Brexit to cause exports to UK to face more barriers
Vietnam’s exports to the United Kingdom will face several barriers if the country leaves the European Union, stated Dang Hoang Hai, head of the Ministry of Industry and Trade’s European Market Department on June 27.
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When Brexit occurs, Vietnamese exports will be forced to redo all procedures such as customs clearance and food hygiene and safety check-ups before reaching the hands of UK customers.
Notably, if the UK establishes a technical barrier with the EU, the export of Vietnamese companies is more difficult.
The Ministry of Industry and Trade recommended businesses to seek new export routes in order to reduce costs and time.
Statistics from the ministry showed that every year, the UK’s imports are valued at 700 billion GBP (US$924.6 billion). However, Vietnam’s export turnover to the country accounts for 0.5 percent of the UK’s import turnover and 2.5 percent of Vietnam’s export turnover.
Therefore, the impact on Vietnam’s exports at a large scale will not happen, Hai said.
However, Brexit will have a big effect on the country’s shrimp exports, the UK is the largest importer of Vietnamese shrimp, and is one of the markets reporting an increase in import turnover.
The official also noted that if the UK leaves the European Commission, the signing of the EU-Vietnam free trade agreement will also face difficulties.
He stressed the need to speed up the signing process to avoid complications and shorten time.
