Prime Minister Nguyen Tan Dung has approved an agreement signed with Paraguay last March to mutually waive visas for diplomatic and business visitors.
The Ministry of Foreign Affairs will announce when the agreement will take effect.
The two nations have also signed an agreement on economic cooperation. Viet Nam will buy raw materials and the South American country is expected to be a promising destination for Vietnamese investors.
By L. Nguyen-Translated by Thanh Huong