Forum discusses solutions to better realise opportunities from UKVFTA
The UK is now the ninth largest export market of Việt Nam in the world and fourth in the EU.
There remains untapped potential to increase trade and investment exchange between the UK and Việt Nam which is fueled by the UK – Việt Nam Free Trade Agreement (UKVFTA) and the UK accession to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).
This was highlighted at the UK – Việt Nam Business Forum held by the European – American Markets Department under the Ministry of Industry and Trade on Friday in Hà Nội, a part of a series of events to celebrate the 50th anniversary of the establishment of diplomatic relations.
Held after 13th meeting of the Joint Committee on Economic and Trade Cooperation between Việt Nam and the UK (JETCO 13), the forum provides Vietnamese businesses market updates and opportunities to be capitalised on to increase exports and expand reach in the UK market as well as in-depth discussions on energy cooperation.
Tạ Hoàng Linh, Director of the European – American Markets Department, said at the forum economic and trade cooperation has been the spotlight of the diplomatic relation between the two countries during the past 50 years.
The UK is now the ninth largest export market of Việt Nam in the world and fourth in the EU.
“I believe that the trade and investment cooperation between Việt Nam and the UK will continue to thrive stronger in the future with the UKVFTA and the UK accession to the CPTPP,” Linh said.
He cited statistics of the General Department of Customs that showed trade exchanges have grown three times since the establishment of strategic partnership in 2010 to reach US$6.84 billion in 2022.
In the first 10 months of this year, the bilateral trade reached $5.87 billion, representing an increase of 1.6 per cent over the same period last year, a positive signal in the context that Việt Nam’s trade exchange to most of major trade partners in the EU saw drops due to geopolitical tensions and global economic downturn.
“It is very encouraging that the UK and Việt Nam manage to maintain positive growth momentum,” he said.
Việt Nam’s export products with good growth in the UK market includes rubber (up 66 per cent), electric cable (up 55.5 per cent), phones and components (up 21 per cent) and machinery (15.5 per cent). Việt Nam also increases in the imports of pharmaceutical products and equipment from the UK.
With a stable politics and attractive investment environment, Việt Nam becomes a reliable and sustainable investment destination for the UK with 500 valid projects in Việt Nam with a total registered capital of $4.28 billion, making the UK the 15th among 143 countries and territories investing in Việt Nam. The UK’s investment was poured mainly poured in processing and manufacturing industry, renewable energy, banking and finance, retail, education and healthcare.
Việt Nam currently has 14 investment projects in the UK with a total capital of $17.3 million.
“These figures are still very modest compared to the potential and desires of investors of the two countries,” Linh said.
The dual impulse from the UKVFTA and the participation of the UK in the CPTPP will create greater momentum to accelerate trade and investment between the two sides, he emphasized.
Linh said that the forum with the participation of the UK Department of Business and Trade, the UK Embassy in Việt Nam and representatives from supermarket chains in the UK provided new perspectives and experiences to better realise the opportunities from the trade deals. — VNS
