Jump to:
Overview
Vietnam presents an attractive market for UK energy businesses. Vietnam is undergoing significant economic growth, which drives an increasing demand for energy – over 10% per year over the past 20 years. It is estimated that Vietnam needs to invest up to $203 million between 2021 and 2030 and a further $615 million between 2031 and 2050 to meet capacity demands.
Vietnam is committed to net zero emissions by 2050 with coal phasing out. The government has set ambitious goals to expand and modernise its power infrastructure, including substantial investments in power generation, transmission, and distribution systems. This includes a strong emphasis on renewable energy projects, in Vietnam renewable energy is expected to account for 30% to 39% of energy by 2030, and 67% to 71% by 2050, up from 26% in 2023.
Given Vietnam’s solar is currently the primary source of renewable energy in Vietnam and the sector continues to grow rapidly. Offshore wind is similarly set to grow rapidly, an area in which the UK is widely recognised and respected. The UK is home to the 4 largest offshore wind farms in the world and has the most installed capacity of offshore wind in Europe at around 14.2 GW.
With Vietnam aiming to scale up their offshore wind energy generation to 6GW by 2030 and up to 90 GW by 2050, opportunities will be available for UK businesses to export their expertise and invest in the emerging offshore wind sector. Opportunities include project financing, site survey, design/engineering, development and installation and operation and maintenance.
While delivery challenges remain in the form of pending policy, legal frameworks and regulation, the Vietnamese government has approved their ambitious Power Development Plan 8 and corresponding implementation plan. Beyond renewable energy, there are also potential opportunities in smart grids, storage, green hydrogen, and electric vehicles.
Trade agreements with Vietnam
The UK has 2 Free Trade Agreements (FTAs) with Vietnam:
- the UK-Vietnam FTA which entered into force on 1 January 2021
- the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement including 12 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK and Vietnam), which entered into force between the UK and Vietnam on 15 December 2024
The UK-Vietnam FTA should be read in conjunction with the EU-Vietnam FTA because the UK-Vietnam FTA incorporates provisions of the EU-Vietnam FTA.
The following Parliamentary report provides information about significant differences between the two.
The UK-Vietnam FTA will remain in force alongside CPTPP. At times, you will need to specify which agreement you choose to trade under (notably when applying rules of origin), but benefits from either agreement will mostly apply automatically. Our guides attempt to highlight where businesses may need to make an explicit decision.
CPTPP entry into force and ratification
As of 15 December 2024, CPTPP is in force between the UK and:
- Brunei
- Chile
- Japan
- Malaysia
- New Zealand
- Peru
- Singapore
- Vietnam
This means that the UK can access CPTPP provisions with said countries.
On 24 December 2024, CPTPP will enter into force between the UK and Australia; this means that the UK will be able to access CPTPP provisions with Australia from and including 24 December 2024.
The following countries have not yet ratified the terms of the UK’s accession:
Canada and Mexico.
This means that the UK cannot yet access CPTPP provisions with those countries.
This guidance will be updated following each of the remaining countries’ ratification of the terms of the UK’s accession to CPTPP and will include when CPTPP will enter in force between the UK and the relevant remaining country.
The UK being part of the CPTPP trade agreement does not replace the existing UK-Vietnam trade agreement which has applied since 2021. UK energy businesses will be able to benefit from both agreements simultaneously.
Investment
Provisions in FTAs help UK and Vietnamese investors benefit from increased transparency and simplification of investment administration.
The UK has had huge success in attracting Foreign Direct Investment in the offshore wind sector, contributing to the delivery of our world-leading ambitions, and securing our energy supply.
A more detailed explanation on the Investment provisions and how it can help businesses can be found in our investment explainer.
Tariff-free energy products
Many energy products, such as nuclear reactor parts and wind turbines, receive a 0% Most Favoured Nation (MFN) tariff duty. When using MFN tariff duties, there is no need for you to prove your product is originating from the UK. Additional products have tariffs reduced or eliminated under the FTAs, please visit the Check duties and customs procedures tool to find available tariffs for specific products.
