Vietnam has emerged as a major Southeast Asian supplier of farm produce and aquaculture products to the UK following the UK-Vietnam Free Trade Agreement (UKVFTA).
"Vietnam can replace other countries likes India and Indonesia as a major supplier of agricultural and aquaculture products to the UK," Oliver Todd, British consul general in Ho Chi Minh City, told the "UK Market: Unlocking great potential by leveraging advantages of the UKVFTA" forum on Thursday.
Todd, who is also director of the UK Trade and Investment in Vietnam, said it is important to learn about import demand, standards and requirements for exporting to the choosy market.
Chris Milliken, vice president of the British Chamber of Commerce in Vietnam (BritCham), said there is ample scope to grow bilateral trade thanks to the trade deal. "Vietnam and the UK are not competing against each other in any industry; they commercially complement each other."
He pointed to the UKVFTA as a leading pillar of the joint commitment to deepen bilateral trade. The deal was signed in December 2020 in London and came into force on May 1, 2021.
Bilateral cooperation will include renewable energy, finance, education, high-tech, fintech, and others, Milliken added.
Major UK energy companies investing in renewable power projects in Vietnam include Shire Oak International Group, Enterprize Energy, and Mainstream Renewable Power.
Truong Thi Chi Binh, vice president and general secretary of Vietnam Association of Supporting Industry Enterprises, said the two countries have great opportunities for cooperation in many fields, especially supporting industries and renewable energy.
Although the UKVFTA took effect at a tough time largely due to the Covid-19 pandemic, the two countries were able to achieve bilateral trade of $6.6 billion last year, up 17.2% from the previous year, according to Vietnam Customs.
Vietnam’s exports to the U.K. were worth $5.8 billion in 2021, up over 16.4%, while the UK’s exports topped $849 million, up 23.6%.
In the first five months of this year, bilateral trade reached $2.68 billion, equivalent to the same period last year.
As of May, 462 UK direct investment projects with a total registered capital of $4.15 billion were approved in Vietnam, accounting for 0.97% of the country’s total FDI.
They include 120 projects in the manufacturing and processing sectors with a total investment of nearly $1.6 billion, followed by 23 ones in real estate worth a total $1.04 billion.
The conference was organised by the Ministry of Industry and Trade, the British Embassy in Vietnam and BritCham to help Vietnamese enterprises seeking to join the British supply chain.