Vietnam–UK Export Trade Strengthens with 10% Annual Growth

Vietnam’s exports to the United Kingdom have grown at an average rate of nearly 10% per year since the UK–Vietnam Free Trade Agreement (UKVFTA) came into force over four years ago.
This performance underscores Vietnam’s expanding role as a strategic production and export hub within Asia, as well as the resilience of bilateral trade relations despite global economic challenges.

The UK now ranks as Vietnam’s third-largest export partner in Europe, following the Netherlands and Germany. The agreement has provided Vietnamese exporters with favorable tariff preferences and a more stable trade framework, helping to boost shipments of textiles, electronics, footwear, and agricultural products.

UKVFTA: A Catalyst for Trade Expansion

Since its implementation, the UKVFTA has opened new opportunities for Vietnamese businesses to expand exports to the British market under preferential conditions.

The utilization rate of the Certificate of Origin (C/O) — a key mechanism for accessing tariff reduction, increased from 17.2% in 2021 to 36.2% after four years, reflecting improved exporter awareness and compliance.

The agreement not only facilitates trade in goods but also supports cooperation in services, investment, and intellectual property protection, further encouraging bilateral economic integration.

By the end of 2024, total Vietnam–UK investment had risen from USD 3.7 billion to USD 4.7 billion, marking a notable expansion of mutual investment flows.

Green and Traceable Supply Chains: The New Standard

A key trend emerging from the UKVFTA is the growing emphasis on green standards and supply chain traceability.

British importers increasingly require suppliers to demonstrate compliance with environmental, labor, and transparency criteria, including carbon emission tracking, ethical sourcing, and extended producer responsibility (EPR).

To stay competitive, Vietnamese exporters are adopting new technologies and sustainable production models, particularly in manufacturing and processing industries.

This shift is reshaping production methods but also influencing demand for industrial real estate, especially modern facilities equipped with energy-efficient systems, renewable energy integration, and digital monitoring capabilities.

Logistics and Infrastructure: Supporting Export Growth

The UKVFTA has not only strengthened manufacturing ties but also increased the need for advanced logistics infrastructure.

With exports to the UK continuing to rise by almost 10% annually, the demand for efficient warehousing, bonded zones, and integrated transport systems is expanding rapidly.

The growth is especially visible in Vietnam’s northern regions, where proximity to deep-water ports such as Lach Huyen in Hai Phong supports seamless trade with Europe via the Suez Canal.

Developers who can offer logistics-ready, port-accessible industrial facilities will be well positioned to attract export-focused tenants from both domestic and foreign enterprises.

Sustainable Investment: The Future of Vietnam–UK Partnership

Beyond trade, the Vietnam–UK relationship is evolving toward a broader focus on sustainability and green growth.

Both countries have expressed commitments to low-carbon development, renewable energy, and responsible production, areas that directly intersect with industrial property development.

As the UK supports initiatives for clean technology and carbon reduction in emerging markets, Vietnam’s industrial zones can benefit from green financing and technology transfer, accelerating the shift toward eco-industrial ecosystems.

Developers like Core5 Vietnam, who integrate sustainability from design through operation, are well aligned with this trend, offering facilities that help global manufacturers meet ESG goals while enhancing operational efficiency.

Toward a High-Value Industrial Future

The steady 10% annual growth in Vietnam’s exports to the UK reflects a successful implementation of the UKVFTA and the growing strength of bilateral trade relations.

As both countries pursue sustainable growth and high-standard trade frameworks, the next phase of cooperation will depend on how effectively Vietnam can upgrade its industrial and logistics infrastructure to meet new market expectations.

In this context, industrial developers who deliver international-standard, sustainable, and efficient facilities, like Core5 Vietnam, will play a pivotal role in supporting Vietnam’s evolving trade ecosystem and long-term competitiveness.

For investors seeking to capture opportunities, Core5 Vietnam provides more than facilities , we are your strategic partner in long-term success.

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