The UK has officially joined the CPTPP, which will enhance bilateral trade with Vietnam, expected to reach £6 billion ($7.7 billion) by 2024. The partnership offers new market opportunities, strengthens existing trade agreements, and opens avenues for collaboration in multiple sectors, emphasizing sustainability and financial expertise.
The recent accession of the United Kingdom (UK) to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is poised to significantly enhance trade relations between the UK and Vietnam. The British Consul General in Ho Chi Minh City, Alexandra Smith, highlighted that the UK’s inclusion in the CPTPP will provide substantial benefits for bilateral trade, which has already doubled over the past decade, reaching £6 billion (approximately $7.7 billion) by 2024.
The CPTPP offers British businesses access to a broader Indo-Pacific market, presenting opportunities for robust economic growth. In addition to strengthening existing ties established through the UK-Vietnam Free Trade Agreement (UKVFTA), the CPTPP facilitates a more stable trading environment, which is vital for attracting investment and fostering collaboration across sectors, such as agriculture, healthcare, and technology. Smith also underscored the importance of sustainability, pointing out that British investors are increasingly attentive to environmental issues and are encouraged by Vietnam’s leadership in sustainable practices.
The UK is the 15th largest foreign investor in Vietnam, with significant contributions to sectors like agriculture and food and drink exports, which have seen substantial growth in recent years. As Smith noted, British whisky and frozen seafood have gained considerable traction in the Vietnamese market. The introduction of CPTPP further complements the existing trade landscape, allowing businesses from both nations to expand their reach and operational capabilities.
To maximize trade opportunities arising from both the UKVFTA and CPTPP, Smith advised Vietnamese enterprises to harness UK expertise in high-quality professional services, including finance and consultancy, which are crucial as Vietnam embarks on ambitious infrastructure projects. The UK’s Export Finance (UKEF) is also an essential asset, offering £5 billion ($6.4 billion) in support for projects involving UK goods and services.
Looking ahead, strategies to deepen economic cooperation include planned training workshops aimed at educating businesses about CPTPP benefits and facilitating greater collaboration between the UK and Vietnam’s tech sectors. Overall, increased partnership opportunities to foster mutual growth pave the way for a promising era in UK-Vietnam relations.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trade agreement aimed at promoting economic cooperation among member countries in the Asia-Pacific region. The United Kingdom’s recent accession to the CPTPP marks a milestone as it becomes the first non-founding economy to join. This integration is expected to strengthen the already growing trade relationship between the UK and Vietnam, driven by the previous UK-Vietnam Free Trade Agreement (UKVFTA). Both agreements facilitate access to broader markets, reduce trade barriers, and enhance collaboration across sectors, particularly as businesses address environmental and sustainability concerns.
In conclusion, the UK’s membership in the CPTPP heralds a new chapter of trade relations with Vietnam, reinforcing the foundations laid by the UKVFTA. The enhanced trading environment will empower businesses to exploit new markets and opportunities, particularly in sectors requiring expertise and sustainable practices. Through strategic partnerships and collaboration, both nations can leverage their strengths, driving mutual economic growth in the coming years.
Original Source: vietnamnews.vn
