Bilateral trade between UK and Vietnam surges thanks to UKVFTA
Bilateral trade between UK and Vietnam surges thanks to UKVFTA
The initial results of the UK-Vietnam Free Trade Agreement promise to continue creating new impetus for economic and trade cooperation between the two countries in the coming time.
Since the UK-Vietnam Free Trade Agreement (UKVFTA) took effect on January 1, the bilateral trade turnover between the two countries has recorded a spectacular rise in the context of exports disruption due to the Covid-19 pandemic, according to the Ministry of Industry and Trade.
Vietnamese rice exports to EU. Photo: Vinaseed
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According to the General Department of Vietnam Customs, in January, the total trade turnover between Vietnam and the UK reached US$657.3 million, up 78.6% over the same period last year.
Vietnam's exports to the UK reached US$598 million worth of goods, up 84.6% compared to last January and 56.5% to last December.
Among Vietnam's exports to the UK, farm produce attained stable and positive growth in January, with seafood reaching US$19.7 million, representing a rise of 18.1% over the same period last year, and vegetables and fruits with US$1 million, increasing 148.6%.
Chart: Phi Nhat
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Vietnamese shipments to the UK get opportunities to rise drastically and expand market share thanks to many tariff preferential treatment under the agreement, according to the MoIT.
Under the trade deal, more than 94% of the total 547 tariff lines of vegetable and fruit will be reduced to zero. Many Vietnamese key products such as litchi, longan, rambutan, dragon fruit, pineapple and melon will have more market access advantages over tropical fruits originating from rivals such as Brazil, Thailand and Malaysia, the countries that have not signed an FTA with the UK.
Chart: Phi Nhat
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Shipments of the group of processing and manufacturing industries to the UK achieved an impressive growth in January such as phones and components (up 371.6% over the same period last year), followed by machinery, equipment and spare parts (109.9%), computers and electronic components (91%); iron and steel of all kinds (11%).
In 2020, the bilateral trade reached US$5.64 billion in value, in which Vietnam exported goods worth US$4.95 billion to the UK and enjoyed a trade surplus of US$4.27 billion. The UK continued to be the third largest trading partner of Vietnam in Europe, behind Germany and the Netherlands.
