Việt Nam - UK agricultural trade has much room for breakthrough growth. — VNA/VNS Photo

HCM CITY — The UKVFTA has opened up opportunities for Vietnamese consumers to access high-quality British food and drink, according to the recent UK-Việt Nam Agricultural Trade Report by the British Embassy in Hà Nội City

The report, titled “Connecting the UK and Việt Nam in Agriculture, Food and Drink”, said that there are many key factors that strongly impact the agricultural trade relationship between the two countries.

It points out that with a young population and a growing middle class, steadily rising incomes and increasingly sophisticated consumer habits, the Vietnamese market is experiencing increasing demand for high-quality, foreign-sourced products, presenting an attractive opportunity for UK food and drink.

In particular, the UK-Việt Nam Free Trade Agreement (UKVFTA) has come into effect, opening up opportunities for Vietnamese consumers to access high-quality British food and beverages.

The report confirmed that there is still much room for breakthrough growth in agricultural trade between the two sides. The report stated that British businesses are eager to explore Việt Nam as a new market to introduce a variety of high-quality foods and beverages.

Food and drink is the UK’s largest manufacturing and processing industry with stringent regulations and certification processes. The UK’s comprehensive approach to ensuring food safety and quality standards is now a global benchmark.

Notable UK agricultural exports to Việt Nam include whisky, seafood and confectionery. For whisky, around 85 per cent of whisky consumed in Việt Nam comes from Scotland. Thanks to the UKVFTA, a 45 per cent import tariff will be gradually reduced to zero over six years (currently 24 per cent). This will be an important factor in promoting exports of this product.

Britain's Trade Commissioner for Asia Pacific Martin Kent said British products have been popular throughout Việt Nam, just as British seafood is also very popular in Việt Nam. British seafood products such as brown crab and lobster are loved by Vietnamese consumers across the country and are popular for their appealing taste thanks to being farmed in clean and cool waters around the British Isles.

"Scottish salmon is the UK’s largest food export and there is great opportunity for this premium product to be sold in high-end catering outlets in Việt Nam. And excitingly, we will soon see the first shipments of British pork and poultry to Việt Nam. This is an important moment in our agricultural trade relationship as it is the first livestock and poultry product to be approved for export from the UK."

In contrast, Việt Nam’s exports to the UK mainly include tropical fruits, coffee, nuts and seafood. According to the report, in 2023, the export value of fish and shellfish from Việt Nam to the UK reached nearly US$300 million, making seafood the fifth largest product group among the main exports from Việt Nam to the UK.

Hoàng Lê Hằng, first secretary of the Việt Nam's Trade Office in the UK, said Việt Nam’s agricultural exports have maintained good growth over the past three years, partly thanks to the implementation of the UKVFTA.

Under the agreement, tariffs on 94 per cent of 547 types of fruits and vegetables and fruit and vegetable products imported into the UK will be eliminated immediately. This creates a competitive advantage for many Vietnamese agricultural products compared to similar products originating from countries that do not have a free trade agreement with the UK.

Not only that, the dynamism and positivity of Vietnamese exporting enterprises and the Vietnamese business community in the UK, together with the support of the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, the Vietnamese Embassy in the UK and associations such as the Việt Nam Fruit and Vegetable Association, the Việt Nam Coffee and Cocoa Association, the Việt Nam Association of Seafood Exporters and Producers, and The Handicraft and Wood Industry Association of HCM City also contribute to exporting high-quality agricultural products to the UK.

In addition, with the rapid expansion of Vietnamese restaurants in the UK, British consumers can also enjoy a wide variety of Vietnamese agricultural products that are being sold in supermarkets.

British Brown Crab is very popular with Vietnamese customers. — VNS Photo Văn Châu

However, according to assessments, Vietnamese agricultural products still only account for a small proportion of Việt Nam's imports into the UK, currently accounting for 4.8 per cent. This situation shows a huge and important growth opportunity in agricultural and related sectors, which are expected to play a more significant role in shaping UK-Việt Nam trade relations.

Previously, with the support of the Việt Nam Trade Office in the UK, eight Vietnamese enterprises displayed and introduced food and beverage products at the International Food and Drink Expo (IFE) 2024, taking place from March 25-27 at ExCel, the largest national exhibition centre in London, UK.

Vietnamese booths at the fair attracted many visitors with fresh fruit products such as grapefruit, guava, durian, red dragon fruit, Lái Thiêu mangosteen, frozen seafood, dried phở noodles of all kinds, coffee and tea of ​​all kinds, coconut products such as coconut water, dried coconut, coconut oil and ginger products.

This is a great opportunity for Vietnamese and UK businesses to meet directly with potential customers and grasp market trends. — VNS