Viet Nam and the UK concluded necessary procedures for the temporary application of the bilateral free trade agreement from 6.00am of 1 January, 2021 (Viet Nam time) following the signing of the deal on 29 December, 2020.

The signing ceremony of the UK-Viet Nam Free Trade Agreement (UKVFTA)(Photo: VNA)

According to the Ministry of Industry and trade, in the context that the UK had officially left the European Union and the transitional period concluded on 31 December, the temporary effectiveness of the UK-Viet Nam Free Trade Agreement (UKVFTA) ensures bilateral trade activities are not interrupted when the transitional period ends, enabling the two sides to complete domestic procedures for the deal in line with the regulations of each country.

In the time to come, the ministry will coordinate with relevant ministries, sectors and agencies to issue detailed guiding documents for the temporary enforcement of the deal, while building a plan for the implementation to optimise opportunities from the UKVFTA, thus benefiting people and businesses of Viet Nam, it said.

Meanwhile, the ministry also informed that Viet Nam is still on the list of countries enjoying Generalised System of Preferences (GSP) of the UK.

This means Vietnamese products exported to the UK will enjoy GSP as exporters showing the certificate of origins (C/O) form A.

The UK will only accept the C/O in line with the EU mechanism, allowing exporters to apply the Registered Exporter system (REX) on products to be exported to the UK in 12 months since 31 December, 2020.

The EU’s GSP removes import duties from products coming into the EU market from vulnerable developing countries. This helps developing countries to alleviate poverty and create jobs based on international values and principles, including labour and human rights.

Source: VNA