Exports to the UK increased by 15.6% thanks to UKVFTA
According to the Ministry of Industry and Trade, one year after the UKVFTA took effect temporarily, trade exchange between Vietnam and the UK has seen good growth. Data from Vietnam Customs shows that in the first 11 months of 2021, the total bilateral trade turnover between Vietnam and the UK reached more than USD 6 billion, an increase of 17% over the same period in 2020, in which, Vietnam has a trade surplus of USD 4.46 billion.
The total export turnover of Vietnam to the UK reached USD 5.24 billion, an increase of 15.6% over the same period in 2020. Most of Vietnam's exports to the UK have good growth. Leading the growth rate are the following commodities: iron and steel (1,183%); rubber (82.3%); agricultural products (70.8%); rattan, bamboo, sedge and carpet products (60.3%); pepper (48%); means of transport and spare parts (35.3%); ceramics (35.2%); other machinery, equipment, tools and spare parts (21%).
Besides the groups of goods with spectacular growth in export turnover, there are still groups of goods with a significant decrease in turnover such as seafood; raw materials for textiles, leather and footwear; electric wires and cables.
According to the Ministry of Industry and Trade, in the context of the COVID-19 pandemic causing market demand to decrease and the container crisis lasting from the beginning of 2021, the export results of Vietnamese enterprises for the whole year 2021 can be said to be "miracle".
In that miracle, the UKVFTA Agreement plays a solid leverage role, thanks to the reduction of import tax to 0% after January 1, 2021, many products have outstanding competitive advantages in the UK market compared to similar products of China, Thailand, Malaysia, Indonesia and many other countries. The main reason is that these countries do not have a free trade agreement (FTA) with the UK.
In the opposite direction, British exports in the first 11 months of 2021 to Vietnam reached USD 778,178,006, an increase of 27.3% over the same period in 2020. The items imported from the UK with the highest growth rate, respectively, were other common metals (637%); phones and accessories (184%); textile, garment and footwear materials (38.1%); pharmaceuticals (34.2%); CBU cars of all kinds (23.1%).
Expected trade growth for both 2021 and 2022 is forecast to be positive when the UK economy recovers plus the efforts of Vietnamese businesses and the support and guidance of national trade promotion programs.
The Ministry of Industry and Trade recommends that Vietnamese businesses quickly take advantage of opportunities brought by UKVFTA. In particular, enterprises must organize production according to British and European standards, and actively build and develop customer relationships with large distribution groups such as Tesco, Sainburry, Whole Foods, Waitrosse, Mark & Spencers, Liddle, Cosco, Aldi, Strada, Westmill.
- Import and export maintained double-digit growth momentum
- Footwear exports reached USD 7.32 billion over four months of 2022
- Trade surplus of agricultural, forestry and fishery products increased by 3.2 times in the first four months of the year
- Exports from Vietnam to Australia increased sharply
- Export turnover recorded a high growth rate
- HSBC: Vietnam will regain steady growth of 6.2% in 2022
- Commodity exports increased in many product groups and markets
- Vietnam is expected to be in the top 20 largest partners of the 6th largest economy in the world
- In the first half of March, the country had a trade surplus of nearly USD 100 million
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