According to the Ministry of Industry and Trade, bilateral trade between Vietnam and the United Kingdom (UK) has recovered to nearly US$6.6 billion in 2021. Vietnam exported more than USD 5.7 billion, an increase of 16.4% compared to 2020.

Commodity groups with high sales growth include vegetables and fruits by 67%, coffee by 17%, pepper by 49%, rattan, bamboo, sedges, carpet products by 56%, iron and steel materials by 1,269%, steel products by 100%, and toys Sports equipment by 19%.

In the first six months of 2022, Vietnam’s exports to this market reached $2.91 billion, up 1.1% from the same period in 2021.

The phones and components group led with $492.8 million, down 26.8% (from the same period in 2021) and accounting for 16.9% of total export sales.

Next is textiles, which reached USD 378.3 million in the first 6 months of 2022, up 39% and accounting for 12.9%. All kinds of shoes reached US$357.2 million, up 10.9%, accounting for a 12.2% share.

Other commodities showing good growth rates include: coffee up 138.8%; confectionery and cereal products by 31.5%; pepper by 26.7%; Electrical wire and cable increased by 98.9%.

However, the Department of Multilateral Trade Policy (Ministry of Industry and Trade) said there are still three challenges Vietnamese companies face in accessing the UK market.

The firstWhen exporting to the UK, Vietnamese companies may be faced with high standards in terms of technical requirements, food hygiene and safety, etc.

In addition, companies also have to respect some regulations related to sustainable development such as labour, environment… as the UK is a country very interested in these issues.

Monday, Vietnamese companies must compete fairly with companies from the UK and other countries, especially countries from the former British colony.

For UK businesses, competitive pressures stem from an understanding of UK consumer habits and a professional and methodical business organization system.

Meanwhile, competitive pressures from other countries, including former British colonies, stem from longer access to the British market, deeper cultural connections and even the ability to coordinate with more efficient British business systems.

Tuesday, Supply chain disruption challenges. The Ministry of Industry and Trade said the risk of supply chain disruptions and a sharp rise in freight rates due to high gasoline prices are also affecting the activities of Vietnam’s import and export companies.

According to the Ministry of Industry and Trade, goods from companies exporting from Vietnam may face difficulties in the near term amid high commodity, fuel and material prices.

For example, timber export orders are currently declining due to many challenges and difficulties when major markets such as UK, United States and EU experience high rates of inflation, which negatively affects the manufacturing business of timber companies and leads to difficult capital and labor costs for Company.

For the textiles and apparel group, many Vietnamese textiles, apparel and footwear companies are struggling with some difficulties in supplying raw materials and accessories due to disruptions, making it difficult for the companies to secure new contracts or expand production.

Some groups of raw materials and accessories for textile industry are imported from China. However, the concern is that the disease prevention measures from China will make it difficult to import products for production and the delivery time will be longer.