(VAN) According to the Vietnam – UK Free Trade Agreement (UKVFTA), 94% of the 547 tariff lines on fruits, vegetables, and fruit products will be eliminated.
Vietnam’s agricultural exports have maintained good growth over the past three years, partly thanks to the implementation of the UKVFTA.
The British Embassy in Hanoi has just released the UK-Vietnam Agricultural Trade Report, titled “Connecting the UK and Vietnam in Agriculture, Food and Drink.”
According to the report, Vietnamese agricultural products account for a small proportion of Vietnam’s imports into the UK, currently accounting for 4.8%. This situation shows the opportunity for growth in the agricultural and related sectors, which are expected to play a more significant role in shaping the UK-Vietnam trade relationship.
Hoang Le Hang, First Secretary of the Vietnam Trade Office in the UK, said that Vietnam’s agricultural exports have maintained good growth over the past 3 years, partly thanks to the implementation of the UKVFTA. According to the agreement, 94% of the 547 tariff lines on vegetables, fruit, and vegetable products were immediately eliminated. This creates a competitive advantage for many Vietnamese agricultural products compared to similar products originating from countries that do not have a free trade agreement with the UK.
Industries such as seafood, textiles, footwear, wooden furniture, and processed agricultural products have benefited significantly. For example, with seafood: basa fish, frozen shrimp reached an export turnover of over USD 30 million in 2024, an increase of more than 10%. Products made from natural and sustainable fibers are attracting British consumers.
In addition, the dynamism and positivity of Vietnamese exporting enterprises and the Vietnamese business community in the UK, along with the support of the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, the Vietnamese Embassy in the UK and professionals associations such as the Vietnam Fruit and Vegetable Association, the Vietnam Coffee and Cocoa Association, the Vietnam Association of Seafood Processors and Exporters, the Handicraft and Wood Processing Association in Ho Chi Minh City, etc. have also contributed to maintaining the achievements in agricultural exports to the UK.
The UK-Vietnam Agricultural Trade Report also affirmed that there is still much room for agricultural trade between the two sides to grow. The report clearly stated that British businesses are looking forward to exploring Vietnam as a new market to introduce various high-quality foods and beverages.
Food and drink is the UK’s largest manufacturing and processing industry, with stringent regulations and certification processes. The UK’s comprehensive approach to ensuring food safety and quality standards is now a global benchmark.
With a young population and a growing middle class, steadily rising incomes, and increasingly sophisticated consumer habits, the Vietnamese market increasingly demands high-quality, overseas-sourced products, presenting an attractive opportunity for UK food and drink, the report states.
Previously, with the support of the Vietnam Trade Office in the UK, 8 Vietnamese enterprises displayed and introduced food and beverage products at the International Food and Drink Event (IFE) 2024, taking place from March 25-27 at ExCel, the largest national exhibition center in London, UK.
Vietnamese booths at the fair attracted visitors with fresh fruit products such as grapefruit, guava, durian, red-fleshed dragon fruit, Lai Thieu mangosteen; frozen seafood; dried pho noodles of all kinds; coffee and tea of all kinds; coconut products such as coconut water, dried coconut, coconut oil; ginger products… This is a great opportunity for Vietnamese enterprises and enterprises in the UK to meet directly with potential customers and grasp market trends.
The UK market has strict technical standards and regulations on food safety and the environment. Businesses need to be well prepared to meet these requirements and stand out in a highly competitive environment, such as improving packaging and applying international standards such as the British Standards Institution (BSI) or ISO to increase competitiveness in this market.
The British Standards Institution (BSI) plays an important role in ensuring that businesses’ products meet the UK market’s technical, legal, and commercial requirements. Products that meet BSI standards are highly appreciated for their quality and safety, easily convincing UK importers and consumers and minimizing the risk of being rejected at border gates due to not meeting technical or safety standards. Moreover, BSI standards are widely recognized, helping products access not only the UK market but also the European market.
Additionally, like markets in Europe, the UK market has strict requirements for product sustainability. In particular, the Law on Deforestation and Forest Degradation may affect the export restrictions of wood products, coffee, rubber, vegetable oil, soybeans, leather, etc. In addition, the UK Government is currently studying the legislative process to establish CBAM (Carbon Border Adjustment Mechanism). Carbon Tax will be applied in the UK from 2027.
Therefore, Vietnamese enterprises need to prepare a suitable roadmap for the UK CBAM and maintain competitiveness in the UK market by: Conducting a thorough assessment of their carbon emissions; implementing measures to reduce their carbon emissions; cooperating with less carbon suppliers; investing in cleaner technology, etc.
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