Vietnam, UK to boost trade via UKVFTA, CPTPP: Official

Deputy Minister Tan told the guest that economic, trade, and investment cooperation has always been a bright spot since Vietnam-UK relations was elevated to a Strategic Partnership in 2010.

Currently, the UK is the 9th largest export market in the world and the 4th largest in Europe and the Americas for Vietnam.

Economic, trade, and investment cooperation between the two countries is deepening and becoming more substantial.

Regarding the bilateral trade cooperation, Deputy Minister mentioned that in the early months of 2023, two-way trade between Vietnam and the UK has witnessed a downward trend.

For the first eight months of 2023, bilateral trade turnover reached US$4.62 billion, a slight decrease of 0.9% compared to the same period last year. Specifically, Vietnam's exports to the UK reached nearly US$$4.1 billion, down 0.1% compared to the same period, while imports from the UK reached US$460.1 million, an increase of 6% over the same period.

In the context where Vietnam's trade with most key export markets in Europe has witnessed a significant decline due to global economic challenges, maintaining such growth compared to the same period last year is encouraging.

As of August 20, 2023, the UK has 542 direct investment projects in Vietnam with registered capital of about US$4.29 billion, ranking 15th out of 143 countries and territories investing directly in Vietnam. In the first eight months of 2023, the UK has had a total of 34 new investment projects in Vietnam with registered capital reaching US$48.3 million.

Deputy Minister Tân underscored that the UK-Vietnam Free Trade Agreement (UKVFTA), taking effect since May 2021, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which the UK joined on July 16, 2023, will be strong drivers to further develop two-way economic, trade, and investment relations in the coming time.

Secretary Alister Jack reiterated the importance that the UK attaches to its trade relationship with Vietnam and the commitment of the UK to deepen its trade ties with Vietnam.

He expressed gratitude for the support from the Ministry of Industry and Trade of Vietnam regarding the UK's accession to the CPTPP, and provided updates on the progress of approval and legislative changes in the UK to ratify the CPTPP accession as soon as possible.

Secretary Jack highlighted that the UK's official signing of the CPTPP has opened up significant opportunities for businesses from both countries to take advantage of the benefits from this agreement in the near future.

Regarding specific cooperation between Vietnam and Scotland, Secretary Jack stated that the export value from Scotland to Vietnam reached £83 million in 2022, an increase of 11% compared to the previous year. Under the UKVFTA, 45% of import duties on Scottish whisky are gradually reduced to 0% over six years.

With the achievements in bilateral trade between Vietnam and Scotland, the Vietnamese trade official expressed hope that Vietnamese specialty products, especially agricultural products, could have deeper access to supermarket chains, supply chains, and consumers in Scotland and the UK market in general in the near future.

Regarding the Just Energy Transition Partnership (JETP), Deputy Minister Tan also appreciates the UK's active participation as a partner and their willingness to support Vietnam in fulfilling its commitments to greenhouse gas emissions reduction.

The Ministry of Industry and Trade is also urgently coordinating with relevant ministries and sectors to promptly develop a plan for implementing JETP within the framework of the Technology and Energy Group and will continue to closely collaborate with the relevant agencies and organisations of the UK in the future.

At the meeting, both sides have also agreed on plans to organise the 14th Vietnam-UK Joint Economic and Trade Committee (JETCO 14)and the 3rd meeting of the Joint Trade Committee for the UKVFTA in 2024 in the UK.