Enhancing UK-Vietnam Economic Growth Through CPTPP

The UK has joined the CPTPP, enhancing trade relations with Vietnam, projected to reach £6 billion by 2024. This partnership facilitates opportunities for collaboration across various sectors, bolstered by the UKVFTA, and aims to create a stable trading environment to benefit businesses between both nations.

The recent accession of the United Kingdom to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is set to significantly bolster the economic relationship between the UK and Vietnam. With bilateral trade anticipated to surpass £6 billion ($7.7 billion) by 2024, the UK becoming the first non-founding economy to join the CPTPP opens new avenues for businesses in both nations. This partnership enhances access to growing markets in the Indo-Pacific and Americas, significantly benefiting sectors such as agriculture, healthcare, financial services, and e-commerce.

Vietnam has witnessed a doubling of trade with the UK over the last decade, supported by frameworks such as the UK-Vietnam Free Trade Agreement (UKVFTA). The CPTPP will further create a stable trading environment, allowing firms from both countries to collaborate, streamline operations, and increase exports across diverse industries. Following the CPTPP’s implementation, the British Embassy in Hanoi and the British Consulate General in Ho Chi Minh City will continue to support businesses navigating these opportunities.

Vietnamese companies are encouraged to leverage the UK’s global expertise, specifically in professional services and financing, as they strive for modernization. UK Export Finance has allocated £5 billion ($6.4 billion) to support ventures involving UK goods and services. UK businesses are equally encouraged to explore collaboration opportunities in Vietnam, especially as the country positions itself for ambitious growth through its modernization initiatives.

To facilitate this engagement, the UK plans to conduct a series of training workshops in early 2025 to ensure both UK and Vietnamese businesses maximize the potential benefits of the CPTPP. Moreover, events such as the Southeast Asia Tech Week and London Tech Week will provide platforms for direct engagement between technology firms in both nations, highlighting the importance of innovation in future economic collaboration. This ongoing partnership aims to deepen the strategic ties established over the years and support Vietnam’s ambition towards becoming a developed nation by 2045.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trade agreement that facilitates stronger economic ties among member nations. The agreement enhances trade opportunities, reduces tariffs, and encourages investment, making it a pivotal framework for countries looking to integrate into the dynamic Indo-Pacific market. The accession of the UK marks a significant moment as it becomes the first non-founding member, emphasizing the UK’s commitment to expanding its trade relationships globally, particularly with Vietnam, a key market in Southeast Asia.

The accession of the UK to the CPTPP heralds a new era of economic cooperation between the UK and Vietnam. With the benefits of the UKVFTA combined with CPTPP’s expansive framework, both nations stand to gain significantly through strengthened trade relations, enhanced investment opportunities, and collaborative ventures in emerging sectors. By embracing these agreements and efforts to promote sustainability and innovation, both countries can work towards mutual growth and a prosperous future.

Original Source: vietnamnews.vn