UK and Vietnam hold talks to strengthen economic ties

May 26, 2022 | 11:39
The United Kingdom and Vietnam have just organised their first Joint Economic and Trade Committee (JETCO) in three years on May 25.
UK and Vietnam hold talks to strengthen economic ties
UK and Vietnam hold talks to strengthen trade partnership and reinforce net-zero commitments

The JETCO was held to promote collaboration across a variety of industries, including education, agriculture, technology, healthcare, and renewable energy.

Penny Mordaunt, Minister of State for Trade Policy of the UK, said that "Vietnam is growing fast and is expected to become one of the world’s major economies by 2050. It is a vital Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) member and an important trading partner for the UK that demonstrates the Indo-Pacific tilt in action. Our talks aim to strengthen ties between our nations, including resolving market access barriers into each other’s economies and providing support to Vietnam so that they can reach its net-zero commitments."

The UK will reaffirm its commitment to assisting Vietnam in meeting its net-zero targets by sharing experience in the renewable energy industry and hosting a forum for UK and Vietnamese entrepreneurs. Minister Mordaunt will conduct a renewable energy discussion with the participation of experts, industry representatives, and government officials.

The UK and Vietnam have a long-standing business relationship, with trade between the two nations increasing by over 11 per cent between 2020 and 2021 when the UK-Vietnam Free Trade Agreement was signed. This deal eliminates nearly all tariffs and contributes to the development of a stronger partnership with a country that shares a commitment to free trade.

Vietnam is a member of the CPTPP, which the UK is on course to join by the end of this year. The CPTPP is a free trade zone comprising 11 countries with a combined GDP of $13.5 trillion.

In 2021, Vietnam's exports to the UK totalled $5.7 billion, while UK exports to Vietnam increased by 23.6 per cent. There were 48 UK direct investment projects approved in Vietnam last year, totalling $53 million in registered capital and up 157 per cent on-year.

By Thanh Van

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