The UK-Việt Nam Free Trade Agreement (UKVFTA) is expected to help Việt Nam accelerate institutional reforms, improve the investment and trade environment towards modernity and transparency, as well as create convenience for businesses.

In particular, with deep commitments to open markets for goods and services, the UKVFTA will be a strong lever promoting bilateral trade and investment exchanges between Việt Nam and the UK.

The UKVFTA has had positive effects on Việt Nam - UK trade and investment cooperation.

In the first year the UKVFTA came into force, Việt Nam increased its imports of many products with high technology and intelligence content from the UK such as pharmaceuticals (35 per cent), automobiles (28.5 per cent), computers, electronic products and components (24.8 per cent) as well as materials for Việt Nam's export supply chain such as textiles, leather, shoes (24.6 per cent), which actively contribute to the economy’s development.

Regarding investment, in 2021, there were 48 newly granted direct investment projects from the UK into Việt Nam with newly registered capital of more than US$53 million, posting a 157 per cent year-on-year increase.

It helped maintain the UK's direct investment in Việt Nam at $4 billion, and bring the UK into the group of 12 countries with the largest direct investment capital in Việt Nam. The above results demonstrate the “new” positive impacts that new generation FTAs such as the UKVFTA, EVFTA, and CPTPP have brought in the implementation process.

Businesses will have access to the UK market with preferential and competitive conditions. Almost 100 per cent of Vietnamese goods exported to the UK will be exempt from import tax after six years.

Regulations and high standards for UK imports will create incentives for Vietnamese businesses to innovate technology, improve product quality and brands, as well as change management and business thinking.