Chances

According to Mr. Nguyen Canh Cuong - Minister Counselor, Vietnam Trade Office in the UK, Vietnamese goods are having opportunities from preferential tariffs under the UKVFTA. In particular, Vietnamese businesses have the opportunity to increase exports of products: paper and paper products, rubber, fruits and vegetables, food, leather shoes, ... to the UK. The UK has a huge need to import these products while the supply system has some gaps due to the effects of Brexit and the military conflict in Ukraine.

Besides, the UK market is quite large (about 68 million people), with diverse needs (the Asian community is more than 5.5 million people). Diplomatic relations between Vietnam and the UK continue to develop well. These are all opportunities for Vietnamese goods to continue expanding the market here.

According to Vietnam Customs statistics, in the first 6 months of 2023, the total two-way trade turnover reached more than 3.23 billion USD, down 1.5% over the same period last year. Of which, Vietnam has a trade surplus of more than 2.49 billion USD. In the first six months of 2023, the export value of Vietnamese goods to the UK reached more than 2.86 billion USD, a slight decrease of 2.2% compared to the same period in 2022. This decrease is low compared to the decrease in export turnover. average (-8.1%) of Vietnam to European countries in the first 6 months of 2023 and -11.5% to the whole world.

Growth items include: Paper and paper products increased by 104.9%; Rubber products 60.2%; Phones and accessories of all kinds increased by 29.6%; Vegetables and fruits increased by 28.3%; Other machinery, equipment, tools and spare parts 24.4%; Footwear of all kinds increased by 5.1%, Cashew nuts increased by 2.7%; Plastic products increased by 1.4%.

Items accounting for a large proportion of export turnover include: Phones of all types and components (22.3%); Machinery, equipment, tools and spare parts (14.6%); Shoes of all kinds (13.1%); Textiles and garments (11.1%); Computers, electronic products and components 4.9%; Aquatic products 4.9%; Wood and wood products 3.2%;

On the contrary, in the first 6 months of 2023, the value of imported goods from the UK to Vietnam reached 372.5 million USD, equivalent to the same period in 2022. Imported products that increased sharply include: Seafood 233, 3%; Iron and steel products 94.6%; Fabrics of all kinds 71.9%; Base metals 51.3%; Garment raw materials 15.5%; Plastic products 15.4%; Other machinery, equipment, tools and spare parts + 6.4%. Imported products that decreased sharply include: rubber (-82.8%); Iron and steel scrap (–58.5%) ; phones and components (-56.8%); Cameras, camcorders and accessories (-31.2%), Fabrics of all kinds – 32.1%; Raw plastics – 29.9%, complete cars of all kinds – 17.7%..

Items accounting for a large proportion of import turnover include: Machinery, equipment, tools, and spare parts (24%); Pharmaceuticals 11.8%; Chemical products 6.4%; Raw materials for textile, garment, leather, and shoes (5.2%); Seafood (4.6%).

Effective trade promotion measures with the UK market

Besides opportunities, Vietnamese goods when accessing the UK market also encounter many difficulties. According to Mr. Nguyen Canh Cuong, international trade tends to decline when global economic growth slows and geopolitical conflicts escalate. Market demand decreased due to high inflation and people tightening their spending. Fluctuations in the USD/GBP exchange rate increase financial risks for Vietnamese export enterprises.

In addition, require high quality and competitive prices; regulates the use of UKCA labels instead of CE for industrial products; The bill on combating deforestation and forest degradation will affect the export of wood products, coffee, rubber, vegetable oil, and soybeans. The trend of more popular diet products such as: vegan, gluten-free (gluten-allergic people), sugar-free (diabetics) makes the production and supply of agricultural foods more specialized. more distinct and complex.

Faced with the above difficulties, Mr. Nguyen Canh Cuong said, the Trade Office will organize and build a network with the British business community and Vietnamese businesses in the UK to connect and introduce partners to Vietnamese businesses. Find out and provide Vietnamese businesses with updated information on product quality standards and import regulations into the UK. Update and disseminate the e-book 'UK market - what you need to know'.

Along with that, build the website www.vietnamtradeoffice.co.uk to disseminate policy information and market opportunities for businesses. Coordinate with the Department of Trade Promotion, Department of European and American Markets to organize online seminars to advise Vietnamese export businesses, connect with British experts and traders in agricultural fields. products, textiles, furniture, UKCA, digital marketing... Participate in exhibitions to introduce and promote Vietnamese goods and export potential: Birmingham Furniture Show (January 2023), Birmingham FOODS & Drink EXPO (April 2023). -2023), Balmoral Show (May - 2023).

Minh Toan