In 2007 total imports of Socialist Republic of Vietnam stood at US$ 59 billion, ranking Vietnam as the world’s 42nd import market. Major imports of Vietnam include crude oil, machinery and spare parts, steel and steel products and textiles.
Lao PDR and Vietnam have a long established history of economic and trade relations. A Bilateral Trade Agreement was signed on 9th March 1998. Based on that agreement on 28th July 2005, the Ministry of Industry and Commerce of Lao PDR and Vietnam concluded a Lao-Viet Preferential Tariff Arrangement which allows exports from each country to enjoy tariff reduction and exemption for some goods originating from both sides. Over the period of 2001 to 2008, trade relations between the two countries have been developed and have grown significantly. The Lao-Viet Preferential Tariff Arrangement was amended on 17th January 2009.
Lao-Viet Preferential Tariff Arrangement
The Lao-Viet Preferential Tariff Arrangement broadened product coverage of exports from Lao PDR to Vietnam which include electric rice cookers, electric fans, spare parts for motorcycles, Beer Lao, tobacco, coffee, rice in the husk, corn and mineral products.
Under the Lao-Viet Preferential Tariff Arrangement all products originating from Lao PDR enjoy import duties of 0% to Vietnam except for a list of goods receiving 50% preferential tariff reduction of Vietnam’s CEPT rate, which consists of 32 items (10 digit HS Code), and a list of goods that are excluded from preferential import duties to Vietnam, consisting of 155 items (10 digit HS Code). For some sensitive products such as rice and tobacco, Vietnam grants preferential import duties of zero percent by imposing import quotas which are valid until 2010. The import quota for rice is allocated at 40,000 tons per year. Rice is categorized into semi-milled or wholly milled rice, whether or not polished or glazed (HS 1006.10.00.90); fragrant rice (HS 1006.30.19.00); glutinous rice whether semi-milled or wholly milled, whether or not polished or glazed (HS 1006.30.30.00); and other rice whether semi-milled or wholly milled, whether or not polished or glazed (HS 1006.30.90.00). The import quota for tobacco is allocated at 3,000 tons per year. The tobacco is categorized into Virginia type, flue-cured, not stemmed/stripped (HS 2401.10.10.00), Virginia type, not flue-cured, not stemmed/stripped (HS 2401.10.20.00), other, flue-cured (HS 2401.10.30.00), other, not flue-cured (HS 2401.10.90.00), Virginia type, partly or wholly stemmed/stripped, flue-cured (HS 2401.20.10.00), Burley type, partly or wholly stemmed/stripped (HS 2401.20.40.00) and tobacco stems (HS 2401.30.10.00).
Moreover, there are other products that have imposed import quotas for overall importation into Vietnam namely poultry eggs (HS 0407.00.91, 0407.00.92, 0407.00.99), salt (HS 2501), raw sugar and sugar (HS 1701). The export of those products from Lao PDR to Vietnam enjoys zero import duty if the volume of exports does not exceed the overall import quota of Vietnam.
 Annex 1b, Lao-Viet Preferential Programme
 Annex 2b, Lao-Viet Preferential Programme
|< Prev||Next >|