Illustrative image (Photo: VNA) Hanoi (VNA) – When the Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP) has the UK as a newmember, more cooperation opportunities will open up for Vietnam and theEuropean country, according to insiders.
With the signing of the protocol on the UK’s accession tothe 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 domesticproduct (GDP) to nearly 16% of the world’s total from 12%. The CPTPP will be an additional agreement alongside theFree Trade Agreement (FTAs) that the UK is having with most member countries.
According toexperts, investment between the UK and CPTPP member states is expected to hike thanksto terms that limit barriers and encourage more internal investment.
As of June,the UK recorded 530 foreign-invested projects worth over 4.26 billion USD inVietnam, ranking 15th among the 141 countries and territories investingin the country. Last year, the European nation invested in 53 new projectsvalued at 64.3 million USD in Vietnam.
After the UK-VietnamFTA officially took effect on May 1, 2021, two-way trade rose to 6.84 billionUSD last year, up 3.4% annually. Of thefigure, 6.07 billion USD was Vietnam’s exports to the UK, up 5.2%, resulting ina trade surplus of around 5.3 billion USD, higher than 4.8 billion USD recordedin the previous year.
On the backof the CPTPP, the two countries are seeing ample opportunities to soon achievethe target of 10🔥 billion USD in bilateral trade. The Vietnamese agro-aquaticproducts, including fruits and vegetables, coffee, cashew nut, are to benefit the most. Several export items to the UK, which have not beengranted tax exemptions based on bilateral agreemen♋ts, will enjoy more favourabletaxes under the CPTPP.
Illustrative image (Photo: vneconomy.vn)
Meanwhile, productssuch as whisky and automobiles, which are among the 99% of the UK’s currentexports to CPTPP countries, will qualify for tax exemptions. At the sametime, the UK is likely to export more agricultural products, pharmaceuticalmaterials, advanced equipment and technology to Vietnam.
CEO of theUK-based TT Meridian Ltd Thai Tran said Vietnamese farm produce ♒such asdurian, pomelo and Cao Phong orange have gradually conquered the UK marke🍷t.
