The UK – Việt Nam Free Trade Agreement (UKVFTA) was officially signed in London on December 29. On this occasion, Heather Wheeler, MP and British Prime Minister’s Trade Envoy for Cambodia, Laos, Việt Nam and Vietnamese Minister of Industry and Trade Trần Tuấn Anh spoke with Vietnam News Agency about opportunities and challenges of the newly-signed trade deal

Vietnam and the U.K. signed a bilateral free trade pact Tuesday to maintain their existing relationship once the Brexit transitional period ends on December 31.

The United Kingdom (UK) and Vietnam have signed a new free trade deal (UKVFTA) to ensure continuity of their trade once the Brexit transitional period ends on December 31, 2020. The agreement signed in Hanoi in mid-December marks a new beginning in bilateral relations.

Regarding the impact of the UK-Vietnam Free Trade Agreement (UKVFTA) on goods exports as well as production and business activities of enterprises, Minister of Industry and Trade Tran Tuan Anh said the agreement would bring businesses more opportunities to export to the UK. The value of import tax that Vietnam can save when exporting goods to the UK is estimated at VND3,500 billion each year.

The conclusion of the UK-Vietnam Free Trade Agreement (UKVFTA) on December 11 holds a practical meaning to both nations as the pact is expected to help the two countries boost their post-pandemic recovery.

Vietnam has emerged as the sixth largest wooden furniture exporter to the UK, grossing an export value of approximately US$422 million last year to make up 3.6% of the import market share, according to the Ministry of Industry and Trade.

Incentives brought about by the implementation of the impending UK-Vietnam Free Trade Agreement (UKVFTA) are expected to assist Vietnamese rice exporters in increasing their market share in the UK, according to experts.

Vietnam and the UK should sign a bilateral free trade agreement (FTA) as soon as possible to further boost two-way trade, Prime Minister Nguyen Xuan Phuc said when hosting UK Secretary of State for International Trade Elizabeth Truss in Hanoi on December 11.

Minister of Industry and Trade Tran Tuan Anh and UK Secretary of State for International Trade Liz Truss signed the agreed minutes on the conclusion of negotiations over the UK-Vietnam Free Trade Agreement (UKVFTA).