Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Exporters urged to have strategies to take advantage of UKVFTA for expansion
Production at March 29 Textile Garment Joint Stock Company in Đà Nẵng. With radical tariff elimination, the UKVFTA has contributed to boost exports of Vietnamese products to the UK, including garments, footwear, agricultural and fisheries products. — VNA/VNS Photo Trần Lê Lâm

That was the message for exporters if they want to expand further into this market, an online conference held on Wednesday was told.

The conference, organised by the Công Thương (Industry and Trade) magazine, heard from Vũ Việt Thành from the European – American Market Department, under the Ministry of Industry and Trade, who said that the UKVFA has become an important impetus to leverage the bilateral economic, trade and investment to new highs since the trade deal took effect in May 2021.

Việt Nam’s exports to the UK benefitted significantly from the trade deal, he said, adding that the UK was the ninth largest export market of Việt Nam in the world and fourth in the EU in 2023.

Notably, the bilateral trade between Việt Nam and the UK is a spotlight in the context that Việt Nam’s exports to major markets in the UK saw unprecedented drops, even double digits, due to the impacts of geo-political tensions and global slowdown.

He cited statistics that showed bilateral trade increased 8.9 per cent per year on average during the past three years, in which Việt Nam’s exports to the UK rose by 9.4 per cent, much higher than the growth rate of Việt Nam’s export to the EU-27.

With radical tariff elimination, the UKVFTA has contributed to boost exports of Vietnamese products to the UK, including in garments, footwear, agricultural and fisheries products.

Thành pointed out that the UK’s exports to Việt Nam have also increased significantly, especially in terms of high-tech products and high-quality raw materials such as machineries, automobile, chemicals and pharmaceuticals, contributing to Việt Nam’s industrialisation and modernisation.

Regarding investment, the trade deal has promoted the capital flow from the UK and Việt Nam in recent years, with the number of UK-invested projects reaching 584 as of the end of September, worth $4.5 billion, from 380 projects as of the end of 2020.

The UKVFTA also promotes institutional reform in a number of sectors including trade, investment, services, public procurement and sustainable development in Việt Nam, which creates space and a solid legal foundation for the development of two countries in the future, Thành stressed.

Vietnamese enterprises are also taking advantage of the UKVFTA’s tariff preferences for expansion, he said, adding that a large number have been successfully expanding exports to the UK and met increasingly high requirements in terms of green consumption, sustainable development and producer responsibility for sustainable export to this market, he said.

The UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will also create new space for the bilateral relation between Việt Nam and the UK, Thành stressed.

Enhance market study

Exporters urged to have strategies to take advantage of UKVFTA for expansion
Coffee is among important export products of Việt Nam to the UK. Vietnamese producers and exporters must focus on enhancing competitiveness, establishing value chains to ensue origin traceability, food hygiene and safety in order to expand. — VNA/VNS Photo Vũ Sinh

However, according to the Việt Nam Trade Office in the UK, Việt Nam accounts for a very modest share in the UK’s total imports every year, estimated at just around one per cent. One of the reasons is that Việt Nam has not yet built its own brands in the UK market. in addition, producers and exporters have not focused on developing comprehensive and effective strategy for expansion into this market.

“The UK is very interested in sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should be competitive not only in terms of price and quality, but also in meeting requirements related to sustainable development,” Ngô Chung Khanh, Deputy Director of the Multilateral Trade Policy Department under the Ministry of Industry and Trade said.

According to Nguyễn Cảnh Cường, former Trade Counselor of Việt Nam to the UK, besides UKVFTA, Brexit also provided significant opportunities for Vietnamese firms.

After Brexit, trade between the UK and the EU dropped, up to 50 per cent for some industries, he said, adding that these gaps in the supply chains could bring new opportunities for Việt Nam. “It’s time Vietnamese firms develop strategies and enhance competitiveness to expand further in the UK market.

"With the rapid development of digital technology and new marketing methods, enterprises should be more attentive in searching for market information and studying the market’s requirements carefully for good preparations," he said.

There are various sources to search for and verify market information such as trade offices, industries associations, the Government of UK’s e-portals and export support centres.

He pointed out three factors of the UK market that Vietnamese firms must attach special attention to:

First, Vietnamese firms need to study the market requirements carefully, especially those developed by British Standards Institution (BSI), to make preparations and better take the opportunities arising from the trade pact.

The second factor is the trend of sustainable and environmentally - friendly consumption, emission reduction and climate change. These are already integrated into the UK’s trade policy, engraved in the awareness of importers and consumers.

The third factor is to ensure the transparency in the supply chain and origin traceability.

Agreeing with Cường, Thành said that companies need to study and verify the market information carefully via various official sources, including two e-portals of the Ministry of Industry and Trade at the addresses: https://goglobal.moit.gov.vn/ and http://connectviet.moit.gov.vn/.

Vietnamese producers and exporters must focus on enhancing the competitiveness, establishing value chains to ensue origin traceability, food hygiene and safety.

Increasing the application of science and technology is also important to create competitive advantage for Vietnamese products in the market, he said.

A radical strategy for market expansion should be developed based on market studies to be able to take advantages of the trade deal, expand exports and increase added value, he stressed. Enterprises also need to closely upgrade new regulations of the UK market to avoid problems and make appropriate preparations.

