Nearly 2 years of implementation of the UKVFTA agreement: Exports from Vietnam to the UK achieved positive growth
Vietnam's exports to the UK have recorded positive growth after the UKVFTA Agreement came into effect and there is still plenty of room to continue to increase in the near future.
Along with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union–Vietnam Free Trade Agreement (EVFTA), the UKVFTA is also a free trade agreement (FTA) that Vietnam joins with high expectations when its partners are the world's leading developed economies.
The United Kingdom and Northern Ireland are one of Vietnam's leading important economic partners and the third largest trading partner of Vietnam in Europe (after Germany and the Netherlands).
The UK and Northern Ireland are the world's 4th largest import markets, while Vietnam's export market share to the UK and Northern Ireland only accounts for about 0.9% of the total imports of the UK and Northern Ireland. Thus, with a large market capacity remaining and the import tax rate basically eliminated according to the UKVFTA commitment, there is still a great opportunity for Vietnam's strong products to gain growth in exports to the UK and Northern Ireland markets.
In fact, the UKVFTA Agreement has been implemented for nearly 2 years now, if including the time to enjoy tax incentives under the EVFTA Agreement, Vietnamese goods exported to the UK have enjoyed tax incentives for more than 2 years.
In fact, Vietnam's trade with the UK market has grown significantly after the implementation of the agreement. In 2021, two-way trade between the two countries increased by 17.2% compared to 2020, of which exports from Vietnam to the UK reached USD 5.8 billion, an increase of 16.4%; Vietnam's imports from the UK increased by 23.6%. In the first 10 months of 2022, Vietnam's exports to the UK reached USD 5.14 billion, recording an increase of 7.8% over the same period in 2021.
Thereby, it can be seen that Vietnam's exports to the UK have recorded positive growth after the implementation of the agreement, however, there is still plenty of room for market growth in the near future.
Vietnam's export products with good growth rates to the UK in recent years are those in which Vietnamese enterprises have strengths and enjoy preferential tariff commitments in the UKVFTA Agreement such as: Textiles, footwear, coffee, pepper, machinery and equipment, toys, sports equipment. Vegetables, confectionery and cereal products also recorded a high increase in export turnover.
- Two-way trade between Vietnam-Korea Republic increased by nearly USD 9 billion
- Vegetable and fruit exports in 2022 reached the target with nearly USD 3.4 billion
- Vietnam's digital economy is forecast to be the strongest in Southeast Asia
- Textile, leather and footwear make an export miracle of USD 71 billion
- Two-way trade turnover between Vietnam and Australia reaches a record
- Vietnam's exports to the US hit the USD 100 billion mark
- Vietnam keeps its growth momentum in 2023
- Huge export surplus to markets with FTAs
- Drivers for Vietnam's economy to grow by 6.5% in 2023
- Vietnam has a trade surplus of USD 11.2 billion in 2022