Vietnam and UK Strengthen Economic Ties with Multifaceted Partnership

Prior to the 5-day visit, UK International Trade Minister Nigel Huddleston spoke about the significant contribution of the Vietnam-UK trade partnership to the diplomatic relations between the two countries over the last 50 years.

The trade relationship between the UK and Vietnam has continued to strengthen, with the total trade volume reaching £6.9 billion in 2022. This represents a 29% increase from 2021 and nearly double the figure from 2013. Minister Huddleston expressed his eagerness to meet with his counterparts in Vietnam to explore new opportunities and support UK businesses in accessing the dynamic Vietnamese market.

The UK currently has 536 direct investment projects in Vietnam, with a total registered capital of US $4.28 billion. This makes the UK the 15th largest foreign investor in the country. In the first seven months of this year, bilateral trade between Vietnam and the UK reached US $3.95 billion, a 0.5% increase compared to the same period last year. Vietnam’s imports from the UK also increased by 6% to US $460.1 million.

During his visit to Ho Chi Minh City and Hanoi, Minister Huddleston met with key British businesses already operating in Vietnam to discuss ways to further enhance and diversify the economic ties between the two countries. He highlighted the important role played by the British construction community in shaping Vietnam’s skyline, including the iconic Landmark 81 building.

The highlight of Minister Huddleston’s visit was the co-hosting of the 13th UK-Vietnam Joint Economic and Trade Committee (JETCO) and the Trade Committee of the bilateral Free Trade Agreement (UKVFTA). Vietnamese Deputy Minister of Industry and Trade Phan Thi Thang emphasized the remarkable progress in the bilateral cooperative relationship, particularly in economic sectors. JETCO’s cooperation mechanism has contributed to resolving policy obstacles and creating a more favorable business environment for enterprises from both countries.

Vietnam welcomed the UK’s membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and proposed the UK provide relevant technical assistance programs. Minister Huddleston assured that the matters discussed at JETCO 13 will be further implemented through technical cooperation programs, aiming to elevate the bilateral relations to new heights.

The Vietnamese side expressed gratitude for the UK’s support in the Just Energy Transition Partnership (JETP) mechanism and sought further assistance in Vietnam’s energy transition process and power system management. Both sides expressed interest in Fintech and hoped for more cooperation opportunities in this area.

The UK side expressed willingness to cooperate in healthcare, education, agriculture, finance-banking, and tourism. The two countries agreed to continue discussions on regulatory frameworks for emerging sectors such as education, renewable energy, and technology.