Vietnam-Laos border trading development cooperation

Quang Binh Television

On September 27, in Dong Hoi City, the Ministry of Industry and Trade of the Socialist Republic of Vietnam cooperated with the Ministry of Trade and Industry of the Lao People's Democratic Republic to hold the 11th Vietnam-Laos border trade development cooperation conference. The conference was led by Mr. Tran Quoc Khanh, Deputy Minister of Industry and Trade of the Socialist Republic of Vietnam; Mr. Bounmy Manivong, Deputy Minister of Industry and Trade of the Lao People's Democratic Republic; Mr. Nguyen Xuan Quang, Member of the Provincial Party Standing Committee, Standing Vice Chairman of Quang Binh Provincial People's Committee co-chaired. Attending the conference were Mr. Nguyen Ba Hung, Ambassador Extraordinary and Plenipotentiary of the Socialist Republic of Vietnam in Laos; presidents, vice presidents, governors and deputy governors of 20 border provinces of Vietnam and Laos and enterprises of Vietnam and Laos.

Since the Tenth Vietnam-Laos border trade development cooperation conference held in Attapeu province (Laos), up to now, the special friendship and comprehensive cooperation between Vietnam and Laos have been increasingly strengthened and expanded, brought into practice and obtained many practical results in the fields of trade, industry as well as services and investment.

In recent years, the two countries have conducted many visits and working sessions between the Leaders of Party, the State and the ministries, branches and localities to exchange and sign cooperation agreements, contributing to continue strengthening and further developing the neighbouring and friendship relations between Vietnam and Laos to a new level. Total import-export turnover between Vietnam and Laos in 2017 reached US $ 935.8 million, up 13.6% compared to 2016. In particular, Vietnam's export turnover to Laos in 2017 reached USD 524.5 million increased by 9.7% compared to 2016; Vietnam's import turnover from Laos reached USD 411.3 million, up 19%; and in the first 8 months of 2018 reached US $ 655.8 million, up 12.9% over the same period. Vietnam's commodities which are exported to Laos are mainly such as aquatic products, leather shoes, Garment, construction materials, steel, petrol and oil of all kinds. The main items which Viet Nam imports are wood and wood products, ore and minerals.

Recently, the two countries Vietnam - Laos continue to apply the preferential import tax rate of 0% and reduce the import tax rate of ATIGA 50% on most of Laos and Vietnam imported products (accounting for about 98% of total tariff lines for both countries). The Bilateral Trade Agreement and the Vietnam-Laos Border Trade Agreement have eliminated tariffs on more than 95% of the goods which originate from the two countries.

Up to now, there are 33 border gates across Vietnam – Lao`s border; including 08 international border gates, 07 main border gates, 18 auxiliary border gates and many trails and paths. 09 border economic zones have been established to create favorable conditions for the development of trade and service activities of the border provinces between the two countries.

The leaders of the Ministry of Industry and Trade of the Socialist Republic of Vietnam and the Ministry of Industry and Trade of the Lao People's Democratic Republic signed the Memorandum of Cooperation and development of border trade between two countries for the period 2018-2020.

To implement the program of foreign activities in 2017, Quang Binh province has welcomed 21 delegations with 269 turns of Lao`s officials visiting and working, seeking investment opportunities, promoting trade activities. The province has facilitated the implementation of the project "Building bonded warehouses and oil pipelines from Hon La port, Quang Binh, Vietnam to Kham Muon province, Laos" invested by Lao Petro Joint Stock Company; create conditions for Quang Trung Barite Co., Ltd to complete the legal procedures to exploit and transport ores through Ca Roong - Noong Ma Border Gate. Import and export activities at Cha Lo - Na Phau International Border Gate have increased sharply, goods of various categories with many types of import and export.

The meeting also has spent the time to evaluate the results on the areas of cooperation in border market development, trade promotion, anti-smuggling and trade fraud, investment cooperation, and transportation, rural agriculture...

In addition to the achieved results, border trade activities between the two countries are still inadequate, namely: Some regulations are still overlapping, giving rise to many administrative procedures that are incompatible with the specific characteristics of the border trade activities. There are still many shortcomings in organizing the apparatus of management, direction and administration of border trade activities; Because of difficulties in funding for cooperation, the coordination and implementation of sectoral and sectoral planning among ministries, branches and localities of the two countries still faces many difficulties. The two sides of the border gate have publicly posted all taxes, fees and charges, however, the Lao side still collects high fees, Some places have not yet implemented the right agreements on the clearance time everyday causing difficulties for businesses in border trade activities. Traffic and commercial infrastructure of border areas, especially border markets have not been paid adequate attention in investing, upgrading and constructing new according to the planning approved by competent authorities. Investment activities of Vietnamese enterprises in Laos still face many difficulties due to limited regulations on the percentage of Vietnamese workers working for investment projects in Laos…

At the conference, representatives of ministries, branches, localities and businesses of the two countries have made many proposals, recommendations and solutions to promote the development of border trade between Vietnam and Laos in 2018-2020.

With the results achieved in border trade activities from 2016-2018, the Ministry of Industry and Trade of the two countries have awarded certificates of merit to collectives and individuals who have made outstanding achievements in border trade activities, contributed part of well implementing the signed agreements, promoting the friendly and cooperative relationship between the two countries.

At the conference, the leaders of the Ministry of Industry and Trade of the Socialist Republic of Vietnam and the Ministry of Industry and Trade of the La`s People Democratic Republic signed a Memorandum of cooperation on developing border trade between the two countries for the period 2018-2020, as a basis for the two sides to building and implementing tasks, growing in momentum for sustainable economic development between Vietnam and Laos in the coming period.

Written by Lê Huy (qbtv.vn)