Vietnamese goods to better penetrate UK market
A new member, more cooperation opportunities will open up for Vietnam and the European country, according to insiders.
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With the signing of the protocol on the UK’s accession to the CPTPP last weekend, the number of CPTPP member states has amounted to 12.
The UK's entry is expected to raise the bloc’s gross domestic product (GDP) to nearly 16 per cent of the world’s total from 12 per cent. The CPTPP will be an additional agreement alongside the Free Trade Agreements (FTAs) that the UK is having with most member countries.
According to experts, investment between the UK and CPTPP member states is expected to hike thanks to terms that limit barriers and encourage more internal investment.
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| Vietnamese goods to better penetrate UK market. |
As of June, the UK recorded 530 foreign-invested projects worth over 4.26 billion USD in Vietnam, ranking 15th among the 141 countries and territories investing in the country. Last year, the European nation invested in 53 new projects valued at 64.3 million USD in Vietnam.
After the UK-Vietnam FTA officially took effect on May 1, 2021, two-way trade rose to 6.84 billion USD last year, up 3.4 per cent annually. Of the figure, 6.07 billion USD were Vietnam’s exports to the UK, up 5.2 per cent, resulting in a trade surplus of around 5.3 billion USD, higher than the 4.8 billion USD recorded in the previous year.
On the back of the CPTPP, the two countries are seeing ample opportunities to soon achieve the target of 10 billion USD in bilateral trade. The Vietnamese agro-aquatic products, including fruits and vegetables, coffee, and cashew nut, are to benefit the most. Several export items to the UK, which have not been granted tax exemptions based on bilateral agreements, will enjoy more favorable taxes under the CPTPP.
Meanwhile, products such as whisky and automobiles, which are among 99 per cent of the UK’s current exports to CPTPP countries, will qualify for tax exemptions. At the same time, the UK is likely to export more agricultural products, pharmaceutical materials, advanced equipment, and technology to Vietnam.
CEO of the UK-based TT Meridian Ltd Thai Tran said Vietnamese farm produce such as durian, pomelo, and Cao Phong orange have gradually conquered the UK market.
According to him, the UK has high requirements as it not only pays attention to prices but also environmental, social, and governance standards.
(Source: VNA)
