(seafood.vasep.com.vn) On May 1, 2021, the UK - Vietnam Free Trade Agreement (UKVFTA) officially took effect. The agreement is expected by the two countries to create more new opportunities in trade and investment relations between Vietnam and the UK in the near future.
Vietnam - UK trade cooperation is expanding
According to the Ministry of Industry and Trade, the UK is currently Vietnam's third largest trading partner in the EU, and after the UKVFTA takes effect, it will bring many benefits to Vietnam. In particular, the potential for growth of Vietnamese goods in the UK market is still very large because currently Vietnamese goods account for less than 1% of the market share in the total import turnover of the UK each year, worth nearly 700 billion USD (in 2019). .
According to UKVFTA's commitment, many Vietnamese products are exempt from import tax without quota or quota, immediately or according to the roadmap, when exported to the UK such as: Coffee, fruit, bags, and coffee. cups, shoes, textiles, seafood...
It is worth mentioning that many Vietnamese products will have a competitive advantage over similar products of many countries that are exported to the UK but have no trade agreements with this country. Mr. Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers, said that the UK market currently accounts for over 4% of Vietnam's total seafood export value. With UKVFTA, the import tax on most raw shrimp to the UK will be reduced from 10-20% to 0%, which will create many opportunities for seafood businesses to boost exports to the UK.
According to the latest data from the Ministry of Industry and Trade, in the first three months of 2021 alone, Vietnam's exports to the UK reached nearly $1.6 billion, up 22.1% over the same period last year. It is forecasted that from now until the end of the year, exports to the UK will continue to increase. Mr. Nguyen Canh Cuong, Vietnam Trade Counselor in the UK, said: “UKVFTA not only brings direct benefits but also brings indirect investment benefits to Vietnam. British investors will increase their search for investment opportunities in Vietnam or move their production facilities from elsewhere to Vietnam so that products are tax-free when export back to the UK."