Vietnam and the UK achieve bilateral trade of 6.6 billion USD last year, up 17.2% from the previous year. Illustration. (Photo: VNA)HCM City (VNA) — Vietnam has emerged as a majorSoutheast Asian supplier of farm produce and aquaculture products to the UKfollowing the UK-Vietnam Free Trade Agreement (UKVFTA) they signed, speakers saidat a conference on June 23.
Speaking at “UK Market: Unlocking great potential by leveragingadvantages of the UKVFTA”, Oliver Todd, British consul general in HCM City,said Vietnam can replace other countries such as India and Indonesia as amajor supplier of agricultural and aquaculture products to his country.
Todd, who is also director of the UK Trade and Investment in Vietnam,said Vietnamese exporters should be well prepared if they want to boost exportsto the choosy market. It is important to learn about import demand andstandards and requirements for exporting to the British market, he said.
Chris Milliken, vice president of the British Chamber ofCommerce in Vietnam (BritCham), said there is ample scope to grow bilateraltrade thanks to the trade deal.
“Vietnam and the UK are not competing against each other inany industry; they commercially complement each other.”
He pointed to the FTA as the leading pillar of the jointcommitment to deepen bilateral trade, saying it was a mutual agreement to takebilateral trade to the next level.
The bilateral cooperation will include renewable energy,finance, education, high-tech, fintech, and others, he said.
The UK has in recent years focused on developing renewablessuch as wind and solar power as part of its efforts to adapt to climate change,he said.
He said Vietnam should develop renewable energy, an area inwhich the UK has strengths.
The UK recently developed an offshore wind project in thecountry, which will generate enough electricity for 1.6 million homes.
Major UK energy enterprises invest in solar power projectsin Vietnam like the Shire Oak International Group, and solar power projectslike Enterprize Energy and Mainstream Group.
He also spoke highly of the commitment by Vietnam to achievenet-zero emissions by 2050 to help mitigate climate change at the COP26 lastyear.
Speakers at “UK Market: Unlocking great potential by leveraging advantages of the UKVFTA." (Photo: VNA)Truong Thi Chi Binh, vice president and general secretary ofthe Vietnam Association of Supporting Industry Enterprises, said the twocountries have great opportunities for cooperation in many fields, especiallysupporting industries and renewable energy.
Vo Hong Kiet, customer service manager at the BritishStandards Institute (BSI Group), said Vietnam has the potential to become amajor supplier of food and farm produce to the UK.
But Vietnamese exporters face challenges in finding partnersand understanding the needs, quality standards and trade procedures in the UK,and also risks related to contracts and payments, he added.
Nguyen Manh Dat, deputy director of the Institute of FoodIndustry under the Ministry of Industry and Trade, said Vietnamese exportersshould do thorough market research to ensure their products are of high qualityand competitive in the market.
They must also ensure transparency for their products bydeveloping websites and providing information about products, production lines,output, and trading partners.
Experts said the UK is the second largest economy in Europewith a free trade policy and large demand for agricultural imports.
Although the UKVFTA took effect at a tough time due largelyto the COVID-19 pandemic, the two countries were able to achieve bilateraltrade of 6.6 billion USD last year, up 17.2% from the previous year, accordingto figures from Vietnam Customs.
Vietnam’s exports to the UK were worth 5.8 billion USD in2021, up over 16.4%, while the UK’s exports topped 849 million USD, up 23.6%.
In the first five months of this year, trade between the twocountries reached 2.68 billion USD, equivalent to the same period last year’sfigure.
As of May, 462 UK direct investment projects with a totalregistered capital of 4.15 billion USD were approved in Vietnam, accounting for0.97% of the country’s total FDI.
They include 120 projects in the manufacturing andprocessing sectors with a total investment of nearly 1.6 billion USD, followedby 23 ones in real estate worth a total of 1.04 billion USD.
The signing of the UKVFTA took place in December 2020 in theBritish capital, London. It came into force on May 1, 2021.
The conference was organised by the Ministry of Industry andTrade, the British Embassy in Vietnam and the British Chamber of Commerce in Vietnamto help Vietnamese enterprises seeking to join the British supply chain./.
