OF UNDERSTANDING

MEMORANDUM

AMONGTHEROYALGOVERNMENT OF CAMBODIA,THE
OF THELAO PEOPLE'SDEMOCRATIC
GOVERNMENT THE
REPUBLIC,
OF THESOCIALIST
GOVERNMENT REPUBLICOF VIETNAMTOWARD
OF SPECIALPREFERENTIAL
THEFORMULATION FORTHE
POLICIES
TRIANGLE
DEVELOPMENT AREAOF CAMBODIA-LAOS.VIETNAM.

The Governmentsof the Kingdomof Cambodia,the Lao People's

DemocraticRepublicand the SocialistRepublicof Vietnam(hereinafter
to as the Partiesto the Memorandum
referred or MoU):
of Understanding

RECOGNISING that further cooperationamong Cambodia,Laos and

Vietnamin the formulation policiesto promote
of the specialpreferential
trade, investment,tourism, cultural-socialcooperation,infrastructure
development in the Development TriangleArea (DTA)of Cambodia-Laos-
Vietnamwill providepositiveimpactson povertyalleviationof peopleof the
threecountries livingin the DTA;

DESIRINGto developnew preferentialpoliciescreatinga favourable

environmentfor doing businessand trade, investment,transportation
network,tourismand culturalexchangeamong 10 provincesof DTA in
trilateral,regionaland international
with the existingbilateral,
consistency
agreementsin orderto maximizebenefitsforthe peoplein the region;

WISHINGto streamline necessary measuresfor the implementationof the

Special PreferentialPoliciesfor benefitof the DTA and strengthen the
friendshipand partnershipestablishedbetweenCambodia,Laos and
Vietnam;

HAVEAGREEDas follows:

Article 1
Scopeand Goverage

1. policiescoverthe followingareas,namely:(1)
The specialpreferential
\
procedurefor bordercrossingmovementand residentof business
peopleand investors;(2) bordercrossingmovementsof meansof
materials
transportation, and equipments for temporarilyimportand re-
export or temporarilyexport and re-import;(3) borderexchangeof
goods;(4) transitof goods;(5) import-exportduty and tax policy;(6)
feesand charges;(7) paymentmechanisms; (8) borderinspection
and
(9) investmentpolicy;(10) tourismdevelopmentcooperation; (11)
I
 communication,energy, transportationinfrastructureand (12)
environmental
cooperation.

Article 2
Obiectiveand Vision

2. The mediumand long-term visionof formulation and applicationof the

specialpreferential policiesin DTA is that of a dynamiceconomicand
socialdevelopment, of effectiveenvironmental and culturalprotection,
of increasing livingstandards of the people,of well-linkage
of hardand
and of creationof favorableenvironment
soft infrastructure, that will be
ableto attractforeignanddomesticinvestment.

3. In orderto realizethe abovegoal,the Parties,subjectto the termsof

this MoU and laws, rules, regulationsand nationalpoliciesand
internationalagreementsundertaketo implementthis MoU and to
streamlinemeasures, to set up the onestop
to reducethe bureaucracy,
service,to simplifythe procedures and to effectivelyimplementthe
policieson the basisof equality,
mutualbenefitand mutual respectand
sustainable use of naturalresourcesin orderto ensurethat trade,
investment andtourismare promotedto the DTA,

Article 3
Procedurefor BorderCrossingMovementand Resident

4. To facilitatethe entryof citizens,investors,businessmen of the three

countriesintothe Cambodia-Laos-Vietnam DTA,the Partiesagreedto
utilizethe existingmechanism and structureand legaldocuments of
respective countryto facilitatethe movementof people livingwithinthe
DevelopmentTriangleArea and the movementof intra-corporate
transfereesfor trade, investmentand tourismpurposes.The Parties
agreedto use laissez-passer the travelingof the peoplewho
to facilitate
are livingin the DTA. In orderto furtherfacilitatethe intra-corporate
transferees for investmentprojectsin the DTA,the Partiestaskedthe
JointTechnical Teamto discussthedetailedprocedures.

