Two-way trade between Vietnam and the UK recovers thanks to UKVFTA

VCN - The implementation of the UKVFTA Agreement has brought impressive growth to two-way trade between Vietnam and the UK in 2021 and is continuing to show a positive recovery in the post-Covid-19 period.
Experts shared at the conference. Photo: N.H
Experts shared at the conference. Photo: N.H

On June 23, the Ministry of Industry and Trade coordinated with the Embassy of the United Kingdom and the British Chamber of Commerce in Vietnam to organize a seminar "Taking the UK market potential, taking advantage of UKVFTA". The workshop was organized to exploit and make good use of opportunities brought from the UKVFTA Agreement and continue to promote trade growth with the UK by supporting Vietnamese businesses to join the production chain and supply by British businesses.

Two-way trade recovers positively after the pandemic

Along with the UKVFTA Free Trade Agreement coming into effect, Vietnam-UK trade turnover in 2021 recorded an impressive growth despite the Covid-19 pandemic. According to Vietnam Customs data, two-way trade turnover between Vietnam and the UK in 2021 reached USD$6.6 billion, up 17.2% compared to 2020. In which, Vietnam's exports will reach USD$6.6 billion, up 16.4%. UK exports reached USD$849 million, up 23.6%.

In the first five months of 2022, due to the impact of the Covid-19 pandemic and the complicated geopolitical situation in the world leading to disruptions in the global production and supply chains, the two-way trade USD$2.68 billion, equivalent to the turnover in the same period of 2021.

Speaking at the seminar, Chris Milliken - Vice President of the British Chamber of Commerce in Vietnam (Britcham) affirmed the increasingly close relationship between Vietnam and the UK. Two-way trade turnover between the two countries is showing positive signs of recovery after the Covid-19 pandemic. This is the clearest proof of the benefits that UKVFTA brings to the economic and trade development of Vietnam - UK. Chris Milliken believes that trade-investment cooperation between the two countries will go further because the structure of the two countries' import-export industries is complementary instead of competitive.

Chris Milliken said that many British investors and businesses have turned their attention to emerging economies with stable and sustainable growth, including Vietnam. In particular, Chris Milliken highly appreciated Vietnam's commitment to bring net emissions to zero by 2050 at COP26.

To accomplish this goal, he assessed that Vietnam is currently quite open to receiving technological solutions to help build its renewable energy platform. This is again an area that the UK has focused on developing in recent years. In Vietnam, leading in cooperation in this field are major British energy enterprises such as Shire Oak International Group with many solar power projects in Vietnam, Enterprise Energy Group is investing in projects. Thang Long wind offshore Ke Ga cape - Binh Thuan. Main Stream Group is investing in Phu Cuong wind power project Soc Trang.

Truong Thi Chi Binh, Vice President and General Secretary of the Vietnam Association of Supporting Industry Enterprises also mentioned that many products in the processing and manufacturing industry are experiencing high growth in exports to the UK and are still lots of room for growth in the near future such as power cables, office machine spare parts, mechanical components for furniture, etc.

Agriculture, forestry and fishery enter the UK thanks to UKVFTA

In addition to participating in the supply chain of industrial products, agricultural, forestry and fishery products, which are Vietnam's strengths, are also realizing great export potential to the UK market. With the transformation of the supply chain, Vietnam has the opportunity to become a partner in supplying large food and agricultural products to British supermarket chains. However, many Vietnamese exporters still have difficulties in finding partners and understanding the needs, quality standards and required export procedures to the UK market, the risks of contracts, payments and avoidance.

Oliver Todd, British Consul General in Ho Chi Minh City, British Trade and Investment Director in Vietnam, highly appreciates Vietnam's position as a trading partner in Southeast Asia, believing that Vietnam can change to replace countries such as India and Indonesia to become a new supplier in the field of agricultural and aquatic products for the UK. He shared more about the import demand for agricultural and aquatic products of the UK market, as well as outlined the standards for exporting agricultural products to the UK market.

After the UKVFTA Agreement comes into effect, opportunities for agricultural and aquatic products to the UK will enjoy many incentives. To penetrate the UK market, Mr. Nguyen Manh Dat, Deputy Director, Institute of Food Industry, Ministry of Industry and Trade noted that Vietnamese businesses need to have clear and detailed information on quality standards. and necessary export procedures to the UK market, and at the same time change the production model to meet this difficult export market.

Nguyen Ngoc Dai Trang, Executive Director, British Standards Institute (BSI Group) also added that the UK is a country with high technical standards, regularly updating standards to ensure hygiene and safety. Vietnamese enterprises need to grasp information on technical standards quickly to be able to improve and meet the requirements of this fastidious market.

To support Vietnamese enterprises to export to the UK market, Ms. Bui Thi Thanh An, Deputy Director of the Trade Promotion Department, Ministry of Industry and Trade, affirmed that the Ministry of Industry and Trade always accompanies Vietnamese enterprises in the exports of goods.

Tran Nguyen Hong Trang, National Director of Operations and Customer Service, Center for International Payments and Trade Finance, HSBC Vietnam, also recommends that businesses take advantage of consulting services. professional to have good information about the partner. Long-standing global commercial banks like HSBC often have very good networks to support this. In addition, the LC payment method will still be a traditional but effective international payment method, helping to ensure the solvency of the buyer.

By Nguyen Hien/ Huu Tuc

Related News

Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Promoting Vietnam-Laos Customs cooperation

Promoting Vietnam-Laos Customs cooperation

VCN - On November 19, 2024, in Hanoi, Vietnam Customs held the Vietnam - Laos Customs Directors General Conference.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Businesses need support from vietnamese representative offices abroad

Businesses need support from vietnamese representative offices abroad

VCN - Several heads of Vietnamese representative offices abroad believe that Vietnamese businesses need to prepare solutions to respond to the changing global economy and meet the increasing demands of the international market.

Latest News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.

More News

Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Developing supporting industries for the billion-dollar export commodity groups

Developing supporting industries for the billion-dollar export commodity groups

VCN - Electronic products and components are one of export commodity groups with turnover exceeding one billion USD, but the supporting industry for this group is still modest.
Village craft products conquer the world

Village craft products conquer the world

VCN - Vietnam's handicraft products have significant potential to captivate international customers, enhancing export value and revenue.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version