Fertilisers packed for export to Laos. More than 95 per cent of goods traded between Viet Nam and Laos will enjoy zero tariffs under a new agreement. — VNA/VNS Photo Danh Lam

VIENTIANE (Biz Hub) — Tariffs are scheduled to be eliminated on more than 95 per cent of goods between Viet Nam and Laos.

A document to this effect was signed by Minister of Industry and Trade Vu Huy Hoang and his Lao counterpart Khemmani Pholsena on March 3 in Vientiane, Laos. It replaces the 1998 trade agreement.

Addressing the signing ceremony, the Vietnamese Minister said when the agreement came into effect, it would form the legal framework for bilateral co-operation in goods and services trading and make a significant contribution to fostering the relationship between Viet Nam and Laos.

Lao Deputy Prime Minister Somsavat Lengsavat hailed the signing of the bilateral trade agreement and urged relevant ministries and sectors to work closely together with Ministry of Industry and Trade to effectively implement the agreement.

Viet Nam's industry and trade ministry recently also issued Circular No 02, stipulating the quota and zero per cent tariff on paddy, rice, tobacco leaves and tobacco stalks from Laos.

According to the circular, the total quota for paddy and rice is 70,000 tonnes, and the quota for tobacco leaves and stalks is 3,000 tonnes.

The products on which zero per cent tariff is imposed must meet the goods requirements, including possession of Form S, a certificate of origin granted by Laotian authorities, and approved at 12 border gates of the two countries.

Only Vietnamese businesses that are allowed to import tobacco products by the ministry are allowed to import tobacco leaves and stalks.

The circular is valid till December 31, 2015. — VNS