Article4
BorderCrossingMovementsof Meansof Transportation,Materialsand
Equipmentsfor Temporarilylmportand Re-exportor Temporarily
Export
and Re-import

d4
 5. For the purposeof facilitation
of the implementationof investment
projectsand activitiesin DTA, the Partiesagreedthat the existing
bilateral and multilateralagreements and memorandumsof
understanding on cross border transportationshall be intensively
implemented throughthefollowingprocedures:
- Motor vehicles registrationplate, motor vehicles registration
certificate,motor vehiclesinspectioncertificateand/or inspection
mark, driving permits and cross-bordertransportpermit with
\-
distinguishing nationalsign of the DTA recognizedby other
contractingparties will be issued by the followingcompetent
authorities parties:
of othercontracting

For Gambodia:

GeneralDepartment of Transportation
;
Address:StreetNo 598,ChrangChamress ll, ReusseyKeoDistrict,
PhnomPenh,CAMBODIA
Tel/Fax: (+855)23 8640911864094
E-mail: [email protected],kh

For Laos:

Departmentof Transport, of PublicWorksandTransport,

Ministry
Address:AvenueLane-Xang,Vientiane,
LaoPDR,
Phone:(+856)21 452049
Fax : (+856)21 415563
E-mail:[email protected]

For Vietnam:

VietnamRoadAdministration;
Ministryof Transport
Address:106ThaiThinhStr.,DongDa Dist.,Ha Noi
Phone: (+84)438571444
Fax : (+84)438571440
E-mail : [email protected],
website:http://www.vra,gov.vn

6. The Partiesrecognized the importanceof infrastructure

linkageamong
the three countries.In this regard,the Partiesagreedto mobilize
internaland externaltechnicalassistancebnd financialsupportfor
infrastructure
development in the DTA; to upgradebordergates into
gates.The following
regionaland international pairsof bordercrossing
are agreed to warrant considerationand should be opened for
discussionas soonas possible:
- Cambodia- Vietnam:

,-
A\/^--J
 Nam Lear (MondulKiri, Cambodia)- Dak Peur (Dak Nong,
Vietnam).
- DakRue(DakLac,Vietnam).
Chi Miat(MondulKiri,Cambodia)
- Laos- Vietnam:

Laos)- NamGiang(QuangNam,Vietnam).
DacTa Oc (SeKong,
Laos)- La Lay(QuangTri,Vietnam).
La Lai(Saravanh,

7. The Parties also agreed that value of vehicles,materialsand

equipmentsto be temporarily importedunder publicand/orprivate
investment or development projectsas declaredin the MasterListshall
be calculated in USD.The Masterlist must be approvedby national
competentauthoritiesof each country subject to the laws and
regulationsof eachparty.lf the temporarily
imported vehicles,
materials
and equipments havenot beenusedfor the purposesstatedfor the said
projects,the provisionsof relevantexisting and future laws and
regulation
willbe applied.

8. Basedon the bilateraland multilateral agreements /Mous on road

transport or cross border transportationthe temporarilyadmitted
vehiclesfrom cambodia,LaosandVietnamintothe DTAshallbe re-
exportedfrom the territoryof host countrywithinthe maximumof 30
daysper entrywhichcan be extendedby competentauthorities of host
country,ln this case the transportation meanswhichare temporarily
importedat one bordercheck-pointcan be re-exportedor exitedat
otherbordercheck-points withpermissionof competentauthorities.
For
the application of the temporarily importedtransportmeans,Vietnam
and Laosagreedto allowthe carrytwo-wayfreightagewithoutasking
for permission from authorityof the re-exportbordercheckpoint
but not
allowedto provideany commercial transportof passengers
and goods
withinthe territoryof the importedcountry.

The all partiesalso agreedthat the formalities at the bordercheck

pointswill be subjectto the existinglawsand regulations
of respective
country.

