The year 2023 is an important milestone in the bilateral relationship between Vietnam and the UK as the two countries celebrate the 50th anniversary of the establishment of diplomatic relations (1973 - 2023) and the 13th anniversary of the establishment of a strategic partnership. This is an opportunity to exploit the potential and promote bilateral cooperation between Vietnam and the UK in general and the partnership of Da Nang city and the UK in particular in all fields.
Close relationship between the UK and Vietnam
Vietnam and the UK established diplomatic relations at the ambassadorial level on September 11, 1973. Currently, the Vietnam-UK relation can be said to be developing quite comprehensive in many fields including politics, economy, education, defense, etc. Britain has signed with us most of the framework economic agreements; expected to turn Vietnam into one of the leading ODA recipients in the region and pledged to support us in strengthening relations with the EU.
Trade relations bettween Vietnam and UK (Photo source: Internet)
Trade relations between Vietnam and the UK have grown rapidly from the 1990s to the present. UK trade policy is relatively open, not protectionist. In commercial disputes between Vietnam and the EU (dumping case, antibody-contaminated seafood case, GSP issue, leather shoes), the UK often has a pro-Vietnam stance. Over the past years, Vietnam's exports to the UK have increased by an average of 17% per year. The total two-way trade turnover between Vietnam and the UK in 2022 will reach 6.84 billion USD, up 3.5% compared to 2021, and the total value of Vietnam's exports to the UK in 2022 will reach 6.07 billion USD. The structure of Vietnam's exports in general has changed little since 2000, in which the two main export products of Vietnam are still footwear and apparel. The UK commits to continue supporting Vietnam to strengthen its economic and trade relations with the EU; support the EU to soon recognize Vietnam as a country with a market economy.
British companies entered Vietnam early (1988-89), but in the beginning, they mainly focused on the oil and gas sector (70% of total investment). So far, British investment has expanded into many new fields such as banking, finance, manufacturing, services, apparel, etc. As of December 2022, the UK has a total of 507 FDI projects in Vietnam, with a total valid registered investment capital of 4.15 billion USD, accounting for 0.97% of the total registered foreign investment capital in Vietnam. UK investors invest the most in Vietnam in the manufacturing and processing industry with 120 projects, registered investment capital of nearly 1.6 billion USD, accounting for nearly 40% of total investment capital. Next is the real estate business with 23 projects, total investment capital of 1.04 billion USD, accounting for 26% of total investment capital. Mining ranked third with 07 projects, total registered capital of 701.44 million USD, accounting for 18% of total investment capital. The remaining projects are in other fields such as: wholesale and retail, repair of cars, motorbikes and motorbikes; accommodation and catering services; water supply and waste treatment; professional, scientific and technological activities; education and training, etc.
Oficial logo to celebrate the 50th anniversary of UK - Vietnam diplomatic relations (Source: Internet)
In 2023, selected as the Vietnam - UK Friendship Year, there will be more than 50 events on trade, investment, education - training, culture, tourism, etc. held in London and more 10 major localities across the UK, in order to further strengthen the relationship between regions, cities and communities across the UK with localities of Vietnam. This opens up more opportunities for deeper cooperation with UK partners in many fields. Localities, including Da Nang, will also benefit and the city should take advantage of this opportunity to enhance cooperation with the UK.
Elevate partnership with the UK
With the Free Trade Agreement between Vietnam and the United Kingdom of Great Britain and Northern Ireland (UKVFTA) officially taking effect from May 1, 2021, the UK is committed to removing many tax regulations for UK goods. Vietnam. Thanks to that, many of Vietnam's strong products such as seafood, textiles, electronic components, furniture, coffee, rice, fruits, etc. will have advantages when approaching the UK market in the context of many countries. There is no FTA with the UK yet, to anticipate the wave of demand shifts due to the UK's green and sustainable development trend.
In the same year 2021, the UK becomes a dialogue partner of ASEAN and continues to aim to become part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP. This is the first time after 25 years that ASEAN has agreed to grant this status, contributing to tightening the relationship between the UK and ASEAN in issues ranging from trade and investment to climate change, environment, and science. and technology and education. By becoming a Dialogue Partner, the UK will formalize its relationship with ASEAN, contributing to deepening economic links between the UK and ASEAN - an influential organization in the Indo-Pacific region. It can be seen that the UK is actively strengthening its role in the region, especially with the orientation to raise the level of relations and penetrate deeper into the Vietnamese market.
In Da Nang city, over the years, cooperation and support programs and projects between Da Nang - UK have been implemented very effectively, achieving many outstanding results in the fields of education, health care, social security such as: linking undergraduate and postgraduate training, supporting international students; established the Vietnam - UK Research and Training Institute (VNUK), the first public international university in the Central region; Newborns Vietnam has supported Da Nang Obstetrics and Gynecology Hospital to carry out the intensive training program on newborns, obstetric care and pediatric cardiology; established the first breast milk bank in Vietnam based on learning experience in the UK, etc.
UK is actively strengthening its relationship with Vietnam (Source: Internet)
However, the partnership between Da Nang and the UK still presents limitations. Specifically, the city currently has 1004 foreign direct investment (FDI) projects with a total registered capital of 4.08 billion USD, however, there are only 21 projects of British investors with a total registered capital of more than 4 billion USD. $1.9 million is concentrated in services and education as well as the number of tourists from the UK to Da Nang is still modest.
In recent years, the city has had a vision to further strengthen cooperation, economic development, investment and tourism between the UK and Da Nang, inviting businesses and expatriates Come to learn about the business and tourism investment environment in Da Nang. Specifically, from September 6 to 8, 2022, the delegation of the leaders of Da Nang city led by comrade Luong Nguyen Minh Triet, alternate member of the Party Central Committee, Standing Deputy Secretary of the City Party Committee, Chairman The leading city council visited and worked in the United Kingdom (as part of a foreign business trip including 3 countries England - Netherlands - Germany of the leaders of Da Nang city from September 6-15, 2022). The delegation organized the Seminar "Da Nang Business Round Table" and visited and worked with Ambassador Extraordinary and Plenipotentiary and Governor-General of the Socialist Republic of Vietnam in the United Kingdom and Ireland, the Organization World golf tourism, Facing The World Organization, Tay Anh University to promote cooperation between Da Nang city and partners and businesses in the UK in the fields of tourism, investment, finance, education education and health.
Mr. Luong Nguyen Minh Triet, Standing Deputy Secretary of the City Party Committee, Chairman of the City People's Council spoke at the Seminar "Da Nang Business Round Table" , United Kingdom (Source: IPA Da Nang)
The UK also regularly sends delegations to Da Nang city to work and exchange cooperation. On May 26, 2023, Ms. Emily Hamblin, Consul General of the United Kingdom in Ho Chi Minh City had a visit and worked with leaders of the City People's Committee and informed that in the coming time, to celebrate the 50th anniversary of diplomatic relations between Vietnam and the UK, the British Consulate General in Ho Chi Minh City will organize many programs and activities to connect in Da Nang city.
With the close partnership between Vietnam and the UK, along with the advantages and development potentials from the Agreements and commitments between the two countries, Da Nang city and its British partners still have a lot of surplus left. to promote deeper cooperation in the near future. The areas in which British businesses have strengths are also the areas that Da Nang city wishes to attract investment such as: information technology, high technology, finance, education, tourism, etc. Therefore, the city should take advantage of this advantageous moment and focus its resources on promoting trade and investment activities with partners from the UK.
IPA Da Nang
