Vietnam, UK take advantage of bilateral trade deal

Data from the Ministry of Industry and Trade show that bilateral trade between Vietnam and the UK tended to decrease in the early months of 2023 and resumed its growth in the middle of the year. In the first seven months, bilateral trade was equivalent to that in the same period last year.

Vietnam’s textile and garment exports to the UK have yielded impressive results - photo: Can Dung

According to data from the General Department of Vietnam Customs, in the first seven months, trade between Vietnam and the UK reached US$3.95 billion. Of the sum, Vietnam’s exports to the UK accounted for nearly US$3.5 billion, down 0.1 percent year-on-year; and Vietnam’s imports from this market reached US$460.1 million, up 6 percent.

The UK has 536 foreign direct investment projects in Vietnam with the total registered capital of approximately US$4.3 billion, ranking 15th among 143 countries and territories investing in Vietnam. In July 2023, the UK had 28 new projects licensed in Vietnam with the total registered capital of US$44.9 million.

Nguyen Canh Cuong, Vietnamese Trade Counselor in the UK, said that the UKVFTA offers Vietnamese goods many tariff preferences, enabling an increase in the export of paper and paper products, rubber, vegetables, fruit, food, and leather shoes. The trade deal’s commitments are believed to contribute significantly to the prosperity and sustainability of the two economies. The UK has been committed to eliminating 85.6 percent of tariff lines for Vietnamese goods as soon as the agreement took effect on January 1, 2021. This percentage will gradually increase to 99.2 percent by January 1, 2027, with the remainder, 0.8 percent, to be subject to tariff quotas (with an import tax of zero percent).

There are opportunities for Vietnam to increase leather shoe exports to the UK - photo: Nguyen Quynh

On the sidelines of the second meeting of UKVFTA Trade Committee and the 13th meeting of the Joint Committee on Economic and Trade Cooperation between Vietnam and the UK, which took place recently in Hanoi, the Ministry of Industry and Trade coordinated with the UK Embassy in Vietnam, the Vietnam Chamber of Commerce and Industry, and the British Chamber of Commerce in Vietnam (Britcham) to organize a business connection event. At the event, Minister of State at the UK Department for Business and Trade Nigel Huddleston affirmed that Vietnam is a potential partner of the UK in the region. He also affirmed the UK’s commitment to increasing cooperation with Vietnam in economic activities and trade, as well as to supporting Vietnam’s green transition and equality.