Vietnam - Laos signed a memorandum of understanding on cooperation in the coal field

Following the direction of the Prime Ministers of the two countries on promoting cooperation in the energy field, especially in the coal field, and implementing the results of the 45th meeting of the Vietnam - Laos Bilateral Cooperation Committee in the recent time, the Vietnam MOIT and the Lao Ministry of Energy and Mines have coordinated closely together to develop and complete MOU in coal field for establishing a legal framework to facilitate bilateral cooperation in the coal field on the basis of equality and mutual benefit.

Signing Ceremony

Speaking at the signing ceremony, MOIT Minister informed that, in the recent years, cooperation in the energy field (especially in electricity) between Vietnam and Laos has been promoted, the two sides have signed up cooperation agreements to implement many investment projects and energy cooperation activities, such as the MOU between the Vietnam and Lao PDR Governments on cooperation in developing hydropower projects, linking electricity grids and importing electricity from Laos; promoting cooperation on the power purchase agreement; supporting the development of hydropower projects in Laos... These activities have yielded many results, brought the practical benefits to both sides, and contributed to deepening the special solidarity between the Parties, States and peoples of the two countries, as well as between the Vietnam MOIT and Lao PDR Ministry of Energy and Mines.

However, the Minister said, the results achieved are still not commensurate with the potential and strengths of each side. The potential for cooperation in these fields is still very large and should be strongly promoted, contributing to promoting the cooperation between Vietnam and Laos to a new height in order to realize the political commitments and determination of the two countries' senior leaders.

The MOU with many important contents to promote cooperation between the two countries in the coal trade field, especially the goal of exporting 20 million tons of coal from Laos to Vietnam each year depending on the actual condition of the market and the need of each party; promote investment cooperation in coal mining, processing and exporting, to enhance sharing of experience and capacity building in coal mining and processing. The MOU should be valid for 5 years.

The MOU will also facilitate coal trade between the enterprises of the two countries. Signing MOU is not only to affirm the termination of Vietnam MOIT and Lao Ministry of Energy in implementing the directives of senior leaders, contributing to perfecting the cooperation framework between Vietnam and Laos, consolidating the solidarity and special friendship between the Party, State and people of the two countries, but also contributing to ensuring national energy security, promoting the process of energy transition with Vietnam. At the same time, creating conditions for Laos to effectively exploit and promote its potentials and advantages to promote socio-economic development and ensure national defense and security.