Is Vietnam duty free to the UK?

Vietnam’s Duty-Free Access to the UK Market

The United Kingdom (UK) and Vietnam enjoy a robust trade relationship, facilitated by the UK-Vietnam Free Trade Agreement (UVFTA). This agreement has played a significant role in boosting trade between the two nations, particularly through the elimination of tariffs on Vietnamese goods entering the UK market.

Under the UVFTA, most Vietnamese products enjoy duty-free access to the UK upon entry into force. This preferential treatment has significantly reduced the cost of importing Vietnamese goods into the UK, making them more competitive and accessible to British consumers.

The UK’s substantial import expenditure, amounting to approximately $700 billion annually, presents a substantial opportunity for Vietnamese exporters. The UVFTA has created a favorable environment for increased trade between the two countries by eliminating the barriers posed by tariffs.

The tariff reduction plan under the UVFTA follows a phased approach. Upon implementation, tariffs on 98% of Vietnamese goods exported to the UK were immediately eliminated. The remaining 2% of goods will see their tariffs gradually phased out over the course of a number of years.

This phased approach allows Vietnamese exporters to benefit from duty-free access to the UK market while providing UK businesses with sufficient time to adjust to the new competitive landscape.

The UVFTA not only eliminates tariffs but also fosters enhanced trade relations between the UK and Vietnam. It establishes a framework for cooperation in areas such as trade facilitation, intellectual property protection, and sustainable development.

By providing duty-free access to the UK market and fostering a positive trade environment, the UVFTA has created a significant opportunity for Vietnamese exporters to expand their presence in the UK and contribute to the growth of both economies.