Hanoi (VNA) - The UK-Vietnam Free Trade 🍰Agreement (UKVFTA) and the UK’s signing of an agreement to join the Comprehensive and Pr🎃ogressive Agreement for Trans-Pacific Partnership (CPTPP) on July 16 will create a strong driving force to further boost bilateral economic-trade-investment ties.

Ta Hoang Linh, Director of the European-American Market Department under the Ministry of Industry and Trade, unveiled this information at the Vietnam-UK Business Forum 2023. The event was held in Hanoi on November 24 by the Joint Committee on Economic and Trade Cooperation between Vietnam and the UK (JETCO) to celebrate the 50th founding anniversary of diplomatic ties.

Strong growth of bilateral trade

Linh said despite geopolitical tensions and global economic challenges since the beginning of this year, two-way trade between Vietnam and the UK still stood out as a bright spot, reaching 5.87 billion USD in the first 10 months of this year, an year-on-year increase of 1.6%. A number of Vietnam’s key export items showed positive growth. These include rubber products 66%, electrical wires and cables 5.5%, phones and components 21%, as well as machinery and equipment, 15.5%. Agricultural products such as vegetables rose by 15.5%, cashew nuts 7.2%, and coffee 5.7%. Vietnam also increased its imports from the UK, particularly pharmaceuticals and machinery, equipment, tools and spare parts for production. As a dynamic country with political stability and attractive business environment in Asia-Pacific, Vietnam has become a reliable and sustainable investment destination for the UK, he said. As of October 20, the UK had invested in 550 projects in Vietnam with total registered capital of around 4.28 billion USD, ranking 15th among 143 countries and territories investing there. In the first eight months of this year, the UK recorded 43 new projects in Vietnam with combined registered capital of 58.6 million USD, mostly in manufacturing and processing, renewable energy, industry, environmental management, finance and banking, real estate, retail, education, healthcare, and more. Meanwhile, Vietnam now has 14 projects valued at 17.3 million USD in the European nation, which remains modest compared to the potential and aspirations of both countries. There is a wide range of opportunities in trade ties with the UK, said former Commercial Counsellor at the Vietnamese Embassy in the UK Nguyen Canh Cuong. He emphasised challenges that domestic businesses need to pay attention to if they want to export products to this European market, such as the European Union’s Carbon Border Adjustment Mechanism (CBAM) which is also applied in the UK.

Taking advantage of FTAs

Nguyen Thi Huong Lien, Deputy General Director of Sao Thai Duong Joint Stock Company which has successfully exported cosmetics made from medicinal herbs to the UK, praised the roles of commercial counsellors and Vietnam Trade Offices abroad, including their thorough grasp of the markets, their regulations and trade promotion activities. David Johnstone, head of FTA Utilisation at the UK Department for Business and Trade, said both nations have continued to demonstrate huge cooperation potential in energy transition in Vietnam. This is especially the case following the approval of the National Power Development Master Plan for the 2021-2030 period, with a vision to 2050 (Master Plan VIII). The plan allocates a large space for renewable energy. Both countries are also taking specific steps to realise the Just Energy Transition Partnership (JETP). At the event, two discussion sessions on energy and trade gathered numerous speakers, including experts, policy planners, researchers, and outstanding businesses of both countries. They shared new perspectives and valuable experience to explore new opportunities based on ongoing projects. Director of the European-American Market Department Ta Hoang Linh affirmed that the ministry will continue offering all possible support to businesses and investors, including those from the UK, aiming to help them realise ideas and efficient operations in Vietnam, helping to make bilateral economic ties more practical and effective./.