Hanoi, Vietnam – April 24, 2024 – FSI was honored to welcome H.E. Malaithong Kommasith, Minister of Industry and Trade of Laos, leading a delegation to visit and work at FSI’s head office in Hanoi.
The visit was part of the bilateral cooperation framework between Vietnam and Laos, aiming to promote economic, trade, and investment cooperation between the two countries, especially in the fields of digital technology and innovation.
During the working session, Mr. Doan Huy Thuan, CEO of FSI, introduced to the Lao delegation the data-based digital transformation solutions that FSI has researched, developed, and continuously improved over the years. In particular, the digitalization solutions for the logistics sector provided by FSI offer many outstanding advantages. These will be advanced and modern technological solutions, contributing to facilitating trade between Vietnam and Laos towards building a smart border gate model and promoting export-oriented agricultural production.
The Lao Minister of Industry and Trade acknowledged that the solutions proposed by FSI are a necessary trend, in line with the development of the times, and will help facilitate trade between the two countries. Digital transformation is one of the key priorities of Laos as it assumes the chairmanship of ASEAN in 2024.
Promoting Vietnam-Laos Trade
Stretching over 2,330 kilometers, the Vietnam-Laos land border boasts 33 operational border gates, including 9 international border gates, 6 main border gates, and 18 secondary border gates. This geographical proximity and longstanding friendship serve as a solid foundation for fostering trade between the two nations.
Statistics from the General Department of Vietnam Customs indicate that Vietnam-Laos trade reached 1.65 billion USD in 2022, reflecting a 24.1% increase compared to 2021. Border trade plays a pivotal role in bilateral trade cooperation, accounting for 90% of the total Vietnam-Laos trade value. Despite these achievements, bilateral trade volume remains modest, representing only about 10% of Laos’s total import and export of goods with the world and 0.2% of Vietnam’s global trade.
One of the identified challenges is the relatively high logistics costs for transporting goods between Vietnam and Laos compared to direct competitors in the market. Long transportation distances, poor road quality, and the mountainous terrain of many routes diminish the competitiveness of Vietnamese goods exported to Laos. Reducing logistics costs is crucial to enhancing the competitiveness of Vietnamese goods in the Lao market.
Recognizing the significance of digital transformation in promoting Vietnam-Laos trade, the two countries reached a consensus on strengthening the application of information technology (IT) in customs procedures and customs declaration data collection during the signing of the new Vietnam-Laos Trade Agreement on April 8, 2024. This is considered an effective solution to address the aforementioned issues, aiming to shorten clearance times, reduce costs for businesses, and enhance transparency.
Contributing to Trade Promotion through Digital Technology Capabilities
During the working session, FSI representatives introduced comprehensive digital transformation solutions for digitalization and digital transformation, aimed at promoting Vietnam-Laos trade with a focus on facilitating import and export and promoting international logistics services towards a smart border gate model.
A key aspect is the establishment of a unified information system to manage information on trade and cross-border cooperation. This includes establishing common data standards and utilizing modern software technologies to facilitate information sharing and interaction between border gate pairs.
Currently, FSI’s product and solution ecosystem, with over 50 products, encompasses four main areas: Connecting sources and creating data; Data storage, data mining and big data processing; Applying data results to operations to help customers improve operational efficiency through data-driven decision-making.
With the motto of continuous improvement, innovation, and development, FSI is committed to providing a digital transformation solution ecosystem with cutting-edge technology and leading services. As a trusted partner, FSI will accompany agencies and organizations throughout the process to comprehensively solve data management issues in border gate management, leading to the effective development of Vietnam-Laos cooperation.
FSI representatives and related units proposed to the Lao Ministry of Industry and Trade leaders a specialized activity chain for communication, training, and collecting feedback from relevant units on digitalization and digital transformation in international logistics development management.
Training and knowledge sharing aim to ensure that consular officers, customs officers, or border guards at border gate pairs are trained and instructed to use new technologies and understand the digital transformation process. In addition, knowledge and experience sharing between border gate pairs can help strengthen cooperation and border management efficiency.