The UK has committed to opening its market with Vietnam in several areas, including labor – unions, e-commerce, and intellectual property. This was announced by the government on June 8 as they presented documents on joining the CPTPP to the National Assembly. The UK concluded negotiations with CPTPP countries in March 2023 and signed an agreement in July 2023. However, ratification is required from member countries for official recognition.
The UK’s entry into the CPTPP strengthens its role and enhances bilateral relations with Vietnam, offering market access opportunities for Vietnamese goods. During negotiations, Vietnam achieved high-level commitments with the UK, surpassing commitments to other countries and FTAs.
The UK has made a variety of commitments to open its market with Vietnam across different sectors such as trade in goods, services – investment, temporary entry of businessmen, financial services, government procurement, and more. Additionally, the UK recognized Vietnam’s market economy status which may help persuade other countries to also recognize it.
The National Assembly’s Foreign Affairs Committee proposed that the Government review and amend relevant documents to ensure the implementation of Vietnam’s commitments under CPTPP, particularly in the areas of Government procurement and services – investment and temporary entry of entrepreneurs. CPTPP plays a significant role in global trade and economic output as it includes 11 member countries and Vietnam.
Joining CPTPP has been a priority for the UK since 2018 as they aimed to boost exports post-Brexit. According to estimates, joining CPTPP will increase GDP by around 0.7%, lower import taxes on certain products and provide new trade agreements with Australia, New Zealand and Japan since Brexit.
