Why Vietnam holds promise for UK PLC

25 August 2015

There are several good reasons why UK businesses should consider doing business with Vietnam, or invest in the country, which has been a member of the World Trade Organisation (WTO) since 2007.

As well as a low-cost labour force and a stable socio-political environment with growing industrial output, Vietnam has many mineral resources for processing and is also a gateway to wider trade in South East Asia.

In the wake of the global recession, Vietnam is striving to add value to its exports by changing from trading in raw materials such as crude oil, coal, rubber and rice to exporting processed products, including those incorporating developing technologies.

Meanwhile, imports comprise mostly raw materials, fuels and machines for domestic and export production.

Domestic demand is being driven by the country’s youthful population and their increasing affluence. The country has a middle class of about 20m, around the same as Australia or the Benelux countries.

UK investment in Vietnam is the largest in the EU, creating a high level of confidence in terms of international trade. Vietnam considers the UK as an important partner and understands the potential for developing closer economic co-operation.

Top exports from the UK to Vietnam are power generating machinery, general industrial machinery and equipment, medicinal and pharmaceutical products. Top imports to the UK from Vietnam are footwear, articles of apparel and clothing, furniture, coffee, tea, cocoa, spices and cashew nuts.

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