HANOI: Britain and Vietnam on Friday finalised a free trade agreement, the second deal London has reached in Southeast Asia in as many days while deadlock continues over post-Brexit European Union arrangements. The deal with Vietnam comes into force January 1, 2021 and will be Britain's third, following Thursday's pact with Singapore and October's first post-Brexit trade deal with Japan.
Vietnam stands to benefit from tariff savings of £114 million ($150.6 million) on its exports while British exports will be £36 million better off, with 99 percent of tariffs eliminated once the agreement is fully implemented. British International Trade Secretary Liz Truss and Vietnam's Trade Minister Tran Tuan Anh on Friday finalised the deal which basically locks in the benefits of London's existing trading relationship with Vietnam under an EU deal.
"For sure this will be momentum for reform activities of Vietnam," Anh told reporters.
"Investors and businesses from the UK as well as partners in Vietnam will have big opportunities to take part in the process of restructuring and an investment wave to Vietnam to form new supply chains."
The ministers expect the deal will further boost bilateral trade, which tripled between 2010 and 2019 to $7.5 billion. John Walsh from the Royal Melbourne Institute of Technology's business school in Hanoi said the deal showed Vietnam was becoming increasingly confident in negotiating bilateral pacts.
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