Vietnam-UK Comprehensive Strategic Partnership: Business Opportunities

Vietnam and the UK have officially elevated their bilateral relationship to a Comprehensive Strategic Partnership, marking another stride toward future cooperation in trade, investment, and sustainable development.

On October 29, 2026, Vietnam’s Party General Secretary To Lam and UK Prime Minister Keir Starmer issued a joint statement in London, announcing the upgrade. This milestone marks a significant step in bilateral relations since 1973, when the UK – one of the first Western countries – established diplomatic ties with Vietnam.

Vietnam-UK bilateral relations

Over more than five decades, their cooperation has continually strengthened and has been extensively integrated into various fields. In 2020, on the partnership’s 10th anniversary, both sides issued a joint statement outlining next steps for the coming decade, focusing on seven key areas, including:

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• Politics and diplomacy;
• Trade, investment, and business environment;
• Sustainable development;
• Education training;
• Defence, security, and organized crime prevention;
• People-to-people and equality initiatives; and
• Regional and international issues.

Among these fields, trade and investment cooperation are key drivers of the strengthening partnership. Since the Vietnam–UK Free Trade Agreement (UKVFTA) took effect in 2021, the bilateral trade has steadily grown despite challenging global economic conditions.

The UK is Vietnam’s third-largest trading partner in Europe, while Vietnam is the UK’s top partner in Southeast Asia. The deepening economic links present a unique opportunity for Vietnam to serve as a gateway for the UK to access Southeast Asian markets and help bridge UK–ASEAN cooperation.

Meanwhile, the partnership is supported by multiple bilateral mechanisms, including the Strategic Dialogue at the deputy ministerial level, the annual Defence Policy Dialogue at the deputy ministerial level, and the Joint Economic and Trade Committee (JETCO), which has been maintained. The two countries also work closely together on peacekeeping, cybersecurity, organized crime prevention, and migration management.

See also: Vietnam Issues Preferential Tariffs, Rules of Origin Guidelines for UKVFTA

Main aspects of Vietnam-UK Comprehensive Strategic Partnership

According to the joint statement, both sides confirmed their dedication to further improving economic cooperation, a central element of their bilateral relationship. 

Deepening economic cooperation

Both parties reaffirm their commitment to strengthening economic ties and upholding a fair, rules-based trading system. Vietnam and the UK pledge to maintain fair and transparent market conditions by removing barriers and ensuring smooth bilateral trade. Both agree to coordinate closely to implement and review the UKVFTA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) effectively.

Promoting green finance

Both are dedicated to mobilizing green finance focused on low-emission, resilient growth through the Vietnam–UK Green Finance Partnership. The two countries plan to enhance collaboration in the design and implementation of transparent, effective trade-finance mechanisms. Both sides agree to work together on developing international financial centers in Ho Chi Minh City and Da Nang.

Collaborating for innovation

Both Vietnam and the UK aim to enhance cooperation in science, technology, innovation, and digital transformation as essential drivers of sustainable development.

Trade performance

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According to data from the General Department of Customs (GDC), Vietnam–UK two-way trade reached more than US$8.4 billion in 2024, an increase of 18 percent year-on-year, benefiting from preferential tariffs under the UKVFTA, which has been in force since 2021.

The Ministry of Industry and Trade (MoIT) noted that Vietnam’s 2024 trade growth with the UK outpaced its average trade growth with the EU (16.8 percent), Europe overall (17.2 percent), and global markets (15.4 percent).

Positive momentum continued through the first nine months of 2025, with bilateral trade reaching US$6.93 billion, up 6.62 percent over the same period in 2024.

Vietnam’s exports to the UK

In 2024, Vietnam’s exports to the UK hit a record of US$7.5 billion, an 18.9 percent increase, while in 2025 the figure totaled US$6.22 billion, a 9.84 percent increase. Vietnam’s post-Covid rebound in exports to the UK was fueled by significant gains in key product categories, including machinery and equipment, computers and electronics, footwear, and textiles.

