Leverage to increase the scale of Vietnam - Laos trade turnover

Quang Tri customs officers supervised import and export activities through Lao Bao International Border Gate. Photo: Thái Bình

According to the Ministry of Industry and Trade, trade turnover between Vietnam and Laos has only reached US$1.65 billion, only equal to 10% of total foreign trade turnover of Laos and 0.2% of total foreign trade turnover of Vietnam. So it is not commensurate with the potential and special relationship between Vietnam and Laos.

To exploit the potential for trade cooperation, recently, Minister of Industry and Trade of Vietnam Nguyen Hong Dien and Minister of Industry and Trade of Laos Malaithong Kommasith signed a new Vietnam - Laos Trade Agreement (April 8), after the negotiation process lasted three years.

The Vietnam - Laos Trade Agreement was first signed in 2015. The Governments of Vietnam and Laos assigned the Ministries of Industry and Trade of the two countries to negotiate, amend and supplement to build a new Vietnam - Laos Trade Agreement under the current context.

The new Agreement aims to strengthen and further consolidate the special friendship and comprehensive cooperation between Vietnam and Laos, promote market access for goods and services and create stable, sustainable and long-lasting development connections. The provisions of the Agreement are built on the principle of compliance with each country's respective laws, regulations and policies; equality, mutual benefit; working towards creating maximum convenience in exporting and importing goods and providing services, giving each other special incentives on trade in goods and services.

The Agreement consists of 5 chapters, corresponding to 15 articles and 05 annexes, covering important issues in trade cooperation between the two countries, including regulations on market access for goods and services; trade facilitation; trade promotion and e-commerce applications; cooperation against smuggling, trade fraud, money laundering and illegal cross-border transportation.

The new Vietnam - Laos Trade Agreement, once signed and put into effect, will contribute to solving problems that arise after a period of implementation of the Vietnam - Laos Trade Agreement in 2015; and continue to improve the legal basis for trade activities between Vietnam and Laos; In particular, reviewing and offering preferential import tax rates towards tax reduction roadmap of Vietnam and Laos in ASEAN will create favorable conditions for import and export activities, contributing to promoting more Vietnam - Laos trade relations.