UK’s accession to CPTPP to benefit Vietnam’s exports in 2025
UK’s accession to CPTPP to benefit Vietnam’s exports in 2025
Vietnam, in particular, will gain further access to a high-quality market, complementing its connections with Japan, Canada, and Australia.
The United Kingdom's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to unlock significant trade growth along the Asia-Pacific corridor, including Vietnam, according to HSBC experts Ian Tandy and Surajit Rakshit.
Cargo handling at Haiphong Port. Photo: Pham Hung/The Hanoi Times |
This development follows the UK's formal accession to the agreement on December 15.
As the 12th member of the CPTPP, alongside countries like Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam, the UK's membership will increase the combined GDP of member nations from 12% to approximately 15% of the global total.
HSBC analysts highlight substantial opportunities to boost trade between the UK and the Asia-Pacific market. The UK is a major export destination for the region, importing a wide range of goods, including fruits, seafood, rice, rubber, and metals.
Vietnam, in particular, will gain further access to a high-quality market, complementing its connections with Japan, Canada, and Australia. Vietnamese exports to CPTPP markets in the Americas have almost doubled, rising from $6.3 billion in 2018 to $11.7 billion last year. Trade surplus has almost tripled over the same period, reaching over $11 billion, according to the General Department of Vietnam Customs.
Before CPTPP membership, Vietnam had already signed a free trade agreement with the UK and Northern Ireland (UKVFTA) in 2020. Despite the decline in exports to some markets last year, Vietnam’s exports to the UK grew by 11%. In the first 11 months of this year, export turnover to the UK increased by 19.5% compared to the same period last year. Among the top export items were phones and components, generating $1.08 billion, and machinery and spare parts with $1.2 billion. Other key products included textiles ($902 million), yarn ($692 million), and seafood ($288 million).
British Ambassador to Vietnam Iain Frew in an event on December 15 described Vietnam as a gateway to Southeast Asia and underlined the UK’s commitment to supporting Vietnam's ambitions for sustainable growth, innovation, and inclusive trade.
Looking ahead to 2025, HSBC experts project that the UK's CPTPP membership, coupled with the existing UK-Vietnam Free Trade Agreement and Vietnam’s strong economic fundamentals, will enhance Vietnam’s prominence in the region, creating extensive opportunities for global partners.
The UK's integration into the CPTPP is particularly valued by member countries as it enhances access to the world's sixth largest economy, renowned for its advanced financial markets. Conversely, British businesses stand to benefit from expanding manufacturing sectors across the region and a growing, tech-savvy consumer base. The UK government estimates that CPTPP membership will add around £2 billion (around $2.5 billion) annually to its economy by granting businesses access to a market of over 500 million people.
Additionally, the UK's participation simplifies supply chain operations. The CPTPP’s rules of origin allow member states to aggregate contributions from all signatories. For example, components from five different CPTPP countries may meet the required content thresholds for a finished product.
