Exports to the UK market surged

After nearly 2 years of implementing the Free Trade Agreement between Vietnam and the United Kingdom and Northern Ireland (UKVFTA), the UK market has viewed more positively the image of Vietnamese businesses and Vietnamese products through The volume of goods imported from Vietnam increased sharply.

Coffee is a strong export product of Vietnam to the UK market

According to the assessment of the Ministry of Industry and Trade, despite starting in a difficult context due to the Covid-19 epidemic, the two-way trade in goods between Vietnam and the UK will still reach nearly 6.6 billion USD in 2021, of which Vietnam's export South reached nearly 5.8 billion USD, up 16.4%; imports from the UK were 849 million USD, up 23.6%, the trade balance in favor of Vietnam had a trade surplus of more than 4.8 billion USD. As of November 2022, exports to the UK increased by 9.5% over the same period, reaching 5.2 billion USD, trade surplus continued to record nearly 4.6 billion USD.

Many of Vietnam's exports to the UK are items in which Vietnamese enterprises have strengths and enjoy preferential tariff commitments in the UKVFTA such as garments, leather and footwear, coffee, pepper, seafood, and machinery. equipment, toys, sports equipment. Vegetables, confectionery and cereal products also recorded high growth in export turnover.

According to Mr. Christopher Jeffery - Chairman of the British Chamber of Commerce in Vietnam, it can be seen that despite the beginning in a difficult context due to the Covid-19 epidemic, the two-way trade in goods between Vietnam and the UK England achieved high growth. This is the clearest proof of the benefits that UKVFTA brings to the economic and trade development of Vietnam and the UK.

The potential for export to the UK market in UKVFTA is considered to be very large, when Vietnamese goods exported to the UK account for less than 1% of the annual import demand of more than 600 billion USD of the UK market. In addition, along with the presence of more British investors in Vietnam, the UK market will also see more positively about the image of Vietnamese businesses, about Vietnam's export products and that is the basis for the British market. opportunities for Vietnamese enterprises to take advantage of opportunities in the near future - Mr. Nguyen Anh Duong - Head of General Research Department (Central Institute for Economic Management) assessed.

Take advantage of great advantages from the UK market

Ms. Nguyen Thi Thu Trang - Director of the WTO Center under the Vietnam Federation of Trade and Industry (VCCI) said that the export growth results to the UK market over the past time show that businesses have known about UKVFTA, taking full advantage of the UKVFTA. take advantage of the first to be the first country in ASEAN to have a bilateral FTA with the UK to promote exports. In a recent VCCI survey, 18% of businesses said they had learned about and learned about UKVFTA's commitments related to their business activities and in the relationship between Vietnam and the UK market.

However, there are also a series of difficulties for Vietnamese exporters right in 2023 when many forecasts of a decline in many major economies such as the US and EU, in which the UK economy is no exception. Accordingly, businesses are encouraged to come to the UK to participate in many fairs, direct trade promotion, and approach consumers and importers to have a business plan in line with market changes. of the overall economy. Going to direct trade promotion, participating in many fairs also helps businesses find customers, introduce products, see competitors' goods, see how consumer trends change, and ask Today's consumer's is different from yesterday's, next year's is different from this year's...

Besides, with a large market, the need to import goods is more than 700 billion USD/year, but there are high requirements for product quality and production standards, so there are barriers to Vietnamese export enterprises. not small at all. Vietnamese enterprises must learn carefully to be able to fully comply with commitments, cannot rely on protection and support from state agencies, but must handle measures in the right way of the market.

According to the commitment that after 6 years UKVFTA takes effect, the UK will eliminate import tax on 99.2% of tariff lines, equivalent to 99.7% of Vietnam's export turnover. The utilization of UKVFTA, which is reflected in the use of preferential tariffs, also reached 17.2% in the first year of the Agreement's implementation. This rate of 17.2% is not low compared to other trade agreements in the first year.