During more than four years of implementing the UK-Viet Nam Free Trade Agreement (UKVFTA), bilateral trade grow at a compound annual rate of nearly 10 per cent...

The UK-Viet Nam Free Trade Agreement (UKVFTA) has been a crucial driver in enhancing economic, trade, and investment cooperation between the two countries, according to Mr. Vu Viet Thanh, a senior official in charge of the UK market at the Department of Foreign Market Development, the Ministry of Industry and Trade (MoIT).

He made the remark at a seminar theming "Sustainable Development: A "Key" to Building Brands and Expanding the UK Market," held on October 27 in Hanoi.

The UKVFTA has facilitated Vietnamese exports to deeper penetrate into the UK market, establishing a solid foothold, and achieving continuous, robust growth, despite the global challenges.

As a result, Viet Nam's average export growth to the UK in the first four years of the agreement's implementation increased by approximately 10 per cent annually. This growth rate significantly surpasses the general growth rate of the Viet Nam - EU trade. The UK is currently Viet Nam's third largest export partner in the European region, creating a fairly solid position for Vietnamese export goods.

Several Vietnamese export products with competitive advantages have maintained strong market shares and continuous growth, thanks to tariff preferences from the UKVFTA.

Conversely, the UK excels in high-tech products, pharmaceuticals, and raw materials for domestic production in Viet Nam, being a global leader in fair trade. The growth in imports from the UK to Viet Nam, especially from 2024 to 2025, is a positive signal, reflecting the sustainability of the bilateral trade.

Regarding investment, the agreement has created a favorable business environment, attracting quality capital, with total capital increased from $3.7 billion to $4.7 billion after four years of the agreement's implementation.

"The growth momentum in services and high-tech imports is creating a stable foundation for the bilateral trade to continue soaring in the future," Mr. Thanh emphasized.

Notably, the effective implementation of the UKVFTA is evident in the rapid and strong growth of the utilization rate of preferential C/O forms, increasing from 17.2 per cent in 2021 to 36.2 per cent after more than four years. This rate even surpasses that of the EVFTA (35 per cent) and CPTPP (around 10 per cent), indicating that Vietnamese businesses are keenly aware of and actively leveraging the agreement's tariff preferences.

Moreover, after more than four years, Vietnamese exporters to the UK market have matured significantly. Businesses now have well-planned market access strategies, adhere to green rules, green standards, extended producer responsibility, and supply chain traceability, complying much better than four years ago.

Source: VnEconomy

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