The Lao National Chamber of Commerce and Industry (LNCCI) and the All-China Federation of Industry and Commerce (ACFIC) have inked a cooperation agreement that formalizes the close working relationship between the two organizations in the future.

Under the framework of the China-proposed Belt and Road Initiative, the two countries have agreed to comply with the laws and regulations of Laos and China, local daily Vientiane Times reported on Tuesday.

A Memorandum of Understanding (MOU) on the principle of equality and mutually beneficial cooperation was signed by LNCCI President Oudet Souvannavong and Executive Vice Chairman of ACFIC Xu Lejiang, in Lao capital Vientiane. The MOU was signed during a visit to Laos by a Chinese delegation who were primarily to meet businesspeople, especially representatives of small- and medium-sized enterprises.

Significant cooperation could be established between the business sectors of the two nations because the two governments have built a strong and close working relationship, the local daily quoting Oudet as saying.

"Under the newly signed agreement, the private sectors of Laos and China will focus on developing industry in various parts of the northern provinces. This industry will help ensure that the Lao people benefit from the Laos-China railway and the new expressway," he said.

Oudet said the meeting enabled Lao and Chinese businesspeople to interact with each other and promote cooperation in future investment projects.

"After the signing of the cooperation agreement, an office for the Laos-China Business and Investment Committee will soon be established at LNCCI as a point of contact for the Lao and Chinese business communities," Oudet added.

The Chinese business delegation is on a working visit to Laos from Sunday to Tuesday. The delegation will also visit Cambodia's capital Phnom Penh on Wednesday.