Making ceramic products for export. Exports of ceramic products to the UK are forecast to grow at double-digit rates annually until 2030. -- Photo vneconomy.vn

HCM CITY – Exports of ceramic products to the UK are forecast to grow at double-digit rates annually until 2030, driven by their high quality, competitive prices and tariff benefits under the UK–Việt Nam Free Trade Agreement (UKVFTA).

According to the General Department of Viet Nam Customs, exports had grown by 27.4 per cent year-on-year as of November, reaching US$29 million. In 2023, exports amounted to $26.7 million, with annual growth averaging 12 per cent since 2019.

The main ceramic products imported by the UK from Việt Nam include ceramic floor and paving tiles, hearth and wall tiles, mosaic cubes, and decorative items such as statuettes.

Expanding opportunities in the UK ceramic market are supported by a Zion Market Research study that valued the UK ceramic tableware market at approximately $408.9 million in 2022, projecting it to grow to around $562.7 million by 2030, reflecting a compounded annual growth rate of 4.32 per cent from 2023.

Market research by Spherical Insights highlights that porcelain tiles hold the largest share of the UK ceramic tiles market. This is attributed to the rising demand for hard flooring and the ability of porcelain tiles to replicate natural stone and wood.

The demand for porcelain home décor accessories is also rising, fuelled by increasing interest in home remodelling and interior decoration.

Other trends shaping the UK ceramic and porcelain market include increasing urban population density, rising investment in residential projects, rapid industrialisation, and growth in renovation and construction activities.

Leveraging the UKVFTA

In an interview with Việt Nam News, the Việt Nam Trade Office in the UK described the UK's ceramic and porcelain market as dynamic and competitive but with both opportunities and challenges.

The office noted that Vietnamese companies are effectively leveraging the UKVFTA to boost ceramic exports to the UK, a highly lucrative yet competitive market.

Exports of ceramic products grew by 27.4 per cent year-on-year as of November, reaching US$29 million. -- Photo Courtesy of moit.gov.vn

Hoàng Lê Hằng, First Secretary of Trade at the Việt Nam Trade Office in the UK, emphasised that tariff exemptions on Vietnamese ceramic products, effective since 2024, have enhanced their price competitiveness in the UK market.

She encouraged Vietnamese businesses to prioritise product quality, ensuring compliance with local market standards and health safety regulations, to bolster exports.

“Thanks to the free trade agreement, the price of Vietnamese ceramic products in the UK is more competitive than those of other countries.”

To further increase exports, Hằng advised Vietnamese enterprises to focus on improving product quality and meeting the high standards of the local market, particularly in terms of health and safety regulations.

Ceramics UK introduced 25 years ago The Pledge Scheme to promote and support improvement in health and safety performance in the ceramics sector. The scheme focuses on enhancing health, safety and well-being across the industry.

Additionally, Ceramics UK is a member of CHARGE, a high-level forum involving the Health and Safety Executive, trade unions and the wider minerals industry, including glass, ceramics, cement, and stoneworkers, work together and share information and ideas to support improved standards of health and safety.

Ceramics play a vital role in various applications across society. However, ceramic manufacturing is among the most challenging industries to decarbonise.

Hằng urged Vietnamese ceramic producers to invest in research and development to advance decarbonisation processes, addressing climate change challenges and aligning with the Carbon Border Adjustment Mechanism (CBAM) which will be applied in the European Union and the UK.

“Adapting to these regulations is essential for maintaining and promoting the export of ceramic products,” she said.

The Ministry of Industry and Trade (MoIT) reports that after 10 years of implementing the Development Plan of Việt Nam's Ceramics - Industrial Glass industry, the Vietnamese ceramics industry has made significant advancements in production capacity and exports. 

Specifically, in the construction ceramics sector, the total capacity for tiles currently stands at 850 million sq.m, and sanitary ceramics at 26 million products per year.

The artisanal ceramics sector boasts a scale of 5,400 craft villages spread throughout the country, with nearly 2,000 recognised as traditional craft villages encompassing 115 acknowledged trades.

In addition to meeting domestic needs, Vietnamese ceramic products have been exported to various major markets such as the United States, Japan, Taiwan (China), the EU, the UK and Thailand. 

During the 2019-23 period, Việt Nam's ceramic product exports enjoyed an average growth rate of 3.5 per cent per year. Export turnover reached its peak in 2022 at $711 million.

In 2023, the ceramics industry faced considerable challenges, especially in the midst of a complex global environment. However, in the first half of 2024, Việt Nam's ceramic export turnover made a strong recovery. 

According to statistics from the General Department of Vietnam Customs, in the first six months of 2024, Việt Nam's ceramic product exports to various markets reached $317 million, demonstrating a 9.5 per cent increase compared to the same period in 2023.

MoIT forecasts that in the long term, the Vietnamese ceramics industry has many opportunities for growth, thanks to the continuous development of technology, market demand both domestically and internationally, as well as innovation in design and products. Specifically, the demand for ceramic products, especially high-end and artistic ceramics, is increasing globally. Major markets in the entire world all have high demand for quality ceramic products.  VNS