According to AEC connect, Laos’ fuel import from Vietnam rose by 439 percent and was worth USD 125 million last year.
Overall exports from Vietnam to Laos shot up by 10.4 percent to USD 656.4 million while other exports, including steel, dropped 15 percent to USD 60.1 million, and fertilizer surged up by 31 percent to USD 32.5 million.
Import of goods from Laos to Vietnam, on the contrary, rose by 34.6 percent to USD 1 billion, with primary products being wood, wood products, and asphalt.
Additionally, being under ASEAN Trade in Goods Agreement or Laos Bilateral Trade Agreement and the Vietnam – Laos Border Trade Agreement, most goods traded between Laos and Vietnam are tax-free. Over the past three years, Laos has become a popular destination for high-quality agricultural investments by businesses in Vietnam.
Another news report on Tuesday also suggested that the two-way trade income between the countries increased by 24 percent in 2022, crossing over USD 1.7 billion.
Earlier this week, The Siam Commercial Bank’s Economic Intelligence Center also predicted that Laos, Cambodia, Vietnam, and Myanmar will see potential growth in the economy in 2023.
Laos used to earlier rely on Thailand for fuel importation. However, PTT Oil and Retail Business Public Company Limited, which operates 53 petrol stations in Laos said that fuel supply just from Thailand may not be adequate.
Some local media, on the other hand, reported that due to the depreciation of the LAK currency, and the soaring inflation in Laos accompanied by the unstable oil market, it has become rather challenging for fuel importers to meet the needs of the public.