UK and Vietnam’s strengthened cooperation

Vietnam is focused on moving forward and not backing down. Despite global economic shocks, HSBC has raised its forecast for Vietnam's GDP growth this year to 6.5 per cent, making it the fastest-growing economy in ASEAN.

Alexandra Smith, British consul general to Vietnam

As British consul general and director of UK-Vietnam Trade, my goal is to strengthen economic ties between our two nations. This involves promoting Vietnam's opportunities to the UK, supporting UK businesses already established here to flourish in line with Vietnam's economic goals, and leveraging our multiple trade agreements and partnerships to expand our economic relations beyond the current £6 billion ($7.91 billion) in annual trade flow.

Vietnam is prioritising new, green, and smart infrastructure, and UK expertise is well-positioned to advise on the design and management of these significant investments. The UK government is helping Vietnam's national and city governments to accelerate green urban development and implement transit-oriented development in Hanoi and Ho Chi Minh City, in collaboration with British experts, such as those from Crossrail.

The UK and Vietnam's collaboration in education is a story of mutual success. From English language studies to school curricula, and from higher education to edtech, the UK's educational footprint is evident across Vietnam. Vietnam has become the largest receiver of British education delivered within national institutions, outside the UK.

The UK government's prestigious Chevening Scholarship scheme is open until November 5. This scholarship is open to all disciplines and aims to develop leadership abilities in those looking to make a positive impact in Vietnam through a master's degree in the UK. I encourage aspiring leaders to apply and contribute to Vietnam's development.

Meanwhile, Vietnam's net-zero commitment positions the nation as a regional leader in sustainable development and a prime destination for green investment. To meet its rising energy demands – estimated to require up to $203 billion from 2021 to 2030 and an additional $615 billion from 2031 to 2050 – Vietnam is open to international partnerships.

The UK is ready to support these ambitions through programmes like the Just Energy Transition Partnership. But beyond funding, the UK brings expertise and world-class businesses ready to assist Vietnam in its green transition, particularly in sectors such as offshore wind energy.

Healthcare cooperation is another area where the UK and Vietnam are making significant strides. The UK is helping Vietnam access high-quality pharmaceutical products, vaccines, medical technologies, and services. We support Ho Chi Minh City's ambition to become the next health innovation hub, funding exchanges between experts from both countries. We will continue to bring UK medical device manufacturers, health tech companies, universities, and hospitals to Vietnam to foster partnerships between public and private sectors and to promote trade opportunities.

Vietnam's trade openness is commendable. The UK-Vietnam Free Trade Agreement, which came into force in 2021, has significantly boosted trade, providing more choices for consumers in both countries. For example, UK food and drink exports to Vietnam reached £126 million ($166.1 million) in 2023, a 97 per cent increase since 2019, highlighting Vietnam's growing appetite for British products such as whiskey, frozen seafood, and confectionery.

Within my first six months in Vietnam, I anticipate the Comprehensive and Progressive Trans-Pacific Partnership Agreement between the UK and Vietnam to come into effect. Agreements like these will further facilitate business expansion and exports in sectors such as agriculture, healthcare, financial services, and e-commerce.

The deals not only lower trade barriers but also create a stable and predictable trading environment, enabling firms to compete globally and collaborate across the Indo-Pacific region, which includes some of the world's most dynamic and fast-growing markets. A key responsibility of the British Consulate General is to inform UK businesses about Vietnam's eagerness to engage in global trade, supported by its skilled workforce, manufacturing capabilities, and growing domestic market. I look forward to sharing this message alongside Vietnam's government and business leaders at various events across Ho Chi Minh City.

We must keep micro, small, and medium-sized enterprises (MSMEs) front and centre when considering how to strengthen trade relations. MSMEs make up 99 per cent of businesses in both the UK and Vietnam, reflecting a shared value. They are the backbone of our economies and key drivers of growth and sustainability.

Since 2021, the British Consulate General has supported 350 new British MSMEs interested in exporting to Vietnam, bringing new products and solutions in food and drink, retail, education, and technology. I am eager to work closely with Vietnam to help our MSMEs access the range of support that both countries have agreed upon to boost trade.

Looking ahead, the UK is planning several events to strengthen our business communities' ties. We will be present at the Green Economy Forum and Exhibition in October and will bring a delegation of health experts to Ho Chi Minh City in November. In March 2025, the UK's Southeast Asia Tech Week will launch in Ho Chi Minh City, where a delegation of exceptional UK technology companies will engage with Vietnamese partners to foster more opportunities for trade between our growing digital and tech sectors.

Next year marks 15 years of the UK-Vietnam Strategic Partnership. I, along with our growing teams at the British Embassy in Hanoi and the British Consulate General in Ho Chi Minh City, look forward to further deepening our relations, especially in education, with a vision towards mutual growth and sustainability.

UK and Vietnam cooperate on Business Law Review project Vietnam Chamber of Commerce and Industry has been put on onus to conduct a project on reviewing business laws, according to an agreement signed this week between the chamber and the UK government which will financially support the project.

UK and Vietnam discuss defence cooperation UK Defence Under Secretary of State Lord Astor of Hever will visit Vietnam from January 26 - 30.

UK and Vietnam hold talks to strengthen economic ties The United Kingdom and Vietnam have just organised their first Joint Economic and Trade Committee (JETCO) in three years on May 25.

Trade for the UK and Vietnam and charting the next 50 years As we commemorate 50 years of diplomatic relations between the United Kingdom and Vietnam, we are celebrating five decades of deepening friendship between our nations. But we are also looking to the coming decades, and focusing on how we continue to build for the future together.