UK firms commit long-term support for Vietnam’s high-income ambition
As the United Kingdom and Vietnam mark 15 years of strategic partnership, British Ambassador Iain Frew affirmed the UK’s commitment to supporting Vietnam’s goal of becoming a high-income economy by 2045, with a focus on digital transformation, green transition, and financial sector development.
British businesses are ready to be long term partners in Vietnam’s journey to modernize its economy and achieve upper middle-income status by 2045, UK Ambassador to Vietnam Iain Frew said at a high-level business dialogue with the Vietnamese Government on June 28.
Delegates exchanged views on trade relations between Vietnam and the United Kingdom in the context of global economic instability, offering recommendations to resolve bottlenecks, harmonize regulations, and promote trade and investment facilitation. Photo: VGP/Nhat Bac
Leading a large delegation of UK enterprises, Ambassador Frew pointed out four key areas where the UK sees strong potential for cooperation: digital transformation, green energy, science and technology, and financial services.
Digital transformation is a top priority. The UK companies have extensive expertise in areas like financial technology and cybersecurity. Earlier this year, a top UK artificial intelligence delegation visited Vietnam for the UK Southeast Asia Tech Week, and a memorandum of understanding was signed with Ho Chi Minh City’s Digital Transformation Center.
In green transition, UK businesses are committed to supporting Vietnam’s shift to renewable energy and net zero goals by 2050. Just last week, the UK hosted a delegation from Vietnam’s Ministry of Industry and Trade to share best practices in offshore wind power and renewable energy. The UK is also co-leading the US$15.5 billion Just Energy Transition Partnership (JETP) to directly support Vietnam’s green ambitions.
In science and technology, bilateral cooperation is strong in areas such as medical research, artificial intelligence, and the Fourth Industrial Revolution. Education is the foundation of these successes, with collaborative models extending from high school to university levels between the two nations.
On financial development, since late 2022, the UK has been funding a project to support Vietnam in developing international financial centers in Ho Chi Minh City and Danang. With the Vietnamese National Assembly having recently approved this initiative, UK firms are poised to continue contributing technical expertise and investment.
In all these strategic sectors, UK enterprises are actively engaged in Vietnam’s development, Frew said, while welcoming the Vietnamese Government’s efforts to improve governance, boost transparency, and attract high quality foreign investment.
“We highly appreciate the role of the Prime Minister and the Government in creating an enabling environment for business and fostering sustainable, innovation driven growth,” he said, adding that this serves as the foundation for attracting high quality foreign direct investment and is also a key condition for UK businesses to invest with long term confidence in Vietnam.
Frew said that the UK is not only a trading partner but also a long-term development partner. He highlighted that bilateral trade has more than doubled in the past 15 years, now exceeding 8 billion pounds, with strong growth in sectors such as healthcare, life sciences, financial services, and education.
He pointed to the UK Vietnam Free Trade Agreement (UKVFTA) and the UK’s accession to the Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP). with strong support from Vietnam – as key legal frameworks enabling deeper trade and investment links.
The British delegation at the dialogue included representatives from the British Business Group Vietnam and the UK Business Council, who presented an overview of the UK private sector’s contributions to Vietnam and proposed areas for expanded cooperation in finance, sustainability, digitalization, education, and bilateral trade.
This dialogue is a valuable opportunity to hear directly from UK businesses operating in Vietnam. The UK firms are not just investing in Vietnam’s economy but also building a shared future, said Frew.
He also emphasized that Vietnam’s development vision outlined in Party Resolutions 57, 59, 66, and 68 aligns closely with the UK’s strategic strengths. “With a knowledge- and service-based economy, UK firms are ideally positioned to support Vietnam’s ambitious transformation,” he added.
Looking ahead, the UK aims to deepen ties with existing British firms in Vietnam and attract more investors. “Let us build a modern, resilient partnership for the 21st century – one that reflects our shared ambitions and growing strategic ties,” Frew concluded.
