UK seeks to bolster trade ties with Vietnam after Brexit
UK seeks to bolster trade ties with Vietnam after Brexit
The United Kingdom is looking to strengthen its trade relations with Asian countries, and Vietnam is one of the six markets it wants to boost trade links with this year, after it leaves the European Union, Mark Field, UK Foreign and Commonwealth Office Minister of State, said in HCMC on January 3.
At the event “Vietnam: Ready to Trade” held by audit, tax and advisory service provider KPMG Vietnam, Field noted that Vietnam, with its population of more than 90 million people, was an attractive destination for foreign investors.
His visit to Southeast Asian countries is aimed at stepping up the relationship between the United Kingdom and the bloc. In Vietnam, UK enterprises have plans to invest in the education, healthcare and electronics sectors, Field added.
However, UK investors may encounter challenges as they have to compete with rivals from other countries following the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the European Union-Vietnam Free Trade Agreement, remarked Warrick Cleine, chairman and CEO of KPMG Vietnam.
In addition, foreign firms are expected to move orders to Vietnam while the U.S.-China trade tensions remain unresolved.
According to Truong Quynh Hoa, director of consulting services at KPMG Vietnam, UK enterprises have to learn about Vietnam’s regulations on imports and exports.
The Anti-Corruption Law, which will be valid from July 1, will be applied to both local and foreign-invested enterprises.
Vietnam will also issue tax policies for firms trading on ecommerce platforms, so UK investors should be aware of these policies, Hoa noted.
Meanwhile, Cleine proposed local firms should improve their governance, learn more about international trade agreements to which Vietnam and the United Kingdom are parties and look for reliable representatives in the United Kingdom.
In 2017, Vietnam exported US$5.4 billion worth of products to the United Kingdom and spent US$738 million on imports from the European country, according to KPMG Vietnam.
