China and Vietnam have reached agreement to form a new trade zone that will increase the chances for greater cross-border trade and perhaps reduce the scope for maritime traffic.

“We are positive about the new cross-border zone,” the report said quoting a Vietnamese official.

“It is a new concept and a new pattern of cooperation for both sides. The two sides need to have more discussions on specific policies as well as the content and scope of the cooperation.”

The plan is certain to boost trade between the two nations, which in 2008, stood at US$4.1billion.

The latest plan comes on the heels of already agreed upon plans by the Asian Development Bank (ADB) to hoist a railway line linking the Chinese city of Kunming to Vietnam’s Hai Phong port.

Sammy Lee