Hanoi: The UK-Vietnam Free Trade Agreement (UKVFTA), which became effective on January 1, is expected to create a strong motivation pushing Vietnam forwards on the path of economic development and international integration.
According to Kenneth Atkinson, head of the British Business Group in Vietnam (Britcham), the deal will help strengthen trade and support employment, while promoting growth in both countries, report agencies.The erasing of 65 percent of the total tariff immediately after the deal takes effects and 99 percent of the tariff in 6-7 years will bring about practical benefits to British exporters of machineries, chemicals, and brandy, he held. Along with the reduction of legal barriers as well as burden in administrative procedures in the two markets, the official said, highlighting that the UKVFTA will help observe the regulations and commitments that the two Governments and business communities have agreed on.
The deal will also ensure the increase in the trade by more than 3,000 UK businesses engaged in export activities to Vietnam, while meeting the demand for Vietnamese goods of UK customers, he said.
Atkinson asserted that the area of solar and wind power will receive priorities from the business communities and governments of both sides.