Digital products are free from import tariffs. This includes apps, software and other electronic products traded between the UK and Vietnam. For instance, software to monitor energy generation performance is tariff-free to export.
For more information on tariffs and moving goods through customs, visit our Vietnam tariffs and customs explainer.
Paperless trading
Paperless trading refers to the conduct of trade activities using electronic rather than paper documents. This reduces administrative costs and improves efficiency of processes, benefiting UK businesses across all sectors.
The UK and CPTPP countries are committed to facilitating the flow of trade activities using electronic trade documents.
CPTPP countries have committed to making trade administration documents available in electronic form and to accept electronic versions of those documents. This refers to documents which are required in connection with the import or export of a good and must be presented to customs authorities.
Beyond CPTPP, the UK also enables commercial trade documents that use English law to be accepted in electronic form. This includes documents such as bills of lading, promissory notes, and bills of exchange. This was enabled by the Electronic Trade Document Act.
This complements the commitments made on paperless trading related to trade administration documents required by the UK government or other CPTPP countries as part of the import-export process. Find more information about the UK’s Electronic Trade Documents Act.
Different countries are at different stages of legislating for paperless trading and trade digitalisation. The United Nations Economic and Social Commission for Asia and the Pacific has created an interactive Model Law on Electronic Records (MLETR) tracker where you can view different countries’ progress.
Electronic authentication methods such as e-contracts and e-signatures between UK and Vietnamese businesses have the same legal validity as material contracts. This allows you to have certainty when agreeing to supply goods or provide services without needing to visit Vietnam to sign contracts.
The UK and Vietnam have committed to make trade administration documents, such as customs forms, available in electronic form and to accept electronic submissions of those documents. This will simplify and speed up customs processes for energy businesses.
The UK’s commitment to paperless trading was reinforced through the introduction of the Electronic Trade Documents Act in 2023, granting electronic trade documents the same legal status as paper trade documents. Find out more information about the Electronic Trade Documents Act.
Data for business purposes can now flow freely between the UK, Vietnam and other CPTPP members without unjustified restrictions. You may collect, process and transfer data between the 2 countries with minimal red tape. For example, data on monitoring energy production in Vietnam can be transferred to the UK for analysis.
Further information can be found in our Trading Digitally explainer.
Procurement
The Vietnamese government is the leading purchaser of goods and services in Vietnam. As a rapidly growing economy, Vietnam has an increasing need for infrastructure in general, as well as opportunities in the energy sector such as grid infrastructure.
Vietnam’s Ministry of Planning and Investment has an e-procurement portal called the Vietnam National E-Procurement System (VNEPS) which provides information on public procurement opportunities.
Conditions do apply, visit our explainer on Procurement in Vietnam for more information.
Vietnam is currently in the early stage of developing the wind market with the legal framework and procurement procedures to be completed, meaning developers are to work directly with the Ministry of Industry and Trade and other relevant Ministries, with support from DBT Vietnam team.
Services
UK businesses providing services in Vietnam will be treated on a level playing field to Vietnamese businesses (for sectors that are within scope), meaning you will operate under the same rules as Vietnamese competitors. You are not required to have a business presence, such as a subsidiary or branch office, in Vietnam to provide services.
This would allow, for example, a UK business providing consultancy services on an energy project in Vietnam to provide their service from the UK, without being excluded for being UK-based.
Product regulation
The Vietnamese approach to conformity assessment is like that of the UK. Vietnam uses the CR mark which is regulated by the Vietnam Directorate for Standards, Metrology and Quality (STAMEQ), a body of Vietnam’s Ministry of Science and Technology (MOST). Products must be tested against Vietnamese National Technical Regulations. For more information on Vietnamese regulations, visit this page (home page only in English, remainder in Vietnamese).
To find conformity assessment bodies who can test your products against UK and/or Vietnamese regulations, search the ‘Find a conformity assessment body’ service on GOV.UK or go to the UKAS website for more information.
