Laos, Vietnam reach border trade agreement
Laos, Vietnam reach border trade agreement
Laos and Vietnam have signed an agreement on bilateral border trade aiming to further boost the value of two-way trade between the neighbouring countries.
The agreement was signed in the central province of Nghe An on Saturday, which was also attended by Deputy Prime Minister in charge of economic affairs Somsavat Lengsavad and his Vietnamese counterpart Nguyen Xuan Phuc.
Minister of Industry and Commerce Ms Khemmani Pholsena represented the Lao government to sign the agreement in the presence of high-ranking officials from both sides.
The new border trade agreement comprises 23 articles, documenting that all border gates on land are open to trade, according to a report from the VietNamNet online newspaper on Monday.
VietNamNet also stated that the import tax rates for goods made in Vietnam and Laos, as well as various products made by Vietnamese investors in Laos, will be reduced to zero.
The agreement regulates payments for trans-border trade, controls the transportation of cash via border gates and manages the entry-exit regulations for humans and vehicles.
Deputy PM of Vietnam Mr Phuc hailed the agreement as highly significant since it will create a legal basis for boosting bilateral trade in line with the two countries' time-honoured friendship and comprehensive cooperation.
He said the agreement provides a legal foundation for both countries to promote trade with tariff exemptions for goods from the respective parties when they cross the border.
The governments of Laos and Vietnam have also agreed to set up a joint Steering Committee on Border Trade and organise a biennial cooperation conference on the development of Lao-Vietnamese border trade, and encouraged the establishment of a border trade entrepreneur association.
Earlier this year, the governments of the two countries also launched a “one-stop-shop” project at the Dansavan-Lao Bao international border checkpoint in Savannakhet province.
The move aimed to facilitate the transportation of goods between the countries and boost two-way trade. In fact, Laos and Vietnam have set a target to increase two-way trade to US$2 billion in 2015.
The governments of the two countries are committed to accelerate the implementation of the Laos-Vietnam cooperation strategy from 2011 to 2020, a separate agreement on Laos-Vietnam cooperation in the Lao provinces of Huaphan and Xieng Khuang until 2020, and also the 2011-2015 cooperation agreement.
In addition, Lao and Vietnamese goods will continue to be entitled to preferential export-import tariff rates. The respective business communities will be apprised of any available tax incentives and receive ongoing support in border customs clearance.
The two sides also agreed that a plan for building markets along the Laos-Vietnam border, to run until 2020, must be carried out.
Vietnam is one of the biggest foreign investors in Laos. Vietnam has set a target to increase its investment in Laos to US$5.8 billion in 2015, an increase on the current value of about US$5 billion per annum.
