Illustrative photo (Source: VNA)Hanoi (VNA) – The UK-Vietnam Free TradeAgreement (UKVFTA), expected to come into force in the beginning of 2021, ispromising several export opportunities to the European market for Vietnamesegarment-textile and footwear enterprises.
According to the Ministry of Industry and Trade, theproportion of Vietnamese goods currently accounts for just 1 percent of theUK's annual import turnover of nearly 700 billion USD. With the UKVFTA, Vietnameseenterprises will gain more advantages to bring goods to the market, especiallywhen the EU – Vietnam Free Trade Agreement (EVFTA) is no longer applicable tothe UK after the Brexit.
The EVFTA is expected to fuel the growth of Vietnam’s textile and garmentindustries by 6 and 14 percent by 2030, with similar benefits seen in theUKVFTA.
Vu Duc Giang, Chairman of the Vietnam Textile and ApparelAssociation (VITAS), said that, along with other agreements such as the EVFTAand the Regional Comprehensive Economic Partnership (RCEP), the UKVFTA willcreate a firmer foundation for the garment-textile sector.
The industry will be enabled to diversify its raw materialsupplies via importing from Japan and the Republic of Korea for export to theUK and the EU with preferential tax rates, he elaborated, adding that it is astrength that many ASEAN member countries do not have.
Predicting rising apparel demand in these markets in 2021and 2022, Giang recommended Vietnamese firms pay attention to product originand technical, labour and environmental standards.
Nguyen Khanh Ngoc, deputy head of the European - AmericanMarket Department under the Ministry of Industry and Trade, analysed that theUKVFTA will help Vietnam gain better competitiveness compared to competitorsfrom China, India, and ASEAN.
Minister of Industry and Trade Tran Tuan Anh and UKSecretary of State for International Trade Liz Truss signed the agreed minuteson the conclusion of negotiations over the UKVFTA on December 11. Ninety-nine percentof tariffs on goods traded between Vietnam and the UK will be cut at the end ofthe tariff elimination roadmap, meaning Vietnam will save about 114 millionpounds on exports to the UK, while the figure for the UK will be 36 millionpounds./.
VNA
