UK-Viet Nam Free Trade Agreement officially inked

Vietnamese Ambassador to the United Kingdom (UK) Tran Ngoc An (R) and British Ambassador to Viet Nam Gareth Ward sign the UK-Viet Nam Free Trade Agreement, London, the UK, December 29, 2020.

Earlier on December 11, Minister of Industry and Trade Tran Tuan Anh and UK Secretary of State for International Trade Elizabeth Truss signed the agreed minutes on the conclusion of negotiations over the UKVFTA. 

The two countries’ Ambassadors were authorized to ink the deal due to the spreading of the Covid-19 pandemic.

According to the representative of the Ministry of Industry and Trade, the UKVFTA was negotiated based on principles that were inherited from commitments in the EU-Viet Nam Free Trade Agreement (EVFTA) and were amended in accordance with the bilateral trade framework between Viet Nam and the UK. 

Currently, the two sides are rushing to complete domestic procedures in accordance with the laws of each party so as to ensure the agreement can be implemented from 23:00 on December 31.

The UK-Viet Nam Free Trade Agreement will create a comprehensive, long-term and stable economic-trade cooperation framework between the two countries, thus contributing to deepening their multifaceted cooperation, especially when the two sides just extended the maintenance of bilateral relations at the strategic partnership level.

Thanks to the UKVFTA, interests in the bilateral trade ties within the EVFTA will be maintained. The agreement begins a new period in the two nations’ relationship, particularly in key trade sectors. 

The Agreement not only liberalizes trade, commodity and services but also integrates other crucial factors, such as heading to green growth and sustainable development. 

Due to Covid-19 impacts, two-way trade value between Viet Nam and the UK went down 15% in the first 10 months of 2020 falling to US$4.7 billion. Viet Nam’s export to the UK declined by 14.9% to a bit more than US$4.1 billion compared to one year ago.

At the end of the tariff elimination roadmap, 99% of tariffs on goods traded between Viet Nam and the UK will be cut. 

This means that Viet Nam will save about £114 million on exports to the UK, while the figure for the UK will be £36 million.

By Thuy Dung