More opportunities to expand exports to UK

(ĐN)- The United Kingdom became the first European country to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as of December 15, 2024. With the UK's inclusion, the CPTPP now has 12 member countries: Australia, Canada, Japan, Mexico, Vietnam, Singapore, New Zealand, Peru, Chile, Brunei, Malaysia, and the UK. The trade bloc represents a market of over 500 million people and accounts for 15% of global GDP. Economists consider the CPTPP one of the most dynamic trade agreements in the world, offering significant opportunities for member nations to expand economic growth and international cooperation.

Before the UK joined the CPTPP, Vietnam had already signed the UK-Vietnam Free Trade Agreement (UKVFTA). However, the UK’s participation in the CPTPP further enhances opportunities for Vietnamese goods to enter the British market. Under this agreement, the UK has committed to rapidly reducing tariffs on over 94% of Vietnamese exports, creating favorable conditions for businesses in Vietnam to expand their export activities. In 2024, the UK was Vietnam’s third-largest export market in Europe, with bilateral trade exceeding $7.5 billion.

For Dong Nai, the UK is one of the province’s top 10 export markets. Major exports from Dong Nai to the UK include footwear, textiles, wood products, coffee, computers, electronic components, and pepper.

According to the Ministry of Industry and Trade, the UK imports between $600 billion and $700 billion worth of goods annually. This presents opportunities for Dong Nai businesses to expand exports beyond their current key products. Potential new export categories include machinery, equipment, tools and spare parts, paper products, fruits, cashew nuts, seafood, and ceramics. However, the UK is known for its stringent product quality requirements, meaning that any product entering this market must meet strict regulatory standards.

Currently, Dong Nai exports more than 50 major product categories to around 180 countries and territories. However, the province remains highly dependent on a few key markets, such as the US, China, Japan, and South Korea. By leveraging the CPTPP to expand exports to the UK, Dong Nai businesses can diversify their markets and reduce risks associated with over-reliance on a limited number of trading partners.

Reported by K.M