VN-UK trade continues to grow

Việt Nam’s exports to the UK in the last 10 months amounted to nearly $6.4 billion, a 22 per cent annual increase.

An electronics production factory in the northern province of Thái Nguyên. The category of machinery, equipment and spare parts led Việt Nam’s exports to the UK in October. — VNA/VNS Photo Trần Việt

Việt Nam’s export turnover to the United Kingdom in October was US$687.2 million, up more than 13 per cent compared to September, statistics from the General Department of Customs showed.

Over the last 10 months, the country’s exports to the UK amounted to nearly $6.4 billion, a 22 per cent increase compared to the same period last year.

The growth has been driven by some key export items with large turnover such as machinery, equipment, spare parts, computers, electronics, footwear and textiles.

The leading export category in the last 10 months was machinery, equipment and spare parts, with a turnover of $1.14 billion. This is an annual increase of 39.7 per cent and accounts for 17.9 per cent of total exports.

Next was mobile phones and components with over $1.03 billion in turnover, down 12.9 per cent compared to the same period last year and accounting for 16.3 per cent of total exports so far.

Some other categories saw significant growth in exports compared to 2023.

Computers, electronics, and components increased by 30.7 per cent. Handbags, suitcases and umbrellas rose by 18 per cent. Seafood increased by nearly 10 per cent.

Base metals grew by 30.2 per cent, wood and wood products by 15.5 per cent, steel products by 34 per cent, and transportation means and spare parts by 35.7 per cent.

The Việt Nam–UK Free Trade Agreement (UKVFTA), which has been in effect since 2021, has been a key driver of this growth. For three consecutive years since the agreement’s implementation, Việt Nam’s exports to the UK have seen significant improvement, with large trade surpluses.

In 2021, two-way trade between the two countries was $6.6 billion, up 17.2 per cent from 2020, with a trade surplus of $4.8 billion.

In 2022, due to global challenges and economic difficulties in the UK, two-way trade decreased, but Việt Nam’s exports to the UK still grew by about 1.9 per cent.

In 2023, while Việt Nam’s exports to several markets declined, with some dropping to 30 per cent, exports to the UK still grew by 11 per cent.

Việt Nam-UK bilateral trade this year was forecast to reach $8.5-$8.7 billion.

Source: VNS