Trade Freedoms

Source: Lanka Business Online

Oct 15, 2011

Sri Lanka and Vietnam to open trade; aim for billion dollar target

Sri Lanka and Vietnam will begin talks on trade liberalization aiming to expand two way trade over 10 fold to a billion US dollars over the next few years, a joint communiqué following visit by President Truong Tan Sang said.

The statement issued at the end of a three day state visit by President Sang said the two countries would identify and remove non-tariff barrier and mutually recognize and simplify standards.

"Both sides also agreed to diversify the basket of goods and look for innovative ways to add fresh impetus to trade and commercial relations including through the establishment of joint ventures in enhancing export opportunities for both countries," the statement said.

"They agreed to direct the officials of the two countries to explore the possibility of commencing talks on a Preferential Trading Arrangement between Sri Lanka and Viet Nam."

Sri Lanka and Vietnam signed eight agreements during the visit including deal to co-operate on oil exploration and a deal to purchase diesel.

Sri Lanka - Vietnam trade is expected to reach 100 million US dollars in 2011. Among Sri Lanka's top exports to Vietnam is fish feed and textiles to feed its export industries.

Vietnam also sells textiles for Sri Lanka's apparel trade.

No deadline was indicated in the statement for the billion dollar trade target.

Trade between Sri Lanka and Vietnam has been growing since President Mahinda Rajapaksa visited Vietnam two years ago with a business delegation.

A Sri Lanka Vietnam Business Council was set up last year by Sri Lanka's Ceylon Chamber of Commerce.

President Sang was also accompanied by a high level business delegation.