UK Joins CPTPP: A Gateway to Enhance Bilateral Trade with Việt Nam
The UK has officially joined the CPTPP, enhancing trade ties with Việt Nam that have doubled over the past decade. With the CPTPP, the UK aims to strengthen bilateral relations, reduce trade barriers, and support Vietnamese development through expertise and financial aid, projecting significant growth in bilateral trade by 2024.
The recent ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by Peru marks a significant milestone as it allows the UK to officially become the first non-founding economy member of the CPTPP. This development is expected to enhance the UK-Việt Nam bilateral trade relationship, which has already doubled over the last decade—from £3 billion in 2014 to an anticipated £6 billion by 2024, propelled by the UK-Việt Nam Free Trade Agreement (UKVFTA).
Alexandra Smith, the British Consul General in HCM City, emphasizes that the CPTPP offers an important gateway to the wider Indo-Pacific and Americas regions. This integration will provide new opportunities for UK enterprises to expand operations in these rapidly growing markets. The CPTPP promises to create a stable and predictable trading environment that will encourage investment and business collaboration, particularly in agriculture, healthcare, and e-commerce.
The UK ranks as the 15th largest foreign investor in Việt Nam, and the kinship facilitated by both the UKVFTA and CPTPP is expected to further accelerate trade growth. The significant increase in UK food and drink exports—reaching £126 million in 2023, marking a 97% rise since 2019—illustrates Việt Nam’s growing consumer preference for British goods. Conversely, Việt Nam’s agricultural exports are increasingly available in UK markets, reflecting a mutually beneficial trade dynamic.
Consul General Smith advises Vietnamese companies to harness the UK’s renowned expertise in high-quality professional services and infrastructure development. The UK’s capabilities can substantially support Việt Nam’s ambitious modernization agenda, particularly in sectors like energy and telecommunications. Furthermore, UK Export Finance has committed £5 billion to support projects that utilize UK goods and services, ensuring that financial barriers do not hinder growth.
As the UK prepares for its full integration into the CPTPP, it is poised to organize a business reception and training workshops aimed at enhancing understanding of the agreement across both nations. Upcoming events, such as the Southeast Asia Tech Week and London Tech Week in 2025, will provide platforms for collaborative innovation in technology and beyond. Such initiatives will not only deepen bilateral ties but also support Việt Nam in its goal of achieving developed status by 2045.
The inclusion of the UK in the CPTPP signifies a landmark development in international trade relations, particularly for the UK-Việt Nam partnership. The CPTPP aims to facilitate trade between member countries, enhancing economic growth through reduced tariffs and common standards. This agreement complements the UKVFTA, which has already laid a solid foundation for trade expansion, reflecting the countries’ mutual interests in fostering economic prosperity. The UK and Việt Nam’s growing trade collaboration can bolster investments in both countries and addresses the demands of a dynamic global marketplace.
In summary, the UK’s accession to the CPTPP heralds a new era of economic collaboration with Việt Nam, presenting vast opportunities for trade expansion and investment. Both nations stand to benefit from enhanced cooperation across diverse sectors, particularly as the UK offers significant expertise in professional services and financial support schemes. Ensuring a stable, transparent trading environment will be key to maximizing these mutual advantages and driving sustainable growth in the coming years.
Original Source: vietnamnews.vn
