【UKVFTA - New boost for Wooden Furniture Export to UK 】
News Type: Marketing News
The UK has been the third-largest trade partner of Vietnam in Europe after Germany and the Netherlands in recent years. Vietnam mainly exports garments and textiles, footwear, wood, and wooden furniture, and seafood to the UK, while importing pharmaceuticals, machinery, and equipment from the UK.
In the timber industry, Vietnam is one of the largest exporters of wooden furniture and furniture to the UK, especially in 2019, Vietnam is the sixth-largest exporter of wooden furniture to the UK market, with an export value of US$421,832,000, accounting for 3 UK The market share of wood products imports is 6%. According to the UKVFTA agreement, the tax rate for many timber and timber products is 0% within 5 years (the current tax rate for logs is 2-10%). Therefore, Vietnam's timber industry will also benefit from the agreement.
According to the MoIT, the FTA between the EU and Vietnam (EVFTA), which has been effective from August 1, will not be applied to the UK after December 31, 2020. According to Liz Truss, the British Minister of International Trade, the UK and Vietnam share mutual strategic commitments in global trade and the liberalization of capital transactions and investment. Under the background that the UK will formally apply to join the Trans-Pacific Partnership Comprehensive Progress Agreement (CPTPP) in early 2021, the facilitation of UKFTA has taken an important step.
Both Vietnam and the UK hope to finalize the agreement as soon as possible to promote economic recovery after the COVID-19 pandemic. Meanwhile, the majority of the content in the UKVFTA are similar to those of the EVFTA, saving negotiation time for the deal.
The investment scale has yet to match the potential of the UK – one of the largest countries in terms of investing abroad with about 300 billion USD each year. The UKVFTA is expected to bring about more investment and cooperation opportunities for the two sides, supporting them in post-pandemic recovery.