Laos, Vietnam reach new trade agreement
Laos, Vietnam reach new trade agreement
L aos and Vietnam have reached a new bilateral trade agreement which seeks to boost trade and investment activities between the two countries.
The 2015 trade agreement was signed yesterday in Vientiane between Laos' Ministry of Industry and Commerce and Vietnam's Ministry of Industry and Trade.
The event was witnessed by Deputy Prime Minister in charge of economic affairs, specifically production and goods circulation, Mr Somsavat Lengsavad, along with senior officials from line ministries of the two countries.
Laos' Minister of Industry and Commerce, Ms Kemmani Pholsena, said the two ministries have paid close attention to implementing and establishing the bilateral agreement to boost and enhance the special relationship and comprehensive cooperation between the two neighbouring countries.
It also seeks to promote access to goods, markets and services, and develop connectivity between Laos and Viet nam in a way that is stable, sustainable, and long lasting.
She said this agreement will replace the existing pact signed on March 9, 1998, in Vientiane and the agreement regarding priority on customs tariffs for import commodities signed on December 1, 2011, between the governments of Laos and Vietnam.
The agreement comprises six chapters and 16 articles relating to goods trade and trade in services, trade facilities, access to markets and other aspects.
The new agreement is based on strategic trade cooperation between the two countries that suits the current situation of economic integration in the region and further afield.
“Laos and Vietnam are members of the World Trade Organisation (WTO) and we are preparing to become members of the Asean Economic Community at the end of this year,” Ms Kemmani said.
Thus, this pact is a very important basis for the legal framework for trade and investment activities, she added.
The previous agreement contains general principles but the new agreement will place a separate focus on the trade and investment sectors.
This new agreement will contain deeper and more comprehensive principles, she added.
In addition, the new agreement will serve to increase and boost trade and investment activities and trade volumes between the two countries.
According to a previous report, the two countries set a target to increase Vietnamese investment in Laos to US$5.8 billion by 2015, an increase on the current total value of about US$5 billion.
Laos has so far granted investment licences to 413 Vietnamese projects with a combined capitalisation of around US$5 billion, making Vietnam the second largest investor in Laos after China.
Bilateral trade value between Vietnam and Laos in the first nine months of 2014 reached US$995 million, with bilateral trade expected to reach US$1.4 billion for the entire year.
Total trade value between the two countries is expected to reach US$2 billion in 2015.
