Shoes are made at a factory in Hanoi. Footwear raw materials are among items that accounted for a large proportion of Vietnam's import turnover from the UK in the first half of this year. (Photo: VNA) According to experts, the UK can be a source of quality rawmaterials for Vietnam especially because raw materials that Vietnam needs toimport for export production or domestic consumption are items that Vietnamoffers preferential tariffs to the UK.
Under the trade deal, Vietnam commits to eliminate 48.5% oftariff lines from January 1, 2021; 91.8% of tariff lines from January 1, 2027and 98.3% of tariff lines from January 1, 2029.
The remaining 1.7% of tariff lines are partially liberalisedthrough tariff rate quotas (the quota volumes are consistent with Vietnam’s WTOcommitments and duties within quotas will be removed by 2031) or not entitledto preferential treatment.
Typically, 61% of tariff lines for machinery and appliancesimported from the UK have been removed since January 1, 2021, while importtariffs for all other products will be eliminated after nine years.
For pharmaceutical products, Vietnam has eliminated 71% oftariff lines from January 1, 2021. All other products will have import taxeseliminated after four to six years.
Meanwhile, the Southeast Asian nation has lifted 80% of tarifflines imposed on raw materials for textiles, garments and footwear from January1, 2021, while that of all other products will be eliminated after four to sixyears.
Statistics from the General Department of Customs revealed that Vietnamimported nearly 373 million USD worth of goods from the UK, equivalent to thesame period in 2022.
Among staples recording high growth rate included seafood rawmaterials (233%); iron and steel products (95%); fabrics (72%); plasticproducts (15%) and machinery, equipment, tools and spare parts (6.4%).
According to the department, items that accounted for a largeproportion of Vietnam's import turnover from the UK in H1 included machinery,equipment, tools, and spare parts (24%); pharmaceuticals (11.8%); chemicals(6.4%); textile, garment, leather, and shoe raw materials (5.2%); seafood andseafood materials 4.6%.
These above-mentioned goods are what Vietnam needs to import forexport production and domestic consumption.
A recent survey by Vietnam Report, a market research company in Vietnam,showed that a top priority among Vietnamese businesses is to diversify theirsupply sources, especially for imported raw materials.
According to the report, 72.7% of all participants said theywant to seek out new suppliers at lower prices and they want to do so in thenear future./.
VNA
