Minister of Industry and Trade Tran Tuan Anh and UK Secretary of State for International Trade Liz Truss sign the agreed minutes on the conclusion of negotiations over the UK-Vietnam Free Trade Agreement on December 11. (Photo: VNA) Hanoi (VNA)– The conclusion of the UK-Vietnam Free Trade Agreement (UKVFTA) on December 11 holds a practicalmeaning to both nations as the pact is expected to help the two countries boost their post-pandemic recovery.
According to an article by Pinsent Masons, a UK-based internationalprofessional services business with law at its core, Vietnam and UK companieswill be benefit from reduced tariffs on imports and exports. Currently 65 percentof tariffs are removed tariff on UK-Vietnam trade, but this will increase to 99percent of tariffs over time.
The article said the agreement is anticipated to deliverannual savings to Vietnam of 114 million pounds on exports to UK and 36 millionpounds on UK exports to Vietnam.
Trade expert Totis Kotsonis of the firm said: “the UK seesits bilateral agreement with Asian countries as merely the first stepping stonetowards much greater UK involvement in Asia, ultimately joining theTrans-Pacific trade agreement (CPTTP) and becoming an ASEAN Dialogue Partner”.
During the 2010 – 2019 period, trade between Vietnam and theUK tripled, reaching about 7.6 billion USD. The saved tariffs will help Vietnamescape the consequences of a decline in global demand that is hindering theexport of manufactured goods. The COVID-19 pandemic has led to westerncountries’ cutting of orders for traditional Vietnamese exports, such asapparel, footwear, electronic devices and automotive equipment.
Associate Professor Wu Ming Jiang from the NationalUniversity of Singapore’s Lee Kuan Yew School of Public Policy said Vietnamwill have more access to the UK’s special strengths in management consultationservices and in research and development./.
VNA
