Since 2009 on, Việt Nam pledges to impose the tax rate of 0% to 16 items of goods from Laos, mainly automobile and motorbike motors, engines and components. Laos, in its turn, will give the same tax rate to 87 Vietnamese groups of commodities, including floral materials, processed fruits, cigarettes, garments, motorbikes, and interior furniture.
Vietnamese Minister of Industry and Trade Vũ Huy Hoàng and his Lao counterpart Vignạket sign the tax incentive agreement
Many other items of goods continue to be granted with a tax reduction of 50%.
Vietnam agreed to offer preferential quotas from some products from Laos, such as tobacco leaves and stems (3,000 tons/year), and rice (40,000 tons/year).
This morning, Vietnamese Minister of Industry and Trade Vũ Huy Hoàng and his Lao counterpart Vignạket inked an agreement on commodities enjoying tax incentives.
The agreement is expected to further facilitate trade ties between the two countries, so that the two-way trade turnover can be raised to US $1 billion in 2010.
In their talks before the signing ceremony, the two ministers vowed to cement and deepen the commercial relations between the two countries as well as promote coordination within ASEAN.
Lao Minister Vignạket encouraged Vietnamese enterprises to do more investments in Laos or use the Lao market as the springboard to penetrate into other markets.
In 2008, Vietnam conducted 34 investment projects on hydroelectricity, agriculture, and mining in Laos with the total capital of US $209 million. The total trade turnover between the two countries is estimated to reach US $450 million, up 44% against 2007. Vietnam earned US $136 million from exporting garments, coal, electric wires and cables and plastic products to Laos.