Leather, footwear and seafood industries have double the advantages.

Vietnamese goods enjoy double advantages

According to statistics from the Ministry of Industry and Trade, in 2024, two-way trade turnover between Vietnam and the markets of member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is estimated to reach 102.1 billion USD, an increase of 6.8% compared to 2023, accounting for 13.1% of the total import-export turnover... This result is proof, affirming that domestic enterprises and industry associations have understood and made relatively good use of tariff incentives in the CPTPP.

The CPTPP Agreement commits to completely eliminating 97-100% of import tax lines on goods originating from Vietnam, depending on the commitment of each country. Vietnam will also eliminate up to 86.5% of tax lines after 3 years from the date the Agreement takes effect. The remaining items have a tax reduction roadmap mainly from 5-10 years.

According to experts, CPTPP has created great opportunities for Vietnam to access new markets. Notably, from December 15, 2024, when the CPTPP Agreement officially takes effect in the United Kingdom, the opportunities for domestic export enterprises will be increasingly greater.

Mr. Luong Hoang Thai - Director of the Multilateral Trade Policy Department (Ministry of Industry and Trade) - said that through CPTPP, the UK committed to immediately eliminate tariffs on 93.9% (common for CPTPP countries) and 94.4% (specifically for Vietnam) of tariff lines. At the same time, it committed to reserve tariff quotas with common quotas for all countries and specific quotas for each country for 181 tariff lines: Meat (beef, pork, chicken), rice, sugar, some fruits and means of transport.

Along with that, through CPTPP, the UK also committed to eliminating the longest tariff on goods originating from Vietnam, which is 11 years for 53 tariff lines (dairy products).

Director Luong Hoang Thai emphasized that when the UK joined the CPTPP, many Vietnamese agricultural products with export strengths such as rice, seafood, cassava starch... enjoyed better commitments than those in the UKVFTA.

From the perspective of associations and industries, Mr. Nguyen Hoai Nam - Deputy General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP) - said that there are currently about 150 domestic seafood enterprises cooperating and doing business with the UK with a turnover value of 310 - 320 million USD/year. This is a very impressive number, accounting for 30% of the seafood export turnover to the European Union. The UK is an important market for the Vietnamese seafood industry in both export and import.

The UK joining the CPTPP brings many benefits to seafood businesses in terms of tariffs, intra-bloc origin..., especially for tuna products.

“ With CPTPP, the barrier on Vietnam's tuna export quota to the UK is removed ,” the Deputy Secretary General of VASEP informed, adding that this is a great source of encouragement for businesses.

Adding more information, Ms. Le Hang - Communications Director of VASEP - also said that with UKVFTA, import tax on Vietnamese seafood products to the UK is mostly 0%. However, there are still some product codes such as processed shrimp HS 160521 and 160529 that are still subject to a tax rate of 7%.

Of course, these two Vietnamese product lines are currently occupying the number one position in the UK, dominating 36% of the market share, but the potential will be greater when Vietnamese shrimp enjoys CPTPP tariff incentives when exported to this market.

Sharing the same view, Ms. Phan Thi Thanh Xuan - Vice President and General Secretary of the Vietnam Leather, Footwear and Handbag Association (Lefaso) - said that the UK joining the CPTPP not only does not create barriers but has also brought many advantages and created more opportunities for domestic footwear and handbag businesses.

Firstly, domestic enterprises have been doing a good job with procedures to take advantage of incentives from CPTPP to export to member countries in the Agreement. Adding the UK market, enterprises can take advantage of available procedures, thus saving costs, time and administrative procedures.

Second, leather, footwear and handbag businesses have more opportunities to expand the supply of raw materials from member countries, including the UK, for production and export within the CPTPP bloc.

In addition to the advantages in trade in goods, the UK's accession to the CPTPP also brings many economic benefits to Vietnam. Recently, the UK has officially recognized Vietnam as a market economy. This is very favorable for our country in trade defense investigations, especially anti-dumping investigations. With this result, Vietnam's export goods will not be discriminated against and will be subject to more reasonable anti-dumping tax rates.

Opportunities come with challenges

However, according to analysis from experts, the UK joining CPTPP, opportunities always come with challenges. Because, global economic fluctuations, escalating geopolitical conflicts... cause the UK market's consumer demand to decrease, due to high inflation and people tightening their spending.

Along with that, the UK is also a market with high quality requirements and competitive prices. Requirements for green certificates and anti-deforestation regulations are increasingly popular and widely applied in the business community exporting goods, forcing businesses to invest more, thereby increasing input costs and product prices...

“In fact, the UK is one of the most demanding markets in the world in terms of domestic circulation standards. Therefore, to take advantage of opportunities in the CPTPP, Vietnamese exported goods must meet domestic circulation standards.

Vietnamese enterprises also need to improve their competitiveness by improving product quality, strictly controlling the entire production process, and ensuring traceability to boost exports," Ms. Hoang Le Hang, First Secretary, Vietnam Trade Office in the UK, recommended.

Providing solutions to take advantage of export tariff incentives in the CPTPP Agreement as well as in the UKVFTA Agreement, Lefaso leaders said that export enterprises need to focus on building brands, reputation, and responsibility in trading activities. At the same time, pay attention to the provisions on environment, labor... in the CPTPP Agreement to meet the criteria for sustainable export.