Trade between Vietnam and the UK is expected to reach $10 billion

Trade revenue between Vietnam and the UK is expected to reach $10 billion in the next one to two years, thanks to strong support from the UK-Vietnam Free Trade Agreement (UKVFTA).

According to the Europe-America Market Department, dependent on the Ministry of Industry and Commerce, last year the volume of imports and exports between the two countries reached 6,600 million dollars, which represents a year-on-year increase of 17.2% and four times more than in the period prior to the establishment of the strategic association. In 2009, the turnover was 2.65 billion dollars.

Export and import revenues were $5.76 billion and $849 million, an increase of 16.4% and 23.6%, respectively. Trade between Vietnam and the United Kingdom has increased mainly thanks to the UKVFTA, which came into force in May 2021.

The UK economy is expected to recover following the COVID-19 pandemic and the UK Government is expected to lift travel restrictions from 18 March 2022. Rising demand for consumer goods in the UK has created more opportunities for Vietnamese exporters. Notably, the UK is Vietnam’s third largest trading partner in Europe, after Germany and the Netherlands.

The UK’s total direct investment capital in Vietnam for 2021 was $4.15bn, twice as much as before the strategic partnership was established (in 2009, the UK’s total investment capital in Vietnam was only $2bn). ).

Deputy Minister for Trade and Industry Trần Quốc Khánh said the UKVFTA has become a great lever for trade and investment cooperation between Vietnam and the UK. Furthermore, cooperation in the field of energy, especially renewable energy, between Vietnam and the UK has the potential to deliver results.

Rising demand for consumer goods in the UK has created more opportunities for Vietnamese exporters

At the COP26 Conference held in November 2021, Vietnam made a declaration on the goal of reaching net zero emissions by 2050. This declaration clearly demonstrated Vietnam’s determination to move from traditional fossil fuels to greener and cleaner energy sources, thus contributing to a reduction in greenhouse gas emissions worldwide.

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Khánh said that the Vietnamese ministry and agencies have been actively reviewing and adjusting the National Electricity Development Plan for the period 2021-30, with a vision up to 2045 (Energy Plan VIII) with a focus on prioritizing the development of clean and environmentally friendly energy sources, such as onshore and offshore wind power.

At the COP26 Conference held in November 2021, Vietnam made a declaration on the goal of reaching net zero emissions by 2050

To achieve the above objectives, Vietnam is studying and proposing to legislate the development of renewable energy, creating a favorable legal corridor to attract private sector investment. Vietnam needs the support of international technology partners and donors, as well as preferred capital. This is an opportunity for Vietnam and the UK to strengthen their cooperation, he added.

Article republished from the Vietnamese state media VNA as part of an agreement between both parties to share content. Link to original article:https://vietnamnews.vn/Economy/1268982/viet-nam-uk-trade-expected-to-reach-us-10-billion.html