Vietnam and Laos sign a new Trade Agreement

According to the Ministry of Industry and Trade, 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 (referred to as the Agreement), suitable for the current context. After a 3-year negotiation process, the two sides have agreed on the contents of the new Agreement.

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 connections for stable sustainable and long-term development. 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 5 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, after being signed on April 8 and put into effect, will contribute to solving problems that arise after a period of implementation of the Vietnam - Laos Trade Agreement 2015. It continues to improve the legal basis for trade activities between Vietnam and Laos; in particular, reviewing and offering preferential import tax rates ahead of the tax reduction roadmap of Vietnam and Laos in ASEAN. This incentive will create favourable conditions for import and export activities, contributing to further promoting Vietnam - Laos trade relations.