Shaping a new vision in Vietnam-UK trade relations

Simultaneously, Vietnam and the UK issued a new Joint Statement on Strategic Partnership on September 30, 2020, outlining seven priority areas for cooperation, affirming their commitment to elevating the relationship to a higher level in the next 10 years. The two countries also signed the Vietnam-UK Free Trade Agreement (UKVFTA), which came into effect on May 1, 2021, further boosting bilateral trade and investment relations.

Therefore, General Secretary To Lam 's official visit to the United Kingdom and Northern Ireland is an important milestone to look back on the cooperation journey, acknowledge achievements, and shape a new vision for bilateral relations in the coming period.

Photo caption — Sewing and manufacturing of clothing for export to EU countries, the UK, the US, etc., at Kydo Vietnam Garment Co., Ltd. in Pho Noi A Industrial Park ( Hung Yen ). Photo: VNA

Continuous growth

Citing data from Vietnam Customs, the Ministry of Industry and Trade stated that in 2024, the total import and export turnover between Vietnam and the UK reached over US$8.4 billion, a strong increase of 18% compared to 2023. Of this, Vietnam's exports reached over US$7.5 billion, an increase of 18.9%, while imports reached US$881.1 million, an increase of 10.8%.

Vietnam's trade growth with the UK in 2024 is higher than the average trade growth with the EU (16.8%), European countries (17.2%), and the world (15.4%). Notably, trade between Vietnam and the UK has continuously grown from 2021 to the present despite the pandemic, global economic and political fluctuations, and the global trade downturn in 2023. With the import and export turnover in 2024 as mentioned above, the UK is currently Vietnam's third largest export market in Europe, after the Netherlands (US$13.8 billion) and Germany (US$11.7 billion).

By the end of September 2025, total bilateral trade between Vietnam and the UK reached US$6.9 billion, an increase of 10.4% compared to the same period in 2024; of which, Vietnam's exports reached over US$6.2 billion, an increase of 9.7%; and imports from the UK reached US$715.3 million, an increase of 16.6%. Trade between Vietnam and the UK reached its highest level ever.

According to the Ministry of Industry and Trade, the Joint Committee on Economic and Trade Cooperation between Vietnam and the United Kingdom (JETCO) first met in 2007, and regularly alternates between the UK and Vietnam. This mechanism is co-chaired by the Vietnamese Ministry of Industry and Trade and the UK Department for Business and Trade (formerly the UK Department for International Trade).

At the recent 14th Joint Committee Meeting on Economic and Trade Cooperation between Vietnam and the UK (JETCO 14) in the UK, both sides held substantive discussions and reached consensus on many practical cooperation issues, focusing on topics such as agriculture, financial services; renewable energy; bilateral trade and investment; and capacity building training.

According to the Ministry of Industry and Trade, from the beginning of 2025 to September 2025, the UK had 30 new foreign direct investment (FDI) projects in Vietnam, with newly registered investment capital reaching US$34.3 million, bringing the total registered capital to US$234.3 million. By September 2025, the UK had 607 investment projects in Vietnam with a total capital of US$4.66 billion, accounting for nearly 1% of total foreign investment in Vietnam, ranking 15th out of 149 countries investing in Vietnam.

Currently, the UK is showing great interest in cooperating to develop an international financial center in Vietnam. Recently, numerous high-level delegations from Vietnam and the UK have been organized to promote cooperation in this field.

In terms of investment, projects focus on the following sectors: processing and manufacturing industries; real estate; mining; finance; wholesale and retail trade, repair of automobiles, motorcycles, and scooters; accommodation and food services; water supply and waste treatment; professional, scientific, and technological activities; and education and training. Major companies present in Vietnam include Shell (oil and gas), EE (wind power); BP (oil and gas), BHP Billiton (aluminum), Rolls-Royce (aircraft engine manufacturing), Jardines (multi-sector), and banks such as HSBC, Standard Chartered, and insurance company Prudential. Standard Chartered Bank and HSBC were the first two 100% foreign-owned banks established in Vietnam. Several auditing firms include KPMG, PwC, and Deloitte.

