A major trade breakthrough has unlocked up to £250 million in export opportunities for British pharmaceutical companies in Vietnam, following changes to local regulations that will make it
quicker and cheaper to sell UK medicines in the country.
The announcement comes as bilateral trade between the UK and Vietnam has grown by £1.2 billion to reach £8.1 billion in 2024, providing a significant boost to the UK economy.
The development will be a key focus at the latest meeting of the UK-Vietnam Joint Economic and Trade Committee (JETCO) today (14 July), co-chaired by Trade Minister Douglas Alexander and Vice Minister Nguyen Hoang Long. The talks aim to further strengthen trade ties and remove market access barriers for UK businesses in sectors like healthcare, finance, and renewable energy — all part of the government’s Plan for Change.
This milestone follows the launch of the UK’s new Trade Strategy, designed to secure agile, high-impact trade agreements that prioritise key industries, create jobs, and drive innovation.
As a result of UK government engagement, Vietnam has amended its laws to streamline the approval process for new medicines and vaccines. The changes now allow Vietnamese authorities to recognise approvals from trusted international regulators, including the UK’s Medicines and Healthcare products Regulatory Agency (MHRA). This means UK pharmaceutical firms can bypass lengthy and costly local registration processes for products approved by the MHRA within the past five years — cutting red tape and accelerating market access.
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”.
Today’s JETCO meeting will also cover cooperation in renewable energy, with both nations pledging to collaborate on developing Vietnam’s offshore wind sector. The UK’s offshore wind industry alone is projected to support 100,000 jobs by 2030.
In addition, discussions will highlight opportunities for the UK’s world-leading financial services sector, as Vietnam advances plans to establish its first International Finance Centre in Ho Chi Minh City. The initiative aims to modernise financial regulations and attract international investment, creating a simpler, more open environment for British firms to operate in the Vietnamese market.
The swift removal of trade barriers for pharmaceuticals, along with progress in financial services and clean energy partnerships, reflects the UK government’s commitment to securing quick, targeted trade wins in fast-growing markets, delivering tangible results from its new 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”. Photo by Lê Minh Phát, Wikimedia commons.