The ministry will continue to strengthen cooperation mechanisms to remove market barriers and reduce cost burdens on enterprises, as well as clarify regulations to help Vietnamese firms develop an appropriate strategy and roadmap for market expansion, Thành said.

Source: VNS
vietnamnews.vn

Related News

Latest News

Forum seeks to boost Vietnam-China agro-forestry-fisheries trade

Forum seeks to boost Vietnam-China agro-forestry-fisheries trade

A forum was held in the northern border province of Lang Son on December 3 to seek ways to enhance the agro-forestry-fisheries trade between Vietnam and its neighbour China.
Meetong recycling standards - reducing emissions, increasing competitiveness

Meetong recycling standards - reducing emissions, increasing competitiveness

VCN - Currently, the rate of domestic enterprises applying recycling standards in production is not high, mainly in large enterprises and FDI enterprises, while this is becoming one of the standards for exporting to key markets.
Accelerating official fruit and vegetable exports to China

Accelerating official fruit and vegetable exports to China

VCN - Vietnamese businesses must update and meet China's increasingly stringent food safety requirements.
Wood exports likely to top 16 billion USD this year

Wood exports likely to top 16 billion USD this year

The wood sector expects to earn 15.5-16 billion USD from exports this year, given a nearly 21% growth rate to 13.18 billion USD in the first 10 months.

More News

Vietnam’s manufacturing stalls on weak export activities

Vietnam’s manufacturing stalls on weak export activities

The Vietnamese manufacturing sector remained in growth territory in November but overall business conditions improved to a lesser extent than in the previous month as slower rises in output and new orders were recorded, according to the S&P Global.
Sustainable production, anticipating the pepper market

Sustainable production, anticipating the pepper market's price increase cycle

VCN - Pepper and spice exports are facing positive prospects as the price increase cycle begins to return. The pepper and spice industry is implementing many activities to promote sustainable production and improve quality to seize market opportunities.
Imports of textile and footwear materials soar amid robust industry growth

Imports of textile and footwear materials soar amid robust industry growth

VCN - Vietnam's appetite for raw materials in the textile and footwear sectors surged to new heights, with China firmly holding its position as the dominant supplier.
Agricultural product exports poised for record-breaking year

Agricultural product exports poised for record-breaking year

Vietnam’s agricultural product exports are on track to achieve an unprecedented milestone, with projected revenue reaching 60-61 billion USD this year, up 7-8 billion USD compared to 2023.
Binh Duong posts 10 billion USD in trade surplus this year

Binh Duong posts 10 billion USD in trade surplus this year

Binh Duong province is projected to achieve a record trade surplus of 10 billion USD this year, reaffirming its role as a leading economic hub in southern Vietnam.
US trade policy is expected to be "stricter", what should businesses do?

US trade policy is expected to be "stricter", what should businesses do?

VCN - As the global supply chain becomes increasingly complex and the predicted “stricter” changes from the Trump administration in early 2025, Vietnamese businesses must make changes to optimize opportunities and operate effectively in the supply chain.
Virtual booths open new doors for Vietnamese farm produce in China

Virtual booths open new doors for Vietnamese farm produce in China

Vietnamese agricultural products will be distributed directly to Chinese consumers through major e-platforms and social media, offering opportunities for enterprises to expand their market presence and enhance export potential.
Vietnam’s exports to the Philippines surge nearly 24% over 10 months

Vietnam’s exports to the Philippines surge nearly 24% over 10 months

VCN - Data from the Vietnam Trade Office in the Philippines, citing the Export-Import Department under the Ministry of Industry and Trade, revealed that Vietnam’s total export turnover to the Philippines reached US$5.22 billion in the first 10 months of 2024. This marks a 23.9% increase compared to the same period in 2023.
How will seafood exports to the US be affected after the US election?

How will seafood exports to the US be affected after the US election?

VCN - Mr. Donald Trump was re-elected as the President of the United States. The special trade policies of the United States under Mr. Trump can create both opportunities and challenges for Vietnam's seafood exports in the time to come.
Read More

Your care

Latest Most read
Forum seeks to boost Vietnam-China agro-forestry-fisheries trade

Forum seeks to boost Vietnam-China agro-forestry-fisheries trade

A forum was held in the northern border province of Lang Son on December 3 to seek ways to enhance the agro-forestry-fisheries trade between Vietnam and its neighbour China.
Meetong recycling standards - reducing emissions, increasing competitiveness

Meetong recycling standards - reducing emissions, increasing competitiveness

Currently, the rate of domestic enterprises applying recycling standards in production is not high, mainly in large enterprises and FDI enterprises, while this is becoming one of the standards for exporting to key markets.
Accelerating official fruit and vegetable exports to China

Accelerating official fruit and vegetable exports to China

Vietnamese businesses must update and meet China's increasingly stringent food safety requirements.
Wood exports likely to top 16 billion USD this year

Wood exports likely to top 16 billion USD this year

The wood sector expects to earn 15.5-16 billion USD from exports this year, given a nearly 21% growth rate to 13.18 billion USD in the first 10 months.
Vietnam’s manufacturing stalls on weak export activities

Vietnam’s manufacturing stalls on weak export activities

The Vietnamese manufacturing sector remained in growth territory in November but overall business conditions improved to a lesser extent than in the previous month as slower rises in output and new orders were recorded, according to the S&P Global.
Mobile Version