Vietnam has become Laos’s second-largest foreign investor, with more than 400 projects worth a combined USD 8 billion approved, according to the Lao Ministry of Foreign Affairs.
Vietnam ranks second among 53 countries investing in Laos, behind China, whose investment in the country totals USD 15 billion.
Lao authorities approved six new Vietnamese investment projects worth a combined USD 4.7 billion in the first eight months of 2026. The projects include large-scale investments in cross-border infrastructure, energy, and bilateral defense logistics.
Lao Deputy Prime Minister Saleumxay Kommasith and his Vietnamese counterpart Pham Gia Tuc discussed the figures during talks in Vientiane earlier this week.
The two officials also reviewed bilateral cooperation over the first nine months of 2026 and set priorities for the final three months of the year.
Their talks covered several major infrastructure and energy projects, including the Vientiane-Hanoi expressway, the proposed Vientiane-Vung Ang railway, electricity trade, and fuel pipelines and storage facilities.
Laos exported a record 2.92 billion kilowatt-hours (kWh) of electricity to Vietnam in 2025, with several hydropower projects sending power directly to Vietnam.
The two sides are also studying an oil pipeline linking Laos and Vietnam to improve energy security and reduce fuel transport costs.
Infrastructure Links
The second phase of the Vientiane-Hanoi expressway will cover 203.8 kilometers from Pakxan District to the Namsoi border checkpoint in Houaphanh Province. The section is expected to cost about USD 1.9 billion, with completion targeted for 2030.
The full expressway will eventually stretch about 700 kilometers through Laos and Vietnam, crossing Xaysomboun, Xieng Khouang, and Houaphanh before reaching Hanoi.
The proposed 562-kilometer Vientiane-Vung Ang railway would give Laos a direct rail link to Vietnam’s Vung Ang deep-water port in Ha Tinh Province, providing a faster route for Lao goods to reach international shipping routes. The project is estimated to cost USD 6.6 billion, with Laos and Vietnam sharing the cost.
Laos has completed about 90 percent of the preparatory work on its side. Construction is expected to begin in 2026, with trains targeted to start running in 2030. Officials say the railway could eventually carry goods from Laos and neighboring countries to shipping routes serving South Korea, Japan, China, and other markets.
The two sides also discussed education cooperation, including plans to build a new Lao-Vietnam Friendship University in Vientiane. Vietnam has pledged 1,300 scholarships for Lao students to study in Vietnam in 2026.
