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SAVANNAKHET PROVINCE (LAO PEOPLE'S DEMOCRATIC REPUBLIC)

The Memorandum of Understanding on the formation of friendly and cooperative relations was signed in 2018, formally establishing the friendly and cooperative connection between Ho Chi Minh City and Savannakhet Province (Lao People's Democratic Republic). This friendship between the Socialist Republic of Vietnam and the Lao People's Democratic Republic has grown stronger over the course of their partnership and development, becoming an eloquent symbol of unique solidarity, great friendship, and significant subnational cooperation. With a strong emphasis on the development of freight infrastructure, economic corridor logistics connectivity, and the expansion of extensive cultural and intellectual exchanges, the two localities, which are important economic hubs propelling development, have established a comprehensive partnership by consistently converting diplomatic commitments into a number of tangible action projects.
SAVANNAKHET PROVINCE (LAO PEOPLE'S DEMOCRATIC REPUBLIC)
SAVANNAKHET PROVINCE

In terms of its economy and main advantages, Savannakhet is the largest province in Laos in terms of geographical size and has a particularly advantageous location along the East-West Economic Corridor (EWEC), which links Vietnam, Thailand, Myanmar, and Laos. With fundamental competitive advantages in cross-border transportation, processing industries, and energy, the province is currently the main economic engine propelling the Central-Southern Laotian region. The province's GDP grew by 5.9% in the first half of 2025, reaching a value of LAK 16.397 trillion, while per capita income was LAK 14.53 million. The three sectors of Savannakhet's economy—agriculture, industry, and services—all show steady growth, and the region's economic structure is highly integrated and undergoing constructive change. Situated along the Mekong River and connected to Thailand via the Second Lao-Thai Friendship Bridge, the city is rapidly transforming into a core commercial and inland maritime supply chain hub, driven by international-scale mining operations such as the Sepon and Phoukham mines, alongside the effective optimization of its diverse cultural heritage network and rich natural ecosystems.

In the areas of commerce and investment, urban infrastructure, and cross-border logistics, the two communities' collaborative accomplishments over the past several years have proven to be extremely significant and influential. In order to encourage foreign direct investment (FDI) flows, preferential Special Economic Zones have been strategically planned to further improve the bilateral connecting corridor. Flagship practical projects, such as the Savan-Seno Special Economic Zone (Savan Park) with a total investment capital of USD 74 million, assert its position as a pioneering logistics and industrial hub with a comprehensive business ecosystem, working in synchronized alignment with the Thakhek Special Economic Zone featuring a capital of USD 80 million that serves as a new trade gateway at the Third Lao-Thai Friendship Bridge, thereby creating a solid lever to boost exports and enhance the competitiveness of the business communities in both localities.

In order to draw in direct investment capital and establish strategic alliances with partners from Savannakhet Province in four crucial areas, Ho Chi Minh City is expanding its networks of partnerships, which are based on the foundation of sustainable traditional relations and the growing economic space of the Mekong subregion:

Freight Infrastructure and Cross-Border Logistics: Promoting joint research, connecting transport chains along the East-West Economic Corridor (EWEC), and transferring operational solutions for Inland Container Depots (ICDs) and cross-border smart logistics centers.

Processing Industry and High-Tech Mining: Partnering in value chain investments for the deep processing of agricultural and forestry products and applying core technologies in sustainable, eco-friendly mineral extraction management.

Trade, Services, and Border Economy: Collaborating on optimizing trade capacities through international border gate systems, developing trade connectivity programs, and implementing exclusive investment incentive policies within special economic zones.

Eco-Tourism and Cultural Connectivity: Expanding the scale of joint travel itineraries and promoting ecological experiential tourism packages along the Mekong River integrated with the preservation of diverse local cultural heritage.

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