Last reviewed 29 July 2021
The Department for International Trade (DIT) has published a guide explaining the specific benefits for consumers and business of the Vietnam-UK free trade agreement (FTA).
UK-Vietnam Free Trade Agreement: Opportunities for UK Businesses can be found at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1004631/UK-Vietnam-free-trade-agreement-booklet-for-UK-businesses.pdf.
This highlights that the agreement covers £4.8 billion (2020) in trade and provides a platform to grow trade and investment between the two partners.
It contains an overview of sectors including:
chemical and pharmaceutical
food and drink
textiles and clothing.
The DTI said: “The UK and Vietnam have a strong and growing bilateral trade relationship and share a strategic commitment to global trade, and the free flow of capital and investment. Between 2011 and 2020, Vietnam’s share of total UK trade doubled”.
The guide explains that the FTA provides certainty to UK and Vietnamese businesses, with trade in goods — ranging from clothing and footwear to pharmaceuticals and seafood — continuing uninterrupted after the UK left the EU and ceased to enjoy the benefits of the Union’s agreements with Vietnam.
The new deal locks in the 65% of all tariffs that have been eliminated since the EU-Vietnam FTA entered into force. This will increase to 99% of tariffs after a schedule of between six and nine years.
For goods exported by UK exporters to Vietnam: 48.5% of tariffs lines were eliminated on 1 January 2021; 91.8% of tariff lines will be eliminated by 1 January 2027; and 98.3% of tariff lines will be eliminated by 1 January 2029.