Administrative reform and trade transparency as drivers of growth

The UK-Vietnam Free Trade Agreement (UKVFTA), effective since May 1, 2021, has generated clear positive outcomes for trade and investment between the Vietnamese and UK business communities over the past four years.

According to the Multilateral Trade Policy Department under the Ministry of Industry and Trade (MoIT), Vietnam’s participation in and implementation of the UKVFTA has delivered substantial benefits to bilateral import–export activities during 2021-2025.

Vietnam Customs statistics show that in 2021, immediately after the Agreement took effect, bilateral trade recorded solid growth, reaching approximately USD 6.6 billion. Vietnam’s exports totaled USD 5.76 billion driven by textiles, footwear, seafood, phones, and electronic components while imports from the UK reached USD 849 million, rising more than 20%.

By 2024, trade between the two sides rebounded strongly, with total turnover reaching USD 8.4 billion, up 18% from 2023. Vietnam’s exports to the UK rose to USD 7.55 billion, an increase of nearly 19%, supported by key sectors such as phones, machinery, textiles, wood products, and seafood. The UK exports to Vietnam also grew modestly to around USD 849 million.

In the first nine months of 2025, bilateral trade reached more than USD 6.93 billion, up 10.4% year-on-year. Vietnam’s exports totaled USD 6.22 billion (up 9.7%), while imports from the UK increased 16.6% to USD 715.3 million. Several export items posted strong growth, including pepper (+96.9%), coffee (+70%), fruits and vegetables (+54%), computers and electronic products (+47%), textiles (+18%), and footwear (+10%).

Speaking with Industry and Trade Newspaper, Vu Viet Thanh, Senior Official of the Foreign Market Development Department in charge of the UK market, noted that from an institutional perspective, over four years of implementation, the UKVFTA has helped make Vietnam’s administrative and trade procedures more transparent. This has reduced compliance costs for businesses and supported healthy growth in goods and services trade.

Since late 2024, the UK has officially become a member of the CPTPP. Vietnamese businesses now have the option to choose either the UKVFTA or CPTPP framework allowing them to optimize tariffs and rules of origin for exports to the UK. The dual implementation of both agreements is expected to create powerful momentum for strengthening two-way trade.

Vietnam’s implementation of UKVFTA commitments

The Multilateral Trade Policy Department emphasized that since 2021, Vietnam and the UK have held numerous ministerial-level and technical meetings, including three sessions of the Trade Committee (ministerial level), along with meetings of the Goods Trade Committee, SPS Committee, and the Trade and Sustainable Development Committee. Many technical-level sessions have also been conducted to review implementation progress and address issues arising from the Agreement’s commitments.

Most recently, on July 14, 2025, the third meeting of the UKVFTA Trade Committee took place in London, co-chaired by Vietnam’s Deputy Minister of Industry and Trade Nguyen Hoang Long and Douglas Alexander, UK Minister of State for Trade Policy and Economic Security.

In the trade sector, the two countries now operate under both the UKVFTA and the CPTPP (following the UK’s accession), giving firms broader preferential frameworks. At the UKVFTA meeting, the two sides reviewed implementation and discussed solutions to further improve market access for goods and services, based on reports from specialized committees on goods trade, customs, SPS, services-investment, and sustainable development.

Both sides acknowledged strong cooperation efforts and tangible gains from the Agreement, which have brought practical benefits to businesses and consumers.

Alongside implementing commitments, MoIT has actively promoted communication and outreach related to the UKVFTA. From 2021 to 2025, provinces and cities nationwide organized more than 191 conferences and workshops, integrating content on FTA commitments, including the UKVFTA. Notably in 2024, Phu Tho organized 20 events, while Tra Vinh held 6 and Ha Tinh organized 3.

Ministries and central agencies also held around 21 events. In 2024 alone, the MoIT organized four major conferences and dialogues with leaders of key export sectors including textiles, footwear, seafood, coffee, and cinnamon to help shape an ecosystem for more effective use of the UKVFTA.

The MoIT also held updated training sessions on rules of origin and conducted a working series with UK supply chains to strengthen practical application of the Agreement.