Vietnam and Laos Boost Urban Development Partnership

Two neighbors are proving that sharing success stories can lift entire regions.

Vietnam and Laos strengthened their partnership on urban development when deputy ministers from both countries met in Hanoi on February 3. The meeting focused on sharing practical experience in city planning, infrastructure management, and sustainable growth strategies.

Laos is particularly interested in learning from Vietnam's urban transformation. Deputy Minister Detsongkham Thammavong of Laos praised Vietnam's progress in building stronger institutions and creating cities that balance growth with climate adaptation.

Vietnam's urban system is undergoing a major shift toward sustainability and smart city technology. Deputy Minister Nguyen Tuong Van explained that Vietnamese cities now serve as key economic engines, contributing significantly to national GDP and global competitiveness.

Vietnamese officials shared detailed insights during the meeting. Topics included how to coordinate urban planning between national and local governments, how to effectively combine loans and international aid for development projects, and how to keep infrastructure financially sustainable after completion.

The Ripple Effect

The collaboration extends far beyond planning meetings. Bilateral trade between Vietnam and Laos surpassed $3 billion in 2025 for the first time in their partnership's history.

Vietnam's investment in Laos jumped even more dramatically. In 2025, Vietnamese investment rose more than sevenfold to over $5.6 billion, bringing total cumulative investment to $6.21 billion across 276 projects.

These numbers place Vietnam among the leading investors in Laos. The economic partnership spans multiple sectors, from logistics networks along the East-West Corridor to wind power plants that help both nations meet clean energy goals.

Infrastructure development remains central to the relationship. As Laos accelerates its own urbanization, having a willing partner to share lessons learned saves time, money, and mistakes.

The February meeting represents more than diplomatic courtesy. It's a practical exchange between nations committed to lifting their citizens through thoughtful urban development and sustainable infrastructure investment.

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