Jump to:
Overview
Vietnam has a rapidly growing technology market, driven by public and private sector initiatives. UK companies have significant opportunities to sell their technology services in Vietnam. The World Bank estimates that the Vietnamese digital economy will exceed £34 billion by 2025.
Ongoing initiatives include:
- telecommunications: transitioning the telecommunications industry to digital services and 5G technology, with numerous opportunities for UK technology companies
- smart cities: ongoing projects to enhance urban infrastructure using smart technology
- cybersecurity: with the digital economy's growth, cybersecurity is a priority, supported by government mandates and significant investment. Vietnam’s cybersecurity market is projected to grow at 15% per year from 2022 onwards
The UK’s technology sector is a thriving, innovative sector which ranked fourth globally in 2022. The UK is the third country, after United States and China, to reach the landmark of having a technology sector which is valued at over $1 trillion at the end of 2022.
Trade agreements between the UK and Vietnam provide many opportunities for UK tech exporters in the Vietnamese market. The agreements allow the UK further access to these opportunities and continue to cement both the UK and Vietnam as global leaders in technological innovation.
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 technology businesses will be able to benefit from both agreements simultaneously.
Tariff-free technology products
Digital products are free from import tariffs. This includes apps, software and other electronic products traded between the UK and Vietnam, keeping trading costs low for digital technology exporters.
Many physical technology goods, such as robots, smart watches and sensors, receive a 0% Most Favoured Nation (MFN) tariff duty. When using MFN tariff duties, there is no need for businesses to prove their product is originating from the UK. Please visit the Check duties and customs procedures tool to find available tariffs for specific products.
The UK and Vietnam have committed to making trade administration documents, such as customs forms, available in electronic form and to accept electronic submissions of those documents. Paperless trading will reduce costs for UK technology companies and will improve efficiency and transparency when exporting goods to Vietnam.
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.
For more information on tariffs and moving goods through customs, please visit our Vietnam tariffs and customs guide.
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.
The free flow of trusted data
The UK and other CPTPP countries have committed to allowing trusted data to flow freely between countries without unjustified restrictions. This is set out in Article 14.11 ‘Cross-Border Transfer of Information by Electronic Means'.
Data underpins everything from emails to electronic payments to shipments across borders. The deal will support UK businesses to provide modern services, ensuring that they can collect, process, and transfer data without facing unnecessary red tape.
These commitments provide a more certain and stable environment for businesses and do not interfere with the high level of protection afforded to personal data when it is transferred overseas. This is accompanied by a commitment that a framework must be in place for the protection of personal data in each CPTPP country, though these can be different regulations.
In the Article 14.13 ‘Location of Computing Facilities' CPTPP countries have committed to not imposing unjustified data localisation requirements (where data is required to be stored or processed in a specific territory as a condition for doing business in that territory).
The CPTPP countries have also committed to not imposing unjustified server localisation requirements (where a business is required to establish facilities in a specific territory).
This means you do not have to bear additional costs associated with storing or processing data overseas, nor do you have to set up new facilities in another country. These costs are particularly prohibitive for small and medium-sized enterprises (SMEs).
Please note that there might be exceptions to the information provided where you might still be restricted on where you move your data to, or you might be required to store your data in a specific location. You will still need to comply with UK and local regulations on data protection and data handling, which might be different across all CPTPP countries. You should consult domestic regulations on data protection and any local regulations on data localisation.
Data for business purposes can flow freely between the UK, Vietnam and other CPTPP members without unjustified restrictions. Businesses may collect, process and transfer data between the 2 countries with minimal red tape. For example, a dashboard controlling a manufacturing system located in Vietnam could be used from the UK.
This means UK businesses do not have to bear additional costs associated with storing or processing data overseas nor do they have to set up new facilities in Vietnam. These costs are often prohibitive to Small and Medium sized Enterprises (SMEs).
The UK honours the Trade-Related Aspects of the Intellectual Property Rights (TRIPS) legal framework, developed by the World Trade Organisation (WTO). Vietnam also complies with TRIPS and has steadily been making progress in Intellectual Property reform.
Trade in 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 British businesses will operate under the same rules of Vietnamese competitors. UK businesses 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 company providing training to customers in Vietnam on how to use a software system to provide their service from the UK, without being excluded for being UK-based.
Vietnam and the UK are encouraged to recognise one another’s professional qualifications where areas of mutual interest are identified. While decisions on recognition are for the Vietnamese regulator to make, this could allow UK businesses greater access to the Vietnamese market in areas such as engineering.
Please see our business travel explainer for further information.
Procurement
Government procurement opportunities allow private UK businesses to sell goods or services to foreign governments and public bodies at the central and local level, including numerous opportunities in the technology sector.
In Vietnam, UK businesses bid for government procurement opportunities on a level playing field to Vietnamese businesses. The decision-making process is often multi-layered and requires in-depth bid evaluation and selection. UK technology companies will need to have a high degree of involvement and communication with foreign suppliers and relevant government entities during the procurement process. Opportunities are published online on the Public Procurement website.
Conditions do apply. Visit our explainer on Procurement in Vietnam for more information.
Easier business travel
Business mobility 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 technology 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 mobility explainer and the website of the Embassy of Vietnam.
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: