Vietnam-UK trade expected to reach US$10 billion

18/07/2022    41

Trade revenue between Vietnam and the UK is expected to reach US$10 billion in the next one or two years thanks to strong support from the Vietnam-UK Free Trade Agreement (UKVFTA).

According to the Department of the Europe-America Market under the Ministry of Industry and Trade, last year, import-export turnover between the two countries reached US$6.6 billion, a 17.2% year-on-year increase and four times higher than the period before establishing the strategic partnership. In 2009, turnover was US$2.65 billion.

Export and import revenues were US$5.76 billion and US$849 million, 16.4% and 23.6% increases, respectively. Trade between Vietnam and the UK has surged mainly thanks to the UKVFTA, which took effect in May 2021.

The UK economy is expected to recover after the COVID-19 pandemic and the British Government lifts travel restrictions from March 18, 2022. Increasing demand for consumer goods in the UK has created more opportunities for Vietnamese exporters. In particular, the UK is the third largest trading partner of Vietnam in Europe, following Germany and the Netherlands.

Total UK direct investment capital into Vietnam by 2021 was US$4.15 billion, double the amount before establishing the strategic partnership (in 2009, total investment capital of the UK in Vietnam only reached US$2 billion).

Deputy Minister of Industry and Trade Tran Quoc Khanh, said UKVFTA has become a great lever for Vietnam-UK trade and investment co-operation. In addition, co-operation in the field of energy, especially renewable energy, between Vietnam and the UK has potential to yield results.

At the COP26 Conference held in November 2021, Vietnam made a statement on the goal of achieving net zero emissions by 2050. This statement clearly demonstrated Vietnam's determination to move from traditional fossil fuels to greener and cleaner energy sources, thereby contributing to a reduction of greenhouse gas emissions globally.

Khanh said the ministry and Vietnamese agencies have been actively reviewing and adjusting the National Electricity Development Plan for the period of 2021-30, with a vision to 2045 (Power Plan VIII) with a focus on prioritising the development of clean, environmentally friendly power sources such as onshore and offshore wind power.

To achieve the above goals, Vietnam is studying and proposing to legislate the development of renewable energy, creating a favourable legal corridor to attract investment from the private sector. Vietnam needs the support of international partners and donors in technology as well as preferential capital. This is an opportunity for Vietnam and the UK to strengthen co-operation, he added.

Source: VOV