The British Embassy and Vietnam Ministry of Industry and Trade (MoIT) co-hosted conferences in Hanoi and HCM City focused on two-way trade opportunities arising through UK membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The first conference, titled 'The UK’s Accession to CPTPP', was organised on February 19 in Hanoi and brought together Government officials, businesses and experts to explore how the CPTPP can facilitate greater two-way trade.

It covered topics such as tariff reductions, diversifying supply chains via rules of origin and cumulation provisions, and market access for key industries like agriculture, pharmaceuticals, textiles, energy and infrastructure.

The conference was also an opportunity to hear from UK and Vietnamese businesses on using CPTPP and on trade between the UK and Vietnam.

"Vietnam and UK will greatly benefit from the enhanced trade and investment brought about by the CPTPP," said Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan.

"We welcome the interest from the UK in joining this high-standard agreement and creating even more opportunities for our businesses and people."

In 2024, the trade value between Vietnam and the UK reached US$8.4 billion, an 18% increase from the previous year. The UK has become Vietnam’s third-largest export market in Europe.

However, the Deputy Minister pointed out that there is still considerable room for growth because the total import-export turnover between the two countries has represented only 6.8% of Vietnam's overall trade, while Vietnamese goods has accounted for just 0.4% of the UK’s total imports and exports.

He also emphasised the importance of understanding and using the tariff benefits offered by the CPTPP and other trade agreements to maximise opportunities for business expansion and investment.

"The CPTPP has the potential to turbocharge trade between the UK and vibrant economies like Vietnam," said UK Ambassador Iain Frew. "Today's discussions showcased the modern, comprehensive rulebook that CPTPP provides to boost goods trade through lower tariffs and streamlined customs procedures."

Luong Hoang Thai, head of the Department of Multilateral Trade Policy under the Ministry of Industry and Trade, highlighted that the UK joining the CPTPP would provide substantial support to Vietnam's export activities.

Vietnam’s strong export products, such as textiles and electronics, will have access to the UK – a highly competitive market – enhanced. This will not only boost presence of Vietnam’s goods in the UK, but also enable the country to acquire advanced, high-quality and high-tech products from the UK, which could further support domestic industries.

Additionally, Thái emphasised that Vietnam’s domestic businesses could benefit from the opportunity to learn from UK companies in arenas such as clean energy and technology.

The UK’s membership in the CPTPP will also encourage greater foreign direct investment (FDI) from UK businesses into Vietnam, fostering mutual growth and collaboration between the two nations.

Phan Thi Thanh Xuan, deputy chairwoman and general secretary of the Vietnam Leather, Footwear, and Handbag Association, pointed out that the UK’s inclusion in the CPTPP presents several advantages for Vietnam’s footwear and handbag industries.

Domestic businesses have already capitalised on the CPTPP’s incentives for exporting to member countries. The UK market’s addition to the bloc allows companies to benefit from simplified export procedures and reduced costs and administrative burdens.

Moreover, Vietnam's footwear and handbag businesses will have greater access to raw materials for production, including those sourced from the UK as other CPTPP members like Canada and Australia. This increased availability of quality materials will enhance the competitiveness of Vietnamese products.

However, Xuan also noted that both the CPTPP and the UK-Vietnam Free Trade Agreement (UKVFTA) are new-generation trade deals. This means that exporting countries, including Vietnam, and their businesses, must upgrade their internal capabilities to meet the requirements of these agreements.

Environmental and labour standards, for instance, are critical areas that businesses need to focus on to align with the sustainability criteria stipulated in the agreements.

Nguyen Hoai Nam, deputy general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), echoed similar sentiments, particularly regarding the seafood industry.

He noted that the UK’s entry into the CPTPP offers significant tariff reductions and more favourable trading conditions, particularly for tuna products.

With the UK being a crucial market for Vietnamese seafood exports, this new trading environment will allow businesses to expand their reach while benefitting from lower tariffs and improved market access.

CPTPP provides better market access, especially for goods traded between member countries, said Tran Quoc Khanh, former deputy minister of Industry and Trade and former head of Vietnam’s Government Negotiation Delegation on international economic and trade issues.

One of the key benefits of the CPTPP is the rules of origin, which allow businesses on both sides of the trade agreement to maximise export opportunities and explore new markets with fewer restrictions, he said.

A standout feature of the CPTPP is the Trade in Services Chapter, which offers vast benefits for UK businesses operating in service sectors, according to Khanh.

This chapter could lead to increased collaboration and business opportunities in areas such as finance, education and technology.

Meanwhile, for Vietnam, the UKVFTA is another essential agreement that can provide an edge in areas like government procurement, green energy investments and renewable energy initiatives.

A second conference on Trade in Services, Investment & Movement of Businesspersons will be held on February 21 in HCM City. The conference will feature insights from UK service suppliers, sharing practical experiences in investing and conducting business in Vietnam.

Preventing counterfeiting MoU

An additional key moment of the conference was the signing ceremony of a Memorandum of Understanding between Vietnam’s Ministry of Industry and Trade and the British Embassy under the UK-ASEAN Economic Integration Programme. This MoU will facilitate the effective implementation of policies and laws on preventing counterfeiting and IP infringement in Vietnam.

The MoU marks a milestone for the bilateral partnership to enhance market surveillance capacity in Vietnam as an evolving leader in e-commerce. With the assistance from UK IPO, a Code of Conduct for e-commerce stakeholders will be implemented in the country.

The Code of Conduct will support a pipeline for e-commerce platforms in Vietnam to be more proactive in preventing counterfeits and IP infringement, removing violation to trademarks and cooperating with law enforcement agencies toward a safer, seamless and transparent e-commerce ecosystem. 

CPTPP, UKVFTA to boost UK - Vietnam trade relations

Together with the UK - Vietnam Free Trade Agreement (UKVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will create new opportunities for companies and consumers in the UK and Vietnam, affirmed British Ambassador to Vietnam Iain Frew.