The agreement comprises 23 articles, regulating sell-purchase movements, goods exchange for people who lives alongside the border, border market; and the agreement of both parties on the borders that allows border trade activities and support services based on special mechanism that accommodate border trade activities, in consistent with bilateral and multilateral agreements of both countries. Customs exception, tax on import-export and VAT is reduced to zero for goods from Laos and Vietnam in order to enhance the investment in border area, high land, and rural area as well as products that Vietnamese invested in border provinces of Laos before exporting to Vietnam.

In addition, the agreement includes regulations on payment, inspection on cash transaction via border as well as managing the entry-exit of citizens, vehicles, phytosanitary, and goods inspection of Laos-Vietnam border trade. In order to boost trade, investment and tourism cross borders, it is agreed to set up a joint Steering Committee on Border Trade and encourage the establishment of border trade entrepreneur association. The border trade agreement is not only create legal basis, and opportunities to both countries to enhance cooperation on trade, investment and services in border area but also actively promote an extraordinary friendship between Laos-Vietnam.

Source: Lao Economic Daily

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