Expected to be legalized in 2021, the UK-Vietnam Free Trade Agreement (UKVFTA), promises export opportunities to the European market for Vietnamese garment-textile and footwear enterprises. According to the Ministry of Industry and Trade, Vietnam’s goods currently accounts for just 1 per cent of the UK's annual import turnover of nearly $700 billion. UKVFTA will offer Vietnamese enterprises more advantages to bring goods to the market, especially when the EU-Vietnam Free Trade Agreement (EVFTA) will no longer be applicable to the UK after the Brexit.

The UKVFTA is expected to fuel the growth of Vietnam’s textile and garment industries by 6 and 14 per cent by 2030. It will create a firmer foundation for the garment-textile sector, says Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS). The industry will be able to diversify raw material supplies via importing from Japan and the Republic of Korea for export to the UK and the EU with preferential tax rates, he elaborated, adding that it is a strength that many ASEAN member countries do not have.

Nguyen Khanh Ngoc, Deputy Head-European - American Market Department, Ministry of Industry and Trade, said, UKVFTA will help Vietnam gain better competitiveness compared to competitors from China, India, and ASEAN. Tran Tuan Anh, Minister of Industry and Trade and Liz Truss, UK Secretary of State for International Trade signed the agreed minutes on the conclusion of negotiations over the UKVFTA on December 11. Ninety-nine per cent tariffs on goods traded between Vietnam and the UK will be cut at the end of the tariff elimination enabling Vietnam to save about £114 million on exports to the UK, while UK will save around £36 million.