Deputy Minister of Foreign Affairs To Anh Dung on March 26 chaired a ceremony to exchange official notes between Viet Nam and the UK confirming the effective date of the UK-Viet Nam Free Trade Agreement (UKVFTA).
The UKVFTA was officially inked on December 29, 2020 in London, the UK and has temporarily taken effect since January 1, 2021. The UKVFTA was negotiated based on principles included in the EU-Viet Nam Free Trade Agreement (EVFTA) and were amended in accordance with the bilateral trade framework between Viet Nam and the UK.
This is the “third generation” FTA Viet Nam has signed, which helps maintain and strengthen trade-economic cooperation framework between the two nations.
The trade deal will make it easier for the two countries to promote cooperation in finance-banking and e-commerce as well as enhance the protection of intellectual property, geographical indication, clean growth, and sustainable development.
According to the Agreement’s Clause 2a of the Article 9, the deal shall enter into force on the first day of the second month after the date of receipt of the Parties’ final notice on the completion of internal legal procedures. Thus, the UKVFTA will officially take effect from May 1, 2021.
At the end of the tariff elimination roadmap, 99% of tariffs on goods traded between Viet Nam and the UK will be cut. This means that Viet Nam will save about £114 million on exports to the UK, while the figure for the UK will be £36 million.
In January 2021, the bilateral trade value witnessed a year-on-year increase of 78.57%, reaching US$ 657.35 million.