Viet Nam-UK trade expected to reach US$10 billion

Saturday, Jul 16, 2022 07:26

A seafood processing line for export. — VNA/VNS Photo

Trade revenue between Viet Nam and the UK is expected to reach US$10 billion in the next one or two years thanks to strong support from the Viet Nam-UK Free Trade Agreement (UKVFTA).

According to the Department of the Europe-America Market under the Ministry of Industry and Trade, last year, import-export turnover between the two countries reached US$6.6 billion, a 17.2 per cent year-on-year increase and four times higher than the period before establishing the strategic partnership. In 2009, turnover was $2.65 billion.

Export and import revenues were $5.76 billion and $849 million, 16.4 per cent and 23.6 per cent increases, respectively. Trade between Viet Nam and the UK has surged mainly thanks to the UKVFTA, which took effect in May 2021.

The UK economy is expected to recover after the COVID-19 pandemic and the British Government lifts travel restrictions from March 18, 2022. Increasing demand for consumer goods in the UK has created more opportunities for Vietnamese exporters. In particular, the UK is the third largest trading partner of Viet Nam in Europe, following Germany and the Netherlands.

Total UK direct investment capital into Viet Nam by 2021 was $4.15 billion, double the amount before establishing the strategic partnership (in 2009, total investment capital of the UK in Viet Nam only reached $2 billion).

A wind offshore power project. Co-operation in the field of energy, especially renewable energy, between Viet Nam and the UK has potential to yield results. — Photo

Deputy Minister of Industry and Trade, Tran Quoc Khanh, said UKVFTA has become a great lever for Viet Nam-UK trade and investment co-operation. In addition, co-operation in the field of energy, especially renewable energy, between Viet Nam and the UK has potential to yield results.

At the COP26 Conference held in November 2021, Viet Nam made a statement on the goal of achieving net zero emissions by 2050. This statement clearly demonstrated Viet Nam's determination to move from traditional fossil fuels to greener and cleaner energy sources, thereby contributing to a reduction of greenhouse gas emissions globally.

Khanh said the ministry and Vietnamese agencies have been actively reviewing and adjusting the National Electricity Development Plan for the period of 2021-30, with a vision to 2045 (Power Plan VIII) with a focus on prioritising the development of clean, environmentally friendly power sources such as onshore and offshore wind power.

To achieve the above goals, Viet Nam is studying and proposing to legislate the development of renewable energy, creating a favourable legal corridor to attract investment from the private sector. Viet Nam needs the support of international partners and donors in technology as well as preferential capital. This is an opportunity for Viet Nam and the UK to strengthen co-operation, he added. — VNS

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