The Ministry of Industry and Trade and the Embassy of the UK in Vietnam co-organized a seminar entitled “UKVFTA - Green and Fair Trade to Vietnam” on March 7 in Hanoi.

The seminar aimed to support exporters in both countries in taking advantage of incentives under the UK-Vietnam Free Trade Agreement (UKVFTA), especially in the field of green and fair trade, which is an important development trend in global trade.

The hybrid event also provided a platform for discussions on commitments in renewable energy generation, plans to implement these commitments, and the opportunities and challenges in renewable energy development in Vietnam.

Speaking at the event, Ambassador of the UK to Vietnam, H.E. Iain Frew, said foreign investors, including those from the UK, are becoming more and more concerned about environmental and climate issues. The British side is delighted that Vietnam is becoming a regional leader in sustainability, with its ambitious commitment to net-zero emissions by 2050 made at COP26 in Glasgow in November 2021.

For his part, Deputy Minister of Industry and Trade Dang Hoang An pointed out that green development is an important trend globally in meeting requirements in sustainable development. Vietnam is in a transition period to fulfill its international commitments in terms of sustainable development, energy savings, and climate issues. For businesses, this is also an opportunity to create environmentally-friendly goods and services or adapt existing goods so they meet rising standards relating to environmental protection and the fight against climate change.

Analysts at the seminar provided specific information on the relevant commitments in the UKVFTA and the UK’s green and fair trade policy, in the context of green development being an important development trend globally to meet requirements in sustainable development and combat climate change.

There were discussions on ways to transition to green and sustainable trade, on standards and notes on “green criteria” for products exported to the UK market, and on cooperation in renewable energies.

The UKVFTA officially took effect from May 1, 2021. The UK committed to eliminate 85.6 per cent of tariffs on Vietnamese goods as soon as it took effect and to eliminate up to 99.2 per cent from January 1, 2027, with the remaining 0.8 per cent coming down to 0 per cent. Under such commitments, many of Vietnam’s key products, such as seafood, textiles, electronic components, furniture, coffee, rice, and fruit, etc., will hold advantages when accessing the UK market, given that many countries are still to have an FTA with the UK and the growing shifts in demand due to the UK’s green and sustainable development trend.

Two-way trade between Vietnam and the UK increased 3.3 per cent year-on-year in 2022, with many of Vietnam’s key exports posting high growth. In terms of investment, the UK has had 507 projects with capital of nearly $4.2 billion in Vietnam. There were 53 newly-registered projects last year with registered capital of $134.66 million. It is now Vietnam’s 15^th-largest investor out of 141 countries and territories investing in the country, primarily in renewable energy, banking and finance, and oil exploitation.