Vietnam - The US and Vietnam have reached an "open skies" agreement which will remove restrictions on air cargo routes between the countries.

The "open skies" agreement was initialled last week and will apply to all freight services, and means carriers from the two countries will have no restrictions carrying cargo to and from the countries.

"The agreement will strengthen and expand our already strong trade and tourism links with Vietnam and provide benefits to American and Vietnamese cargo carriers and to shippers while preserving our commitments to aviation safety and security" the US embassy said in a statement.

Vietnam's Civil Aviation Administration and the US Bureau of Economic, Energy and Business Affairs are reportedly to meet again within two years to discuss further liberalisation of air services.