Vietnam-UK trade surges 16.6% in one year
The trade relationship between Vietnam and the United Kingdom experienced significant growth in bilateral trade over the past year, according to data released by the UK government's Department for International Trade on October 19.
The total trade in goods and services between the UK and Vietnam during the four quarters leading up to the end of Q1 2023 amounted to GBP6.7 billion (US$8.14 billion), marking a substantial increase of 16.6% compared to the same period in 2022.
The UK’s exports to Vietnam showed remarkable growth, totalling GBP1 billion during this period. This represents a notable increase of 21.1% year-on-year. Of the UK's exports to Vietnam during this period, goods accounted for GBP797 million (77.5%), while services amounted to GBP231 million (22.5%).
The exports of goods to Vietnam surged by 33.3%, while exports of services experienced a slight decrease of 8% compared to the same period in 2022.
The top five goods exported from the UK to Vietnam were pulp and waste paper, beverages & tobacco, and medicinal & pharmaceutical products, each constituting around 10% of all UK goods exported to Vietnam. Cars and plastics in non-primary forms followed with 4.4% and 4.1%, respectively.
On the other hand, the UK’s imports from Vietnam during the reviewed period reached GBP5.7 billion, up 15.8% year-on-year. Of these imports, goods constituted GBP5.4 billion (94.6%), while services accounted for GBP306 million (5.4%).
Imports of goods from Vietnam experienced a growth of 12.6%, whereas imports of services surged by 137.2% year-on-year.
The top five goods imported to the UK from Vietnam included telecoms & sound equipment (capital) (GBP1.7 billion or 31.2% of all UK goods imported from Vietnam), clothing (GBP542.9 million or 10.1%), footwear (GBP524.8 million or 9.8%), furniture (consumer) (GBP310.3 million or 5.8%), and other manufactures (consumer) (GBP290.7 million or 5.4%).
Despite the impressive trade growth, the UK reported a total trade deficit of GBP4.6 billion with Vietnam during the four quarters leading up to the end of Q1 2023, compared to a trade deficit of GBP4.1 billion in the previous year.
The flourishing trade relationship between Vietnam and the UK can be attributed to their robust economic ties and collaborative efforts, notably following the implementation of the UK-Vietnam Free Trade Agreement (UKVFTA) on May 1, 2021.
Additionally, the UK's recent official signing of an agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on July 16, 2023 further strengthens their trade cooperation with the bloc members, including Vietnam.