Vietnam’s imports from the UK

Vietnam’s imports from the UK reached US$881.1 million, marking a 10.8 percent increase year over year, which boosted the trade surplus to over US$6.6 billion, up 21.4 percent. Meanwhile, in 2025, Vietnam’s imports from the UK totaled US$715.3 million, reflecting a 20.41 percent rise. UK shipments to Vietnam mainly focused on technology-intensive and high-quality inputs like machinery, automobiles, basic chemicals, medical equipment, and pharmaceuticals.

UK investments in Vietnam

The UK currently has 587 investment projects in Vietnam worth US$4.46 billion, focusing on finance and banking, information technology, renewable energy, education, healthcare, logistics, and real estate.

The large areas of existing investments have laid the groundwork for more collaboration between businesses on both sides across various fields.

Financial services

The UK remains a major investor in Vietnam, strongly concentrated in finance and banking. Momentum is set to accelerate ahead of the Viet Nam–UK Business Summit 2025, which will spotlight cooperation in developing Vietnam’s international financial centres in Ho Chi Minh City and Da Nang. UK officials reaffirm continued support for Vietnam’s sustainable growth objectives, including green finance, climate resilience, and high-quality financial services.

Green growth and clean energy

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Cooperation on renewable energy has deepened through initiatives such as the Just Energy Transition Partnership (JETP), where the UK plays a key coordinating role. British offshore wind companies carried out a multi-city mission in 2025 to assess Vietnam’s offshore wind infrastructure, meet developers, and explore supply-chain partnerships.

Projects by UK firms, including ODE Ltd, Scott Wilson, Quantum Science, and BP Group, underscore growing collaboration in offshore wind, green hydrogen, green ammonia, and advanced energy technologies. Discussions focused on financing, investor selection, and supply-chain development as Vietnam pursues ambitious offshore wind targets of 6–17 GW by 2035.

Healthcare, biopharma, and life sciences

Healthcare investment continues to grow, driven by long-term partnership initiatives. Notably, VNVC and GSK have strengthened their strategic alliance to include research, manufacturing, and access to new vaccines and specialty medicines through a five-year, £500 million (US$660 million) program. UK-based medical charities, including Facing The World, are expanding their collaboration with Vietnamese partners to improve patients’ access to high-quality medical care.

Aviation and advanced manufacturing

The aviation sector emerges as a notable channel of UK–Vietnam industrial cooperation. Vietjet’s order of 100 Airbus A321neo aircraft will support extensive UK-EU supply chains while enabling the carrier to modernize its fleet and reduce emissions. These investments align with Vietnam’s broader push to upgrade logistics, increase international connectivity, and transition to cleaner aviation technologies.

Emerging industries

New opportunities are emerging in advanced technologies, with UK and Vietnamese organizations exploring collaboration in AI, 6G networks, quantum-dot applications, and infrared sensor technology. These technology-driven partnerships complement Vietnam’s broader digital-economy agenda and the UK’s strengths in R&D-intensive innovation.

Education, science, and research collaboration

Education and science–technology cooperation continues to flourish, with around 12,000 Vietnamese students studying in the UK and multiple UK universities operating campuses in Vietnam.

A recent high-level forum in London brought together more than 80 experts and institutions. At the event, four Memoranda of Understanding (MoUs) were signed between top-tier education institutions from both sides, including:

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• Hanoi University of Science and Technology and the University of Bradford;
• University of Transport and Communications and Brunel University London; and
• The British University Vietnam (BUV) and Manchester Metropolitan University.

These agreements strengthen joint research, dual-degree programmes, and faculty–student exchange, reinforcing education as a key pillar of the bilateral relationship.

Outlook for businesses

With both the UKVFTA and CPTPP now in effect, the MoIT assesses that Vietnamese businesses have significant potential to expand market access, with export revenue to the UK expected to soon exceed the US$10 billion mark.

Under the tariff-reduction schedules of these two high-standard FTAs, Vietnamese products are gaining a distinct competitive advantage over similar goods from countries without an FTA with the UK, including China, India, Pakistan, Thailand, Malaysia, Indonesia, and several South American markets.

At the same time, strategic investments from the UK continue to promote Vietnam’s development across various sectors, strengthening economic ties and fostering innovation. Ongoing collaboration promises deeper integration, supporting Vietnam’s sustainable growth goals and global competitiveness.