Plenty of room for UK exports after Brexit and pandemic
VIETNAM, December 24 –
A factory of Garment 10 Corp, which exports clothing to the UK market. – VNA / VNS Photo Trần Việt
HÀ NỘI – Amid the COVID-19 pandemic, disrupting the global supply chain, Việt Nam-UK trade has seen a positive development with two-way trade turnover reaching 6.02 billion dollars in the first 11 months of 2021, up 17% year-over-year, according to the Euro-American Market Department of the Ministry of Industry and Commerce.
Việt Nam’s exports to the UK reached $ 5.2 billion, up 15.6% year-on-year. Strongly growing export items included iron and steel, rubber, agricultural products, vehicles and parts, and machinery.
Việt Nam imported about US $ 778.2 million in goods from the United Kingdom, an annual increase of 27.3 percent.
Despite the positive performance, the Southeast Asian nation’s market share in the market remains modest, accounting for around 1 percent of the European nation’s total import turnover.
Vietnamese trade adviser to UK Nguyễn Cảnh Cường said that after Brexit, the UK-Vit Nam Free Trade Agreement (FTA) replaced the EU-Việt Nam FTA as of 1 January 2021.
Meanwhile, the UK government is pursuing a more open trade policy towards faster liberalization, encouraging UK companies to boost exports to countries with dynamic economic development, including Việt Nam. This is seen as an opportunity for both sides to promote trade and commerce cooperation in the future, according to Cường, who attended a webinar last week.
However, the UK market also poses many challenges for Vietnamese businesses, especially after the country left the EU.
Cường described the procedures regarding certificates and customs checks on animals and plants, tax returns and tax payments, which were subject to the new UK guidelines, as well as changes in consumer purchasing habits during the pandemic.
Dario Miraglia, commercial director at Vestey Foods International, which specializes in importing and distributing vegetables, said companies exporting to the UK should carefully study market demand and seek business partners through different channels.
In addition to general international standards and requirements, each market has its own regulations and procedures, so Vietnamese businesses should fully understand these regulations, Miraglia said.
Meanwhile, Ngô Thị Thu Thuỷ, head of sales and global trade at HSBC Vietnam, recommended that before signing a contract, Vietnamese companies seek more information about the business situation of partners and their payment capabilities.
Hoàng Hương Giang, CEO of Garment 10 Corp, who has over 10 years of experience supplying products to the UK, highlighted product quality and customer service as the top priorities for Vietnamese businesses if they were to enter international markets, including the UK.
Not only companies in the garment and textile industry, but those in other industries need to know how to seize opportunities and prepare carefully before shaking hands with foreign partners, she said.
The UK is a major import market, with total import turnover of over £ 448 billion in the first nine months of 2021. The UK’s main imports are cars, medical products, drugs, clothing, audio and telecommunications equipment, office machines, electromechanical generators, non-ferrous metals, crude oil and vegetables.
Currently, the UK is one of Việt Nam’s largest trading partners in Europe, while the South East Asian nation is the UK’s largest trading partner in ASEAN, ranking 26th among export partners of the European nation in the world.
As of November 2021, the UK had 447 projects in Việt Nam with total registered investment capital of almost US $ 4 billion, accounting for 1.3% of the total number of foreign-funded projects in the country and 1% of the national total. IDE.— VNS