Clam processing at Lenger Seafoods Vietnam Co. Vietnam and the UK saw impressive growth in their two-way trade though exports. Photo: VNA

Although the Free Trade Agreement between Vietnam and the United Kingdom (UKVFTA) was carried out in difficulties caused by the Covid-19 pandemic, Vietnam-UK trade still grew by more than 17% compared to 2020, reaching US$6.6 billion. Despite the pandemic, UKVFTA has been a benefit for Vietnam and the UK.

UKVFTA - strong leverage for bilateral trade

UKVFTA was officially signed in London, UK on December 29, 2020, temporarily applied from January 1, 2021 and officially effective from May 1, 2021.

65% of tariffs have been eliminated on UK-Vietnam trade. In the first 6 years after UKVFTA comes into effect, the UK will eliminate tariffs on 99.2% of tariff lines related to Vietnamese imports.

Vietnam is committed to eliminating 48.5% tariffs, in line with other EU countries within the framework of the EU-Vietnam Trade Agreement (EVFTA).

Tax rates for bilateral trade in goods between the UK and Vietnam continue to be applied as EVFTA.

UKVFTA is one of the new generation free trade agreements that Vietnam has been participating in.

With commitments on the market opening of goods and services, UKVFTA is expected to be a strong lever for strengthening bilateral trade-investment exchange between Vietnam and the UK.

Representatives of authorities and experts in Hanoi. Photo: VNA

Speaking at the opening of the workshop "One year journey of the UKVFTA: Remarkable achievement and the vision ahead," Deputy Minister of Industry and Trade Tran Quoc Khanh said that the time this agreement officially took effect was also the time when both countries faced complicated developments of the pandemic.

Despite such difficulties, the two-way trade in goods between Vietnam and the UK still reached US$6.6 billion, an increase of 17.2% compared to 2020.

Vietnam's exports to the UK increased by 16.4% and the UK's exports to Vietnam increased by 24%.

"This data shows that UKVFTA is a two-way highway, helping to enhance bilateral trade in a more balanced direction," said Deputy Minister Tran Quoc Khanh.

Plenty of room for cooperation

“Such positive results allow us to be optimistic about the positive impact of UKVFTA on both Vietnam and the UK. However, the possibility for the two countries to make use of the potential of this FTA is still large," said Deputy Minister Tran Quoc Khanh.

The UK is stepping up the process of negotiating and signing trade agreements after Brexit is completed. Vietnam has been participating in 15 FTAs, including major FTAs such as the CPTPP, RCEP, and EVFTA.

These will create attractive opportunities for the business communities of the two countries to strengthen cooperation, take advantage of each other's strengths, thereby increasing the added value from economic and trade exchanges.

Deputy Minister of Industry and Trade Tran Quoc Khanh spoke at the workshop. Photo: VNA

However, according to Deputy Minister Tran Quoc Khanh, to turn potential into real benefits, agencies and business communities of Vietnam and the UK need to continue to assess and identify difficulties and problems and find the solutions.

Director-General of the Multilateral Trade Policy Department Luong Hoang Thai said that the agreement has partly helped the two sides overcome difficulties caused by the Covid-19 pandemic. It is also one of the factors that help ease the burden on both economies when supply chains are disrupted.

MP Graham Stuart, trade envoy of the British Prime Minister in charge of Laos, Vietnam, and Cambodia expressed optimism about bilateral cooperation between the two countries. He said that UKVFTA is the driving force to strengthen trade in goods and services to grow higher than before the agreement.

Graham Stuart also wanted the two sides to strengthen the supply chain, realizing the goals set out in this agreement.

The Ministry of Industry and Trade will continue to coordinate with agencies of Vietnam and the UK to organize diverse activities. This is to contribute to the development of the policies to help the business community make the most of the opportunities from the UKVFTA.

UKVFTA Strengthens Vietnam-UK Trade and Investment Bilateral turnover between Vietnam and the UK in 2021 has reached US$6.61 billion; in which Vietnam's exports to the UK increased by 16.4% and the ...

Firm Promotes Vietnamese Products’ Presence in UK Longdan, the biggest importer of Vietnamese goods in the UK, has recently opened a supermarket in Milton Keynes city, about 80km from London.

UK Pledges Further Cooperation with Vietnam in Various Spheres The UK will continue to support Vietnam in the pandemic combat, and coordination in science and technology, especially in tracking new variants, British Ambassador Gareth ...