According to an article by Pinsent Masons, a U.K.-based international professional services business with law at its core, Vietnam and UK companies will be benefit from reduced tariffs on imports and exports. Currently 65 percent of tariffs are removed tariff on U.K.-Vietnam trade, but this will increase to 99 percent of tariffs over time.

At the signing ceremony (Photo:

The article said the agreement is anticipated to deliver annual savings to Vietnam of 114 million pounds on exports to U.K. and 36 million pounds on U.K. exports to Vietnam.

Trade expert Totis Kotsonis of the firm said: “the U.K. sees its bilateral agreement with Asian countries as merely the first stepping stone towards much greater U.K. involvement in Asia, ultimately joining the Trans-Pacific trade agreement (CPTTP) and becoming an ASEAN Dialogue Partner”.

During the 2010 – 2019 period, trade between Vietnam and the U.K. tripled, reaching about 7.6 billion USD. The saved tariffs will help Vietnam escape the consequences of a decline in global demand that is hindering the export of manufactured goods. The COVID-19 pandemic has led to western countries’ cutting of orders for traditional Vietnamese exports, such as apparel, footwear, electronic devices, and automotive equipment.

Associate Professor Wu Ming Jiang from the National University of Singapore’s Lee Kuan Yew School of Public Policy said Vietnam will have more access to the U.K.’s special strengths in management consultation services and in research and development.

Source: VNA