No immediate Brexit impact on Viet Nam's UK trade: expert
British one pound sterling coins. The pound plunged to a more-than-30-year low against the dollar on Friday. The pound devaluation would make Vietnamese goods more expensive in the United Kingdom market. — Photo Getty Images |
Dr. Trần Toàn Thắng, deputy director of Business Environment and Competitiveness Department of CIEM, however, told Việt Nam News today after Britain voted to leave the EU, “The pound devaluation would make Vietnamese goods more expensive in the United Kingdom (UK) market, therefore, Việt Nam’s export to UK might be affected in the long-term.” The pound fell more than 10 per cent against the dollar to levels last seen in 1985, its biggest one-day fall in history.
In 2015, the bilateral trade of the two countries reached US$5.4 billion. Of the total two-way trade, Việt Nam exports $4.876 billion worth of goods, producing a huge surplus for the country.
According to Thắng, Việt Nam’s exports to the UK account for only 10 per cent to 12 per cent of the total export volume to the EU with key products including garments, footwear and seafood. Meanwhile, the UK’s exports to Việt Nam include machine components and pharmacy products.
"A direct impact on the Vietnamese economy would not be substantial because of the minimal trade volume, but Brexit could bring down the country’s expectations in the UK market, especially in key export products,” Thắng said.
He explained that the benefits from the conclusion of negotiations on the Việt Nam - EU Free Trade Agreement (EVFTA) would now exclude the UK.
National CPI reaches 5-year high in June Việt Nam’s consumer price index (CPI) rose by 0.46 per cent month-on-month in June, the highest June ... |
“But Việt Nam could sign a bilateral free trade agreement with the UK based on the existing negotiations,” Thắng said.
Besides, he said, it would be very important to closely watch the European Central Bank’s move to see whether it adjusts the euro exchange rate.
“So, the exact impact from Brexit on Việt Nam’s trade and economy cannot be determined right now,” Thắng said.
Related News
Maintain fiscal policy to "open the way" for the economy in 2024
13:31 | 13/05/2024 Headlines
Ho Chi Minh City: Enterprises overcome difficulties, exports lead the country
14:58 | 10/05/2024 Import-Export
Customs collects nearly VND35,000 billion within one month
15:42 | 08/05/2024 Customs
What to do to develop Vietnam's creative economy?
10:06 | 11/05/2024 Headlines
Latest News
Desk established in Dong Nai to support Japanese investors
17:04 | 13/05/2024 Import-Export
Fishery enterprises prioritize exporting value-added processed products
13:30 | 13/05/2024 Import-Export
New trends in digital transformation for businesses
13:29 | 13/05/2024 Import-Export
India as main market for Vietnamese star anise exports
17:58 | 12/05/2024 Import-Export
More News
Domestic auto market shows signs of recovery
17:57 | 12/05/2024 Import-Export
Businesses must fully understand the new EU import control regulations
08:17 | 12/05/2024 Import-Export
Responding to the market, export enterprises are willing to spend more on "green practices"
17:52 | 11/05/2024 Import-Export
Cai Mep port authorised to receive super container ships
17:51 | 11/05/2024 Import-Export
The new race in developing green and smart industrial parks
10:07 | 11/05/2024 Import-Export
Take advantage of opportunities from American "eagles"
14:59 | 10/05/2024 Import-Export
Strong recovery seen in industrial production in four months
14:52 | 10/05/2024 Import-Export
"The key" to promote growth for businesses
10:23 | 10/05/2024 Import-Export
An Giang Province to turn textile-garment, footwear into key export items
14:48 | 09/05/2024 Import-Export
Your care
Desk established in Dong Nai to support Japanese investors
17:04 | 13/05/2024 Import-Export
Fishery enterprises prioritize exporting value-added processed products
13:30 | 13/05/2024 Import-Export
New trends in digital transformation for businesses
13:29 | 13/05/2024 Import-Export
India as main market for Vietnamese star anise exports
17:58 | 12/05/2024 Import-Export
Domestic auto market shows signs of recovery
17:57 | 12/05/2024 Import-Export