Hanoi (VNA) – Vietnamese exporters in thesteel and mechanic sectors expect to get easier access to the UK marketfollowing the signing of the UK-Vietnam Free Trade Agreement (UKVFTA) lastmonth.

According to the Vietnamese Ministry of Industry andTrade, the UK is Vietnam’s third largest trade partner in Europe.

Vietnam’s major exports to the UK include phones andcomponent, garments-textiles, footwear, seafood, wood and timber products,computers and components, cashew nuts, coffee, and pepper.

Previously, Vietnamese steel products had been mainlyshipped to Southeast Asian nations, the US and China, the Vietnam SteelAssociation (VSA) said, noting that there is ample room for those products toenter the UK market.

However, it is not easy to boost steel exports tothe country right in 2021 as the UK is a demanding market in terms of standardsand incentives. In addition, steel is not Vietnam’s strength.

Notably, the complex developments of the COVID-19pandemic in the UK and Europe have hindered the exchange of goods in generaland steel products in particular.

Given increased protectionism, it is necessary to shifttowards other markets apart from such traditional ones as ASEAN, China and theUS, and the EU-Vietnam Free Trade Agreement (EVFTA) and the UKVFTA are set tofacilitate Vietnamese steel exports.

The VSA suggested Vietnamese enterprises updatetechnologies and revamp their production process as well as business methods.

Dao Phan Long, Chairman of the Vietnam Associationof Mechanical Industry, pointed out weaknesses in production technologies,especially machinery and high-tech equipment, facing the domestic mechanicalsector.

There will be not many opportunities for Vietnamesemechanical product exporters, he said. Therefore, those firms should optimisethe agreement to attract British investments in mechanics, electronics,processing and manufacturing, in order to participate in production and supplychains.

Nguyen Duc Cuong, General Director of Hikari VietnamProduction and Trading Company Limited, said only companies that have long-termoperation plans with good administration methods can exist and grow in 2021.

Experts also emphasised the need for Vietnamesegoods to meet high-standards set by the UK regarding product quality,environment, hygiene and prices.

To that end, domestic firms must further applytechnologies, improve product quality and lower prices, while keeping a closewatch on changes in product standards, production process and customsprocedures, they said./.