UK's CPTPP membership to help increase Vietnam’s attractiveness to foreign investors

The UK's accession to the Progressive Agreement for Trans-Pacific Partnership (CPTPP) will expand market access opportunities for Vietnamese goods and help increase Vietnam's attractiveness in the eyes of foreign investors, said Vice President Vo Thi Anh Xuan on Saturday.

In a proposal to the National Assembly at its ongoing session on the ratification of a document on the UK’s CPTPP membership, she said on February 1, 2021, the UK officially submitted its application to join the CPTPP. Following this, negotiations between the UK and the CPTPP member countries were conducted.

According to the vice president, basically, the negotiations for the UK's admission were unilateral, with the UK making numerous commitments to open new markets and accepting all existing commitments within the CPTPP.

On June 16, 2023, with the authorization of the Vietnamese government, the Minister of Industry and Trade, along with ministers from other CPTPP countries and the UK, signed a document for the UK's accession to the agreement, making it the 12th signatory member.

Assessing the impact of the UK's membership, Xuan noted that Vietnam and the UK already have a bilateral free trade agreement (FTA). The UK's accession to the CPTPP will further reinforce Vietnam’s role with the UK in the region, enhance its position in international economic cooperation, and strengthen bilateral relations with the UK.

“Notably, the UK's recognition of Vietnam’s market economy status is important as it provides a basis for Vietnam to continue lobbying other countries, including the U.S., to recognize it as such," she noted.

From a multilateral perspective, the UK's accession will help connect the Asia-Pacific, America, and Europe, elevating the CPTPP from a regional agreement to a global deal, she added.

The UK is one of the largest import markets in the world, and the negotiation results achieved will strongly boost trade and investment activities between the two countries, particularly facilitating Vietnamese exports’ access to a market with substantial annual import turnover, Xuan stressed.

However, she noted that the UK is one of the most demanding markets globally regarding domestic standards for goods circulation. Thus, Vietnamese exports to the UK face the challenge of meeting these stringent standards.

Vice President Xuan added that the government proposes ratifying the document at this session to make Vietnam one of the first six CPTPP countries to green-light the protocol.

Presenting a verification report on the proposal at the session, Chairman of the National Assembly's Committee on Foreign Affairs Vu Hai Ha said that his committee agreed on the necessity of ratifying the document.

“The legislature’s ratification of the document demonstrates Vietnam's positivity and responsibility in promoting bilateral trade and investment relations with the UK in particular and between the CPTPP and the UK in general, contributing to enhancing Vietnam's role and position in international economic cooperation,” he analyzed.