Laos and Vietnam have signed a new agreement to eliminate tariffs in a move to spur trade between the two countries.
The agreement was signed on March 3 in Vientiane between Lao Industry and Commerce Minister Khemmani Pholsena and her Vietnamese counterpart Vu Huy Hoang, the Vientiane Times reported Thursday.
The zero-tariff pact will take effect two months after the signing and cover more than 95% of goods between the two countries.
Deputy director-general of the Lao Foreign Trade Policy Department Saysana Sayakone, told the Times more than 9,000 items will not face tax levies after it is implemented.
Vietnam is one of the largest trading partners with Laos besides Thailand and China. Their total trade in the first nine months of last year accounted for $995 million. The two countries aimed to bolster trade to $2 billion this year.
Laos and Vietnam have a special relationship due to close ties between their communist parties.