How UK-Vietnam Trade Relations Are Strengthening

TL;DR

The UK and Vietnam are enhancing their bilateral trade through a new free trade agreement that aims to eliminate 99% of tariffs over six years. This partnership is expected to boost trade significantly, with a 78% increase already observed. Key focus areas include trade, health, and climate, leveraging science and innovation for mutual growth.

Transcript

[Applause] what's up guys it's your host uh the ceo of viacetra howe here at the radio room in ho chi minh city at the viet central office today we're welcoming a very special guest her schedule is super busy so we're very thankful that she's made time for us but also you guys our listeners her name is emily hamlin she's a consul general of the uni... Read More

Key Insights

• The UK-Vietnam Free Trade Agreement aims to eliminate 99% of tariffs over six years, enhancing bilateral trade.
• In January 2021, a 78% increase in bilateral trade was observed compared to January 2020.
• Key focus areas for the UK in Vietnam include trade, health, and climate, with an emphasis on science and innovation.
• Vietnam's tech sector is growing at four times the rate of its GDP, making it an attractive partner for the UK.
• UK companies are leading in sectors like pharmaceuticals, machinery, and renewable energy in Vietnam.
• The UK offers Chevening Scholarships for Vietnamese students, promoting educational exchange and leadership development.
• British companies like Arup and Prudential are making significant contributions to Vietnam's infrastructure and healthcare.
• The UK is hosting COP26, emphasizing its commitment to global climate change initiatives and partnerships with countries like Vietnam.

Questions & Answers

Q: How is the UK-Vietnam Free Trade Agreement expected to impact trade?

The UK-Vietnam Free Trade Agreement is expected to significantly boost trade by eliminating 99% of tariffs over six years. In its first month, a 78% increase in bilateral trade was observed compared to the previous year. The agreement covers key sectors such as pharmaceuticals, machinery, footwear, and clothing, creating opportunities for businesses in both countries.

Q: What are the key focus areas for UK-Vietnam relations in 2021?

The key focus areas for UK-Vietnam relations in 2021 are trade, health, and climate. The UK aims to implement the Free Trade Agreement effectively, collaborate on health initiatives like vaccine distribution, and work on climate change solutions. Science and innovation are central themes, driving partnerships in these sectors.

Q: Why is Vietnam considered an attractive partner for the UK?

Vietnam is considered an attractive partner for the UK due to its rapidly growing tech sector, which is expanding at four times the rate of its GDP. This growth presents numerous opportunities for collaboration in science, innovation, and technology. Additionally, the young, tech-savvy population and Vietnam's dynamic economy align well with the UK's strategic interests.

Q: What role does education play in UK-Vietnam relations?

Education plays a crucial role in UK-Vietnam relations, with initiatives like the Chevening Scholarships promoting academic exchange and leadership development. Approximately 12,000 Vietnamese students study in the UK, and numerous partnerships exist between UK and Vietnamese universities, allowing students to earn UK qualifications while in Vietnam.

Q: Which UK companies are making significant contributions in Vietnam?

UK companies such as Arup and Prudential are making significant contributions in Vietnam. Arup led the construction of the iconic Landmark 81 in Ho Chi Minh City, while Prudential launched the Pulse health app, an AI-driven wellness platform. These companies exemplify the innovative and impactful presence of British businesses in Vietnam.

Q: How is the UK leveraging science and innovation in its partnership with Vietnam?

The UK is leveraging science and innovation in its partnership with Vietnam by focusing on areas like renewable energy, healthcare, and technology. The UK aims to build partnerships that utilize cutting-edge science and inclusive collaboration, exemplified by initiatives like the Oxford-AstraZeneca vaccine rollout and renewable energy projects.

Q: What are the benefits of the UK-Vietnam Free Trade Agreement for businesses?

The UK-Vietnam Free Trade Agreement benefits businesses by reducing tariffs on a wide range of goods, enhancing market access, and liberalizing services. Key sectors like pharmaceuticals, machinery, footwear, and clothing will see immediate tariff reductions, encouraging increased trade and investment between the two countries.

Q: How does the UK plan to address climate change with Vietnam?

The UK plans to address climate change with Vietnam by collaborating on renewable energy projects and participating in global initiatives like COP26. The UK's experience in offshore wind energy presents opportunities for partnership, as Vietnam has similar wind resources. These efforts aim to set ambitious climate goals and promote sustainable development.

Summary & Key Takeaways

• The UK-Vietnam Free Trade Agreement is set to eliminate 99% of tariffs within six years, significantly boosting trade between the two nations. In January 2021, a 78% increase in trade was observed, highlighting the agreement's early success. Key sectors include pharmaceuticals and machinery from the UK and footwear and clothing from Vietnam.

• The UK is focusing on trade, health, and climate in its partnership with Vietnam, leveraging science and innovation. Vietnam's rapidly growing tech sector presents numerous opportunities for collaboration, with the UK aiming to build strong partnerships in areas like renewable energy and infrastructure.

• Educational and cultural exchanges are vital, with the UK offering Chevening Scholarships to Vietnamese students. British companies are making impactful contributions in Vietnam, with firms like Arup and Prudential leading in infrastructure and healthcare, showcasing the depth of the UK-Vietnam relationship.