Most conformity assessment bodies are accredited by the UK Accreditation Service (UKAS), which is appointed by the UK government to assess and accredit conformity assessment bodies. The main exceptions are medical devices and pharmaceutical products, for which the Medicines and Healthcare Regulatory Authority is responsible for accreditation.
For more information, please view our Product Regulation guide.
Easier business travel
Temporary entry provisions in the CPTPP agreement support the temporary movement of professionals to deliver services and invest in businesses in person. Joining CPTPP will support economic growth, innovation, and collaboration between the UK and Vietnam by making temporary movement of professionals easier.
These benefits give businesspersons more options and flexibility for business travel, as well as often allowing them longer periods of stay in other countries to carry out business activities.
CPTPP recognises the following categories of businesspersons in Vietnam:
- Business Visitors (including Investors)
- Installer and Servicer
- Intra-Corporate Transferees
- Independent Professionals
- Contractual Service Suppliers
These provisions would allow a UK energy parts supplier to send a representative to Vietnam to negotiate a contract with a Vietnamese importer.
To read more about the business visas available for Vietnam, see our temporary entry guide.
Doing business in Vietnam
Vietnam is one of the world’s fastest growing economies, projected to grow at 6.3 percent in 2023 (World Bank), with growing appetite for UK goods and services. This offers many exciting opportunities for exporters: Vietnam is a market with 100 million consumers, rising middle class and rapid urbanisation.
Total trade in goods and services (exports plus imports) between the UK and Vietnam was £6.4 billion, in current prices, in the 4 quarters to the end of Q3 2022, an increase of 20.5% or £1.1 billion from the 4 quarters to the end of Q3 2021. This makes it an attractive market for UK technology companies. Vietnamese companies are also extremely loyal and open to forging long-term business relationships.
Department for Business and Trade support
The Department for Business and Trade (DBT) helps businesses export, drives inward and outward investment, negotiates market access and trade agreements, and champions free trade. Helpful links, tools and services available from DBT and wider government include:
Export Support Service (ESS) team
Get support on how to do business abroad. You may also be eligible for 1-2-1 support from a local International Trade Adviser. Businesses in Wales can also access support from Business Wales.
Export Support Service – International Markets (ESS-IM)
DBT's overseas in-market export support service for SMEs with high-export potential. Our International Market Advisers provide tailored support and market introduction information to new and current UK exporters looking to enter or expand into new markets. The service may be accessed globally with International Markets teams in South Asia, China, the Middle East, Africa, Eastern Europe, North America and Latin America.
Sign up to access free training on how to grow your international sales.
Information on finance and insurance for UK exports.
Trade and investment factsheets
The latest statistics on trade and investment between the UK and individual overseas partners.
Overseas business risk profiles
Information for UK businesses on political, economic and security risks when trading overseas.
Advice and warnings about travel abroad, including entry requirements, safety and security, health risks and legal differences.
Check or report a trade barrier
If you encounter an issue when exporting to any country – report the issue and UK government officials will be able to assess the issue and consider the options we have open to addressing it as appropriate
Search for your specific product to find applicable tariffs for each market, explore rules of origin and step-by-step help on customs procedures
Check import duties and allows you to check the status of available tariff rate quotas
Useful resources
You can find more information about export opportunities, business culture and any existing trade barriers on our Vietnam market guide.
Prior to export, you must be aware of local regulations and import conditions in Vietnam that apply to your goods or services. This can include tax considerations, labour laws, intellectual property rules, labelling and packaging regulations, among others. The export guide above provides an introduction to Vietnam’s tax system.
To seek further information related to local regulations, business culture, or to find a local lawyer, translator, importer or distributor, you can use the following contacts:
- DBT’s Export Support Service International Markets team
- get in touch with DBT at the local British Embassy
- get in touch with the British Chamber of Commerce in Vietnam
To see information on political, economic and security risks when trading with Vietnam, please see: