Vietnamese Ambassador to the UK Tran Ngoc Anh (right) and British Ambassador to Vietnam Gareth Ward sign the UKVFTA in London on December 29 (Photo: VNA) Hanoi (VNA) –The UK-Vietnam Free Trade Agreement (UKVFTA), which will come into force at23:00 on December 31, 2020, will open the door wider for bilateral economic andtrade ties and help form a solid foundation for their strategic partnership toreach a new height.
The UKVFTA, signed onDecember 29, is said to be an achievement of breakthrough strides in the UK-Vietnameconomic and trade cooperation during the 47 years since their diplomaticrelations were established and 10 years since the strategic partnership wasfounded.
Between 2011 and 2019,bilateral trade grew 12.1 percent annually on average. Major Vietnamese exportsincluded mobile phones and components, apparel, footwear, aquatic products,timber and wood products, computers and components, cashew kernel, coffee, andpeppercorn. Meanwhile, the country mainly imported machinery, equipment,pharmaceutical, steel, and chemicals from the UK.
The commodities traded betweenthem are complementary to, instead of compete with, each other.
The UK is currently the thirdlargest trading partner of Vietnam in Europe, with their trade exceeding 6.6billion USD in 2019, up 9.5 percent. It also views Vietnam as a very importanttrading partner in Southeast Asia.
Thanks to GDP growth amongthe highest in the region and the world for the last three decades and,especially, the early containment of COVID-19 and sustained growth, Vietnam isincreasingly attractive to British businesses and investors.
The signing of the UKVFTA atthis point of time is greatly significant and practical to both sides,particularly when countries around the world are wishing for stronger trade andinvestment links to swiftly recover their pandemic-hit economies.
Notably, the deal will keepbilateral trading activities uninterrupted when the UK concludes the Brexittransition period on December 31, afterwhich the UK will no longer a member of the EU market and the EU Customs Unionor benefit from preferential treatments under the EU-Vietnam FTA that tookeffect on August 1, 2020.
The deal will help the twocountries increase exports to each other’s market considerably as right fromJanuary 1, 2021, it will slash tariffs on over 70 percent of Vietnamese exportsand 65 percent of British exports, many of which will be subject tozero-percent duties. After six years, more than 99 percent of their commoditieswill benefit from a zero-percent tariff.
The UKVFTA will ensure 3,000British firms’ continued shipments to Vietnam and, as Vice Chairman of theVietnam-UK Network Paul Smith said, encourage more British businesses to chooseVietnam as their destination.
This will create moreopportunities for British businesses to expand operations in the Southeast Asiannation since although the UK was the world’s fifth largest exporter in 2019,its products still account for less than 3 percent of Vietnam’s total imports.Major beneficiaries will be pharmaceutical, machinery, equipment, chemical, automobile,banking, and insurance sectors.
For Vietnam, tariffelimination under the agreement will generate many benefits for its key exportstaples like smartphones, electronic devices, textile-garment, footwear, woodproducts, ceramics, and such farm produce as rice, coffee, rubber, and aquaticproducts.
Speaking after the UKVFTAsigning ceremony on December 29, Vietnamese Ambassador to the UK Tran Ngoc An describedthis as a historic event, noting that the deal will elevate their strategicpartnership in line with their aspirations and political resolve shown in theforeign ministers’ joint statement signed in September on the occasion of the10th anniversary of the strategic partnership.
Echoing the view, BritishAmbassador to Vietnam Gareth Ward considered the deal signing as a turningpoint and a milestone in bilateral relations.
He held that it will presenta big chance for the UK because amid the worst global economic crisis sinceWorld War II, Vietnam is expected to obtain growth of over 2.9 percent and bethe world’s fastest growing economy in 2020.
The UKVFTA will ensure thatbilateral trade will keep accelerating when the UK is paying more attention torelations in the Indo-Pacific region, he added.
Besides, via this FTA,Vietnam will become a gateway for British enterprises to get access to a largeregional market.
During a trip to Vietnam lastNovember to sign the minutes on the conclusion of the UKVFTA talks, BritishSecretary of State for International Trade Liz Truss noted that the two countriesshare a common strategic commitment to global trade and the liberalisation ofcapital flows and investment. Therefore, the deal is an important step forward asthe UK is preparing to apply for membership of the Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP) in early 2021.
According the VietnameseAmbassador, the UKVFTA will help the UK move closer to the target of becoming adialogue partner of ASEAN and a member of the CPTPP as Vietnam is an activemember of ASEAN and a founding member of the CPTPP.
