The Free Trade Agreement between Vietnam and the United Kingdom of Great Britain and Northern Ireland (UKVFTA) officially takes effect from May 1, 2021 and is considered a two-way "highway" to promote trade, Vietnam - UK investment development. According to the commitment, 65% of tariffs have been eliminated on Vietnam-UK trade. In the first 6 years after UKVFTA takes effect, the UK will eliminate tariffs on 99.2% of tariff lines related to imported goods from Vietnam.

In the difficult context of the COVID-19 pandemic, according to the Ministry of Industry and Trade, two-way trade exchange has grown very positively. In 2022 alone, trade turnover between Vietnam and the UK will reach 6.8 billion USD, an increase of 3.3% compared to 2021. Vietnam's export turnover to the UK will reach 6.1 billion USD. USD, up 5.2% compared to 2021. Import turnover from the UK reached 771 million USD, down 9.8% compared to 2021.

Export turnover to the UK according to C/O form EUR.1 reached 1.4 billion USD, accounting for 23.5% of overall exports to the UK, increasing in 2021. Many important Vietnamese products are exported to The UK ..... compared to the year continues to have a positive utilization rate, for example seafood reached 82.9% (up 29.5% compared to 2021), fruits and vegetables reached 72.6% ( increased by 34.2%), footwear reached 99.5% (increased by 49.7%), textiles reached 15.7% (increased by 43.4%), wood and wooden products reached 14.2% (increased by 85%) ,2%)...

In the general picture of trade exchange across the country, 5 centrally run cities (Hanoi, Can Tho, Hai Phong, Ho Chi Minh City) are currently at the forefront of exploiting and making effective use of the UKVFTA Agreement. The 5 affiliated cities are the locomotives of the regional economy, and are also key localities implementing international integration and implementing free trade agreements (FTAs) in general and new generation FTAs in general. Particularly the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Free Trade Agreement between Vietnam and the European Union (EVFTA); UKVFTA Agreement.

Over the past 2 years, the implementation of new generation FTAs, including the UKVFTA Agreement of 5 cities, has taken place in the context of serious developments of the Covid-19 epidemic, with the world economy facing difficulties and instability. Geopolitics, food security, natural disasters, climate change... are increasing. However, with the drastic direction of the Central Government, the Ministry of Industry and Trade, relevant ministries and authorities of the 5 cities, the implementation of new generation FTAs, including UKVFTA, has also achieved many results. positive results.

Statistics show that the total trade turnover between the 5 cities and the UK reached 2,633 million USD. Statistics show that export turnover reached 1,591 million USD (export turnover in 2021 decreased by 14.1%, in 2022 increased by 3.5%); Import turnover reaches 1,042 million USD (import turnover in 2022 decreases by 1.3%). Notably, the locality with the largest trade exchange with the UK is City. Ho Chi Minh, followed by Hanoi, Hai Phong, Da Nang, Can Tho.

Currently, the products exported from 5 cities to the UK market are: Textiles; shoes, bags of all kinds; Metalwork; mineral; crafts.; The main imported products of the 5 cities from the UK are: Metallurgy; animal feed and raw materials; electronic and computer components; chemistry; medicine. The rate of utilization of Certificates of Origin to the UK according to data from the Ministry of Industry and Trade shows that the whole country in general and 05 Cities in particular continue to grow positively. In 2022, the turnover taking advantage of preferential C/O to the UK will reach 1.4 billion USD, accounting for 23.5% of overall exports to the UK. Items with high preferential C/O utilization rates to the UK are: seafood, vegetables, footwear, textiles, wood and wood products.

Assessing the results of implementation of FTAs and UKVFTA, the 5 cities affirmed that they have contributed to promoting the growth of two-way trade value between the 5 cities and countries in the FTA, increasing export turnover, contributing a an important part in the GDP growth of cities. Most significantly, the implementation of new generation FTAs helps complete a relatively complete and synchronous legal system in accordance with international standards and practices; Improve transparency in policies, creating an increasingly equal and open business environment. Thereby creating favorable conditions for businesses to develop.

Thus, compared to other FTA Agreements, with a short period of implementation, the UKFTA Agreement has shown clear impacts on the two-way trade growth of the 5 cities with the UK. According to the Department of Industry and Trade of 5 cities, the "sweet fruit" was achieved thanks to the initiative and early intervention of local authorities and departments, including propaganda and dissemination of information about the agreement to the community. The business community has been actively deployed in diverse and effective forms. In particular, the Department of Industry and Trade of 5 cities has established and posted information items about the CPTPP, EVFTA, UKVFTA Agreements on the Department's electronic information pages. Thanks to that, the awareness and understanding of businesses and people in the area about international integration in general and FTAs and UKVFTA in particular has been enhanced.

Currently, many Vietnamese products are benefiting from UKVFTA and gradually dominating the UK market, typically textiles, footwear, agricultural and aquatic products, wood... However, the market share of Vietnamese products in the UK market still remains. at a very modest level.

For goods exports, the 5 central cities are also in a similar situation. Five central cities admitted that despite positive growth in recent times, the proportion of export turnover to FTA markets has not yet met expectations, and the rate of preferential utilization (preferential CO) has not yet met expectations. High. In particular, the number of enterprises exporting to FTA markets is still modest. FDI enterprises still account for a large proportion of total export turnover, Vietnamese enterprises mainly process or export raw materials and semi-finished products; Not many Vietnamese businesses have built a brand to export to the UK market.

The reason is said to be that measures to support businesses are not really as effective as expected. Programs to support businesses to improve their competitiveness to take advantage of FTAs are mainly integrated into support programs. Support from the City's departments, branches and branches is not specific. In particular, businesses' initiative is still not high in understanding and researching in-depth about current commitments to build appropriate production and business plans, contributing to taking advantage of opportunities as well as minimizing problems. challenges brought by UKVFTA; Enterprises have not really proactively and actively invested in trade promotion, especially participating in fairs and exhibitions abroad.

The UK is currently one of Vietnam's potential export markets, but it is also the most demanding market in the world with high market standards for each specific industry. The challenge is greater when the UK's trade and economic policies and regulations have some forecast changes that are likely to affect Vietnam. In particular, the UK joining the CPTPP Agreement, on the one hand, expands the export space for Vietnamese goods, but means that Vietnamese goods compete more fiercely with goods from other countries in the UK market.

Minh Toan