The Asian Development Bank announced on Thursday the signing of a road transport agreement between China and Vietnam which opened a 1,300-kilometre road that links the two Asian nations.

The deal would permit buses and trucks from the two countries to cross overland which would boost bilateral trade and tourism. It eases restrictions on commercial vehicles between China's Yunnan and Guangdong provinces, and the Guangxi Zhuang autonomous region and six provinces in Vietnam including Lang Son and Quang Ninh and the cities of Ha Noi and Hai Phong.

Prior to the signing of the agreement, described by the Asian Development Bank which brokered the deal as a key milestone for regional cooperation, transport operators were limited to 20 kilometres of travel in both nations.

With the deal, China and Vietnam could issue up to 15,000 permits for trucks and buses that will travel within the border province area and up to 500 permits for buses and trucks to enter inland provincial areas beginning August 2012.

In the same month, another route that links Kunming to Ha Noi and Hai Phong was inaugurated. The road is covered by the same agreement.

The deal expects a boost in trade volume between the two Asian neighbours which in 2011 reached 1 million tonnes for goods and 726,000 passengers.

Yushu Feng, principal economist for Regional Cooperation at ADB, said the that bilateral deals between GMC member nations, or the countries bound by the Mekong River, target to remove blocks to regional trade and development.

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