UK trade with Vietnam - looking to the next 45 years
Exports Minister Baroness Fairhead speaks at the UK-Vietnam Business Forum, as part of the 45th anniversary of diplomatic relations.
This is an event which marks the 45th anniversary of the UK and Vietnam establishing diplomatic relations.
Now in our culture, I바카라 사이트ve been advised by my sleuths in DIT, that means that it바카라 사이트s a Sapphire anniversary, and sapphire indicates wisdom and good fortune.
And so with the theme of this event being Vietnam rising I바카라 사이트m very, very happy to sign up to that.
In fact when I look back, this is a testament to the foresight and wisdom of our foreign ministers at the time, Alec Douglas-Home in our country and Nguyen Duy Trinh.
It바카라 사이트s also testament to those who have worked to develop that relationship, including many of you in the room, as well as the UKABC.
The Cooperation Agreement today [between the UK-ASEAN Business Council and the Vietnam Chamber of Commerce and Industry] is another step forward, which is important.
And, of course, this is a testament to the leadership of the late President Tran and General Secretary Do 바카라 사이트 for whom we offer our most sincere condolences.
Opportunities in Vietnam
Because it would have taken very real foresight, back in 1973, to see what we바카라 사이트ve already managed to establish 45 years later, in 2018. In the past few months we바카라 사이트ve had ministerial visits from both sides, culminating in Deputy Prime Minister Pham바카라 사이트s visit this week, but a number of ministers, including myself, had the privilege to visit Vietnam and just see the opportunities there.
It바카라 사이트s also a clear reflection of Vietnam바카라 사이트s status as a respected member of the international system, a member now of the World Trade Organisation for 10 years 바카라 사이트 and with an upcoming Chairmanship of ASEAN, and a UN Security Council Seat in 2020.
I also know about the economic reforms having been there, and seeing Vietnam take itself up the league of the world바카라 사이트s best places to do business - 23 places in just the last few years.
So today my message is clear: there are very real opportunities, in very discrete areas in Vietnam.
The world is definitely pivoting more towards the Pacific. That is something we should embrace.
And Vietnam in that world is both a beneficiary but also an important contributor. And my belief in trade is that is has to go both ways - both countries need to benefit to make it a success.
Well, this is an economy that is growing - it grew 7% last year.
The World Bank predicts that in 20 years바카라 사이트 time it will be at the upper-end of the world바카라 사이트s middle-income economies 바카라 사이트 and one with around 100 million people.
And these aren바카라 사이트t just abstract figures, because having been there I can see the real opportunities, right now, for businesses that have the products that will service that market - whether they바카라 사이트re in services or goods.
And just think about that speed of growth. PWC predicts that in 2 years Vietnam will one of the World바카라 사이트s 20 biggest economies. So that바카라 사이트s a market the size 바카라 사이트 if you want to frame it - of Argentina, Switzerland or Saudi Arabia.
And our trade is already growing. Last year it grew by 10%.
British success in Vietnam
And there are many more opportunities here, because it really does play to areas of our strength.
So for example 바카라 사이트 the Vietnamese government is planning to get 90% of its population speaking English. If that바카라 사이트s successful, it will end up having more English speakers than Canada, Australia, New Zealand and Ireland combined.
As Vietnam develops, like other economies before it, it will need capital to fuel it, and services will become much more important to its GDP mix.
We as the second-largest exporter of services, with world renowned financial and legal services capabilities, are set to benefit and to help.
And the presence of UK companies in Vietnam is already substantial. Deloitte already has 800 professional employees there 바카라 사이트 whilst Grant Thornton is that country바카라 사이트s 6th-largest auditor.
And Vietnam is buying ever more high-quality consumer goods 바카라 사이트 so Diageo, for example, have a booming market there in Scotch Whiskey.
I believe there바카라 사이트s a session later on Vietnam as a 바카라 사이트connected and innovative nation바카라 사이트. That바카라 사이트s something again the UK can work with. We are leading the way in some research-intensive sectors like healthcare 바카라 사이트 GlaxoSmithKline employs 1,600 people, and AstraZeneca has a major presence too.
And all of these sectors are ones where we바카라 사이트re looking at the Industrial Strategy, supported by the Export Strategy. That in itself is supported by the science base of the UK.
We have 4 of the world바카라 사이트s top 10 universities, we바카라 사이트re ranked 3rd worldwide for academic citations, and we바카라 사이트re building that strength, as I said, though our Industrial Strategy. We aim to raise our R&D spend to 3% of GDP; we바카라 사이트ll be supporting artificial intelligence as that develops through fellowships, through 바카라 사이트Data Trusts바카라 사이트, which will seek to minimise the transaction costs for data 바카라 사이트 the fuel of AI.
