How can Vietnam, UK best exploit CPTPP?

The United Kingdom (UK)'s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a really significant moment for the UK and for the CPTPP group as well as for Vietnam - UK bilateral relations, UK  Ambassador to Vietnam Iain Frew stated in his recent interview with VGP, according to the Government News.

The ambassador said, as quoted by the Government News, that  this is an agreement which will help to liberalize trade and investment between the two countries as well as between the UK and the rest of the CPTPP members.

"It also means that we are now going to have our businesses and our consumers able to have access to opportunities, goods and services and investment which previously would have been trickier. This accession leads to greater trade between our countries and it provides a very good basis for us to work together to support an open and effective international trading system", he noted.

The Ambassador expressed his gratitude to the Vietnamese Government for the strong support throughout the negotiation process.

As the CPTPP has come into force, both nations have the chance to help their businesses to take advantage of that and to boost trade and investment more hugely. With the UK's accession, the CPTPP countries now make up 15 per cent of the global GDP.

That is a very significant trading bloc and CPTPP as a group also represents some of the most progressive and advanced trading rules and regulations within this bloc globally, highlighted the Ambassador.

With the UK's accession to the CPTPP, it is spreading out beyond just the Pacific region. So, it is not only an opportunity for the UK but it is also an opportunity for the CPTPP group,  the diplomat told VGP.

Key benefits of CPTPP for Vietnamese, UK businesses

Regarding key benefits of the CPTPP for businesses of both countries, Mr. Frew said, the CPTPP agreement builds on the UKVFTA for those businesses operating already between the two markets.

There are areas in which the CPTPP agreement moves further and moves faster in liberalization of tariffs. Particular exports from both countries will benefit from this agreement and businesses will therefore be able to export with reduced tariffs or tariff free.

 

For example, Vietnamese exporters of rice or seafood or cassava flour are going to find that those tariffs are reduced faster while UK exporters exporting goods such as pork or poultry or chocolate are going to find that access to the Vietnamese market and lower tariffs are going to be easier.

It is clearly to see some benefits from some of the wider provisions of the CPTPP. The focus on digital trade and digital economy within the agreement is also going to open up further opportunities along with a wider benefit to supply chains.

It is not just about businesses that operate between the UK and Vietnam,  the diplomat said, adding that it is about international businesses between the two countries who have supply chains which stretch into other CPTPP members.

According to the ambassador, there are more opportunities to build new value, increase exports and attract greater investment because of those greater supply chain benefits.

The CPTPP agreement also has standards on transparency and predictability, which really give confidence to investors to increase that investment and to consider opportunities that they wouldn't have before.

In order to help businesses really take advantage of that, the UK Embassy is working together with the Vietnamese government and with both sides' businesses to explain what that CPTPP accession means.

Businesses need to build their own capacity, keep themselves well informed, learn about the new provisions, think about how that might have implications for their business, as well as what they might need to do to adapt, and to take advantage of that, he suggested.

In term of benefits brought by the UKVFTA, the Ambassador said, it is clearly to see the increasing trade between the two countries over the past decade, from £3 billion in 2014 to £6 billion in 2024.

That trend is expected to continue on the basis of the UKVFTA which has become effective since 2021. There is scope for businesses for both sides to do more and the CPTPP builds on that.

The Ambassador expressed his delight on close collaboration between the two governments in sharing information about priorities, about businesses and about the different sectors that both sides want to gain benefit.

The UK and Vietnam produce quite different goods and consumers are able to access things quite differently from the two countries. So that complementarity means that there's huge potential, shared the diplomat.

The UK and Vietnam have had the experience during the implementation process of the UKVFTA, so with the CPTPP, both sides are able to understand better which sectors already are utilizing the new provisions and which sectors need more support in order to take full advantage.

In 2025, the UK Embassy will join hands with Vietnamese relevant sides to organize a number of events, workshops with businesses and sessions to help upskill and help businesses understand where they can make the most of that, the Ambassador said.