(Commonwealth_Europe) The UK’s exports of goods to Vietnam saw a notable growth of 9.9% last year, and the country is determined to maintain this positive trajectory through 2025. One of the main factors driving this expansion is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which is opening up new opportunities for Vietnamese importers, retailers, and distributors to source an increasing variety of British products. According to David Johnstone, Head of Free Trade Agreement Utilization at the UK Government, the agreements are designed to create mutually beneficial trade relationships between Vietnam and the UK, providing various advantages for businesses in both nations.
At a business briefing held by the British Consulate General in Ho Chi Minh City, in partnership with Redfern Digital and The Sentry, 50 local businesses and industry experts came together to discuss how Vietnamese importers could benefit from the CPTPP and the UK-Vietnam Free Trade Agreement (UKVFTA). The meeting underscored the opportunities these agreements create for bringing more UK products to the Vietnamese market.
Johnstone emphasized that the UK’s accession to the CPTPP in December 2024 is expected to further expand the scope for local businesses to access UK products. With this addition, new tariff reductions will be introduced in key sectors like food and drink, cosmetics, and consumer goods, making British products more affordable and accessible. One of the major outcomes of these agreements is that up to 99% of UK exports to Vietnam are now subject to zero tariffs, providing significant advantages for British goods in sectors such as fast-moving consumer goods, consumer retail, food and drink, as well as health and wellness. These measures will allow local consumers to access a broader range of high-quality UK products at competitive prices.
In addition to tariff reductions, the CPTPP and UKVFTA offer various non-tariff benefits that further support the expansion of trade between the two nations. For instance, the CPTPP ensures quicker clearance times, with standard trade releases occurring within 48 hours of goods arriving and express shipments being cleared within just six hours. Another important benefit for the cosmetics industry is the streamlining of the product registration process. Previously, UK cosmetic exporters were required to provide a Certificate of Free Sale; however, under the new trade rules, this requirement has been eliminated, simplifying the export process. Furthermore, UK exporters can now self-certify the origin of goods, removing the need for third-party certification. Once fully implemented, these measures are expected to significantly reduce costs and administrative burdens, benefiting both UK exporters and Vietnamese businesses alike.
The UK is already home to many globally recognized consumer and retail brands that are making an impact in Vietnam. Products ranging from tea and chocolate to seafood, meat, vitamins, household products, and fragrances are already available in Vietnamese stores and through the rapidly growing e-commerce platforms. British brands such as Jo Malone, Lush, The Body Shop, Mothercare, and Unilever have already gained significant traction in the Vietnamese market, making British goods a familiar part of daily life for many consumers.
Alexandra Smith, the British Consul General in Ho Chi Minh City, highlighted that through the UK Government’s trade policy and export support initiatives, more British retail brands—especially small and medium-sized businesses—are expected to enter the Vietnamese market. The goal is to unlock more opportunities and ensure that a higher number of high-quality British products are made available to local consumers.
The 2019 UK-Vietnam Free Trade Agreement has already provided a significant boost to bilateral trade, especially in the agricultural and food and drink sectors. The “Connecting the UK and Vietnam in Agriculture, Food, and Drink” report, commissioned by the British Embassy in Hanoi, reveals that food and drink exports to Vietnam surged by an impressive 97% between 2020 and 2023, reaching a total value of over US$154 million. This trade growth was further supported by conferences hosted by the British embassy and Vietnam’s Ministry of Industry and Trade, which focused on exploring the opportunities arising from the UK’s membership in the CPTPP.
These conferences covered topics such as tariff reductions, diversifying supply chains, and market access in key sectors including agriculture, pharmaceuticals, textiles, energy, and infrastructure. They provided a platform for UK and Vietnamese businesses to engage in meaningful discussions and explore how they could leverage the CPTPP and bilateral agreements to strengthen their trade relations. The event also featured a networking reception, where officials, business associations, and enterprises had the chance to interact and form valuable connections.
A key moment in these conferences was the signing of a Memorandum of Understanding (MoU) between Vietnam’s Ministry of Industry and Trade and the British Embassy under the UK-ASEAN Economic Integration Program. This MoU emphasizes the importance of cooperation in preventing counterfeiting and intellectual property (IP) infringement in Vietnam. As e-commerce continues to grow rapidly in Vietnam, ensuring the effective implementation of policies and laws to protect intellectual property becomes even more critical. The UK Intellectual Property Office will assist in introducing a code of conduct for e-commerce stakeholders, which will guide platforms in preventing counterfeiting, eliminating trademark violations, and cooperating with law enforcement to create a safer and more transparent e-commerce ecosystem. This agreement marks an important step forward in strengthening the UK-Vietnam trade relationship, particularly in the realm of e-commerce.
Through continued collaboration, both governments are working to foster a robust and thriving trade environment, one that provides mutual benefits and drives sustainable growth for businesses on both sides. The future of UK-Vietnam trade looks promising, with further opportunities expected to unfold in the coming years.
