On the 11th of December, 2020, the UK signed The UK Vietnam Free Trade Agreement (UKFTA) in London, effective from the 1st of January 2021. This bilateral trade deal will help the UK replace the existing EU-Vietnam Free Trade Agreement (EVFTA) and it is important to note that the UKVFTA has the same provisions as those found within the EVFTA. Since leaving the EU, the UK has been negotiating new trade deals with a variety of countries in order to replace those to which the trading bloc had negotiated on behalf of its member states.
Tariffs
99% of tariffs between the two countries will be eliminated by the time of full implementation. However, in some cases, non-preferential applied rates may in fact be lower because of changes in the UK’s Most Favoured Nation tariff schedule. From the 1st of January 2021 until the end of February 2021, preferences will be applied retrospectively for goods imported into Vietnam from the UK. This means that goods entering Vietnam from the UK will initially be subject to MFN tariffs for a short period of time. However, businesses will be able to claim back any additional tariffs paid in this temporary period from the Government of Vietnam.
Rules of Origin
In order to claim preferential rates for exports from the UK, starting from the 1st of January 2021, the UK will continue to use the EUR1 format for movement certificates with trade partners that have mutual FTAs with the EU, including Vietnam. These movement certificates will look identical to those currently in use, but the place of origin on the certificate will be marked as the United Kingdom instead of the European Community. However, goods transited through the EU will be subject to the same restrictions as those transited through other third countries. For goods in transit within the period in which the EVFTA ceases to apply to the UK, a retrospective certificate of origin should be issued showing that the goods originated in the UK and are eligible for preferential terms.
There is a unilateral temporary easing of the proof of origin requirements set out in the agreement for goods imported into the UK. If an exporter is unable to raise a proof of origin, UK custom officials will accept EUR1 certificates issued by Vietnam for the purposes of the EVFTA until the 31st of December 2021.
UK & Vietnam Relationship
This FTA is expected to provide a further boost to UK-Vietnam bilateral trade, which has tripled between the years 2010 to 2019, to a sum of £5.7 billion. By the time of full implementation, Vietnam stands to benefit from tariff savings of £114 million on Vietnamese exports. In regards to UK exports, this figure amounts to £36 million. Bilateral trade between the two parties has been quite significant in recent years, to the point that the UK has become the third largest trade partner of Vietnam in Europe after Germany and the Netherlands.
The UK and Vietnam have just celebrated 10 years of their Strategic Partnership Agreement and the FTA with Vietnam is an important step towards the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which should formally apply within the end of 2021. Such accession will strengthen the relationship with the 11 economies within the Indo-Pacific region. Vietnam, a founding member of CPTPP, has fully supported UK’s accession to the group.
Vietnam has become a top player in the global fashion supply chain, now the third-largest garment exporter after China and Bangladesh,[i] with exports reaching over 100 countries, primarily to the U.S., EU, and Japan. Major global brands like Adidas, Nike, Puma, and Uniqlo are increasingly shifting their production to Vietnam. But why is Vietnam so
On 15 May 2024, the Australian Trade and Investment Commission held the Australia Wine Promotion Roadshow in Ha Long City, Quang Ninh Province. At the event, wine exporters and manufacturers noted that Vietnam, the 4th largest wine market in Southeast Asia, is expected to grow at a Compound Annual Growth Rate of 10.93% in revenue
According to the Vietnam E-commerce Association (VECOM), as of early 2024, there were 78.44 million internet users in Vietnam with 72.7 million social media users (equivalent to 73.3% of the total population and 165.5 million mobile connections (equivalent to 169.8% of the total population) in Vietnam1. These statistics highlight Vietnam’s rapid growth in internet and
#Vietnam
Manage Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.