A Memorandum of Understanding between the Departments of Industry and Trade of one of the Vietnam's Provinces and Northern Laos has been signed. This agreement will help to further tighten and promote activities like import and export as well as border trade between Laos and Vietnam.

Mr. Vu Hong Son, Director of the Department of Industry and Trade of Dien Bien Province, evaluated the implementation of the Vietnam-Laos Memorandum of Understanding one year after its signing, taking into account the effects of the Covid-19 pandemic and bilateral trade activities. It is impossible to conduct a direct exchange of goods and services between the Department of Industry and Trade of Dien Bien Province and the six Northern Laos provinces. But now that the epidemic situation has been contained, communication between the two parties has resumed. Specifically, Department of Industry and Trade of Dien Bien province has strengthened its external activities by sending delegations to visit and work in Laos. In the meetings and working sessions, one of the focused contents of the two sides is to provide information on policies, markets, and trade promotion activities to promote the development of import and export activities and border trade of Dien Bien province in the coming time.

According to Mr. Vu Hong Son - Director of Department of Industry and Trade of Dien Bien Province “Due to the effects of the Covid-19 epidemic, the situation of products import and export activities and border commerce activities between the two sides is limited. However, once the pandemic situation has been brought under control, trade and import/export of commodities as well as entrance and departure operations at border crossings will resume between the two sides. Much better than the years afflicted by the Covid-19 epidemic, the border between the two sides has exhibited signs of development.”

Specifically, after 1 year of implementing the Memorandum of Understanding, the total revenue of import and export of goods and border trade activities increased sharply compared to the same period last year. In which, items in the fields of construction, agricultural products, fresh fruits and groceries are the main export objects and have high growth. Imports from the Northern provinces of Laos mainly include: agricultural, forestry and land products (sawned wood, cotton, bananas...) machinery and equipment imported through Tay Trang - Pang Hoc international border gate.

Additionally, trade promotion activities across borders and between the two sides were vigorously adjusted and promoted once the Covid-19 outbreak was brought under control in order to develop the market once more after years of disruption. disruptions to the supply chain brought on by the global epidemic.

Moreover, regarding the development of border trade, the Vietnam - Laos border gate, according to Mr. Vu Hong Son, the Department of Industry and Trade of Dien Bien province has advised the People's Committee of Dien Bien province to issue plans, deploying the program to develop Vietnam's border trade infrastructure to 2025, with a vision to 2030 in Dien Bien province.

“Department of Industry and Trade of Dien Bien province has actively made recommendations to the appropriate authorities based on the plans that have been released, including allocating capital sources for investments in developing border trade infrastructure, creating favorable conditions for goods import and export activities, and border trade activities; adopting policies to encourage and attract economic sectors to invest in the development of commercial infrastructure.”

After the plan was implemented, at the national border gate area of ​​Dien Bien province, many investors were interested and asked to invest in a logistics system project here to serve import and export activities. The People's Committee of Dien Bien province has issued a digital document on the implementation of research procedures, making a proposal for a logistics system project at the national border gate area of ​​​​Dien Bien province.

There are still some significant challenges in the collaboration connection between Dien Bien province and Laos in addition to the usual outcomes. The import-export turnover between Dien Bien province and the Northern provinces of Laos is very low relative to the export turnover of the entire nation and does not match the potential and geographic advantages of both sides. It still takes a lot of money to produce goods for export and take advantage of the market between Dien Bien and the regions of Laos.

Additionally, the majority of the manufactured items in the provinces of Northern Laos and Dien Bien are made mostly from uncompetitive, small-scale raw materials. Information sharing and provision between the two parties is still in its infancy and hasn't yet resulted in very effective business support.

Preferential policies on import and export tax for goods originating from the two countries for some businesses and traders have not yet been applied and not favorable, significantly affecting the progress of goods import and export.

Understanding these remaining limitations, the Department of Industry and Trade of Dien Bien province has proposed a number of solutions to promote import-export activities and border trade between the two countries, such as enhancing information exchange, experience, disseminate border trade mechanisms and policies to border residents and businesses of the two Parties.

Especially, on the project to construct a border market under the trade infrastructure development program on both sides of the border approved by the Governments of Vietnam and Laos, the two sides kept making proposals to the Ministry of Industry and Trade of the two countries. Cost of allocating capital to create two borders.

It is proposed that the Department of Industry and Trade of the 6 Northern provinces of Laos continue to propose to the competent authorities to grant Vietnamese traders the tax policy as prescribed by the law, special incentives from the 0% tax rate reduction for the following items: goods of the two countries under the ASEAN Trade in Goods Agreement, the Vietnam-Laos Trade Agreement, and the Vietnam-Laos Border Trade Agreement

In accordance with the Vietnam-Laos Border Trade Agreement, we jointly propose to the provincial governments of the two countries to direct the operational troops at the border gate to facilitate the import and export operations of the two businesses. When completing import/export operations through the international border gate, do not collect tax on goods from Dien Bien Province and the six Northern provinces of Laos that are attending the Fair.

At the same time, the two sides focused on removing obstacles and difficulties for businesses, creating maximum conditions for import-export businesses to operate, promoting import and export turnover of goods between the two sides in the coming time.