An MoU on preventing counterfeit and IP infringement in Việt Nam was signed at the conference, 'The UK’s Accession to CPTPP' organised on February 19 in Hà Nội. — Photo courtesy of British Embassy in Việt Nam

HÀ NỘI — The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will further boost trade and investment ties between Việt Nam and the United Kingdom (UK), according to officials of the two countries.

The British Embassy and Việt Nam Ministry of Industry and Trade (MoIT) co-hosted conferences in Hà Nội 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 Hà Nội 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 Việt Nam.

"Việt Nam and UK will greatly benefit from the enhanced trade and investment brought about by the CPTPP," said Deputy Minister of Industry and Trade Nguyễn Sinh Nhật Tân.

"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 Việt Nam and the UK reached US$8.4 billion, an 18 per cent increase from the previous year. The UK has become Việt Nam’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 per cent of Việt Nam's overall trade, while Vietnamese goods has accounted for just 0.4 per cent 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 Việt Nam," 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."

Lương Hoàng Thái, 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 Việt Nam's export activities.

Việt Nam’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 Việt Nam’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 Việt Nam’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 Việt Nam, fostering mutual growth and collaboration between the two nations.

Phan Thị Thanh Xuân, deputy chairwoman and general secretary of the Việt Nam Leather, Footwear, and Handbag Association, pointed out that the UK’s inclusion in the CPTPP presents several advantages for Việt Nam’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, Việt Nam'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, Xuân 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 Việt Nam, 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.

Nguyễn Hoài Nam, deputy general secretary of the Việt Nam 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 Trần Quốc Khánh, former deputy minister of Industry and Trade and former head of Việt Nam’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 Khánh.

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

Meanwhile, for Việt Nam, 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 Việt Nam.

Preventing counterfeiting MoU

An additional key moment of the conference was the signing ceremony of a Memorandum of Understanding between Việt Nam’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 Việt Nam.

The MoU marks a milestone for the bilateral partnership to enhance market surveillance capacity in Việt Nam 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 Việt Nam to be more proactive in preventing counterfeits and IP infringement, removing violation to trademarks and cooperating with law enforcements toward a safer, seamless and transparent e-commerce ecosystem. — VNS