Vietnam gets Laos Govt green light for VDS to own 20 per cent of shares in Vung Ang Port


HANOP/VIENTIANE, April 2 (Vientiane Times/ANN): A share transfer agreement for the Lao government’s 20 per cent shareholding in Vung Ang Port was signed between the Lao Logistics State Enterprise (LLSE) and Lao-Vietnam Vung Ang Port Development State Enterprise (VDS) in Vientiane.

The agreement was inked by VDS Chief Executive Officer, Mr Chanthone Sitthixay, and LLSE Director General, Souliya Manivong.

The event was witnessed by the Vietnamese Ambassador to Laos, Nguyen Ba Hung, PTL Holding Committee Limited Strategy and Planning Chairman, Mr Alounkeo Kittikhoun, Vientiane Logistics Park Company Senior Consultant, Mr Sila Viengkeo, and representatives of state and private organisations.

The Lao Logistics State Enterprise was established in 2010 under the direct supervision of the Ministry of Finance and holds a 20 percent stake in the Vung Ang Port in Vietnam.

In 2016, the Ministry of Finance issued an agreement to approve the Lao Logistics State Enterprise as a shareholder on behalf of the Lao government and to carry on operating joint ventures with Vietnam at Vung Ang Port.

In 2019, the Ministry of Finance signed a joint venture agreement with Petroleum Trading Lao Public Company to be named “Laos-Vietnam Vung Ang Port Development State Enterprise (VDS)”.

The governments of Laos and Vietnam then signed a protocol agreeing to allow the newly-established VDS to hold shares in Vietnam.

This meant the Lao Logistics State Enterprise had to return 20 per cent of the shares in Vietnam to the Ministry of Finance, represented by the VDS to carry on holding such shares.

Chanthone Sitthixay said the Vung Ang Laos-Vietnam Seaport is a strategic and significant project for public-private cooperation between the two parties, as it is a special Laos-Vietnam cooperation project.

Chanthone said the government of Vietnam has always been optimistic, attentive and committed to supporting the Lao government as well as the Lao people and it has been demonstrated that Vung Ang Seaport is an important strategy for the Lao government to use as a vision for the socio-economic development of Laos.

Development of the Laos-Vietnam Vung Ang Seaport Development Project as the Laos-Vietnam Vung Ang Development State Enterprise is a historic milestone since President Kaysone Phomvihane and President Ho Chi Minh supported Laos as a landlocked country to develop in a sustainable and stable way in the long term.

The government of Vietnam issued the agreement to allow the Lao government to use the Vung Ang Seaport. According to the project implementation plan, the upgrade and construction are expected to begin in 2021, with Phase 1 to be completed in 2023.

The Vung Ang Seaport is a deep-sea port that is very important in the water transport sector in central Vietnam as well as in central Laos in order to integrate trade in the region and in response to the policy of the Lao government to give Laos access to the sea and become a transit and connecting point for transportation for the common benefit of the region. - Vientiane Times/ANN

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Vietnam , VDS , Laos , Port , Agreement , Vientiane

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