Article 5
BorderExchangeof Goods

9. For the purposeof encouraging

bordertradeand facilitating
economic
exchangebetweenpeoplelivingalongthe borderin DTA,the parties
agreedthat the exchangeof goodsacrossthe border,underborder
trade,originatedand producedby peopleof DTA shall be exempted
4
 -

dutiesand othertaxes,subjectto a ceilingof USD

from import-export
for importto Vietnam,USD50 /person/time/day
400/person/time/day for
importto Laos and to Cambodia.The partiesagreedto producea
commonlist of productswhichare not subjectto this dutyand tax free
scheme.

Article6
Transitof Goods

1 0 . ln order to facilitatecross-bordertrade and the transit of goods

throughoutDTA,the Partiesagreedto allowthetransitof goodsthrough
national
and internationalbordercheckpointsas specified
in the existing
bilateralagreementson transit of goods betweenCambodiaand
Vietnam;and betweenLaos and Vietnam.The Partiesencouraged
Cambodia and Laosto discussand reachbilateralagreement on transit
of goodsin duetime.

Article 7
lmport-ExportDuty and Tax Policy

1 1 . In orderto promotetrade,investmentand productionof the products

originatedin DTA, the Partiesagreedto discussand producea
commonlist of goods,whichis subjectedto specialtariffreductionin
conformity by the Partiesunderbilateral,
with the currentcommitments
regional
andinternational andarrangements,
agreements

Article 8
Feesand Charges

1 2 . Since,at this moment,the levelof fees and chargesfor work permits

imposedby eachcountryis variedand different,the fees and charges
by eachpartyas follows:
are imposeddifferently
- Laos and Vietnam:80 USD per personper year for fees and
expenses(workpermitandtemporary
stay).
- Cambodia: 80 USD per personper yearfor work permit'sfeesfor
the intra-corporate in the DTA.
transferees

The validityof the work permitis one year and may be extendedbut
shallnotexceed5 years.

of regulations
The abovefees and chargesare subjectto development
of the respective
countries.

Article 9

a{.v_J _g
 PaymentMechanisms

1 3 . The Partiesagreedto encourage privatesectorand bankingsectorto

use the domesticcurrenciesof the threecountries(Cambodian Riel,
Lao KipandVietnamese Dong)for the paymentof goods,servicesand
investmentin DTA. The Parties also agreed to put in place all
necessarymeasuresto ensurethe freedomof choosingcommercial
banksfor theirpaymentand to ensurethatthe openingof accountsin
domesticcurrenciesof the threecountries,in additionto otherhard
currencybankaccounts,is possible.

Article10
Borderfnspection

1 4 . Sincethe BilateralRoadTransport Agreementand relatedMoUsare

implemented at selectedborderpairs,the harmonization of working
hoursof the competentauthorities at the bordercheckpointsin DTA is
an importanttool for facilitating
the flowsof goodsand peopleacross
the border.The workinghoursat the bordergatesof DTAwill be from
7:00amto 7:30pmduringeverycalendarday. The Partiesagreedto
intensifythe implementation of existing bilateral and regional
agreementsand MoUs, includingIICBTA and the Cross Border
TransportAgreement and its annexesand protocols as agreedunder
theGMSForum.

Article11
InvestmentPolicy

1 5 . The Partiesagreedthata "singlewindowservice"in DTAbe set up in

orderto facilitatetradeand investmentprojectsin the arca.The legal
frameworkfor simplifyingthe grantingof investmentpermitsand
businesslicenses,grantingvisa and temporaryresidentpermitand
work permit,and other relateddocumentswill be developedby each
country.

Article12
TourismDevelopmentCooperation

1 6 . The Partiesagreedto developa JointrourismDevelopment Planfor

the DTA and to realizethe conceptof ten provincesone tourist
destination
and committed themselves to explorewaysand meansto
implementthe Planwhenit is agreedupon.
 Article13
Energyand Transportation
Communication, Infrastructure

1 7 . The Partiesrecognizethat the development of the investment,

trade
and tourismin the DTA would requirea significant improvementin
communication, energyandtransportation infrastructure.
Therefore
they
agreedto developthe coordinated plan for the improvement of such
in the DTA.The Partiesagreedthat eachcountrywill put
infrastructure
in placean appropriatepublicsector-expenditure program, whichcould
includethe participation
by the privatesector.

