Opportunities and Challenges for Vietnam’s Merchandise Exporting Following Vietnam-UK Free Trade Agreement

Abstract

On December 29, 2020, the free trade agreement between Vietnam and the UK (UKVFTA) was officially signed. This is the next step in the Vietnam - UK trade relationship since the European Union - Vietnam Free Trade Agreement (EVFTA) no longer applies to the UK after December 31, 2020 because of Brexit. UKVFTA is a new generation, high-quality bilateral agreement aimed at the complete elimination of import duties and non-tariff barriers on goods of the two countries under a short schedule. The deployment of UKVFTA from the beginning of 2021 will ensure smooth trade in goods of the two countries, especially for essential goods in the complicated context of the Covid 19 pandemic. The paper analyzes and identifies new opportunities and challenges after the UKVFTA comes into effect, thereby proposing some solutions to boost Vietnam's exports to the UK in the coming time.