Remarkable outcomes can be earned
Remarkable outcomes can be earned
Specific plans are likely to be implemented by the UK’s network in Vietnam after the country officially joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). British consul general in Ho Chi Minh City, Alexandra Smith, spoke with VIR’s Thanh Tung about these plans and the benefits for both sides.
How does this significant milestone enhance the bilateral relationship between Vietnam and the UK?
UK-Vietnam trade has roughly doubled over the last decade, from £3 billion ($3.8 billion) in 2014 to over £6.4 billion ($8.1 billion) in 2024, largely underpinned by our bilateral UK Vietnam Free Trade Agreement (UKVFTA) and will expand with UK’s upcoming accession to the CPTPP.
British consul general in Ho Chi Minh City, Alexandra Smith |
The CPTPP is a gateway to the wider Indo-Pacific and Americas region, bringing new opportunities for British businesses in the region that will account for the majority of global growth and half of the world’s middle-class consumers in the decades to come. It opens new markets for UK service providers by cutting tariffs on goods exports and introducing new opportunities from diversifying supply chains, ultimately giving other opportunities for preferential trade with Vietnam and building on the UKVFTA.
The CPTPP also helps promote the bilateral trade and investment that benefits both of our countries, while enabling this relationship to reach its full potential, stability, predictability, and transparency continue to be the key for businesses and for attracting investment, as does enabling workers and investors to come to Vietnam.
Foreign investors, including those from the UK, are also becoming increasingly sensitive to environmental and climate concerns, which is why I’m pleased to see Vietnam beginning to lead the way in the region in sustainability.
With the CPTPP coming into force, opening up a new trade era for UK and Vietnamese businesses, our teams at the British Embassy in Hanoi and British Consulate General in Ho Chi Minh City are always ready to provide support.
In addition to the UKVFTA, what other benefits will Vietnamese and UK enterprises gain from the CPTPP when the UK becomes a member?
The UK is the 15th largest foreign investor in Vietnam, with bilateral trade between the two countries doubled over the last 10 years, hitting more than over £6.4 billion ($8.1 billion) by 2024. This was largely possible because of the UKVFTA which came into force in 2021, which has accelerated the volume of trade, bringing more consumer choice to citizens in both countries.
For example, in 2023, UK food and drink exports to Vietnam reached £126 million ($159.8 million), an increase of 97 per cent since 2019, showing Vietnam’s appetite for British whisky, frozen seafood, and confectionary. In turn, Vietnam’s agricultural products are now on the shelves in UK supermarkets.
I am optimistic that the CPTPP will help to boost UK-Vietnam trade. Working together, these agreements will make it even easier for UK and Vietnam businesses to expand operations and increase exports in agriculture, healthcare, financial services, and e-commerce.
Businesses will not only benefit from reduced trade barriers but will also have a stable and predictable trading environment. This will enable firms to compete globally and partner together to trade across the Indo-Pacific, which includes some of the world’s most dynamic and fast-growing markets.
What advice do you think Vietnamese companies should heed to successfully capitalise on the opportunities presented by the trade agreements?
The UK is the second-largest exporter of financial services in the world, with exports reaching $112.5 billion in 2022. This achievement reflects the UK’s position as a global hub for high-quality professional and financial services. The country is home to world-leading firms across various sectors, including architecture and design, auditing, legal, consultancy, and many others. These industries are renowned for their expertise, innovation, and ability to deliver solutions tailored to diverse markets.
Vietnam, on the other hand, is undergoing rapid and transformative development, particularly in its infrastructure sector. From urban planning and transportation systems to energy and telecommunications, the demand for professional services is growing exponentially as the country advances its modernisation agenda. This creates significant opportunities for collaboration, where the UK’s expertise in delivering complex services can contribute to Vietnam’s ambitious projects.
Moreover, the UK’s role extends beyond services delivery to include robust support in financing. The UK Export Finance (UKEF), a globally recognised export credit agency, offers government-backed financing to promote international trade with the UK.
For the Vietnamese market, the UKEF has earmarked £5 billion ($6.34 billion) in available finance to support projects and ventures that involve UK goods, services, and expertise. This initiative underscores the UK’s commitment to fostering strong economic ties with Vietnam while enabling businesses to overcome financial barriers to growth.
