The route, together with another between Hanoi and Nanning, was inaugurated at Lang Son Province's Huu Nghi (Friendship) border gate in the presence of leaders and transport officials from the two countries.

Previously, transport operators were o­nly allowed to travel up to 20km into each other's national territory.

"The new agreement will have a profound impact not o­nly o­n bilateral trade and tourism, but also o­n Greater Mekong Sub-region (GMS) transport facilitation," said Yushu Feng, principal economist for regional co-operation at the Asian Development Bank, which backed the agreement.

The removal of restrictions is expected to reduce travelling costs and time, boosting two way trade and developing an economic corridor taking in Nanning, Lang Son, Hanoi and Hai Phong.

Under the agreement, trucks and coaches are allowed to travel between major economic zones in China's Yunnan province, Guangxi Zhuang autonomous region, Guangdong Province and six provinces in Vietnam, including Lang Son, Quang Ninh and the cities of Hanoi and Hai Phong.

Each country will be able to issue up to 15,100 permits for trucks and coaches for travel within the border province area, and each will be able to issue up to 500 permits for trucks and coaches to go to inland provincial areas.

Another significant route, connecting Kunming to Hanoi and Hai Phong, was inaugurated in Kunming last Thursday.