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Overview
Vietnam is an important destination for UK food and drink exports, with UK agri-food exports to Vietnam totalling around £150 million in 2019 to 2020. UK food and drink are renowned for their quality, provenance, and innovation. The UK’s Free Trade Agreements (FTAs) with Vietnam are helping our farmers and UK businesses to capitalise on the growing demand for international food and drink in Vietnam, and benefit from new opportunities to sell to Vietnamese consumers.
Trade agreements between the UK and Vietnam provide opportunities for UK exporters to build trading ties with a rapidly growing economy. While the food and drink sector may take advantage of a range of preferential tariffs for exports to Vietnam, other benefits include faster release of goods from customs and geographical indication protections.
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 deal does not replace the existing UK-Vietnam trade agreement which has applied since 2021. UK food and drink businesses will be able to benefit from both agreements simultaneously.
New rules of origin options
The origin of a good is where it has been grown, produced or manufactured, and is not necessarily the country where the good is shipped or bought from. For goods to receive a preferential tariff, the goods must meet the specific rules of origin for that agreement. The UK-Vietnam FTA and CPTPP have different rules of origin that must be met to receive that agreement’s preferential tariffs. UK businesses may choose which rules of origin they will meet to receive a preferential tariff.
Some food and drink products, such as non-processed foods, may be straightforward in proving their origin in the UK. For example, vegetables grown in the UK are likely to be wholly originating and can access preferential tariffs under both trade agreements. For processed food and drink items, such as ready-meals or cereals, it will need to be determined if enough ingredients are suitably sourced to meet rules of origin.
Under the UK-Vietnam FTA, businesses may count ingredients sourced from the EU towards their UK originating inputs. Wholly originating goods qualify for preferential tariffs where they apply. Product-Specific Rules describe the required changes that non-originating materials must undergo for a good produced using those materials to be considered ‘originating’ and are specific to the trade agreement being used.
The UK and Vietnam have continued to protect established supply chains by ensuring that UK food and drink businesses are able to continue using EU inputs in their exports to Vietnam for key agri-food products whilst still meeting the rules of origin requirements.
This particularly benefits UK manufacturers and processors, who can continue to use EU inputs in their agri-food products without incurring additional tariffs when they export these products to Vietnam. For example, biscuits made using flour from the EU have the flour component cumulate towards being UK originating and receiving preferential tariffs when exported to Vietnam.
Under CPTPP, food products sourced from other CPTPP countries count towards products meeting CPTPP rules of origin and receiving CPTPP preferential tariffs. For example, confectionary made from sugar from Malaysia and flour from Canada would have the sugar and flour components count towards being originating in the UK and receiving preferential tariffs when exported to all CPTPP countries (not just Malaysia or Canada). EU materials do count towards being originating under CPTPP.
For more information on the rules of origin requirements and how to claim for preferential tariff treatment, see our rules of origin explainer.
Reduced tariffs and tariff rate quotas (TRQs)
Joining CPTPP means over 99% of current UK goods exports to CPTPP will be eligible for tariff-free trade, making it cheaper for UK businesses to export their goods to Vietnam. This tariff reduction includes key UK food and drink products such as chocolate and dairy.
Although the UK has joined CPTPP after it was agreed by the original 11 members, the UK will ‘catch up’ on tariff staging, which means we are benefitting from the same reduced tariffs that all other CPTPP members do.
Where rules of origin are met, tariff preferences are available. If the conditions for preferential access are not met, the (often higher) Most Favoured Nation (MFN) rate applies.
UK food and drink businesses have access to low tariffs for key food and drink products covered by TRQs. TRQs allow a limited quantity of a product to be imported at a preferential tariff rate. Once the volume of imports has been reached, a higher tariff rate is applied though there is no limit on the total quantity of the good to be imported.
For more information on reduced tariffs and TRQs, please see our tariffs and customs guide.
Customs
The UK and Vietnam have committed to ensuring that custom procedures are predictable, consistent, and transparent to facilitate trade and minimise financial and administrative burdens for businesses. Predictable customs procedures reduce the time and costs involved for UK food and drink businesses exporting products to Vietnam, particularly for small to medium sized enterprises (SMEs).
The UK and Vietnam also both promote the use of electronic certification and other technologies to facilitate trade. This reduces administrative processes and improves document security, enabling smoother trade for businesses. For instance, documents may be submitted electronically prior to the physical arrival of goods. For food and drink products, this will allow them to be released in a timely manner, allowing them to be passed to the importer for proper storage or further processing as quickly as possible.
Further information on UK-Vietnam customs procedures can be found in our tariffs and customs explainer.
Sanitary and phytosanitary (SPS) measures
The SPS chapter contains commitments on greater transparency and information sharing on animal and plant health and food safety. These commitments will help UK businesses better understand how to access the markets of CPTPP members, including Vietnam. The requirement for CPTPP members to be transparent in how they undertake import checks, and for them to be carried out without undue delay, will help to ensure smoother and more timely trade. The chapter also establishes dialogue structures to resolve technical issues and provide routes to ease SPS related market access issues.
The agreement provides opportunity for cooperation on SPS export certification including a commitment to work together to progress the use of electronic certification, which will help to reduce administrative processes for businesses. For certain products, an Export Health Certificate (EHC) is required to obtain an import permit. Please refer to the UK's Animal and Plant Health Agency website for more information on whether your product requires an EHC.
For more information on SPS measures, see our sanitary and phytosanitary guide.
Geographical indications
Geographical Indication (GI) protection is a collective intellectual property right for food, wine and spirit drink names linked to places. A GI guarantees a product’s characteristics or reputation, authenticity and origin, and protects the product name from misuse or imitation.
British food and drink products, particularly luxury products and those seen as 'traditionally British’, are popular in Vietnam. The GIs in place allow UK exporters to capitalise on this demand in the Vietnamese market. The UK and Vietnam have agreed to continue to protect geographical indications that had previously been mutually recognised, maintaining recognition of key UK brands and products in the Vietnamese market. This includes protections for Scotch Whisky, Irish Whisky/Irish Whiskey/Uisce Beatha Eireannach, Irish Poteen and Irish Cream.
The provisions in CPTPP further ensure that Parties provide open and transparent procedures when protecting GIs under domestic laws and regulations. These include considering whether a term is a commonly used descriptive term in that market and providing procedures to oppose and cancel GIs.
Opportunities for digital trading
Electronic authentication and electronic signatures
Electronic signatures and electronic authentication increase trust in e-commerce by helping to verify that transactions, and the people behind them, are genuine. Strengthening the legal validity of electronic signatures provides greater confidence that transactions can be concluded through electronic means.
By using electronic signatures and/or electronic authentication, you can complete transactions in a matter of minutes regardless of where your counterpart is, reducing costs and simplifying processes.
CPTPP ensures that electronic signatures are considered valid by all CPTPP countries, and individuals and businesses can confidently use them.
However, CPTPP countries might impose specific criteria regarding electronic signatures, including some circumstances where electronic signatures are not accepted. You should check local regulations for more information.
You have the freedom to determine the best way of authenticating your transaction. However, for some transaction categories, there can be specific requirements.
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.
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 food and drink business 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: