Vietnamese products gain popularity in the UK, EU

Vietnamese rice on the shelves of a super market in London. — VNA/VNS Photo

Vietnamese products are steadily making their mark in the United Kingdom, with exports consistently growing since 2021, according to data from the Việt Nam General Department of Customs.

In the first 11 months of this year, total trade between Việt Nam and the UK reached over US$$7.7 billion, an 18.1 per cent increase compared to the previous year. Notably, the Southeast Asian country enjoyed a trade surplus of more than $6.1 billion, a 21.4 per cent rise, with Vietnamese exports to the UK amounting to over $6.9 billion, reflecting a 19.5 per cent growth year-on-year.

Key exports saw significant increases, including computers, electronics, and components at nearly $757 million (up 118.6 per cent); fruits and vegetables at $33.8 million (up 50.7 per cent); pepper at $29.7 million (up 46 per cent); confectionery and cereal products at $49 million (up 35 per cent); machinery, equipment, tools, and parts at $1.24 billion (up 34.5 per cent); steel at over $214 million (up 34.4 per cent); coffee at $121 million (up 34 per cent); rubber products at $29 million (up 33 per cent); paper products at $17.3 million (up 22.4 per cent); wood and wood products at $201 million (up 16 per cent); and textiles at over $692 million (up 12.5 per cent).

Popularity surge

Hoàng Lê Hằng, first secretary of the Vietnamese Trade Office in the UK, said that this positive trend reflects the increasing popularity of Vietnamese goods in the UK, and in Europe in general.

"Made in Việt Nam" products including clothing, footwear, tools and food, are now readily available in major, established UK supermarket chains. For instance, Vietnamese summer and autumn clothing items can be found in Marks & Spencer (M&S), the largest clothing retailer in the UK, as well as in other clothing stores like UNIQLO, Next, and Primark. Vietnamese food products, including seafood, noodles, phở and various fresh fruits, have secured a place in the largest UK supermarkets, such as Tesco, Sainsbury's, and premium outlets like Whole Foods and M&S.

In addition, Vietnamese goods are widely available in Asian supermarkets in the UK, such as Longdan and Eutek Group, where consumers can find a range of products like rice, tea, coffee, regional candies, spring rolls, noodles, and fresh vegetables.

Hằng views the increasing presence on UK supermarket shelves as a positive sign, illustrating that Vietnamese products are gaining consumers' preference and carving out a niche in the UK market, which is seeking perse supply sources after Brexit.

Việt Nam’s export growth, especially in agricultural products, is also attributed to the Vietnam-UK Free Trade Agreement (UKVFTA), which eliminates 94 per cent of the tariff lines for fruits and vegetables, offering a competitive edge over the competition.

The proactive efforts of Vietnamese exporters and the Vietnamese business community in the UK, alongside support from the Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, and trade associations such as the Vietnam Fruit and Vegetable Association, VICOFA, VASEP and HAWA, have also played a significant role in driving exports to the UK.

Hằng said bilateral trade has strong potential for continued growth, supported by the UKVFTA, Việt Nam’s robust economic performance, and increasing demand for goods and services in both countries. The UK's official entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) further opens opportunities for export growth, particularly as the UK is one of Việt Nam’s key trade partners with a large, developed economy.

As a member of the CPTPP, the UK has committed to opening new market access for products, such as fragrant rice, tuna, and honey, thereby offering a competitive advantage to exporters in these sectors.

She said the UK's entry into the CPTPP will enhance Việt Nam’s international competitiveness by promoting free trade standards, improving the ability of Vietnamese businesses to meet high international standards, and fostering sustainable production and supply chain improvements.

Challenges

However, challenges remain for exports to the UK in the coming year. An economic slowdown, high inflation, and reduced consumer spending due to rising costs may affect demand. Additionally, geopolitical uncertainties, particularly in the Red Sea, have increased shipping costs and extended delivery times, further complicating trade.

Compliance with UK and EU regulations, such as those on deforestation and forest degradation, may also affect exports of products like wood, coffee, rubber, and soybeans. Other factors, including green certification requirements, fair trade, and the growing demand for organic and diet-specific products, will necessitate more specialised production processes, driving up costs and prices.

The UK's upcoming implementation of the Carbon Border Adjustment Mechanism (CBAM) could also impact export industries like ceramics, aluminium, steel, cement, and fertilisers if they are unprepared for the adjustment.

Despite these challenges, Hằng believes that with strategic planning and necessary reforms, Việt Nam can capitalise on these opportunities to achieve sustainable development. The UK's joining the CPTPP opens a new avenue for expanding the market and attracting investment, particularly in technology, finance, renewable energy, and sustainable infrastructure.

As the Asia-Pacific region's geopolitical significance continues to rise, the UK will likely seek increased investment in Việt Nam, a key CPTPP member, Hằng said.