UKVFTA greatly benefits Vietnam-UK trade: Experts
The UK-Vietnam Free Trade Agreement (UKVFTA), signed into law three years ago, has clearly benefited trade cooperation between the two countries, particularly in the context of Vietnam’s exports to most other major markets declining due to geopolitical tensions and headwinds in the global economy, said experts at a conference in Hanoi on October 30.
Vu Viet Thanh from the Department of European-American Market under the Ministry of Industry and Trade said that the UKVFTA has become an important driving force for promoting economic, trade and investment cooperation between the two sides. Vietnam's increasing exports to the UK is clear evidence, he said.
Thanh noted that two-way trade has expanded 8.9% per year in the past three years, of which Vietnam's exports to the UK grew by an average of 9.4% per year. Vietnam's trade surplus with the UK in the past nine months also rose 24% year on year to US$5.1 billion.
Meanwhile, the UKVFTA with its comprehensive tariff removal also contributes significantly to increasing the market share of some of Vietnam's strong product groups in the UK market.
According to data from ITC's Trade Map, some important export products of Vietnam are holding the top position in the UK market, including pepper, shelled cashew nuts, footwear, and coffee. Meanwhile, Vietnamese seafood is fifth place and garment in sixth place in terms of market share.
Last year, many additional agricultural products of Vietnam were allowed to officially sold in the UK, such as orange, pomelo, lychee and durian. Nguyen Hoai Nam, deputy secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP) said that thanks to preferential tax rate in the British market, so far, shrimp products account for 70% of the total turnover of Vietnamese seafood exported to the UK, followed by tra fish products at 20%.
Nguyen Canh Cuong, former Minister Counsellor to the UK said that businesses need support from authorities in order to improve the effectiveness of the market approach strategy as well as increase business access to market information.
Thanh affirmed that in the coming time, his department will continue to increase the provision of market information, while working to raise awareness of sustainable development, green production and trademark building.
It will continue to work with trade partners to remove trade barriers, and strengthen trade promotion to bring more Vietnamese products to distribution chains and world's leading purchasing groups.
