Export to the EU and UK - Gateway fro Free trade agreements

Vietnamese economy has made major improvements along with many significant milestones in international commerce. Strong exports to the EU and the UK along with signing many FTAs are the main reasons for this achievement.

This month, the first lychee container from Hai Duong has been shipped to Europe thanks to the EVFTA. With the EU being Vietnam’s 4th biggest destination for agricultural products and a tariff free market, Vietnam’s export now has the ability to compete and develop a solid reputation in the international market.

Free trade agreements (EVFTA) and many impressive achievements

Come into effect at the end of 2020, the EVFTA has opened up many trading gateways as well as provided many benefits for Vietnamese companies to export into the EU. Recently, in Noi Bai airport, the first shipment of lychee has been exported into the EU to challenge all 27 markets. One IBC’s representative said that exporting Vietnamese products to the world is not only for proving the Vietnamese brands’ quality to new customers but also for raising it to a new standard, suitable for any market in the entire world.

The chances for Vietnamese businesses to export goods into the EU market has increased significantly after the EVFTA came into effect. Ho Chi Minh City Customs also stated that: recently, the trade partnership between Vietnam and the EU has been developing non stop and the total export value of Vietnam - EU has reached many big achievements. Vietnamese export into the EU was $40 billion in 2020; Vietnamese import from the EU has also crossed the $15 billion mark in the same year.

Free trade agreements (EVFTA) provides Vietnamese companies with many new opportunities.

One IBC Vietnam shared that even though the EU market brings with it many opportunities and potentials with its enormous value at EUR 1934 billion, there are many rules, regulations and strict standards. If businesses do not follow these laws or can not deliver what was asked for, there will be several big hurdles along the way when approaching this enormous market of 500 million people.

Vietnam - UK commerce and the UKVFTA (Free trade agreements)

After the Uk has completely left the EU, the UKVFTA will ensure the trading between Vietnam and the UK will not be disrupted, develop a stable and long lasting partnership in commerce, continuing what the EVFTA was doing. Companies from both sides can continue to trade without having to worry about any major interruption thanks to this achievement of the two governments.

The UK was Vietnam’s 3rd biggest trading partner in the EU. The commercial relationship between Vietnam and the UK is very valuable. Export to the UK has very strong potentials because each year, they import nearly $700 billion worth of products in total while Vietnam exports to the UK has only reached just under $6 billion (2019).

Export is one of the main pillar of Vietnamese economy

Product categories and the benefit for UKVFTA (Free trade agreements)

The UK market consumes these products from Vietnam the most: clothes, shoes, foods and wood products.

The main clothing products exported to the UK are office clothes, coats, jackets and children's clothes. China, Bangladesh, Campuchia and Pakistan are Vietnam's biggest competitors due the the advantage they had from FTAs in the past. Even though Vietnam ranks 2nd in the world in shoe export value (8%), it is still very small compared to China’s value (40%) leaving many places to grow. The UK is a big market and many businesses still have to face a 6.7% tax rate when entering this market.

Agriculture products exported to the UK, noticeably rice has many big improvements in quality and reputation in the international market. Fishery for export into the UK is also one of Vietnam’s main pillars due to the extensive knowledge, high productivity and abundant resources. UKVFTA has set up a standard for all food products, helping companies exporting to the UK reduce trouble in the process. .

Wood products also have strong potential due to competitive prices and high quality materials. Rubber wood from Vietnam is also not cultivable in the UK or the EU.

UKVFTA will balance the commerce playfield for Vietnamese business exporting to the UK. In addition, UKVFTA will help clear up any misunderstanding in quality standards. Any product meeting the UK’s standards will easily enter any other market.