On May 1st, 2021, the Free Trade Agreement between Vietnam and the
United Kingdom (UKVFTA) officially came into effect, marking an important
symbolic step in the growing partnership between Vietnam and UK, facilitating
the trade between the two countries, hence making more UK investors choose
Vietnam as a destination to make investment, and set up company for operation to enjoy the benefits of the
agreement.
The UKVFTA has provided regulations governing bilateral trade
between the two countries with a value of up to 5.1 billion pound, which is a
foundation for trade and investment development, creating a strong framework
for UK and Vietnamese businesses.
In addition, the Agreement also provides market access commitments
with a schedule to reduce preferential tariffs for import and export goods
between the UK and Vietnam. Specifically, the commitment to eliminate 65% of
tariff lines in the framework of bilateral trade continues to be maintained in
this Agreement. In the next 6 years, 99% of tariff lines will continue to be
eliminated tariffs, facilitating import and export for machinery, mechanical
equipment, and pharmaceuticals.
In addition, Vietnam has also made commitments higher than
Vietnam’s commitments in the WTO to create favorable conditions for UK
investors to access Vietnam’s markets, including finance, telecommunications
and education. This will help the UK investors to easily access the market and
make investments and set up company in Vietnam.
In the field of intellectual property, the parties continue to
commit to a high level of protection. The iconic UK products, including Scotch
whiskey, Scottish farmed Salmon, Irish whiskey and Irish cream, as well as 36
Vietnamese agricultural products, including Moc Chau tea, Buon Ma Thuot coffee,
Hai Hau rice and Phu Quoc fish sauce continue to be protected.
The official entry into force of the UKVFTA is the latest
milestone in a year of strengthening bilateral and commercial relations between
the UK and Vietnam. The implementation of the UKVFTA Agreement will help
investors and enterprises of the two countries easily make investments, ensure
the best benefits from the agreement, thereby bringing long-term economic
benefits to investment and business.
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international network. We focus on customers’ needs and provide clients with a
high quality legal advice and services. For advice or services request, please
contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.
