Following Peru's ratification, the UK has secured the sixth and final ratification needed to trigger its accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

As the UK officially becomes the first non-founding economy to join the CPTPP, Việt Nam News reporter Thu Ngân spoke with British Consul General in HCM City Alexandra Smith about the UK's inclusion in the CPTPP and how this milestone will benefit the UK - Việt Nam bilateral trade relationship.

On December 15, CPTPP enterted into force for the UK. How does this significant milestone enhance the bilateral relationship between Việt Nam and the UK?

UK – Việt Nam trade has roughly doubled over the last decade, from £3 billion (US$3.8 billion) in 2014 to £6 billion ($7.7 billion) in 2024, largely underpinned by our bilateral UK – Vietnam Free Trade Agreement (UKVFTA) and will further expand with UK’s accession to the CPTPP.

CPTPP is a gateway to the wider Indo-Pacific and Americas region, bringing new opportunities for British businesses in the region that will account for the majority of global growth and half of the world’s middle-class consumers in the decades to come. 

In terms of further promoting the bilateral trade and investment that benefits both of our countries and enabling this relationship to reach its full potential, stability, predictability, and transparency continue to be the key for businesses and for attracting investment, as does enabling workers and investors to come to Việt Nam.

Foreign investors, including those from the UK, are also becoming increasingly sensitive to environmental and climate concerns, which is why I’m pleased to see Việt Nam beginning to lead the way in the region in sustainability.

With CPTPP coming into force in December, opening up a new trade era for UK and Vietnamese businesses, our teams at the British Embassy in Hà Nội and British Consulate General in HCM City are always ready to provide support. 

In addition to the UKVFTA, what other benefits will Vietnamese and UK enterprises gain from the CPTPP when the UK becomes a member of the agreement?

The UK is the 15th largest foreign investor in Việt Nam, with bilateral trade between the two countries doubling over the last 10 years, hitting £6 billion ($7.7 billion) by 2024. This was largely possible because of the UKVFTA, which came into force in 2021 and has accelerated the volume of trade, bringing more consumer choice to citizens in both countries. 

For example, in 2023, UK food and drink exports to Việt Nam reached £126 million, an increase of 97 per cent since 2019, showing Việt Nam’s appetite for British whisky, frozen seafood, and confectionary. 

In turn, Việt Nam’s agricultural products are now on the shelves in UK supermarkets. Besides the existing UKVFTA, this December, CPTPP will come into force between the UK, Việt Nam, and the majority of CPTPP members.  

I am optimistic that CPTPP will help boost UK – Việt Nam trade. Working together, these agreements will make it even easier for UK and Việt Nam businesses to expand operations and increase exports in agriculture, healthcare, financial services, and e-commerce. 

Businesses will not only benefit from reduced trade barriers but will also have a stable and predictable trading environment. This will enable firms to compete globally and partner together to trade across the Indo-Pacific, which includes some one the world’s most dynamic and fast-growing markets. 

What advice do you think Vietnamese companies should heed to successfully capitalise on the opportunities presented by both the UKVFTA and the CPTPP?

The United Kingdom is the second-largest exporter of financial services in the world, with exports reaching £88.7 billion ($113 billion) in 2022. This achievement reflects the UK's position as a global hub for high-quality professional and financial services.

The country is home to world-leading firms across various sectors, including architecture and design, auditing, legal, consultancy, and many others. These industries are renowned for their expertise, innovation, and ability to deliver solutions tailored to diverse markets.

Việt Nam, on the other hand, is undergoing rapid and transformative development, particularly in its infrastructure sector. From urban planning and transportation systems to energy and telecommunications, demand for professional services is growing exponentially as the country advances its modernisation agenda.

This creates significant opportunities for collaboration, where the UK's expertise in delivering complex services can contribute to Việt Nam's ambitious projects.

Moreover, the UK's role extends beyond services delivery to include robust support in financing. UK Export Finance (UKEF), a globally recognised Export Credit Agency, offers government-backed financing to promote international trade with the UK.

For the Vietnamese market, UKEF has earmarked £5 billion ($6.4 billion) in available finance to support projects and ventures that involve UK goods, services, and expertise. This initiative underscores the UK's commitment to fostering strong economic ties with Việt Nam while enabling businesses to overcome financial barriers to growth.

As Vietnamese businesses embark on new phases of development, I strongly encourage them to explore the UK's comprehensive offer of expertise and financing solutions. The UK’s track record in delivering high-quality services, coupled with UKEF's substantial financial support, can make a pivotal difference in ensuring the success and sustainability of projects in Việt Nam.

At the same time, I remain committed to promoting the vast opportunities available in Việt Nam to businesses in the UK. By fostering collaboration and building strong partnerships, we can unlock mutual benefits and drive economic growth in both nations. This is a dynamic and promising time for UK-Việt Nam relations, and I am confident that by working together, we can achieve remarkable outcomes.

Could you please share specific plans that the UK will implement in Việt Nam after becoming a member of the CPTPP?

The UK in Việt Nam network always stands ready to promote to British businesses Việt Nam’s appetite to trade with the world, with Việt Nam’s skilled workforce, manufacturing capability and growing domestic market. 

This December, we have held a CPTPP Business Reception in Hà Nội. This event marked an important milestone - the official entry into force of the CPTPP commitments for UK trade in Việt Nam on December 15. This agreement will open up new opportunities for co-operation between the UK and countries in the Pacific region, including Việt Nam, in areas such as sustainable growth, innovation and economic development.

We will partner with the Ministry of Industry and Trade and relevant Vietnamese authorities to organise a series of deep-dive training workshops for both UK and Vietnamese businesses to better understand CPTPP and maximise its opportunities in February 2025. 

Looking ahead, the UK is planning multiple events to bring our business communities together. At the end of March 2025, the UK’s Southeast Asia Tech Week will launch in HCM City, where the UK Government will bring a delegation of exceptional technology companies to engage with Vietnamese partners, seeking to build and create more opportunities for trade between the rapidly growing digital and technology sectors in UK and Việt Nam.

London Tech Week will take place in June 2025 and this is a great opportunity for Vietnamese tech and fintech companies to engage with UK businesses. 2025 will also mark the 15-year anniversary of the UK - Việt Nam Strategic Partnership. 

In the upcoming four years, I look forward to further deepening relations between our two countries for a better future for people in both our countries. Recently, we often talk about Việt Nam's ambition and aspiration to become a developed country by 2045 and in some speeches by Party General Secretary Tô Lâm at home and abroad, he mentioned the message "Việt Nam is facing a new historical moment, a new era - the era of national growth".

I and our growing team at the British Embassy in Hà Nội and the British Consulate General in HCM City, look forward to further deepening relations between our two countries, especially in education with a vision towards our mutual growth and sustainability.  — VNS