The UK-Vietnam Free Trade Agreement (UKVFTA) has significantly increased Vietnam’s wood product and timber exports to the UK, according to the Vietnam Timber and Forest Products Association (VIFORES). Projected to reach $230 million this year, exports have risen from $195 million last year, with $182.1 million recorded in the first 10 months.
Implemented in 2021, the UKVFTA has positively impacted Vietnam’s wood industry by gradually reducing tariffs to zero percent over five years. Vietnam’s timber products now hold a competitive edge over those from other countries.
Ngô Sỹ Hoài, Deputy Chairman and General Secretary of VIFORES, emphasized the strategic importance of the UK, which accounts for 40% of Vietnam’s wood exports to the EU27. “The UK serves as a gateway to Europe,” Hoài stated. “Meeting its stringent quality, design, and environmental standards allows us to enter other European markets confidently.”
The Ministry of Industry and Trade highlighted that over 90% of these exports are high-value furniture. Despite Vietnam’s small market share, the UK is among the top five global importers of wooden furniture, offering substantial growth opportunities, especially with the UK’s upcoming accession to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) in 2024.
Vietnamese exporters face challenges due to the UK’s strict environmental and quality standards. The Ministry advises focusing on quality, enhancing design, upgrading production technologies, embracing sustainability, using digital marketing, and participating in UK trade fairs to increase visibility and attract new customers.
Hoài also noted the need for focusing on product design and brand development, as uniquely designed products currently make up less than 10% of exports. Leading companies are investing in design and marketing to increase the value of their products.
The UK continues to enforce regulations similar to the EU, such as the EU Deforestation Regulation, which demands traceability and accountability from businesses to prevent deforestation and forest degradation.
Vũ Việt Thành from the Ministry’s European-American market department urged Vietnamese businesses to thoroughly research the UK market and ensure supply chain transparency to avoid fraud and maintain product traceability.
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