Source: United Kingdom – Government Statements
Trade win unlocks £250 million for British firms in Vietnam
Trade win unlocks £250 million in exports for British pharmaceutical firms in Vietnam.
Trade win unlocks £250 million in exports for British pharmaceutical firms in Vietnam
- Major pharmaceutical trade barrier with Vietnam removed as bilateral trade increased by £1.2 billion in current prices to £8.1 billion in 2024 in boost to UK economy
- Pharmaceutical sectors given boost making it faster and cheaper to sell UK medicines to Vietnam
- Trade Strategy in action as UK continues to eye fast deals across the globe for key industries to create jobs and boost innovation as part of our Plan for Change
British pharmaceutical companies are set to gain up to £250 million over the next five years as part of a Vietnamese law change that makes it easier to sell UK-made medicines to the country.
The announcement comes ahead of the latest Joint Economic and Trade Committee (JETCO) today [14 July] co-chaired by Trade Minister Douglas Alexander and Vice Minister Nguyen Hoang Long.
The meeting aims to deepen trade ties – which have risen to more than £8 billion – and remove barriers for UK businesses in key sectors like healthcare, finance, and clean energy – which will boost growth to deliver for working people as part of the Plan for Change.
It follows the launch of the UK’s landmark Trade Strategy which aims to secure more nimble deals while promoting sectors like financial services and renewable energy which drive the most economic growth.
Thanks to UK government efforts, Vietnam has changed its laws to streamline the registration of new medicines and vaccines, now recognising approvals from trusted international regulators such as the UK’s Medicines and Healthcare products Regulatory Agency (MHRA).
It opens to the door to more commercial opportunities for UK companies who can avoid time-consuming paperwork and expensive legal processes if their products have been approved in the last five years by the MHRA, making it cheaper, quicker and easier to sell products to Vietnam.
The JETCO will reflect the UK’s goal of deepening ties with fast-growing economies in Asia while supporting key sectors like life sciences, education, and green energy – core pillars of the UK’s Industrial Strategy.
Renewable energy will be on today’s agenda as both countries pledge to work together to support the development of Vietnam’s renewable energy sector, particularly around offshore wind, with the industry in the UK forecast to support 100,000 jobs by 2030.
Trade Minister Douglas Alexander said:
Vietnam is today a dynamic, fast-growing economy.
The removal of pharmaceutical barriers with one of our closest trading partners in Asia is a boost for the UK pharmaceutical industry and proof our Industrial and Trade Strategies are already delivering.
The UK is committed to strengthening its relationship with Vietnam, which is witnessing rapid economic growth and fast becoming a major global manufacturing base for electronics, textiles, and renewable energy.
Discussions will also celebrate the good news for our world-leading financial services sector as the government commits support for Vietnam to design its first International Finance Centre in Ho Chi Minh City which is expected to streamline regulations and encourage international investments, making it simpler for British firms to trade with Vietnam.
The swift removal of pharmaceutical barriers and progress on financial and energy collaborations with Vietnam demonstrates the government is securing quick wins through nimble, targeted interventions and delivering on the key ambitions of the newly launched Trade Strategy.
Miles Celic OBE, Chief Executive Officer, TheCityUK, said:
There is great potential for British firms and other international investors in Vietnam; it is a rapidly growing market with increasing demand for sophisticated financial products. There are also mutual benefits to be gained through sharing expertise in areas such as green finance, innovation, and digital transformation.
We’ve been working closely with the UK Government and British Embassy in Hanoi and Ho Chi Minh City to help lay the groundwork for the development of an international financial and business centre in Ho Chi Minh City and Da Nang and are very supportive of the government’s commitment to support its creation and its contribution to Vietnam’s economic growth and net-zero agenda.
Annex
Notes on analysis
The £250m over five-year figure is a mid-point of a range of £100m – £400m. The DBT methodology to value market access barriers can be found here:
https://www.gov.uk/government/publications/methodologies-for-valuing-market-access-barriers
Sources: