Vietnam-UK Free Trade Agreement officially takes effect
(VOVWORLD) - The UK-Vietnam Free Trade Agreement (UKVFTA), which officially took effect on Saturday, is expected to provide a fresh impetus for economic and trade cooperation between the two countries.
 The textile industry is expected to enjoy good opportunities from the UKVFTA. (Photo: VNA) |
But to fully penetrate into the UK, Vietnamese businesses are advised to thoroughly explore the UK's indigenous culture, payment methods, and distribution channels.
As soon as the trade deal comes into force, Vietnam's textile and garment products enjoy tax reduction to 0% from the current 12%, which will mainly applied to raw materials for textile and garment production.
Another potential export product to the UK is footwear. After the Vietnam-EU Free Trade Agreement (EVFTA) comes into effect, 37% of the UK’s import tariff lines will be removed from the average rate of 6.7%.
In addition, the market of Vietnam's fragrant rice varieties is forecast to expand to the UK in the near future.