Rosy prospect for Vietnam-UK trade in spite of COVID-19 pandemic
Hanoi (VNA) – Despite suffering the impact of the COVID-19 pandemic, Vietnam-UK trade see positive developments with two-way trade turnover reached more than 5.4 billion USD in the first ten months of this year, representing a year-on-year rise of 16 percent, Ta Hoang Linh, director of the Europe-America Market Department under the Ministry of Industry and Trade (MoIT), has said.
He made the statement at a
webinar on Vietnam-UK trade prospects, as well as opportunities and challenges
in the post-Brexit context and the COVID-19 pandemic organised by the MoIT on
December 15.
Vietnam’s total export
turnover to the UK increased by 14.5 percent to over 4.73 billion USD from
January to October this year, a decline of 14.5 percent compared to last year’s
figure, Linh said, adding that most of Vietnam’s export items enjoy high
growth.
The UK ranked 9th among Vietnam’s
key export markets while the country is the UK’s top trading partner in the Association
of Southeast Nations (ASEAN).
Addressing the event, Ian
Giboons, chief executive UK-ASEAN Business Council said bilateral trade between
Vietnam and the UK in 2019 tripled to more than 6 billion USD compared to that
of 2010.
Given the COVID-19 outbreak
which caused disruption to the global trading system, Vietnam's export value to
the UK still reached nearly 5 billion USD last year, he said.
Gibbons held that the enforcement
of the UK-Vietnam free trade agreement (UKVFTA) was a driving force behind the
promotion of economic cooperation in the two countries' strategic partnership. He went on saying that there
is great potential for stronger collaboration between the two countries in the
fields of trade, clean and renewable energy, and the digital economy.
Nguyen Canh Cuong, Trade
Counselor of the Vietnamese Embassy in the UK, said that after Brexit, the new
trade relationship between the UK and the EU is no longer as favourable as in a
common market. Therefore, British businesses must stay active in finding new
sources of supply and new markets, including Vietnam - one of the emerging
economies in Southeast Asia and the second country to sign a free trade
agreement with the UK.
The UK Government is carrying
out a more open trade policy toward faster liberalisation, encouraging British
businesses to boost exports in countries with dynamic economic development,
including Vietnam. This is viewed as an opportunity for the two sides to
promote trade and business cooperation in future, Cuong said.
Dario Miraglia, Trading Manager at Vestey
Foods International Ltd, suggested that enterprises exporting to the UK
market should carefully study market demand and then seek business partners
through different channels. Meanwhile, Thuy Ngo, head of
sales and global trade at HSBC Vietnam, recommended that before signing a
contract, Vietnamese enterprises need to look for more information about the business situation of
partners and their payment capability to prevent risk, adding that local banks
usually have very good networks to support this activity./.