Sri Lanka and Vietnam is also co-operating on defence and maritime security, the statement said.
Joint Commission meeting of Sri Lanka and Vietnam in Hanoi a new bilateral air services agreement was signed between the two countries to promote tourism, Sri Lanka's foreign ministry said.
Sri Lanka's foreign minister Gamini Pieris and Vietnam foreign minister Pham Binh Minh had identified "practical modalities" to reduce non-tarriff barriers and move towards a preferential trade agreement, the statement said.
During a visit to Sri Lanka last October Vietnam president Truong Tan Sang and President Mahinda Rajapaksa had set a target of increasing bi-lateral trade to a billion US dollar in three years.
The two sides had agreed on steps for "rapid implementation" of a deal on co-operation on petroleum.
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