Vietnam and UK boost bilateral trade ties

Vietnam and the United Kingdom will tighten co-operation to implement the UK-Vietnam Free Trade Agreement (UKVFTA) effectively, promoting the import and export of goods and increasing bilateral trade value between the two countries.

A tra (catfish) processing line. Tra products are entitled to a zero % tax rate when exported to the UK.

The co-operation plan was a key content discussed by Deputy Minister of Industry and Trade Dang Hoang An and British Ambassador to Vietnam Gareth Ward at a meeting held recently in Hanoi.

At the meeting, the two leaders agreed that the UKVKTA, which took place on December 31, 2020 and being temporarily applied from January 1, 2021, will be a new driving force to take off the good relations on trade and investment in Vietnam and the UK.

Despite extremely negative impacts from the Covid-19 pandemic in 2020, the trade exchange between the two sides still reached US$5.6 billion, in which Vietnam gained export value of $4.95 billion and import value of $687 million from and to the UK.

The UK continues to be the third largest export market of Vietnam in the European region.

From the first days of January 2021, the Vietnam’s shipment of 60 tons of fragrant rice exported to the UK has enjoyed tariff preferences under the agreement, opening up new opportunities for the two countries’ business community.

The two sides agreed to give priority to the organization of the 12th Joint Economics and Trade Committee in the UK (JETCO 12) meeting this year when the Covid-19 pandemic is under control. Before the meeting, the two sides will hold online meetings, seminars and dialogues to discuss solutions to removing problems in every specific fields.

Mr. Gareth Ward said the UK wanted to coordinate with the Ministry of Industry and Trade to organize online dialogues in the field of energy development, including a dialogue on renewable energy that will focus on solutions to strengthen the investors’ confidence and another on energy transition in Vietnam in the framework of the 26th United Nations Climate Change Conference (COP26), which will be held in the UK on November 1-12 this year.

Deputy Minister An highly appreciated the UK's commitment to host the COP26 in Glasgow, Scotland. He emphasized that the renewable energy development plan is an important content in the Vietnam Politburo's Resolution No.55-NQ/TW dated February 11, 2020 on the orientation of the National Energy Development Strategy of Vietnam to 2030, with a vision to 2045.

“The Vietnam’s goal is to ensure an adequate energy supply for socio-economic development, in parallel with the task of gradually increasing the proportion of clean energy use,” Mr. An said.

In 2020, a number of Vietnam's commodities exported to the UK have a good growth, including seafood, vegetables, rubber products, and iron and steel products. Meanwhile, the country’s import products from the UK, comprising animal feed and raw materials, materials of textile, garment and footwear, mobile phones and components, and chemical products, were seen increased sharply.