Vietnam’s stock market reacted immediately to Britain's vote to leave the European Union, but industry insiders believe immediate Brexit impacts on the market as well as the bilateral trade ties between the two countries are unlikely.
However, in terms of bilateral trade ties between Vietnam and the UK, industry insiders said the situation will become a little rougher in the immediate term, but there will be no significant impacts from the Brexit.
According to Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (Vitas), Britain’s vote to leave the EU will have certain impacts on the roadmap to realise the free trade agreement between Vietnam and the EU in the coming time. The affect will not be significant as the UK currently accounts for only 3 per cent of Vietnam’s textile export to the EU, he explained.
Similarly, it is not likely for the Vietnamese footwear sector to be affected by the Brexit, said Nguyen Duc Thanh, chairman of the Vietnam Leather, Footwear and Handbag Association (Lefaso). Compared with other EU countries, the UK also accounts for a modest share of Vietnam’s footwear export, so the impacts, if any, will not be significant, he elaborated.