Vietnam-UK trade expected to reach US$10 billion

Trade revenue between Vietnam and the UK is expected to reach US$10 billion in the next one or two years thanks to strong support from the Vietnam-UK Free Trade Agreement (UKVFTA).

According to the Department of the Europe-America Market under the Ministry of Industry and Trade, last year, import-export turnover between the two countries reached US$6.6 billion, a 17.2% year-on-year increase and four times higher than the period before establishing the strategic partnership. In 2009, turnover was US$2.65 billion.

Export and import revenues were US$5.76 billion and US$849 million, 16.4% and 23.6% increases, respectively. Trade between Vietnam and the UK has surged mainly thanks to the UKVFTA, which took effect in May 2021.

The UK economy is expected to recover after the COVID-19 pandemic and the British Government lifts travel restrictions from March 18, 2022. Increasing demand for consumer goods in the UK has created more opportunities for Vietnamese exporters. In particular, the UK is the third largest trading partner of Vietnam in Europe, following Germany and the Netherlands.

Total UK direct investment capital into Vietnam by 2021 was US$4.15 billion, double the amount before establishing the strategic partnership (in 2009, total investment capital of the UK in Vietnam only reached US$2 billion).

Deputy Minister of Industry and Trade Tran Quoc Khanh, said UKVFTA has become a great lever for Vietnam-UK trade and investment co-operation. In addition, co-operation in the field of energy, especially renewable energy, between Vietnam and the UK has potential to yield results.

At the COP26 Conference held in November 2021, Vietnam made a statement on the goal of achieving net zero emissions by 2050. This statement clearly demonstrated Vietnam's determination to move from traditional fossil fuels to greener and cleaner energy sources, thereby contributing to a reduction of greenhouse gas emissions globally.

Khanh said the ministry and Vietnamese agencies have been actively reviewing and adjusting the National Electricity Development Plan for the period of 2021-30, with a vision to 2045 (Power Plan VIII) with a focus on prioritising the development of clean, environmentally friendly power sources such as onshore and offshore wind power.

To achieve the above goals, Vietnam is studying and proposing to legislate the development of renewable energy, creating a favourable legal corridor to attract investment from the private sector. Vietnam needs the support of international partners and donors in technology as well as preferential capital. This is an opportunity for Vietnam and the UK to strengthen co-operation, he added.

Related

Conference to unlock Vietnam-UK trade potential
Conference to unlock Vietnam-UK trade potential

A conference will be co-held on June 23 by the Ministry of Industry and Trade (MoIT), the British Embassy in Vietnam and the British Chamber of Commerce Vietnam (BritCham) to support Vietnamese enterprises to join the supply chain of British enterprises.

Conference to unlock Vietnam-UK trade potential

Conference to unlock Vietnam-UK trade potential

A conference will be co-held on June 23 by the Ministry of Industry and Trade (MoIT), the British Embassy in Vietnam and the British Chamber of Commerce Vietnam (BritCham) to support Vietnamese enterprises to join the supply chain of British enterprises.

Vietnam-UK economic and trade co-operation enjoys sustainable development
Vietnam-UK economic and trade co-operation enjoys sustainable development

VOV.VN - With the UK-Vietnam Free Trade Agreement (UKVFTA) being in force for over a year, the deal helped to promote positive two-way trade growth of US$6.6 billion in 2021, an annual increase of 17.2%, despite the negative impact of the COVID-19 pandemic.

Vietnam-UK economic and trade co-operation enjoys sustainable development

Vietnam-UK economic and trade co-operation enjoys sustainable development

VOV.VN - With the UK-Vietnam Free Trade Agreement (UKVFTA) being in force for over a year, the deal helped to promote positive two-way trade growth of US$6.6 billion in 2021, an annual increase of 17.2%, despite the negative impact of the COVID-19 pandemic.

Forum discuses Vietnam-UK trade, investment, climate change response cooperation
Forum discuses Vietnam-UK trade, investment, climate change response cooperation

A Vietnam – UK economy and trade forum took place in Hanoi on October 21, discussing the nations’ economic, trade and investment ties as well as the issues of climate change and low-carbon economy.

Forum discuses Vietnam-UK trade, investment, climate change response cooperation

Forum discuses Vietnam-UK trade, investment, climate change response cooperation

A Vietnam – UK economy and trade forum took place in Hanoi on October 21, discussing the nations’ economic, trade and investment ties as well as the issues of climate change and low-carbon economy.