UKVFTA opens up opportunities for Vietnamese exports

The UK - Vietnam Free Trade Agreement (UKVFTA) officially took effect at the beginning of May, 2021. It has provided a huge boost to Vietnam’s exports in terms of market diversification and products. In particular, in the context of COVID-19, trade agreements with major partners will ensure the growth of Vietnamese goods.

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COVID-19 caused export turnover in the leather and footwear industry to fall by nearly 30% in 2020. This year, along with other agreements, the UKVFTA provides leverage for businesses in the industry.

While businesses are facing many problems from the Covid-19 pandemic, the trade agreement with the UK is expected to help stabilise the market and help the businesses recover and develop.

However, the technical standards and quality requirements for goods imported into the UK are very high. For industries such as footwear and textiles, rules of origin are a pressing issue that must be met to enjoy tariff preferences under the agreement.

Many garment and textile enterprises are now emphasising product quality or environmental protection regulations, a representative of the Ministry of Industry and Trade said, and Vietnamese enterprises who wish to enter large markets cannot ignore sustainable production.

According to calculations, Vietnam will save 151 million USD on import taxes each year when exporting to the UK. Combined with market access opportunities from the UKVFTA, exports to the UK and Northern Ireland will continue to be promoted strongly even during the ongoing pandemic./.

VNA