The UK-Việt Nam Free Trade Agreement (UKVFTA) is create convenience for businesses.
The UKVFTA creates the impetus for Việt Nam's institutional reform, towards transparency of the business investment environment and facilitation of domestic administrative procedures.
The commitments in the UKVFTA help businesses access new sources of raw materials, and reduce dependence on traditional import markets, thereby increasing Việt Nam's participation in the regional and global supply chain.
According to the UKVFTA, six years after the agreement goes into effect, the UK will eliminate import tax on 99.2 per cent of tariff lines.
To make better use of this agreement, Vietnamese enterprises should note the following points.
First, businesses need to clearly understand the commitments of the UKVFTA, which requires businesses to raise awareness, proactively equip themselves with the knowledge to take advantage of opportunities, and promote production and business activities with UK partners.
Second, businesses, especially exporters, need to know very well the UK's legal regulations on technical standards, food hygiene and safety, and sustainable development in order to effectively access the market.
Third, local firms need constantly improve product quality to meet consumers' needs. This involves capturing the needs and tastes of consumers, in order to create products that match the needs and psychology of the targeted customer group.
Fourth, businesses need to focus on improving their internal strength through association, co-operation or participation in business associations to get useful support. At the same time, enterprises also need to actively develop specific development plans, strategies and activities to seize opportunities as well as cope with challenges.
