1. Overview
- Full name: Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland
- Abbreviation: UKVFTA (United Kingdom – Vietnam Free Trade Agreement)
- Members: Vietnam and the United Kingdom (including England, Scotland, Wales, and Northern Ireland)
- Date of signing: December 29, 2020 (in London)
- Date of entry into force: Provisionally applied from January 1, 2021, and officially effective from May 1, 2021
Negotiation Background and Reasons for Formation
Background: The UKVFTA was negotiated based on the principle of inheriting the commitments and benefits of the EU–Vietnam Free Trade Agreement (EVFTA). After Brexit (the United Kingdom’s withdrawal from the European Union), a new bilateral agreement became necessary to ensure continuity in trade relations between Vietnam and the UK, preventing a return to the higher-tariff framework of the World Trade Organisation (WTO).
Reasons for formation:
- Ensuring Continuity: The primary goal was to maintain the trade preferences that both sides enjoyed under the EVFTA, particularly in terms of tariff reduction and elimination.
- Strengthening the Strategic Partnership: To reinforce the Strategic Partnership between Vietnam and the UK and create a stable, long-term legal framework for trade and investment.
- Opportunities for Vietnam: To help Vietnam’s key export sectors—such as seafood, textiles, footwear, and agricultural products—retain their competitive advantages in one of Europe’s largest markets.
- Opportunities for the UK: To ensure access to Vietnam’s rapidly growing market and expand cooperation in emerging sectors.
2. Scope and Main Commitments
The UKVFTA largely replicates the EVFTA, with certain technical adjustments tailored to the bilateral context. The Agreement consists of 14 Chapters, 1 Protocol on Rules of Origin, and several Joint Commitment Letters.
| Commitment Area | Corresponding EVFTA Chapter | Key Contents |
|---|---|---|
| I. Trade in Goods | Chapter 2 | Commitments on tariff reduction and elimination (99% of tariff lines after 7 years). |
| II. Rules and Procedures | Chapters 3–4 | Rules of Origin (using EUR.1 Certificate of Origin or self-certification) and customs procedures. |
| III. Technical Barriers | Chapters 5–6 | TBT (Technical Barriers to Trade) and SPS (Sanitary and Phytosanitary Measures) to facilitate trade. |
| IV. Trade Remedies | Chapter 7 | Rules on anti-dumping; anti-subsidy; and bilateral safeguard measures. |
| V. Services; Investment & Government Procurement | Chapters 8–9 | Market access commitments in services (finance; telecommunications; logistics); investment; and public procurement. |
| VI. Intellectual Property Rights | Chapter 10 | Protection of intellectual property rights; including the mechanism for Geographical Indications (GIs). |
| VII. Sustainable Development | Chapter 13 | Commitments on labor (implementation of ILO conventions) and environment (implementation of the Paris Agreement). |
| VIII. Other Provisions | Chapters 11; 14–17 | Competition policy; transparency; dispute settlement; and institutional/exemption provisions. |
Key Highlights (Inherited from EVFTA)
Tariffs: Both sides will implement tariff reduction and elimination schedules in line with the EVFTA. Over 99% of Vietnam’s export value to the UK will be exempted from tariffs after seven years.
Rules of Origin: Inherits the EVFTA rules, allowing Registered Exporters (REX) to self-certify the origin of goods—an important step in simplifying trade procedures.
Geographical Indications (GIs): The UK commits to protecting 169 Vietnamese GIs, similar to the EVFTA, safeguarding the reputation of iconic agricultural products such as Buon Ma Thuot Coffee, Phu Quoc Fish Sauce, and various tropical fruits.
3. References and Official Sources
Full Text of the FTA: Vietnam’s FTA Portal (Ministry of Industry and Trade – MOIT) provides the most complete and official information for Vietnamese enterprises.
- Full text of the UKVFTA (in Vietnamese and English)
- Key annexes (tariff schedules, rules of origin)
- Link: Search “UKVFTA” on https://vntr.moit.gov.vn/
Implementation Guidelines and Legal Documents:
Ministry of Industry and Trade (MOIT): Lead agency; issues Circulars on Rules of Origin and procedures for issuing Certificates of Origin (Form EUR.1) or self-certification.
Ministry of Finance (General Department of Customs): Issues Government Decrees on Vietnam’s special preferential import tariffs to implement the UKVFTA.
Business Support Organisation: Vietnam Chamber of Commerce and Industry (VCCI) – WTO and Integration Center: Provides detailed handbooks, especially guidance on using the REX self-certification mechanism under the UKVFTA.
See other FTAs:
