Vietnam and the United Kingdom established diplomatic relations at ambassadorial level on September 11, 1973. Over the past half century, cooperation between the two countries has developed strongly, effectively and dynamically in many fields. In 2010, the two countries established a strategic partnership and in 2020 adopted a Joint Statement on the occasion of the 10th anniversary of the strategic partnership, demonstrating the strong commitment of the two governments to promote global cooperation. aspects of sustainable development and effective response to global challenges.

Trade and investment cooperation, a key pillar of the strategic partnership, has achieved many positive results. The UK is currently Vietnam's third largest trading partner in Europe and Vietnam's 9th export market. The two sides signed a bilateral Free Trade Agreement (UKVFTA), effective from May 1, 2021. In the first 2 years of UKVFTA implementation, despite the impact of the COVID-19 pandemic, two-way trade continuously increased at 16.4% in 2021 and 6.5% in 2022, reaching over 6.5%. 8 billion USD in 2022, 3 times more than in 2010 when the two countries established a strategic partnership.

In the first quarter of 2023 alone, the total value of two-way trade between Vietnam and the UK reached 1.58 billion USD, down 0.6% over the same period in 2022; Of which, the export value of Vietnamese goods to the UK reached more than 1.4 billion USD, down slightly by 0.3% over the same period in 2022. Notably, Vietnam has a trade surplus of 1.23 billion USD, an increase of 88.6 thousand USD over the same period in 2022.

Explaining the reason why in 2023, Vietnam's exports to the UK tend to slow down, the representative of the European - American Market Department said that the UK economy will be difficult to recover in the context of a growing global economy. Growth slows down, production and transportation costs, especially energy costs, increase. Furthermore, high inflation and low consumer confidence cause British people to tighten spending; Market demand decreased, especially for non-essential products such as outdoor furniture or durable household appliances.

In addition, a number of wooden furniture importers and distributors in the UK went bankrupt; The exchange rate between the British Pound against USD and VND fluctuates sharply, increasing payment risks for Vietnamese export enterprises.

In addition, the decrease in exports is also due to high quality requirements; The market has many competitors; Long geographical distances cause higher transportation costs and slower delivery times than sources from Europe and Africa.

However, according to economic experts, the UK market has large purchasing power and a strict legal system; Trusted banking and payment systems. At the same time, the Vietnamese community in the UK is growing and there are a number of businesses operating in the fields of import-export, logistics, and distribution of consumer goods.

In particular, with the great advantage of UKVFTA, it has established a tax-free roadmap for most Vietnamese products imported into the UK and vice versa. Thanks to that, many Vietnamese products have a superior competitive advantage in the UK market compared to similar products originating from countries that do not have FTAs with the UK such as China, India, Pakistan, Thailand, Malaysia, and Indonesia. and South American countries.

Prominent among them are the group of agricultural products and fresh fruits. Because, with UKVFTA, Vietnamese fruits exported to this country are tax-free, this is a great advantage that Vietnamese businesses need to take full advantage of.

The proof is that in early February, grapefruits from Dien Yen Thuy (Hoa Binh) were officially exported and were sold for the first time at the Longdan supermarket chain (UK) and received the welcome of the Vietnamese community as well as the public. as local consumers. This is a product of RYB Joint Stock Company (Hoa Binh), the first time it was officially imported in large quantities (11 tons) to the UK by Longdan Group, the largest importer of Vietnamese goods in this country... This is Good signs for businesses and open up many export opportunities for Vietnamese goods, especially agricultural products.

According to analysts, with commitments from the UKVFTA Agreement, UK and Vietnamese exporters will benefit. Currently, 85.6% of tariff lines are eliminated for Vietnamese goods exported to the UK. By 2027, this number will increase to 99.2%, equivalent to 99.7% of Vietnam's export turnover to the UK.

The UK's investment projects in Vietnam focus mainly on the manufacturing and processing industry, real estate business and mining. In addition, the two countries also have many cooperation projects in the fields of oil and gas, renewable energy, and energy saving that are being implemented and achieving good results. At the same time, the UK is a country with a developed high-tech industry, especially renewable energy and energy saving technology.

Therefore, Vietnamese businesses are facing a great opportunity to cooperate, attract investment, and transfer technology from the UK. At the same time, participate in the UK's industrial and energy supply chain and export industrial products to the UK, thanks to the available advantages of the UKVFTA Agreement.

Notably, recently, Vietnam's national brand is rising in the UK thanks to Vietnam's innovation achievements and diplomatic relations. On the other hand, a number of Vietnamese food and furniture exporters have actively participated in fairs in London, Birmingham and Belfast thanks to the support of the Vietnam Trade Office in the UK from 2021 until now. will have new customers and gradually expand market share in this market.

Coming here, in 2024, after the UK officially joins the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a number of products with great potential from Vietnam such as: fragrant rice, tuna and Honey will increase its market share in the UK thanks to more tax-free quotas.

Vietnam is also likely to be chosen by large British businesses as one of the important links when re-arranging production facilities and restructuring the global supply chain in the face of fluctuations in international relations. is the relationship between major countries.

Therefore, to boost exports to the UK market, Vietnamese businesses need to position this as one of the important markets in their development strategy. Therefore, businesses need to research British standards and laws related to product development; Grasping key trends in industry, services, commerce and consumption in the UK. In addition, businesses can contact the Vietnam Trade Office in the UK for advice on market access and product promotion support on the website https://vietnamtradeoffice.co.uk. On the other hand, businesses increased their participation in the National Brand Program and the National Trade Promotion Program; Improve the quality of export products to meet British standards and maintain quality stability that meets standards...

Minh Toan