Vietnamese Ambassador to the UK Tran Ngoc An (R) and UK Ambassador Gareth Edward Ward sign the Vietnam-UK Free Trade Agreement. (Photo: VNA) Hanoi (VNA) – The UK-Vietnam Free TradeAgreement (UKVFTA) is expected to intensify economic cohesion and reciprocationbetween the two countries, thus deepening and elevating the bilateral strategicpartnership, said a diplomat.
The pact was signed by the two countries in Londonon December 29 evening (Vietnamese time), following the conclusion ofnegotiations on December 11.
This is a historic event that plays an importantrole in the bilateral ties, Vietnamese Ambassador to the UK Tran Ngoc An affirmedduring an interview with the Vietnam News Agency (VNA).
As a new-generation, high-quality deal, UKVFTA aimsto completely eliminate import taxes as well as non-tariff barriers on goodsfrom the two countries under a short roadmap, he said.
It also contains important provisions onintellectual property rights, investment liberalisation, and sustainabledevelopment, according to the ambassador.
The pact is intended to ensure that there will be nointerruption to the Vietnam-UK trade because of Brexit, the ambassador said,adding that the deal, to be put into place in early 2021 right after the transitionalperiod of the UK’s Brexit expires on December 31, will facilitate the smoothflow of goods between the two countries, especially necessities amidst thecomplex development of COVID-19.
He added that UKVFTA will help boost the volume ofgoods from both sides entering the other’s market.
Over the past years, especially since theestablishment of the strategic partnership in 2010, trade between Vietnam andthe UK has enjoyed double-digit increases, from 2 billion USD to 6.6 billionUSD in 2019, with Vietnam’s exports 5.7 billion USD.
In the first 11 months of this year, despite theadverse impact of Brexit and COVID-19, the two-way trade stilled reached some5.2 billion USD.
Only two days after the signing of the agreement,more than 70 percent of Vietnamese exports and 65 percent of goods from the UK willenjoy tax reductions, with many subject to a zero percent tariff.
After six years, the zero percent tariff will be leviedon more than 99 percent of goods traded between the two countries, theambassador said.
The pact was signed by the two countries in Londonon December 29 evening (Vietnamese time), following the conclusion ofnegotiations on December 11.
This is a historic event that plays an importantrole in the bilateral ties, Vietnamese Ambassador to the UK Tran Ngoc An affirmedduring an interview with the Vietnam News Agency (VNA).
As a new-generation, high-quality deal, UKVFTA aimsto completely eliminate import taxes as well as non-tariff barriers on goodsfrom the two countries under a short roadmap, he said.
It also contains important provisions onintellectual property rights, investment liberalisation, and sustainabledevelopment, according to the ambassador.
The pact is intended to ensure that there will be nointerruption to the Vietnam-UK trade because of Brexit, the ambassador said,adding that the deal, to be put into place in early 2021 right after the transitionalperiod of the UK’s Brexit expires on December 31, will facilitate the smoothflow of goods between the two countries, especially necessities amidst thecomplex development of COVID-19.
He added that UKVFTA will help boost the volume ofgoods from both sides entering the other’s market.
Over the past years, especially since theestablishment of the strategic partnership in 2010, trade between Vietnam andthe UK has enjoyed double-digit increases, from 2 billion USD to 6.6 billionUSD in 2019, with Vietnam’s exports 5.7 billion USD.
In the first 11 months of this year, despite theadverse impact of Brexit and COVID-19, the two-way trade stilled reached some5.2 billion USD.
Only two days after the signing of the agreement,more than 70 percent of Vietnamese exports and 65 percent of goods from the UK willenjoy tax reductions, with many subject to a zero percent tariff.
After six years, the zero percent tariff will be leviedon more than 99 percent of goods traded between the two countries, theambassador said.
Vietnamese Ambassador to the UK Tran Ngoc An (R) and UK Ambassador Gareth Edward Ward sign the Vietnam-UK Free Trade Agreement. (Photo: VNA) According to An, Vietnam’s exports such as electronics,garments-textiles, footwear, agricultural products like rice, coffee andrubber, seafood, and timber and ceramic products, and the UK’s medicine,machinery, equipment, chemicals, auto, banking and insurance would benefit much from the deal.
He, therefore, suggested UK firms to engage in pharmaceuticaldistribution in the Southeast Asian nation.
The ambassador called attention to a fact that althoughVietnam’s exports to the UK rose sharply over the past decade, the exportrevenue made up less than 1 percent of the UK’s import value.
“There are still substantial potential andopportunities for Vietnamese goods to penetrate the UK if Vietnam knows how tooptimise the trade deal,” he said, suggesting local firms strive to meethigh-quality requirements regarding quality, packaging, hygiene andenvironment.
With its openness, the UK market has been regardedas a playground of many countries, which requires competitive prices ofVietnamese goods, he said. “Vietnamese businesses need to further improveproduct quality and reduce prices, while stepping up marketing and productpromotion.”
Notably, “trust” is the prerequisite for Vietnamesegoods to gain a firm foothold in the UK market, he stressed.
With its openness, the UK market has been regardedas a playground of many countries, which requires competitive prices ofVietnamese goods, he said. “Vietnamese businesses need to further improveproduct quality and reduce prices, while stepping up marketing and productpromotion.”
Notably, “trust” is the prerequisite for Vietnamesegoods to gain a firm foothold in the UK market, he stressed.
UKVFTA is a step forward of the UK towards becominga dialogue partner of ASEAN and a member of the Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership (CPTPP) in a near future as Vietnam isa constructive member of ASEAN and a founding member of CPTPP.
With a population of nearly 100 million, Vietnam hasset up links with 60 economies worldwide through 15 FTA, both bilateral andmultilateral, the ambassador elaborated.
Moreover, the trade deal would trigger a new wave ofdirect and indirect investments from the UK, particularly in renewable energyand environmental technology that are of the country’s strength, An noted./.
With a population of nearly 100 million, Vietnam hasset up links with 60 economies worldwide through 15 FTA, both bilateral andmultilateral, the ambassador elaborated.
Moreover, the trade deal would trigger a new wave ofdirect and indirect investments from the UK, particularly in renewable energyand environmental technology that are of the country’s strength, An noted./.
VNA
