13:00 | 24/12/2020 Cooperation
The conclusion of the UK-Vietnam Free Trade Agreement (UKVFTA) on December 11 holds a practical meaning to both nations as the pact is expected to help the two countries boost their post-pandemic recovery.
|Minister of Industry and Trade Tran Tuan Anh and UK Secretary of State for International Trade Liz Truss signed the agreed minutes on the conclusion of negotiations over the UKVFTA|
According to an article by Pinsent Masons, a UK-based international professional services business with law at its core, Vietnam and UK companies will be benefit from reduced tariffs on imports and exports. Currently 65 percent of tariffs are removed tariff on UK-Vietnam trade, but this will increase to 99 percent of tariffs over time.
The article said the agreement is anticipated to deliver annual savings to Vietnam of 114 million pounds on exports to UK and 36 million pounds on UK exports to Vietnam.
Trade expert Totis Kotsonis of the firm said: “the UK sees its bilateral agreement with Asian countries as merely the first stepping stone towards much greater UK involvement in Asia, ultimately joining the Trans-Pacific trade agreement (CPTTP) and becoming an ASEAN Dialogue Partner”.
|Minister of Industry and Trade Tran Tuan Anh addressed the signing ceremony|
During the 2010 – 2019 period, trade between Vietnam and the UK tripled, reaching about 7.6 billion USD. The saved tariffs will help Vietnam escape the consequences of a decline in global demand that is hindering the export of manufactured goods. The COVID-19 pandemic has led to western countries’ cutting of orders for traditional Vietnamese exports, such as apparel, footwear, electronic devices and automotive equipment.
Associate Professor Wu Ming Jiang from the National University of Singapore’s Lee Kuan Yew School of Public Policy said Vietnam will have more access to the UK’s special strengths in management consultation services and in research and development.