As Vietnamese businesses embark on new phases of development, I strongly encourage them to explore the UK’s comprehensive offer of expertise and financing solutions. The UK’s track record in delivering high-quality services, coupled with UKEF’s substantial financial support, can make a pivotal difference in ensuring the success and sustainability of projects in Vietnam.
At the same time, I remain committed to promoting the vast opportunities available in Vietnam to businesses in the UK. By fostering collaboration and building strong partnerships, we can unlock mutual benefits and drive economic growth in both nations. This is a dynamic and promising time for UK-Vietnam relations, and I am confident that by working together, we can achieve remarkable outcomes.
Could you please share specific plans that the UK will implement in Vietnam after becoming a member of the CPTPP?
The UK in Vietnam network stands ready to promote to British businesses about Vietnam’s appetite to trade with the world, with Vietnam’s skilled workforce, manufacturing capability and growing domestic market.
The CPTPP will open up new opportunities for cooperation between the UK and countries in the Pacific region, in areas such as sustainable growth, innovation and economic development. We will partner with the Ministry of Industry and Trade and relevant Vietnam’s authorities to organise a series of deep-dive training workshops for both UK and Vietnamese businesses to better understand the CPTPP and maximise its opportunities in February 2025.
Looking ahead, the UK is planning multiple events to bring our business communities together. At the end of March 2025, the UK’s Southeast Asia Tech Week will launch in Ho Chi Minh City, where the UK government will bring a delegation of exceptional technology companies to engage with Vietnamese partners, seeking to build and create more opportunities for trade between the rapidly growing digital and technology sectors in UK and Vietnam.
London Tech Week will take place in June 2025 and this is a great opportunity for Vietnamese tech and fintech companies to engage with UK businesses. 2025 will also mark the 15-year anniversary of the UK-Vietnam Strategic Partnership.
In the next four years, I look forward to further deepening relations between our two countries for a better future for people in both our countries. Recently, we often talk about Vietnam’s ambition and aspiration to become a developed country by 2045, and in some speeches from Party General Secretary To Lam at home and abroad, he said “Vietnam is witnessing a new historical moment, a new era - the era of national growth”.
I and our growing team at the British Embassy in Hanoi, and the British Consulate General in Ho Chi Minh City, look forward to further deepening relations between our two countries, especially in education with a vision towards our mutual growth and sustainability.
How have the British Embassy and agents in Vietnam supported companies from both nations in leveraging the advantages of the CPTPP?
The UK in Vietnam network is always ready and committed to showcasing Vietnam’s strong potential as a vibrant trading partner to British businesses. Vietnam offers a dynamic combination of a skilled workforce, robust manufacturing capabilities, and a rapidly growing domestic market, making it an attractive destination for trade and investment.
By highlighting these strengths, the network plays a vital role in fostering closer economic ties and encouraging collaboration between the two nations.
In recent months, the UK in Vietnam network has undertaken several initiatives to strengthen these connections. For example, in September, a British business delegation, including Veracity, Graphcore, British Standard Institute, Soluis, and Nashtech attended Ho Chi Minh Economic Forum to discuss business support programmes in the fields of sustainable development, digital transformation and productivity and quality improvement.
Also in that month, the Lord Mayor of London visited Vietnam, where he hosted several MoU signings between British and Vietnamese businesses in education. He met with several ministry leaders to discuss financial services cooperation, green finance, and energy transition.
In October, we brought a UK energy delegation to participate in the Green Economy Forum and Exhibition to explore opportunities for UK businesses to engage in Vietnam’s transition to a more sustainable and environmentally friendly economy. This event served as a platform to discuss green technologies, innovation, and partnerships that can drive mutual growth in the burgeoning green sector.
Building on this momentum, in November, we organised a delegation of health experts to visit Ho Chi Minh City to discuss avenues for collaboration in healthcare innovation, policy development, and service delivery. With Vietnam’s growing focus on improving healthcare infrastructure and services, the visit underscored the potential for UK expertise to contribute to the country’s health sector advancements.
These activities reflect our ongoing efforts to deepen the relationship between the UK and Vietnam, while also promoting the wealth of opportunities available for British businesses in this fast-evolving market. By facilitating meaningful exchanges and partnerships, the UK in Vietnam network continues to pave the way for stronger trade, investment, and collaboration between our two nations.
