(VAN) Vietnam has reached an agreement in which the United Kingdom will open more market access for Vietnam in addition to existing bilateral Free Trade Agreements (FTAs).

On June 25, the National Assembly passed a Resolution approving the Document of Accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) of the United Kingdom and Northern Ireland in electronic voting. With most participating delegates voting in favor, the National Assembly officially passed the Resolution ratifying the Document of Accession to the CPTPP Agreement.

According to experts, the United Kingdom's participation in the CPTPP Agreement not only helps businesses have more opportunities to expand export markets but also creates economic motivation and raises Vietnam's position in international markets.

Vietnamese seafood has more great opportunities
A representative of the Multilateral Trade Policy Department (Ministry of Industry and Trade) said that the United Kingdom is an essential partner for Vietnam, so the United Kingdom joining CPTPP will create more export markets for Vietnamese goods.

In addition, during the negotiation process between the United Kingdom and Vietnam on joining the Agreement, Vietnam agreed that the United Kingdom would open more market access for Vietnam outside of the Bilateral free trade agreements (FTA) that already exist, especially the fisheries industry will have great advantages when the official commitment takes effect.

The Multilateral Trade Policy Department said that currently, many large economies are also interested in and wish to join CPTPP (China...), showing that the role of the Agreement is growing stronger and will create new motivation for businesses and investors.

On July 16, 2023, the United Kingdom of Great Britain and Northern Ireland signed an agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) - the United Kingdom was the first new member of CPTPP since when this "playground" was set up in 2018.

Along with the British Government taking the necessary steps to ratify the CPTPP Agreement (May 16, 2024), other member countries of the CPTPP, including Vietnam, must also complete the internal law processes of each country.

"The United Kingdom's accession to CPTPP will promote trade and investment exchanges between the two sides, along with creating conditions for Vietnamese exports to access the UK market with large import turnover. Annual exports reach up to 900 billion pounds," said a representative of the Multilateral Trade Policy Department.

Mr. Iain Frew, United Kingdom Ambassador to Vietnam, also said that when the United Kingdom joined the CPTPP Agreement and UKVFTA, these two agreements brought many benefits to Vietnam-UK bilateral trade in many fields, especially with agricultural products and digital commerce.

According to statistics from the General Department of Vietnam Customs, import-export turnover in the first 5 months of 2024 in Vietnam and the United Kingdom grew strongly along with the general market increase. Total turnover in 5 months reached nearly USD 3.3 billion, an increase of 23.2%.

Of which, Vietnam's exports reached nearly USD 3 billion, an increase of 26.6%. Imports reached USD 301.2 million, down slightly by 2.2%. The trade surplus reached USD 2.7 billion. Exports to the UK slowed down in recent months (April, May) compared to the first months of the year (March, April). Thus, the United Kingdom is Vietnam's third largest European export market, after the Netherlands (5-month exports reached nearly USD 5 billion) and Germany (5-month exports reached USD 3.2 billion).

After the United Kingdom joins, CPTPP members will contribute 15% of the global GDP, equivalent to 12,000 billion pounds. It can be seen that this event brings benefits not only from an economic and commercial perspective but also from a political and strategic perspective.

The United Kingdom recognizes Vietnam as a market economy
Another notable point, along with joining CPTPP, the United Kingdom has officially recognized Vietnam as a market economy. This brings advantages for Vietnam in trade defense investigations, primarily anti-dumping investigations. At the same time, Vietnam's exported goods will not be discriminated against and will be subject to a more reasonable anti-dumping tax rate than currently.

Also, according to data from the Ministry of Industry and Trade, in recent times, Vietnam's trade growth with new member countries of CPTPP has achieved high growth. The rate of applying certificates of origin (C/O) to implement the CPTPP Agreement for some products is still very high, such as the group of machinery, equipment, and other tools and spare parts increasing by more than 100%. This proves that businesses have taken advantage of the advantages of the CPTPP Agreement.

The Ministry of Industry and Trade recognizes that the CPTPP Agreement is a new generation free agreement, including commitments in areas that Vietnam has never committed to, such as Government procurement, commitments in the service sector, and sustainable development of trade... Since the CPTPP Agreement took effect, ministries and branches have issued more than 20 legal documents to implement commitments, and members have also evaluated Vietnam highly in seriously implementing CPTPP commitments.

Author: Phan Trang
Translated by Huong Giang