• Sisoulith and Lâm’s relationship is rooted in historic political ties and mutual trust, driving deeper cooperation.
• With the help of Vietnam, Sisoulith is aiming to make Laos a regional investment hub, while Lâm is seeking to expand Vietnam’s strategic influence.
• Joint projects are strengthening trade, security, and development in both countries.

Why is there a romance between Sisoulith and Lâm?

Answer: Following historic tradition, the bilateral relations between Laos and Vietnam continue to strengthen through economic cooperation, infrastructure development, and joint security initiatives.

Built on long-standing historical and political ties, the strengthened relationship between Laos and Vietnam reflects a continuation of their special partnership, shaped by mutual trust and shared revolutionary legacies. Since assuming Vietnam’s top leadership as General Secretary of the Communist Party, Tô Lâm has worked closely with Thongloun Sisoulith, President of Laos and General Secretary of the Lao People’s Revolutionary Party, to strengthen bilateral ties between the two countries.

This relationship has long been framed as special, rooted in high levels of trust. Vietnam has traditionally held considerable influence in Laos, shaping its political and economic direction through close party-to-party ties. This legacy is actively being affirmed through renewed commitments to cooperation across different forums, such as ASEAN, signalling not only continuity but intensification as well.

Regular high-level visits between both leaderships have reinforced strategic cohesion, with a growing emphasis on long-term planning in response to uncertain regional and global developments. At the same time, Laos and Vietnam are prioritising deeper economic and institutional integration. A key objective has been to encourage Vietnamese investment in infrastructure projects across Laos, reflecting Laos’ view of Hanoi as a foreign policy priority, while also addressing institutional bottlenecks and improving cross-border resource management.

Moreover, Vietnam is also helping transform Laos’ geographic constraints as a landlocked country by providing access to maritime trade through projects such as the Vũng Áng Port. Laos-Vietnam security cooperation has simultaneously intensified, with both leaders and governments expanding coordination, particularly around border provinces. This effort focuses on tackling transnational challenges such as drug trafficking, human trafficking, and high-tech crime.

What does Sisoulith want?

Answer: Sisoulith aims to reduce Laos’ dependence on China by diversifying economic partnerships and positioning the country as an upcoming investment hub in Southeast Asia.

Closer ties with Vietnam offer Laos a way to rebalance its past heavy dependence on China. With public debt reaching US$15.9 billion in 2023, and inflation averaging around 25% between 2022 and 2024, this dependence has become increasingly difficult to sustain in the long term. While transformative, the large-scale infrastructure projects financed by both Chinese firms and the Chinese government— most notably the Laos-China Railway, which cost Laos an additional US$6 billion— have further entrenched China’s economic influence. Therefore, strengthening ties with Vietnam allows Sisoulith to diversify partnerships, while also avoiding Laos’ earlier heavy reliance on China.

By expanding cooperation, Sisoulith can also pave a path for Laos to attract alternative investment sources, develop cross-border projects, and improve both domestic and international coordination on border security. By doing so, Sisoulith is prioritising the creation of strategic leverage with Vietnam through diversification, broadening Laos’ economic and security partnerships while enhancing its role in the region.

At the same time, Sisoulith aims to address the institutional structural constraints that are limiting Laos’ economic potential as an investment hub. By prioritising reforms, such as a more effective mobilisation and use of state capacity, Sisoulith is hoping to create a more stable and efficient domestic environment that can sustain long-term growth and reduce vulnerability to external economic and political pressures.

What does Lâm want?

Answer: By strengthening cross-border peace and development coordination, Lâm is hoping to position Vietnam as a key economic and strategic hub in Southeast Asia. 

Since Lâm’s election in 2024, a central element of his foreign policy has been to utilise Vietnam’s coastline as a form of strategic leverage. By deepening ties with Laos, Lâm is seeking to position Vietnam as a key gateway for trade in Southeast Asia, strengthening the international relevance of the country’s economy. 

