Chairman of the National Assembly (NA) Tran Thanh Man last week signed a resolution adopting the UK’s accession protocol to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Taking effect in 2018, the CPTPP is a free trade agreement signed by 11 countries, and has been in force for Vietnam since January 2019.

Key exports have benefited from multinational trade agreements like the CPTPP, Photo Le Toan

In July 2023, the CPTPP parties signed an accession protocol with the UK, welcoming them as the 12th member. The UK’s participation in the CPTPP will take effect once all member countries complete their respective ratification processes. If not ratified by all members by October 16, the protocol will come into force after ratification by at least six CPTPP members and the UK.

Currently, Singapore, Japan, and Chile have completed their ratification procedures for the UK. Vietnam is expected to follow suit soon, with New Zealand, Brunei, Malaysia, and Peru likely to do so in the coming months, according to Vietnam’s NA Committee for External Affairs.

The NA resolution assigns the government to review relevant legal documents to amend, supplement, or promulgate new regulations ensuring consistency in Vietnam’s legal system and a proper roadmap for fulfilling commitments under the UK and CPTPP accession protocol.

“The prime minister is tasked with approving and directing relevant agencies and organisations at all levels to implement plans for the UK and CPTPP accession protocol,” the resolution said.

The government is directed by the NA to ensure related ministries and sectors complete procedures to approve the protocol, with Vietnam’s entry into force expected to be announced soon.

Emily Hamblin, British Consul General in Ho Chi Minh City, emphasised that the CPTPP was a forward-looking agreement with provisions in digital trade and e-commerce crucial for sustained economic growth. She highlighted increasing collaboration between the UK and Vietnam on initiatives promoting innovation and digitalisation.

“In 2024, prospects for UK-Vietnam trade and investment cooperation are promising. Commitments under the UK-Vietnam Free Trade Agreement (UKVFTA) and the CPTPP, along with ongoing dialogue through our Joint Economic and Trade Committee, form a robust foundation for our partnership,” Hamblin said.

Trade and investment cooperation between the UK and Vietnam currently centres on the UKVFTA, which has significantly reduced tariffs for goods on both sides.

In 2023, total bilateral trade in goods totalled $5.92 billion, with Vietnam exporting $6.42 billion (up 88.5 per cent on-year) and importing $799 million (up 87.6 per cent on-year). In the first half of 2024, Vietnam’s exports to the UK reached $3.54 billion (up 23 per cent on-year), while imports from the UK were $363.3 million (down 2.7 per cent on-year).

The British government estimates that over 99 per cent of British goods exports to CPTPP member economies will be eligible for zero tariffs, enhancing market access for British businesses. Key UK exports such as cars and machinery stand to benefit from tariff elimination, potentially boosting UK exports to CPTPP economies by £1.7 billion ($2.16 billion) in the long run.

“In 2024, the outlook for UK-Vietnam trade and investment cooperation is brimming with promise and potential. The commitments made through the UKVFTA and the CPTPP, coupled with the ongoing dialogue facilitated by our annual Joint Economic and Trade Committee, lay the foundation for a robust partnership,” Hamblin said.

According to statistics from Vietnam’s Ministry of Planning and Investment, cumulatively as of June 20, UK investors had nearly 570 valid investment projects in Vietnam as of June 20, with a total registered capital of nearly $4.4 billion.