UKVFTA - new driving force for Vietnam"s exports

Vietnam’s exports to the United Kingdom have shown good signs with Vietnamese tropical fruits and agricultural products finding their way on to high-end and middle-class supermarket chains of UK like Whole Foods, Marks & Spencer (M&S), Waitrose and TESCO.

UKVFTA - new driving force for Vietnam's exports hinh anh 1

Vietnamese lychees are on sale at a supermarket in the UK (Photo: VNA)

Vietnam’s exports to the United Kingdom have shown good signs with Vietnamese tropical fruits and agricultural products finding their way on to high-end and middle-class supermarket chains of UK like Whole Foods, Marks & Spencer (M&S), Waitrose and TESCO.

Previously, only a few Vietnamese agricultural products such as cashews, coffee, and pepper could be seen at UK’s supermarkets, while rice, fruits and other products were mainly sold at small supermarkets that serve the Vietnamese and the Asian community.

This positive result is made possible through great efforts of Vietnamese agricultural exporters and relevant ministries, but it also reflects the benefits that the Vietnam-UK Free Trade Agreement (UKVFTA) has brought about after one year of implementation.

According to Nguyen Canh Cuong, Trade Counselor at the Vietnamese Embassy to the UK, UKVFTA is a momentum to promote the recovery of Vietnam-UK trade which suffered a significant decline in 2019 and 2020. Two-way trade between the two countries reached more than 6.6 billion USD in 2021, up 17.2 percent compared to the previous year. Of which, Vietnam gained a trade surplus of approximately 4.92 billion USD, an increase of 15.2 percent compared to that of 2020. British exports to Vietnam also rose by 24 percent.

He said this is a very encouraging result in the context of the container crisis, high freight shipping costs and the UK economy not completely recovering from the COVID-19 pandemic.

Commenting on the benefits of UKVFTA, Luong Tuan Anh, a lecturer at Economics Faculty of UK’s Montfort Leicester University, said that Vietnam is a gateway to the huge markets of Asia-Pacific and Europe, the signing of UKVFTA helps Vietnamese companies become intermediaries for companies in the UK who are having difficulty accessing the European market after the country leaves the EU.

Pham Trung Kien, General Secretary of the Vietnam Business Association in the UK said the agreement is really an "impetus" for Vietnamese businesses in the UK as well as in the domestic market in the context that the British Government is opening the door to create opportunities for cooperation and trade with other countries in the world, including Vietnam, a strategic partner of the UK in Southeast Asia.

Thai Tran, Director of TT Meridian Company, an enterprise engages in the import and export business in the UK, said that the agreement has reduced import taxes for many types of goods that his company is trading such as fragrant rice, fruits, food and packaging which help it reduce the cost and increase its competitiveness, thereby can push up the import of many potential products from Vietnam to the UK.

However, he pointed out that the UKVFTA sets high-quality technical standards, therefore only high quality products can enjoy preferential tax from the agreement.

In addition to quality issues and competitive prices, Vietnamese companies need to pay attention to business reputation to successfully penetrate the UK market, according to Tuan Anh.

He emphasised that Britain has long been famous as a country that respects the rule of law. To approach large British companies, Vietnamese businesses need to be transparent about information such as having a reliable website, good track records with reputable businesses, clear contracts and respecting all terms in the contracts.

Anh noted that UK consumers are particularly concerned about social issues such as child labour or sub-standard working conditions as well as activities that cause high emissions, thus, businesses must pay attention to corporate social responsibility.

Meanwhile, Ian Gibbons, Chief Executive Officer at UK-ASEAN Business Council (UKABC), stressed the importance of thorough market research when exporting to the UK to ensure the products are suitable and capable to compete in the market. He also highlighted the need to build trust and reputation with British partners through developing long-term and sustainable relationships.

According to Thai Tran, to be able to get a firm foothold in the UK market, it is necessary to build prestige and high quality national brand for Vietnamese goods with a strategy of using a pyramid model, in which leading businesses will be at the top. They are a group of large-scale enterprises with sufficient resources to manage quality and build brands that can convince British partners to sign contracts, he said, adding that the expansion of this model will help Vietnamese brands gain a foothold in the UK market, creating a foundation for other businesses to enter the UK market./.

Source: VNA
en.vietnamplus.vn

Related News

The wood industry seizes opportunities amid changes in the export market

The wood industry seizes opportunities amid changes in the export market

VCN - According to Mr. Đỗ Xuân Lập (pictured), Chairman of the Vietnam Timber and Forest Products Association, changes in policies in the United States and globally have also opened up significant opportunities for Vietnam's wood industry.
Prioritizing semiconductor workforce training

Prioritizing semiconductor workforce training

VCN - Vietnam is well-positioned to participate deeply in the global semiconductor industry. Experts believe that developing a skilled workforce in microchips and semiconductors should be a long-term priority to effectively capitalize on this opportunity.
Vietnam-Cambodia: Looking back on journey of cooperation

Vietnam-Cambodia: Looking back on journey of cooperation

VCN – The bilateral meeting between the General Department of Vietnam Customs (GDVC) and the General Department of Customs and Excise of Cambodia (GDCEC) was held by the GDVC on December 9.
Seafood exports increase competitiveness through quality

Seafood exports increase competitiveness through quality

VCN - The "wave" of orders from a number of large markets and increased consumption demand in the coming months will be the driving force to accelerate seafood exports at the end of the year. Not only racing to increase exports, Vietnamese seafood also increases its competitive advantage by focusing on product quality, seed sources, green transformation in the production process...

