(VOVWORLD) - Vietnam‑UK trade grew steadily at a rate of 29% last year. With a number of trade agreements between the two countries, bilateral trade is expected to continue to grow strongly in the coming years.
According to the Ministry of Industry and Trade, bilateral trade between Vietnam and the UK totaled 8.6 billion USD last year, up 29% from 2021 and doubling the figure of 2013. Vietnam is the UK’s 9th largest trade partner while the UK is Vietnam’s 3rd largest trade partner in Europe. Vietnam’s exports to the UK make up a major proportion of the bilateral trade.
UK Ambassador to Vietnam Iain Frew said the strong growth of Vietnam‑UK bilateral trade has been attributed to the development of the comprehensive, multi‑faceted cooperation between the two countries.
In 2010 Vietnam and the UK established a Strategic Partnership. In 2020 they signed the UK‑Vietnam Free Trade Agreement (UKVFTA), which was the UK’s first free trade agreement post‑Brexit and provided an important momentum for bilateral economic and trade ties. The agreement eliminated 99% of tariffs on the two countries’ goods, helping their businesses access each other’s market.
In July, with Vietnam’s support, the UK officially joined the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) which has created further opportunities for Vietnam‑UK trade ties since the deal is complementary to the UKVTFA, providing additional preferential tariffs.
According to the British government, CPTPP membership will promote trade between the UK and the partnership members by an additional 4.3 billion USD.
Mark Garnier, the UK Prime Minister’s Special Envoy, says in the coming time, British businesses will expand investment in agriculture, high-tech, finance, services, pharmaceuticals, health care, education, clean energy, and the electric grid infrastructure in Vietnam. Mr. Garnier said due to their progressive Asian policy, British businesses are paying increasing attention to Vietnam’s role, and consider its 100 million population market with its increasing income an attractive destination in the next 20 to 50 years.
Meanwhile, many Vietnamese businesses are planning to expand exports to the UK, particularly in the form of assembled phones, garments, and textiles.
Vietnamese Ambassador to the UK Nguyen Hoang Long said the economies of Vietnam and the UK are complementary. Post‑Brexit, the UK wants to engage more with the Indo‑Pacific region, Long said, urging Vietnamese businesses to seize these new opportunities to increase trade and investment with the UK.
Vietnam and the UK aim to raise bilateral trade to 10 billion USD in the near future based on the growth of their bilateral ties over the past several years.