Article14
EnvironmentalGooperation

1 8 . For the purpose of environmental

protectionand conservation,
biological
diversification
and ensuringthe sustainable use of natural
resourcesin the DTA,the partiesagreedto exchangeenvironmental
information to createprojectsfor preservation
and material; of wildlifein
the area, to developproceduresfor managementof cross-border
of wasteand toxic chemicalsand for management
transportation of
cross-borderwater pollution;and to jointly organize seminars,
workshops and meetings of governments
withparticipation officialsand
stakeholders.
\.

Article15
EnhancingInstitutionalEffectiveness
for
The lmplementation

1 9 . In orderto effectively
implement the specialpreferential
policies,
each
partyshallutilizeexistingstructuresto the greatextentpossible.The
Partiesmayalsoestablish, withintheirjurisdictions,
neworganizational
structureand additionalorganizations for the implementationof the
policies.In this connection,
each partywill establisha specialunit in
DTAto expeditematterssuchas: issuingbusiness, investmentpermit,
visas, temporaryresidentpermit and work permit for investors,
businessmenand intra-corporate transferees.

20. The JCC and the Subcommittees shallserveas

of the threecountries
the mainmonitor,advocateand promoterof the implementation
of this
MoU.The JCC and the Sub-committees shalldevelopan actionplan
and review schedulesin order to ensure the effectivenessof the
implementation.

21. ln orderto strengthen communication, and consultation,

coordination
the Partiesagreedto establish point(s)
focal as andwhenrequired.
 -

Article16
Revision,Amendments,
Modificationand Suspension

2 2 . EitherPartymay senda requestin writingfor revision,modification

or
of all or partof thisMoU.
amendment

t 23. Any revision,modification

or amendment agreedto by the Partiesshall
be put into writingand shall form part of this MoU. Such revision,
modificationor amendment shallcomeintoforceon suchdateas may
be determined andagreedby the Parties.

24. EachPartyreservesthe rightfor reasonsof nationalsecurity,national

interest,publicorderor publichealthto suspendtemporarily, eitherin
wholeor in part,the implementation of this MoU,whichsuspension
shall take effectimmediately has been givento the
after notification
otherPartythroughdiplomatic channels.

Article17
Settlementof Disputes

25. Any differenceor dispute between the Parties concerningthe

interpretation
and/orimplementation of the provisions
and/orapplication
of this MoU shall be settledamicablyonly throughconsultations
betweenthe Parties.

Article18
Entryinto Forceand Termination

26. ThisMoUshallcomeintoforcefromthedateof signing.

27. Notwithstanding
anything
in thisArticle,a Partymayterminate
thisMoU
by notifyingthe otherPartiesof its intentionto terminatethis MoUby a
noticein writingthroughdiplomatic channels,at leastsix (6) months
priorto the intended
termination date.

28. The terminationof this MoU shall not affect the implementation
of
ongoing developmentprojectsand/or programswhich have been
agreeduponpriorto thedateof termination
oflhe MoU.

lN WITNESSWHEREOF,the undersigned,beingduly authorized

by the
governments
respective Laosand Vietnam,havesignedthis
of Cambodia,
MoU.

/4/-J
 -

Doneat Vientiane,Lao People'sDemocratic Republicon this TwentySix

Day of November in the Yearof Two Thousandand Eight,in threeoriginal
copiesin the EnglishLanguage.

the RoyalGovernment For the nt of the For the Governmentof the

of Cambodia Lao 's Democratic SocialistRepublicof
Republic Vietnam

H.E.Mr.CHAMPrasidh H.E.Mr.SoulivongDaravong H.E.Mr .Vo HongP huc

SeniorMinister,Ministerof Ministerof Planningand Ministerof Planningand

Commerce Investment Investment
Chairmanof Joint Chairmanof Joint Ghairmanof Joint
CoordinationCommitteefor CoordinationGommitteefor GoordinationCommitteefor
Cambodia Laos Vietnam