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May 20, 2021 / 15:24

PM approves action plan for UKVFTA implementation

The Vietnamese government would offer more incentives for UK enterprises to form linkages with Vietnamese partners in a move to setup new supply chains.

Prime Minister Pham Minh Chinh has approved the action plan to realize the UK-Vietnam Free Trade Agreement (UKVFTA).

 Cargos handling at Hai Phong port. Photo: Lam Khanh

Under the plan, the PM urged ministries and provinces/cities to continue disseminating information on the UKVFTA, the UK and Northern Ireland markets to related parties, especially those under direct impacts from the deal, including farmers, fishermen, state agencies, business community, and cooperatives.

The Ministry of Industry and Trade (MoIT) would serve as a focal point to provide information on Vietnam’s commitments and instruction on their implementation as well as related issues of the UKVFTA.

The PM assigned the MoIT to improve understandings and forecast on the UK markets, saying this is a key step to help local enterprises timely access information and requirements on technical specifications and customs regulations in UK; step up trade/investment promotion activities in the UK.

Chinh called for government agencies to finalize necessary legal framework to ensure effective implementation of the UKVFTA; provide supporting programs to enhance competitiveness for associations and businesses, especially those of small and micro sizes, as well as farmers; setup plans to support sectors, products and goods that would be under direct impacts from the UKVFTA.

The action plan stressed the necessity to support local enterprises better integrate into global and value supply chains having the participation of their UK peers to take advantages from the UKVFTA; offer more incentives for UK enterprises to form linkages with Vietnamese partners in a move to setup new supply chains.

The UKVFTA was signed on December 29, 2020 in the UK and become effective on May 1, 2021.

Under the UKFTA commitments, six years since the coming into effect of the deal, the UK will remove tariffs for 99.2% of goods imported from Vietnam, or 99.7% of Vietnam’s exports to the country.

Meanwhile, Vietnam will immediately remove tariff for 48.5% of goods from UK, or 64.5% of import volume. The figure is set to rise to 91.8% or 97.1% of UK exports to Vietnam in six years.

Vietnam is expected to have more opportunities in attracting investment capital, technology transfer, and tourists from the UK once the Covid-19 is contained. In return, UK enterprises and products would have an open access to a market with 100 million people.