Via the CPTPP, not only theUK’s relations with Vietnam will be strengthened but its ties with 11 dynamiceconomies in the Indo-Pacific region will also be expanded, thus bringing aboutmore benefits to the British economy and people./.
The UKVFTA, signed onDecember 29, is said to be an achievement of breakthrough strides in the UK-Vietnameconomic and trade cooperation during the 47 years since their diplomaticrelations were established and 10 years since the strategic partnership wasfounded.
Between 2011 and 2019,bilateral trade grew 12.1 percent annually on average. Major Vietnamese exportsincluded mobile phones and components, apparel, footwear, aquatic products,timber and wood products, computers and components, cashew kernel, coffee, andpeppercorn. Meanwhile, the country mainly imported machinery, equipment,pharmaceutical, steel, and chemicals from the UK.
The commodities traded betweenthem are complementary to, instead of compete with, each other.
The UK is currently the thirdlargest trading partner of Vietnam in Europe, with their trade exceeding 6.6billion USD in 2019, up 9.5 percent. It also views Vietnam as a very importanttrading partner in Southeast Asia.
Thanks to GDP growth amongthe highest in the region and the world for the last three decades and,especially, the early containment of COVID-19 and sustained growth, Vietnam isincreasingly attractive to British businesses and investors.
The signing of the UKVFTA atthis point of time is greatly significant and practical to both sides,particularly when countries around the world are wishing for stronger trade andinvestment links to swiftly recover their pandemic-hit economies.
Notably, the deal will keepbilateral trading activities uninterrupted when the UK concludes the Brexittransition period on December 31, afterwhich the UK will no longer a member of the EU market and the EU Customs Unionor benefit from preferential treatments under the EU-Vietnam FTA that tookeffect on August 1, 2020.
The deal will help the twocountries increase exports to each other’s market considerably as right fromJanuary 1, 2021, it will slash tariffs on over 70 percent of Vietnamese exportsand 65 percent of British exports, many of which will be subject tozero-percent duties. After six years, more than 99 percent of their commoditieswill benefit from a zero-percent tariff.
The UKVFTA will ensure 3,000British firms’ continued shipments to Vietnam and, as Vice Chairman of theVietnam-UK Network Paul Smith said, encourage more British businesses to chooseVietnam as their destination.
This will create moreopportunities for British businesses to expand operations in the Southeast Asiannation since although the UK was the world’s fifth largest exporter in 2019,its products still account for less than 3 percent of Vietnam’s total imports.Major beneficiaries will be pharmaceutical, machinery, equipment, chemical, automobile,banking, and insurance sectors.
For Vietnam, tariffelimination under the agreement will generate many benefits for its key exportstaples like smartphones, electronic devices, textile-garment, footwear, woodproducts, ceramics, and such farm produce as rice, coffee, rubber, and aquaticproducts.
Speaking after the UKVFTAsigning ceremony on December 29, Vietnamese Ambassador to the UK Tran Ngoc An describedthis as a historic event, noting that the deal will elevate their strategicpartnership in line with their aspirations and political resolve shown in theforeign ministers’ joint statement signed in September on the occasion of the10th anniversary of the strategic partnership.
Echoing the view, BritishAmbassador to Vietnam Gareth Ward considered the deal signing as a turningpoint and a milestone in bilateral relations.
He held that it will presenta big chance for the UK because amid the worst global economic crisis sinceWorld War II, Vietnam is expected to obtain growth of over 2.9 percent and bethe world’s fastest growing economy in 2020.
The UKVFTA will ensure thatbilateral trade will keep accelerating when the UK is paying more attention torelations in the Indo-Pacific region, he added.
Besides, via this FTA,Vietnam will become a gateway for British enterprises to get access to a largeregional market.
During a trip to Vietnam lastNovember to sign the minutes on the conclusion of the UKVFTA talks, BritishSecretary of State for International Trade Liz Truss noted that the two countriesshare a common strategic commitment to global trade and the liberalisation ofcapital flows and investment. Therefore, the deal is an important step forward asthe UK is preparing to apply for membership of the Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP) in early 2021.
According the VietnameseAmbassador, the UKVFTA will help the UK move closer to the target of becoming adialogue partner of ASEAN and a member of the CPTPP as Vietnam is an activemember of ASEAN and a founding member of the CPTPP.
Via the CPTPP, not only theUK’s relations with Vietnam will be strengthened but its ties with 11 dynamiceconomies in the Indo-Pacific region will also be expanded, thus bringing aboutmore benefits to the British economy and people./.
VNA
