The central city of Da Nang plans to relaunch a direct air route to Pakse, in Laos' province of Champasak, in a bid to boost investment, co-operation and tourism in the years to come.

The announcement was made by the city's secretary Nguyen Xuan Anh during a working visit to Champasak province in Laos on October 26.

He said the two cities, Pakse and Đa Nang should increase investment, trade, tourism, and education by re-opening the direct flight that was halted shortly after its original launch in 2013.

Xuan Anh, who is chairman of Đa Nang's People's Council, said Đa Nang offers investment projects in infrastructure, urban development, trade service and tourism in south and central provinces of Laos.

The two cities also agreed on co-operation programmes in 2018-22 including education, trade, tourism, heath and urban development.

As scheduled, Đa Nang will support Champasak with total funds of VNĐ21.74 billion (nearly US$1 million) for social security and heath care.

The city allocated an assistance fund of VNĐ5.8 billion ($258,000) for Champasak following a Memorandum of Understanding in 2013-17.

Đa Nang has only one investment project in Chamasak, out of 271 foreign direct investment projects.

The central had signed assistance projects for provinces in Laos worth a total $2 million from 2013 to 2017.

The city inked 29 Memorandums of Understanding (MoU) with cities and provinces such as Vientiane, Savannakhet, Champasak, Sekong, Salavan, Attapu, Bolikhamsay and Xaynhaburi.

According to the city's investment and planning department, Đa Nang has invested $52.3 million in Laos' garment, mine ore, industrial and agricultural sectors.

Last year, Đa Nang exported petrol, rubber and plastics to Laos worth $34.4 million.

According to the latest report from the Association of Viet Nam Investors to Laos (AVIL), Viet Nam's investments in Laos now total $5.3 billion in registered capital, with annual growth rates averaging 30 per cent over the last five years.

Investments registered in Laos account for roughly one quarter of Viet Nam's overseas investments of $20.2 billion. — VNS