Laos Investment Review

Laos and Cambodia have reaffirmed their commitment to deepen economic integration and finalize outstanding border demarcation, setting a bilateral trade target of $700 million by 2030 as both governments look to translate long-standing political ties into stronger commercial outcomes.

The commitments were made during the 16th Summit between the Cambodian People’s Party and the Lao People’s Revolutionary Party, held in Phnom Penh on February 7. The meeting was led by CPP President and Cambodian Senate President Hun Sen and LPRP General Secretary and Lao President Thongloun Sisoulith.

Sisoulith’s visit to Cambodia on February 6–7 followed an official invitation from King Norodom Sihamoni. He was accompanied by Lao Prime Minister Sonexay Siphandone, who also held bilateral talks with Cambodian Prime Minister Hun Manet.

Border progress seen as foundation for trade growth

At the party-level summit, leaders from both sides expressed satisfaction with stability along the shared border, describing it as a key enabler of economic cooperation and cross-border investment. According to a statement from CPP spokesperson Chea Thyrith, Cambodia and Laos have completed 86 percent of their border demarcation, with the remaining 14 percent now prioritized for resolution.

The two sides emphasized continued cooperation on border security and the joint fight against transnational crime, positioning border stability as essential to long-term peace and investor confidence in frontier provinces.

For businesses operating in logistics, agriculture, energy, and resource-based industries, the completion of border demarcation is viewed as a practical step toward reducing uncertainty and improving the flow of goods, labor, and capital between the two markets.

Trade ambition far exceeds current volumes

Despite close political ties, bilateral trade remains relatively modest. Current two-way trade stands at approximately $250 million, well below the newly announced target of $700 million by 2030. Leaders from both parties acknowledged the gap as evidence of untapped potential rather than a structural limitation.

During the summit, Sisoulith thanked the Cambodian government and people for their continued support for Laos, describing the relationship as one based on equality and mutual respect. He noted that party-to-party cooperation remains a central pillar of broader government-to-government relations, helping to maintain policy continuity across political cycles.

Hun Sen and Sisoulith jointly urged their respective governments to intensify economic cooperation, particularly in trade, national defense, and investment facilitation, while also encouraging preparations to mark the upcoming 70th anniversary of diplomatic relations between the two countries.

Infrastructure and connectivity in focus

In parallel meetings at the government level, Prime Minister Hun Manet and Prime Minister Sonexay Siphandone welcomed what they described as steady progress in bilateral relations across political, economic, and security domains.

According to statements shared via Hun Manet’s official channels, both leaders agreed to accelerate cooperation on transport and logistics infrastructure to facilitate cross-border trade. Improved connectivity is seen as critical to lowering trade costs and enabling both countries to leverage their respective geographic advantages.

Cambodia outlined its potential role as a logistics gateway for Laos, particularly through access to Cambodian seaports for Lao exports to international markets. In return, Laos could provide Cambodia with additional overland trade routes to regional and third-country destinations, reinforcing Laos’s long-term strategy of transforming from a landlocked economy into a land-linked one.

Beyond logistics, the leaders discussed expanding cooperation in banking, agriculture, energy, investment, people-to-people exchanges, and labor mobility, as well as continued coordination on border affairs and human trafficking prevention.

Strategic partnership amid regional uncertainty

In a separate statement issued by Cambodia’s Ministry of Foreign Affairs, both sides underscored the importance of maintaining strong bilateral ties amid an increasingly complex regional and global environment. The statement emphasized that deeper cooperation would help both economies remain resilient to external shocks while delivering tangible benefits to citizens and businesses.

As part of the 70th anniversary celebrations, Laos plans to organize cultural exchange days, while both governments agreed to increase high-level visits and joint activities throughout the year.

For investors and businesses tracking Mekong-region integration, the renewed focus on trade expansion, infrastructure connectivity, and border finalization signals a pragmatic push to convert political alignment into measurable economic outcomes. Whether the $700 million trade target can be achieved by 2030 will depend largely on execution—particularly in logistics, customs coordination, and private-sector engagement—but the latest commitments suggest both governments are aligning policy and diplomacy toward that goal.