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Vietnam - UK exports in January 2021 increased by nearly 85% over the same period

25/02/2021

According to statistics from the General Department of Customs, Vietnam's export turnover to the UK reached USD 598.07 million, an increase of 84.61% compared to January 2020 and 56.51% compared to December 2020, respectively.

After the Vietnam - UK Free Trade Agreement (UKVFTA) took effect, the bilateral turnover between the two countries had a spectacular breakthrough in the first month of 2021 in the context of exports to markets facing difficulties due to the negative impact of the COVID-19 pandemic.

Statistics from the General Department of Customs, in January 2021, the total import-export turnover between Vietnam and the UK reached USD 657.35 million, an increase of 78.57% over the same period last year.

Notably, Vietnam's export turnover to the UK reached USD 598.07 million, increased by 84.61% compared to January 2020 and increased by 56.51% compared to December 2020, respectively.

According to the Ministry of Industry and Trade, this is an impressive growth in the context of difficulties in exporting to many major customers due to the negative impact of the COVID-19 pandemic. Moreover, this optimistic signal is even more meaningful when the UKVFTA Agreement has just been applied temporarily since January 1, 2021, promising to continue to create new impetus for economic and trade cooperation between the two countries in the near future.

In particular, in the structure of Vietnam's exports to the UK, agricultural exports remained stable and positive in January, with seafood exports reaching USD 19.72 million, an increase of 18.1% over the same period last year; vegetables and fruits reached USD 1.04 million, an increase of148.6% over the same period last year.

These are commodities with many opportunities to increase export value, their proportion in the market structure through many tariff preferences in the UKVFTA Agreement.

According to the Ministry of Industry and Trade, commitments in UKVFTA stated that import tax on most raw shrimp brought into the UK will be reduced from the basic tax rate of 10-20% to 0% as soon as the Agreement comes into effect.

For fruit products, when the Agreement comes into effect, more than 94% of the total 547 tax lines for vegetables, fruits and products from vegetables and fruits will have the tax rate of 0%.

There will be more market access advantages for many products that are the strength of Vietnam such as litchi, longan, rambutan, dragon fruit, pineapple, melon, etc.. in the context of competing countries such as Brazil, Thailand, Malaysia ... all have no FTA with the UK on tropical fruits.

The processing and manufacturing industry also had an impressive growth in January such as phones and components (reaching USD 252.59 million, an increase of 371.6% over the same period last year); machinery, equipment and spare parts (reaching USD 74.58 million, an increase of 109.9%); computers and electronic components (USD 31.82 million, an increase of 91%); iron and steel of all kinds (reaching USD 15.96 million, an increase of 11%), etc.

In the opposite direction, imports from the UK to Vietnam in January reached USD 59.29 million, an increase of 34.3% over the same period; in which, a number of items have significant growth.

The UK continues to be the third largest trading partner of Vietnam in Europe, after Germany and the Netherlands.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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