Agricultural products are one of the potential export products to the UK. Photo: nld.com.vn

UK recognizes Vietnam as a market economy

Usually, the identification of a country with a market economy is based on an assessment of the extent of state intervention in the business decisions of enterprises. A country with too much state intervention may not be considered a market economy.

Since joining the CPTPP, the UK recognized Vietnam's manufacturing industries operating under market economic conditions. Accordingly, the UK will not apply unfavorable regulations to goods imported from Vietnam when investigating trade remedy cases.

Being recognized as a market economy facilitates the fairer treatment of export goods, minimizes trade defense duties, and increases opportunities for market expansion. This helps the production and business activities of enterprises become more stable.

Resonance between CPTPP and UKVFTA

Over the years, the strategic partnership between Vietnam and the UK has made positive developments. In which, economic and trade cooperation is an important pillar.

The growth of Vietnam's commodity exports achieved remarkable results after the Free Trade Agreement between Vietnam and the United Kingdom (UKVFTA) was signed and took effect from May 1, 2021.

According to Director General of the European-American Market Department, Ministry of Industry and Trade, Ta Hoang Linh, the UK's accession to the CPTPP will complement the existing UKVFTA, and upgrade the bilateral trade relationship with additional preferential tariffs.

CPTPP also increases the legal framework for the development of trade and economic relations between the two countries.

"Products that are Vietnam's strengths such as litchi, longan, rambutan, and dragon fruit will have an additional advantage in market access, in the context of tropical fruits originating from competitive countries such as Brazil, Thailand has not joined the CPTPP to enjoy preferential tariffs," Linh said.

Photo: VNA

Vietnamese Ambassador to the UK Nguyen Hoang Long said that with the two parallel agreements, businesses of the two countries will have conditions to participate more deeply in each other's supply chains, diversifying the supply chains of strategic products, contributing to increasing the autonomy and resilience of both economies.

Thanks to that, people of the two countries can consume more goods and services of each other.

Methodical strategy to approach the market

Despite being a potential market, the UK is highly demanding in terms of technologies, techniques, food hygiene and safety.

This is both an opportunity and a challenge that forces Vietnamese enterprises to prepare and have a methodical strategy when participating in this market.

Le Quoc Phuong, former deputy director of the Vietnam Industry and Trade Information Center, Ministry of Industry and Trade, said that because the UK is a difficult market, it will be a stepping stone for Vietnamese goods to conquer the next big markets.

"When entering the UK market, Vietnamese businesses need to be sharp in complying with and meeting the regulations on product quality certification, goods control procedures, declaration and tax payment according to British regulations.

Vietnamese agricultural products also need to meet the globalization standard (GlobalGap) on green and cleanness set by the UK market," Phuong said.

Nguyen Canh Cuong, Vietnamese Trade Counselor in the UK affirmed that the Trade Office will organize and build a network with the British business community and Vietnamese businesses in the UK.

The Trade Office will help connect, introduce partners for Vietnamese businesses to learn and get updated information on goods quality standards, import regulations into the UK.

Exciting Opportunities to Boost Exports to Israel The signing of Vietnam - Israel Free Trade Agreement will open up many opportunities for Vietnamese businesses, and also new challenges when approaching this market.

Vietnamese Fruits Eye Bigger Market Share in Singapore Vietnamese fruits, particularly longan and lychee, are expected to gain a bigger market share in Singapore as the Vietnamese Trade Office in the country is ...

Vietnamese Lychees Hit Thai Supermarket Shelves Luc Ngan lychees from the northern province of Bac Giang were officially put up for sale at Central Retail’s Tops Food Hall supermarket at CentralwOrld ...