ECONOMIC – TRADE RELATIONS BETWEEN THE UK AND VIETNAM
Currently, the United Kingdom and Vietnam have been facing serious impacts from the Covid-19 pandemic, yet the total trade turnover between the two countries was estimated to still reach 5.55 billion USD in 2020. The UK is the third-largest trade partner of Vietnam in Europe and the ninth-largest export market for Vietnam. More importantly, Vietnam has always maintained a large trade surplus in this market.
The United Kingdom – Vietnam Free Trade Agreement (UKVFTA) has just been recently signed by the Ambassadors of the two Governments of Vietnam and the UK in London (UK) and has been in effect as of December 31st, 2020. This agreement plays a crucial role in a new beginning with a strategic partnership that was established by the two countries 10 years ago, especially when the UK now has officially left the European Union (EU).
Through the UKVFTA Agreement, Vietnam will become a gateway market for UK businesses to access a large regional market. For Vietnam, the elimination of tariffs will bring many benefits to the strong export industries such as electronics, textile and footwear, and agricultural products (rice, coffee…). The benefits brought by the UKVFTA Agreement will create favorable opportunities for Vietnamese goods to enter the UK market.
The UKVFTA Agreement not only plays a vital part of guaranteeing that trade between Vietnam and the UK is not interrupted at the end of the Brexit transition period, but also becomes the promoting force to push bilateral relations in a comprehensive and deeper.
Businesses looking to expand business operations and trade connections in the UK market, please connect with WTC Binh Duong New City for advice and support.