The UK has officially joined the CPTPP, enhancing trade relations with Vietnam. Bilateral trade is projected to rise to £6 billion by 2024, with significant opportunities for collaboration in various sectors, particularly in sustainability and technology. UK Export Finance (UKEF) has earmarked $6.4 billion to support projects in Vietnam, underlining the commitment to strengthen economic ties. Upcoming events will further facilitate partnerships between UK and Vietnamese businesses, aiming for mutual growth.
The UK has recently joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), becoming the first non-founding economy to do so. This landmark accession is expected to significantly enhance the trade relationship between the UK and Vietnam, with bilateral trade nearly doubling from £3 billion in 2014 to an anticipated £6 billion by 2024. The CPTPP serves as a critical gateway for British businesses aiming to tap into the dynamic markets of the Indo-Pacific, fostering further collaboration and investment opportunities.
As the Consul General of the UK in Ho Chi Minh City, Alexandra Smith highlighted that stability and transparency are crucial for attracting investment and fostering bilateral trade. The UK is the fifteenth largest investor in Vietnam, and with the CPTPP now in effect, this relationship is poised for substantial growth. Notably, exports of UK food and drink to Vietnam have surged, evidencing the country’s increasing preference for British products, such as whisky and frozen seafood. Conversely, Vietnamese agricultural goods are becoming staples in UK supermarkets, showcasing a reciprocal trade dynamic that is set to flourish with the new trade framework.
Furthermore, Smith emphasized the importance of sustainability, noting that UK investors are increasingly attentive to environmental concerns. She commended Vietnam for taking a leadership role in sustainability initiatives within the region, which aligns with global trends toward greener business practices. Both UK and Vietnamese businesses stand to gain from reduced trade barriers and a predictable trading environment, enabling them to compete effectively on the global stage.
5 billion pounds is allocated by UK Export Finance (UKEF) to support ventures within Vietnam involving UK goods and services. This financial backing is intended to empower Vietnamese enterprises to leverage UK expertise in various sectors, including financial services, architecture, and healthcare. Smith encourages Vietnamese businesses to actively seek collaborations with their UK counterparts, drawing on the UK’s history of excellence in professional services and financial solutions.
Upcoming events, including workshops and technology fairs, are planned to further promote partnerships between UK and Vietnamese businesses. The UK’s Southeast Asia Tech Week will take place in March 2025 in Ho Chi Minh City, while London Tech Week is set for June 2025, fostering technological collaboration and trade. With Vietnam’s ambition to evolve into a developed nation by 2045, the UK remains committed to strengthening ties in educational sectors, focusing on mutual growth and sustainability as central themes.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a significant trade agreement that includes several Pacific Rim countries, aimed at enhancing economic cooperation and reducing trade barriers. The UK’s accession to the CPTPP follows its departure from the European Union, thereby seeking new trade partnerships. Bilateral trade between the UK and Vietnam has seen remarkable growth in recent years, spurred by prior agreements like the UK-Vietnam Free Trade Agreement (UKVFTA) that further facilitate trade in various sectors. The collaboration between these two countries is expected to deepen significantly, presenting opportunities for businesses across multiple industries.
In conclusion, the UK’s entry into the CPTPP marks a pivotal moment for UK-Vietnam relations and bilateral trade, which has already displayed substantial growth over the past decade. The agreement facilitates greater cooperation and investment opportunities, particularly in sustainability and technology sectors. Stakeholders from both countries are encouraged to leverage these developments to achieve remarkable outcomes, contributing to each nation’s continued economic growth and development ambitions.
Original Source: vietnamnews.vn
