Vietnam-UK trade and investment ties to benefit from EVFTA

(VOVWORLD) - British businesses are prioritizing trade development and investment relations with Vietnam as soon as the EU-Vietnam-Vietnam Free Trade Agreement (EVFTA) becomes effective.
Vietnam-UK trade and investment ties to benefit from EVFTA - ảnh 1

Garments and textiles products are manufactured for export to the European market.

(Photo: Do Phuong Anh/VNA)

A number of potential British businesses may shift their investment into Vietnam.

Nguyen Canh Cuong, Trade Counsellor at the Vietnamese Embassy in the UK, has forecasted the trade deal’s impacts on the bilateral trade and investment relations.

He said that the agreement will offer favorable conditions for the two business communities to access each other’s markets. Cutting taxes to zero percent on many products and a small portion of other products can also enjoy a tax reduction according to the plan. The agreement’s second advantage is the belief of businesses.

The UK’s growth potential is said to remain large for Vietnamese export items, which  account for less than 1% of the market share of the UK’s total import turnover of nearly 700 billion USD last year.

Once the EVFTA takes effect, Vietnamese products are expected to have a more competitive edge over similar products from countries without FTA.