The UK-Vietnam Free Trade Agreement (UKVFTA) is expected will help the two countries boost their post-pandemic recovery, says a report by Vietnam Plus. An article by Pincent Masons expects Vietnam and UK companies to benefit from reduced tariffs on imports and exports. The agreement will deliver annual savings of £114 million to Vietnam on exports to UK and £36 million on UK exports to Vietnam.
During the 2010 – 2019 period trade between Vietnam and the UK reached about $7.6 billion. 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.