And to be an innovation nation you have to be an education nation 바카라 사이트 it바카라 사이트s people that do that. The people inside British business, universities, institutions can help and are helping every step of the way.
So take schools. The UK is Vietnam바카라 사이트s number 1 choice for foreign curricula, and as I바카라 사이트ve said the Vietnamese government wants to extend English-language skills - so I hope we have some expertise there!
At university, the UK is one of the most popular overseas destinations바카라 사이트 in fact 4,000 Vietnamese students came here last year. And in the other direction, the University of Bedfordshire for example recently won Β£6 million-worth of contracts.
I was lucky enough to visit Hanoi and Ho Chi Minh City in July. Firstly, it바카라 사이트s a beautiful country 바카라 사이트 but, as Ross said, it바카라 사이트s also exhilarating. The growth is very real. And I saw what was happening on the university campuses.
I spoke at the British University in Vietnam바카라 사이트s new 2,500-capacity campus, a beautiful campus committed to build the connections with our country, and in Hanoi I witnessed the signing between the ICAEW 바카라 사이트 or the chartered accountants of England and Wales 바카라 사이트 with the Foreign Trade University. So we바카라 사이트re already building those skills, and professional skills are an excellent example of that.
And that바카라 사이트s why it바카라 사이트s important we바카라 사이트re here at his rather beautiful building, the Institute of Mechanical Engineers 바카라 사이트 a professional body with members across the world.
So Vietnam is a great place for education, for innovation, but having been there I look at some of the key areas that also stand out.
Very significant infrastructure opportunities for exporters; focus on building a healthcare system - and again we can do that; a focus on creative sectors 바카라 사이트 again that바카라 사이트s a brilliant opportunity.
How the British government can help businesses trade with Vietnam
Please have no mistake - the UK government is standing ready, both through the Industrial Strategy, and with DIT in exports and Overseas Direct Investment, to support you to do more in Vietnam.
We have a dedicated team based in Vietnam to help you navigate local markets and make those connections.
We have the GREAT Campaign - our major cross govt marketing campaign - and that is leading a 6-month campaign of events, which will culminate in the InspireMe festival 바카라 사이트 which is a 2-day celebration of British culture, music, food, fashion and much more.
We have funding to support businesses wanting to export to Vietnam. We also have development funding in areas such as green finance, future cities, trade facilitation; and up to Β£2 billion has been set aside to help export financing. That바카라 사이트s available in the Dong, so you can buy and sell British, but pay Vietnamese.
And we바카라 사이트re working ever more closely with the Vietnamese government, to identify any barriers to market access and make it easier for you to trade. Back in June, I know that Vice Minister Vuong and my colleague, Trade Minister Greg Hands, led the 10th UK-Vietnam Joint Economic and Trade Committee 바카라 사이트 or you may know it as the JETCO 바카라 사이트 and I believe the Vice Minister will recall they had incredibly useful discussions, on everything from Intellectual Property to Agriculture; from Education to Taxation.
And looking to the future, I believe that the trade between our 2 countries can flow even more than it does now, and that trade and investment both ways can continue to grow.
As many of you will know the EU is in the final stages of agreeing its trade agreement with Vietnam. We have been one of the most supportive Member States for that deal and we continue to support it now, looking to make that a UK-Vietnam Trade Agreement as we leave the EU.
And in July, we announced our 4, priority new Free Trade Agreements, for consultation, after Brexit. And one of those was to join the Comprehensive and Progressive Trans-Pacific Partnership, or 바카라 사이트 trotting off the tongue easily 바카라 사이트 바카라 사이트C.P.T.P.P.바카라 사이트, a trade agreement covering a number of countries 바카라 사이트 including, of course, Vietnam.
The consultation is out there right now. It finishes on October 26th and I would urge any business in this room, if you have particular areas you바카라 사이트d like to focus, or concerns, please feed into that consultation because it would be better if it was informed by you.
We want to take your interests into account, it바카라 사이트s out there for a few more weeks 바카라 사이트 please submit.
I come from a business background. I바카라 사이트m very clear that it바카라 사이트s you, businesses, that export, invest, not us.
So we at the Department for International Trade are here to help you succeed. We will try to help you play a key part in Vietnam바카라 사이트s future, and I know talking to British businesses that바카라 사이트s what many are equally determined to do too, so I look forward to celebrating a further continuing success, and wish you a really fantastic rest of the day.