"Due to an increase in cargo, trade activities and services are expected to significantly develop along Viet Nam's borders with China, Laos and Cambodia." Tu said. According to the ministry, many enterprises have already had much success in cross border trading.

Nguyen Xuan Quynh, director of the Quynh Anh Ltd Company in northern Lao Cai Province, said that his SME had been representing Vinamit, Trung Nguyen and Kinh Do on the Chinese market, exporting dried fruit, coffee and confectionery products, valued at US$3 million per year.

Cross-border trade activities had provided effective channels in expanding export markets, Quynh said.

Despite initial success stories, however, cross-border trade infrastructure still leaves much to the imagination, according to the Ministry of Industry and Trade (MoIT). It added that current weaknesses negatively affected both the efficiency and quality of cargo handling, transport, packaging and payments, reducing the competitiveness of Vietnamese exports.

Hoang Tho Xuan, an economic expert, affirmed that Vietnamese enterprises often came under pressure from foreign partners due to a lack of proper services and infrastructure.

"The State should implement specific policies related to enterprises involved in cross border trade," Xuan said.

"Cross-border trade cannot operate without proper information, consulting and market research services," he added "Viet Nam is in desperate need of an association representing enterprises conducting cross border trade in order to effectively develop this area of the export market," said economist Vo Dai Luoc.