Take advantage of

During a meeting with the British Ambassador to Vietnam on promoting energy cooperation, Deputy Minister of Industry and Trade Nguyen Hoang Long emphasized that Vietnam considers the Joint Economic Partnership for a Just Energy Transition (JETP) a crucial pillar in realizing its commitment to achieving net-zero emissions by 2050, while also opening up new avenues for cooperation between Vietnam and its development partners; including the UK, an active member of the International Funding Group (IPG).

Deputy Minister Nguyen Hoang Long stated that the UK and its international partners have proposed a list of potential JETP projects in the fields of renewable energy, offshore wind power, energy storage, green technology, and technical support. These are all areas that align with Vietnam's sustainable energy development, emission reduction, and industrial transformation orientations. Both sides will actively cooperate at the technical level in the coming period to ensure effective implementation.

British Ambassador Iain Frew highly appreciated Vietnam's achievements in promoting energy transition cooperation within the framework of the JETP, affirming that the UK is ready to work alongside Vietnam in mobilizing international resources, sharing experience, and providing technical support in the implementation of JETP projects. Currently, many UK credit and investment funds such as BII and UKEF are interested in and ready to participate in financing JETP projects. The UK side proposed that the Ministry of Industry and Trade sign a Memorandum of Understanding on energy cooperation to concretize the cooperation contents.

Deputy Minister Nguyen Hoang Long agreed that both sides will continue to closely coordinate in preparing the memorandum of understanding and documents outlining the achievements and directions of cooperation in green energy transition between the two countries' agencies, in preparation for the upcoming high-level visit, contributing to affirming the strategic cooperation relationship between Vietnam and the UK in the new era.

According to experts, after four years of implementation, the UKVFTA has created a significant boost for bilateral trade and investment. In particular, the advantages from the UKVFTA have strongly promoted the growth of Vietnamese exports to the UK market, providing leverage for many of Vietnam's key product groups to exploit this market. Furthermore, the UK's official implementation of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) has added further impetus to the development of bilateral economic, trade, and investment relations.

Assessing the impact of implementing the UKVFTA Agreement, Ms. Nguyen Thi Hong Van - Deputy General Director of Sao Thai Duong Joint Stock Company, Head of the Hanoi Office of the Vietnam Association of Science and Technology Enterprises, stated that: The UKVFTA Agreement is an important boost that helps businesses access the UK market more easily.

According to Ms. Nguyen Thi Hong Van, the stringent standards of the UK market are the driving force behind businesses' efforts to improve their quality systems. In particular, businesses must standardize their quality management systems and products from the outset to meet UK standards, and carefully study the UKVFTA agreement to meet and take advantage of its benefits.

Mr. Le Dinh Ba, Commercial Counselor and Head of the Vietnam-UK Trade Office, stated that shifting the mindset from simply selling products to building a responsible brand and selling a compelling story is crucial for businesses. Accordingly, businesses must consider sustainable development as a core value, not just as a matter of expanding markets and increasing production.

Furthermore, product quality must be consistent and its origin transparent. Social commitment to environmental issues should not be just empty promises, but must be reflected in every product and every stage of production. In particular, building long-term, trustworthy cooperative relationships with partners in the host country is crucial.

To build a brand and develop a sustainable market in the UK, Mr. Vu Viet Thanh, Senior Specialist in charge of the UK market at the Department of Foreign Market Development (Ministry of Industry and Trade), recommends that Vietnamese businesses proactively adapt and meet market demands to fully exploit opportunities from the UKVFTA agreement. In addition, businesses need to thoroughly understand market information, proactively research taxes, technical standards, and consumer preferences in the UK.

On the other hand, businesses need to upgrade their production capacity and product quality, build their brand, and choose appropriate marketing or distribution channels. Furthermore, they must comply with UK regulations and closely monitor rapidly changing regulations regarding SPS quarantine, rules of origin, labeling, etc., and exercise caution in transactions, especially with new businesses.

Going forward, the Ministry of Industry and Trade will continue to support Vietnamese businesses exporting to the UK market, as well as other markets, in adapting to sustainability standards. In addition, the Ministry will focus on researching and updating market information, and disseminating information to businesses about the UKVFTA agreement. Simultaneously, the Ministry will promote trade and support domestic businesses in exporting, especially through the distribution channels of large retail corporations.

Source: https://baotintuc.vn/kinh-te/dinh-hinh-tam-nhin-moi-trong-quan-he-thuong-mai-viet-nam-anh-20251027214715108.htm