UKFTA promotes Vietnam-UK bilateral ties

(VOVWORLD) - The UK-Vietnam Free Trade Agreement took effect on December 31, 2020 offering a sharp reduction of taxes. The deal is creating great opportunities for businesses of the two countries and enabling bilateral trade to grow.

The UK has been Vietnam’s strategic partner for the past 10 years with a trade turnover over 6.6 billion USD in 2019 and 5.6 billion USD in 2020, despite the COVID-19 pandemic.

Nguyen Khanh Ngoc, Deputy Director of the Europe-America Market Department of the Ministry of Industry and Trade, says '25-30% of Vietnam’s exports are electronics. Its main imports from the UK are machinery, equipment, and high-tech products.'

Minister of Industry and Trade Tran Tuan Anh said Vietnam has a great potential to export garments, textiles, footwear, rice, fishery products, and timber products to the UK.

'With the tariff cuts and preferential conditions offered by the UK, we can save 150 million USD each year penetrating the UK market,' says Anh.

The General Department of Customs says that in January, trade between the two countries was 78% higher than last January–impressive growth during a pandemic.