Vietnam abolishes import taxes on Lao rice and tobacco
Vietnam abolishes import taxes on Lao rice and tobacco
Vietnam has abolished import taxes for Lao rice and tobacco as one of various measures to boost the supply of raw materials for its processing plants.
The Vietnamese Ministry of Industry and Trade made the announcement last week, citing that the latest move was part its efforts to boost the supply of key raw materials to meet the 2014 quota, The Voice of Vietnam reported on Monday.
According to the announcement, only Vietnamese firms who have an import license from the Vietnamese authorities can import rice and tobacco from Laos.
Lao goods imported into Vietnam must also go through specific border gates. The goods importers must also obtain certificates of origin from the Lao authorities.
Rice growers along the Lao and Vietnamese border provinces are expected to gain benefits from the abolishment of import taxes.
Each year Xieng Khuang province exports more than 300,000 to 400,000 tonnes of sticky rice to Vietnam, as it is a favoured ingredient in certain dishes.
An official from the Lao Ministry of Industry and Commerce, Mr Santisouk Phounesavath said that it was good for Vietnam to abolish import tariffs of Lao goods, adding tha t the move will encourage people to grow cash crops for export.
He also said that it was good to learn that Vietnam wants to import rice and tobacco from Laos, adding that the move will boost bilateral trade. The two nations have set a target to reach bilateral trade of US$5 billion in 2020.
Two-way trade between Laos and Vietnam over the fi rst 10 months of 2013 reached US$817 million, up by 13 percent compared to the same period last year.
Both sides agreed to strive for a 20 percent growth in two-way trade next year, up from the US$1 billion expected for the year ending this month.
Mr Santisouk, who is also director of the multilateral trade policy division at the Lao Ministry of Industry and Commerce, said that Lao farmers should prepare themselves to grow rice and other cash crops for export.
He added that Asean countries have a policy to reduce import tariffs for each other as part of efforts to transform the region into a single market and production base.
Farmers should increase both the quantity and qua lity of the goods so as they can compete with foreign partners once the Asean Economic Community is formed in 2015, Mr Santisouk said.
He said that the farmers will not face tariff barriers anymore but non tariff barriers will still pose obstacles, such as the quality of Lao goods must meet international standards before they can enter foreign markets.
“Foreign trading partners can impose standards on incoming goods as protective measures after the abolishment of import tariffs,” he said, adding that if Lao farmers do not produce goods to meet international standards they will have difficulties exporting them.
vientiane times
