Although the UK-Vietnam Free Trade Agreement (UKVFTA) inherits basic contents from the EU-Vietnam FTA (EVFTA), there remain differences between the two deals, said Vietnamese Trade Counsellor in the UK Nguyen Canh Cuong.

Vietnamese Ambassador to the UK Tran Ngoc An (R) and UK Ambassador
to Vietnam Gareth Edward Ward (L) sign UKVFTA

Cuong, who participated in negotiation processes of the two agreements, said that commitments to reducing import taxes following the roadmap in the EVFTA and UKVFTA are the same.

However, the UK’s commitments to tariff exemption under quotas on 12 Vietnamese agricultural products are different from those of the EU.

Vietnamese negotiators made efforts and reached tariff quotas for fragrant rice, which are expected to help Vietnamese rice have a competitive advantage and expand the market share in the UK.

In addition, Vietnam’s commitment to opening the service market for British businesses is not as similar as in EVFTA because UK enterprises’ strength and demand to access the Vietnamese market is not the same as that of EU enterprises.

Cuong said that the UKVFTA is a significant gift that the two governments present to the business communities amid the challenging winter.

The deal not only helps remove tariff and non-tariff barriers for two-way trade, but also is the Governments’ guarantee making businesses secured in selecting markets and partners for strategic investment, production and distribution plans.

The agreement will contribute to developing and modernising the economy, creating more jobs, increasing labourers’ incomes, and promoting social progress and environmental protection, he stated.

To take advantage of opportunities brought by the agreement, Vietnamese enterprises should speed up digital transformation, the application of advanced technology, and learn about the UK’s laws and business methods.