Opportunities for confiscation of exports to the United Kingdom | Economy

HANOI (VNA) – In the first two months of 2021, companies in sectors that could export to the UK quickly took advantage of free trade agreements (FDAs) to benefit from optional fees.

Processing of tuna for export to Hong Kong Aquatic Products Charles (Tui Hoa, Fu Yen) Photo: Patothu

In the first two months of 2021, companies in sectors with potential to export to the UK quickly took advantage of the opportunity of free trade agreements (FDAs) to benefit from tariff options.

Non-Vietnam trade agreementUnited Kingdom (UKVFDA) is an FDA that has been in place for less than a year – and came into force within a month of being signed within minutes of the end of negotiations. 2 months after implementation, from January 1, 2021, many companies have already taken advantage of the opportunity to increase their exports and benefit from tax breaks.

According to the Ministry of Industry and Trade, Vietnamese companies continue to benefit from the reduction of import-export taxes to the UKVFDA. With obligations to open markets and provisions for products with competitive advantages, companies face greater opportunities to export to the UK market. According to estimates, the value of Vietnam’s possible import taxes upon entering the UK is estimated at 3.5 trillion dong (or மில்லியன் 14 million) a year.

According to the Department of Imports and Exports (Ministry of Industry and Trade), trade between Vietnam and the United Kingdom has increased by 29.2% in one year, reaching $ 1.8 billion, including $ 998 million in Vietnamese exports. Up to 33%. This is an impressive increase in an environment where the Govt-19 epidemic has a significant impact on business operations. This shows that the UKVFDA strongly stimulates the growth of bilateral trade. The sectors that will benefit greatly from this agreement are aquatic products, rice, textiles and clothing, footwear, wood, fruits …

This impressive figure of $ 998 million in Vietnamese exports in 2 months is largely the result of the contribution of the manufacturing sector. Exports of phones and jewelry rose 371% in January to 3,253 million; Machine tools and spare parts, 74.58 million (+ 101%); Computers and electronic components, 31.82 million (+ 91%); Steel products, 15.96 million (+ 11%) …

Export earnings of phones and jewelery are mainly generated by foreign direct investment firms, of which Samsung’s Bagh Nin and Thai Nguyen projects play a major role.

SEV (Bac Ninh) and SEVT (Thai Nguyen) are the world’s largest and most modern mobile phone assembly and component factories of Samsung Electronics. As for phones, 60% of the products Samsung sells in the global market are assembled in factories in Vietnam.

In the Agricultural Products Group, rice and vegetables exported to the UK are taxed at 0%. For example, with the implementation of the UKVFDA, the import duty on jasmine flavored rice was reduced to 0% instead of 17.4%.

In 2019, domestic rice exports to the UK market rose by 376%, the tax rate was higher, resulting in lower competitiveness against competitors from other countries. Exemption from import duty will make Vietnamese rice more competitive in this potential market.

Fruit – a sector that contributed 8 3.8 billion Exports Countries in 2018 – UKVFDA has many opportunities with 148% growth in the first month of implementation.

In accordance with the duties ofUKVFDA, More than 94% of the total tax on fruits and derivatives benefit from the 0% tax rate. Many of Vietnam’s major products such as lychee, langan, rambutan, pita, pineapple, melon … now enjoy competitive advantages over tropical fruits from Brazil, Thailand, Malaysia …, non-countries’ United Kingdom. -CPV / VNA