China and Viet Nam will accelerate oil and gas exploration and extraction in the border waters of the Beibu Gulf, according to a joint statement released yesterday evening.

President Hu Jintao (R) gestures while welcoming visiting Vietnamese President Tran Duc Luong during a ceremony in Beijing yesterday outside the Great Hall of the People. [Xinhua]

The communique states that during Vietnamese leader Nong Duc Manh's four-day visit to China that began on Tuesday, the two countries reached a series of agreements on borders, trade, investment, loans and free trade.

China and Viet Nam also agreed to take further steps to settle disputed borders.

Both sides were upbeat about joint naval patrols and the implementation of border and fishing treaties in the Beibu Gulf, which separates northern Viet Nam from South China's Guangxi Zhuang Autonomous Region and Guangdong and Hainan provinces.

The two countries agreed to advance negotiations on settling borders in the waters outside the mouth of the Beibu Gulf and actively discuss joint development of the area.

They also agreed to abide by the consensus reached by their leaders and continue consultations on issues concerning the South China Sea; and study and discuss joint development and co-operation.

Both countries agreed to accelerate land border surveys and pledged to sign a new border control document by 2008.

The two countries decided to boost bilateral trade to US$10 billion by 2010, with China promising to firmly support Viet Nam's bid to join the World Trade Organization (WTO).

Bilateral trade reached US$8.2 billion in 2005. In the first half of this year, the figure jumped 19.3 per cent year on year to US$4.57 billion.

The two countries also vowed to encourage and support enterprises develop long-term collaboration in infrastructure, human resources, energy and mineral processing.

They also signed agreements on economic and technological co-operation, as well as Chinese loans for the construction of a coal-fired power plant in northern Viet Nam.

The two countries pledged to step up efforts to set up sub-regional economic areas, including a China-ASEAN free trade zone and economic corridors along the Mekong River.

Xinhua

(China Daily 08/25/2006 page1)