the world’s longest rivers, which flows from the Tibetan Plateau through China and mainland Southeast Asia. Landlocked Laos’ plan to build a string of dams to fuel its economic development has triggered concerns among its neighbors about how it could affect the river, which provides food, water, and transportation to tens of millions of people. Vietnam in particular has been concerned about the effects, with its Mekong Delta alone home to 20 million people and accounting for more than half of its rice and fruit production.

Unsurprisingly, the two sides also discussed the South China Sea disputes. Vietnam, a claimant in the disputes, has been concerned about how Laos, a non-claimant and close Chinese partner, will manage the issue in ASEAN forums. As they have done in recent visits, both sides agreed on the importance of maintaining peace, stability, security, and safety in the South China Sea and ensuring that disputes are settled by peaceful means and in line with international law. With Laos set to host two rounds of ASEAN summitry starting next month and a verdict on the Philippines’ South China Sea case against China expected soon, the issue is set to continue to dominate the headlines for the foreseeable future.

Following their meeting with Quang, the Lao prime minister and National Assembly chairwoman both said in a statement that his visit would help consolidate and develop the “time-honored friendship, special solidarity, and comprehensive cooperation” between the two countries. As we get closer to a key anniversary next year for both countries, we can expect the high level of diplomatic activity to continue into 2017.