Laos and Vietnam are continuing to reduce import taxes on goods, in a bid to meet the bilateral trade targets set by the two governments. According to the Ministry of Industry and Planning’s Foreign Trade Policy Department, so far 98 percent origin in either country, have been given the priority zero percent import tax rate. The two countries have reduced another 50 percent of tariffs since last year on 26 categories of goods that Laos import from Vietnam, including trucks with a maximum weight of tones. Vietnam has similarly reduced tariffs on 32 categories of goods imported from Laos. In 2009 bilateral trade stood at more than US$ 417 million, equal plan. It was reduced 1.2 percent compared to 2008. Last year, the value of exports from Laos to Vietnam was more than US$ 248 million, a 9 percent reduction, while imports from Vietnam increased 13.05 percent or more than US$ 169 million. The main reason for the reduction in the value of bilateral trade is that the production of exported goods in Laos is still limited. The two governments have set a target to increase bilateral trade to US$ 1 billion by 2010, US$ 2 billion by 2015, and US$ 5 billion by 2020. In the first two months of this year, the value of two-way trade reached more than US$ 58.5 million, a 45.9 percent increase compared to the same period last year. Lao exports continued to increase by 84.4 percent to be worth more than US$ 34.1 million. Imports also rose by 13 percent or more than US$ 24.4 million. They will also discuss the planned two-way trade development project for 2008-2015, bringing bilateral trade value to US$ 1 billion by 2010 and US$ 2 billion by 2015.
Source: Vientiane Times