Lâm is also aiming to enhance security cooperation, emphasising this as a cornerstone of Laos-Vietnamese bilateral relations. Strengthened coordination along the countries’ shared borders would help address transnational threats and ensure long-term stability. By channeling Laos’ trade through Vietnamese ports, Lâm is turning infrastructure development into political influence and strategic trust. For Lâm, this emphasis on security reinforces Vietnam’s role as a reliable partner and stabilising force in the region.

Lâm views stronger Laos-Vietnam relations as a stepping stone to broader regional integration. At the ASEAN meeting in May 2025, he emphasised that deepening bilateral ties supports the bloc’s collective goal of economic integration and connectivity. These plans involve increased trade, freer movement of businesses and people, more transparent regulatory practices, and sustainability. By strengthening the nation’s cooperation with Laos to align with ASEAN’s plans, Lâm is consolidating Vietnam’s leadership position, while pursuing policies designed to attract foreign investment and enhance the country’s international connectivity. 

What is Sisoulith doing?

Answer: Sisoulith is advancing large-scale infrastructure and cross-border projects with Vietnam to boost connectivity, attract investment, and integrate Laos more deeply into regional trade networks.

Sisoulith, with the help of Vietnamese investments, has launched a series of development projects across Laos, leveraging the two nations’ strategic relationship to boost economic growth and regional integration. Part of this plan is a five-year roadmap to modernise Laos’ national transport system, with upgrades to roads, bridges, waterways, and railways aimed at improving connectivity and supporting sustainable development.

Key initiatives include the Laos-Vietnam and Vientiane-Champasak railway lines, which aim to boost cross-border trade with Vietnam. These projects are part of Sisoulith’s broader strategy to diversify Laos’ economic partnerships and loosen the Chinese grip, while also raising the country’s two-way trade with Vietnam toward a long-term target of US$10 billion.

By coordinating upcoming development projects with Vietnam, Sisoulith is using strategic cooperation to increase investment, expand trade flows, strengthen Laos’ regional influence, and ultimately transform Laos from a landlocked nation into a well-connected hub within Southeast Asia.

What is Lâm doing?

Answer: Lâm is using infrastructure, trade corridors, and maritime access to expand Vietnam’s economic reach and strategic influence in the region

Lâm is actively transforming Vietnam’s coastline into a tool of strategic leverage, providing Laos with direct maritime access. The Vũng Áng Port in Ha Tinh province, Vietnam’s nearest major port, gives Laos access to a measure of operational control. Additionally, this project reinforces Vietnam’s geopolitical influence while countering China’s presence in the region.

Lâm’s increased attention to boosting bilateral trade through coordinated efforts with Laos focuses on expanding commerce and investment flows and strengthening economic integration and mutual dependence between the two countries. These efforts align closely with the broader goal of enhancing Vietnam’s economic footprint in the region.

Moreover, Lâm is also prioritising sustainable development projects, extending across Southeast Asia. Developed in collaboration with Malaysia and Singapore, a 2,000-megawatt offshore wind energy project will, in its second phase, connect to Laos.

Who is winning?

Answer: Laos is gaining connectivity and diversification, while Vietnam is strengthening its regional influence, making the partnership mutually reinforcing rather than zero-sum. 

With both leaders actively advancing their shared goal of deepening bilateral ties, it is clear that Vietnam and Laos are benefiting mutually, each leveraging the partnership to pursue their strategic objectives. With major projects such as the Laos-Vietnam and Vientiane-Champasak railway lines, as well as the offshore wind energy project, regional connectivity is being enhanced. The initiatives are also expanding cross-border trade and investment opportunities while supporting sustainable development projects.

The deepened cooperation at the provincial level and the improved security and stability along the shared border provide a structured framework for continued collaboration between the nations. Bilateral agreements such as the Laos-Vietnam Cooperation Strategy for 2021-2030 and the 2021-2025 Cooperation Agreement further support this. Furthermore, efforts to boost trade and step up parliamentary coordination demonstrate the successful translation of strategic goals into effective outcomes.