The trade relationship between Việt Nam and the United Kingdom experienced significant growth in bilateral trade over the past year, according to data released by the UK government's Department for International Trade on 19 October.

 

The data includes trade information from all four constituent countries of the United Kingdom: England, Scotland, Wales, and Northern Ireland.

 

The total trade in goods and services between the UK and Việt Nam during the four quarters leading up to the end of Q1 2023 amounted to 6.7 billion British pounds (US$8.14 billion), marking a substantial increase of 16.6 per cent compared to the same period in 2022.

 

UK exports to Việt Nam showed remarkable growth, totalling one billion pounds during this period. This represents a notable increase of 21.1 per cent year-on-year. Of the UK's exports to Việt Nam during this period, goods accounted for 797 million pounds (77.5 per cent), while services amounted to 231 million pounds (22.5 per cent).

 

The exports of goods to Việt Nam surged by 33.3 per cent, while exports of services experienced a slight decrease of 8 per cent compared to the same period in 2022.

 

The top five goods exported from the UK to Việt Nam were pulp & waste paper, beverages & tobacco, and medicinal & pharmaceutical products, each constituting around 10 per cent of all UK goods exported to Việt Nam. Cars and plastics in non-primary forms followed with 4.4 per cent and 4.1 per cent, respectively.

 

On the other hand, UK imports from Việt Nam during the reviewed period reached 5.7 billion pounds, up 15.8 per cent year-on-year. Of these imports, goods constituted 5.4 billion pounds (94.6 per cent), while services accounted for 306 million pounds (5.4 per cent).

 

Imports of goods from Việt Nam experienced a growth of 12.6 per cent, whereas imports of services surged by 137.2 per cent year-on-year.

 

The top five goods imported to the UK from Việt Nam included telecoms & sound equipment (capital) (1.7 billion pounds or 31.2 per cent of all UK goods imported from Việt Nam), clothing (542.9 million pounds or 10.1 per cent), footwear (524.8 million pounds or 9.8 per cent), furniture (consumer) (310.3 million pounds or 5.8 per cent), and other manufactures (consumer) (290.7 million pounds or 5.4 per cent).

 

Despite the impressive trade growth, the UK reported a total trade deficit of 4.6 billion pounds with Việt Nam during the four quarters leading up to the end of Q1 2023, compared to a trade deficit of 4.1 billion pounds in the previous year.

 

The flourishing trade relationship between Việt Nam and the UK can be attributed to their robust economic ties and collaborative efforts, notably following the implementation of the Việt Nam-UK Free Trade Agreement (UKVFTA) on 1 May 2021. Additionally, the UK's recent official signing of an agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on 16 July 2023 further strengthens their trade cooperation with the bloc members, including Việt Nam. — VNS