Latest News

Top 10 Reputable Animal Feed Companies in 2024: Efforts to survive the challenges of nature

Top 10 Reputable Animal Feed Companies in 2024: Efforts to survive the challenges of nature

VCN - In the Report announcing the Ranking of Top 10 Reputable Animal Feed Companies in 2024 on December 12, 2024, Vietnam Report Joint Stock Company said that Vietnam's animal feed industry has faced many challenges from natural disasters and epidemics. But overcoming all, the industry continues to survive and has confidence in the future.
Vietnam's import-export surges 15.3%

Vietnam's import-export surges 15.3%

Vietnam's total import-export turnover reached 745 billion USD as of December 14, marking a robust 15.3% growth compared to the same period in 2023, according to the General Department of Vietnam Customs.
More Vietnamese firms interested in Saudi Arabia: Ambassador

More Vietnamese firms interested in Saudi Arabia: Ambassador

An increasing number of Vietnamese enterprises are showing interest in Saudi Arabia, particularly in the sectors of Vietnam's advantages and the Middle East country's needs, a diplomat has said.
“Give and Take” in the Value Chain of the CPTPP Market

“Give and Take” in the Value Chain of the CPTPP Market

VCN - Vietnamese businesses have many opportunities and advantages if they take advantage of resources from imports and technology transfers when joining the supply chains of FDI companies within the CPTPP.

More News

Binh Dinh province works to attract investment from Japan

Binh Dinh province works to attract investment from Japan

The People’s Committee of Binh Dinh province on December 18 inked a cooperation deal with the Japan - Vietnam Friendship Association of Sakai city as part of the south-central province’s efforts to attract more investment and development resources from the Northeast Asian country.
Agricultural, forestry and fishery exports “reach the target” early

Agricultural, forestry and fishery exports “reach the target” early

VCN - According to a report from the Ministry of Agriculture and Rural Development, the export turnover of agricultural, forestry and fishery products in November 2024 is estimated at US $5.3 billion, up 13.9% compared to November 2023. It is notable that it not only “reaching the finish line” early, the agricultural sector also exceeded the annual plan by over US $ one billion.
Thailand remains Vietnam’s biggest trading partner in ASEAN

Thailand remains Vietnam’s biggest trading partner in ASEAN

The activities conducted by the Vietnam Trade Office in Thailand in 2024 have enriched the trade and investment relations between the two countries, contributing to helping Thailand maintain its position as Vietnam's largest trading partner in the Association of Southeast Asian Nations (ASEAN), according to Le Huu Phuc, Vietnam's Trade Counsellor in Thailand.
Rubber value soars in 2024: VRA

Rubber value soars in 2024: VRA

All Vietnam's rubber’s top 15 export markets saw growth in export values in 2024, with Malaysia recording the highest increase, expanding fivefold, followed by Sri Lanka at 3.7 times, according to the Vietnam Rubber Association (VRA).
Vietnamese businesses struggle to access green finance

Vietnamese businesses struggle to access green finance

VCN - Green finance is gradually becoming an indispensable tool in Vietnam to support businesses, promote sustainable development, and move towards the goal of Net Zero. However, the path to accessing green capital is full of barriers, especially for small and medium enterprises.
E-commerce: a gateway to boost Vietnamese commodities in the UK market

E-commerce: a gateway to boost Vietnamese commodities in the UK market

E-commerce stands out as a promising channel to further enhance Việt Nam’s trade presence in this dynamic market.
Agro-forestry-fisheries exports top 62 billion USD in 2024

Agro-forestry-fisheries exports top 62 billion USD in 2024

Vietnam’s agro-forestry-fisheries exports are projected to reach over 62 billion USD in 2024, and continue to grow next year, heard at a conference in Ho Chi Minh City on December 16.
Removing “bottlenecks” for digital transformation in industrial production

Removing “bottlenecks” for digital transformation in industrial production

VCN - Although implementing digital transformation towards smart production creates many opportunities, it also poses significant challenges for businesses, especially in terms of investment costs and human resources.
UKVFTA facilitates Việt Nam

UKVFTA facilitates Việt Nam's tuna exports to UK market

Việt Nam is the 13th largest tuna product supplier to the UK, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Read More

Your care

Latest Most read
Top 10 Reputable Animal Feed Companies in 2024: Efforts to survive the challenges of nature

Top 10 Reputable Animal Feed Companies in 2024: Efforts to survive the challenges of nature

VCN - In the Report announcing the Ranking of Top 10 Reputable Animal Feed Companies in 2024 on December 12, 2024, Vietnam Report Joint Stock Company said that Vietnam's animal feed industry has faced many challenges from natural disasters and epidemics.
Vietnam's import-export surges 15.3%

Vietnam's import-export surges 15.3%

Vietnam's total import-export turnover reached 745 billion USD as of December 14, marking a robust 15.3% growth compared to the same period in 2023, according to the General Department of Vietnam Customs.
More Vietnamese firms interested in Saudi Arabia: Ambassador

More Vietnamese firms interested in Saudi Arabia: Ambassador

An increasing number of Vietnamese enterprises are showing interest in Saudi Arabia, particularly in the sectors of Vietnam's advantages and the Middle East country's needs, a diplomat has said.
“Give and Take” in the Value Chain of the CPTPP Market

“Give and Take” in the Value Chain of the CPTPP Market

Vietnamese businesses have many opportunities and advantages if they take advantage of resources from imports and technology transfers when joining the supply chains of FDI companies within the CPTPP.
Binh Dinh province works to attract investment from Japan

Binh Dinh province works to attract investment from Japan

The People’s Committee of Binh Dinh province on December 18 inked a cooperation deal with the Japan - Vietnam Friendship Association of Sakai city as part of the south-central province’s efforts to attract more investment and development resources from the Northeast Asian country.
Mobile Version