Vietnam'S Textile And Garment Industry Places High Hopes On The Vietnam UK FTA

Vietnam and Britain's free trade agreement (ukvfta) negotiations have just concluded and are expected to enter into force in 2021, the Communist Party of Vietnam Electronic News reported on December 31.

According to the Ministry of industry and trade, Vietnamese goods currently account for only 1% of Britain's total annual import and export. Leather and footwear companies believe that the agreement will provide more opportunities for Vietnamese goods to enter the UK market and promote trade with the market. Therefore, the Vietnam UK FTA will bring more advantages to Vietnam's exports to the UK, especially in the case of brexit and the loss of preferential terms of Vietnam EU free trade agreement.

Wu Dejiang, chairman of Vietnam textile and Garment Association, believes that, together with other agreements such as the regional comprehensive economic partnership agreement (RCEP) and the Vietnam EU free trade agreement signed this year, the Vietnam UK FTA will lay a solid and complementary trade foundation for the textile and garment industry.

Vietnam's textile and clothing industry can still enjoy preferential tax rates when exporting to the United Kingdom and the European Union because of the diversification of raw material supply sources through the import of raw materials from Japan and South Korea. This is an advantage that many countries in the ASEAN region do not have. The European Union, the United Kingdom, China and the United States will be major commodity exporting countries in Vietnam. The association will formulate specific plans to work with enterprises to promote trade and export activities.