Minister of Industry and Trade Tran Tuan Anh and UK Secretary of State for International Trade Elizabeth Truss sign the minutes on the conclusion of negotiations over the UKVFTA (Source: VNA) Hanoi (VNA) – Representatives from Vietnam and the United Kingdomsigned a free trade agreement between the two countries in Londonon December 29 evening (Vietnam time).
Thetwo countries’ ambassadors were authorised to sign the deal as leadingofficials of the Vietnamese Government and Minister of Industry and Trade TranTuan Anh were unable to travel to the UK to sign directly amid the COVID-19pandemic.
Earlieron December 11, Minister Anh and UK Secretary of State for International TradeElizabeth Truss signed the minutes on the conclusion of negotiations over theUKVFTA to create a foundation for the two nations to conduct necessary legaldocuments for the official signing.
TheUKVFTA was negotiated based on principles of commitments of the EU-Vietnam FTAwith necessary adjustments to ensure the deal conforms with the Vietnam-UKbilateral trade framework.
Accordingly,the deal includes nine articles, one Appendix revising some articles of theEVFTA, one Protocol and one bilateral exchange letter between Vietnam and the UK.
Currently,the two sides are rushing to complete domestic procedures in accordance withthe laws of each party so as to ensure the agreement can be implemented from 23:00on December 31.
Inthe context that the UK official left the EU and the Brexit transition periodis about to end on December 31, the signing of the free trade agreement willensure the bilateral trade cannot be disrupted.
As it inherits the EVFTA, the UK-Vietnam Free Trade Agreement will create acomprehensive, long-term and stable economic-trade cooperation frameworkbetween the two countries, thus contributing to deepening their multifacetedcooperation, especially when the two sides just extended the maintenance ofbilateral relations at the strategic partnership level.
Vietnamand the UK set up diplomatic relations in 1973. Over the past 47 years,bilateral ties have unceasingly developed. According to the General Departmentof Vietnam Customs, two-way trade reached 6.6 billion USD in 2019.
The UK has been the third largest trade partner of Vietnam in Europe (Source: VNA) TheUK has been the third largest trade partner of Vietnam in Europe after Germanyand the Netherlands in recent years.
Vietnammainly exports garment and textiles, footwear, wood and wooden furniture andseafood to the UK, while importing pharmaceuticals, machineries and equipmentfrom the UK.
Dueto impacts of the COVID-19 pandemic, as of the end of October, two-way tradereached only 4.7 billion USD, down about 15 percent, with Vietnam’s exports tothe UK hitting 4.1 billion USD, a decline of 14.19 percent year on year.
Inthe first eight months of 2020, the UK run 400 valid projects in Vietnam withtotal registered capital of 3.6 billion USD, ranking 16th among countries andterritories investing in Vietnam.
However,the investment scale has yet to match the potential of the UK – one of thelargest countries in terms of investing abroad with about 300 billion USD eachyear. The UKVFTA is expected to bring about more investment and cooperationopportunities for the two sides, supporting them in post-pandemic recovery.
Areaswhich the UK is strong in and Vietnam needs include renewable energy, consumergoods production, and greenhouse gas emission mitigation./.
VNA
