Hanoi (VNA) - The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which officially came into effect for Vietnam on January 14, 2019, is considered one of the most effective deals for Vietnamese exports to this market.
Along with the 11 original member countries, the CPTPP officially took effect for the UK from December 15, 2024. This will bring both opportunities and challenges for Vietnam in 2025, as well as all the member economies of the trade bloc, which accounts for 15% of the world's total GDP and a population of over 500 million.
Confirming a firm foothold
In 2024, despite global economic fluctuations, Vietnam's trade with the CPTPP market still saw significant growth.
Last year, two-way trade was estimated at 102.1 billion USD, a 6.8% increase compared to 2023, accounting for 13.1% of Vietnam’s total import-export turnover.
According to data from the Ministry of Industry and Trade (MoIT), in recent times, Vietnam's trade with countries such as Canada, Peru, and Mexico has seen significant growth.
Vo Thi Hong Anh, Deputy Director of the MoIT’s European-American Market Department, stated that since the trade deal came into effect, several key export products of Vietnam, such as mobile phones, electronics, aquatic products, and wooden furniture, have gradually established a strong presence in these markets.
Specifically, for shrimp, Vietnam currently supplies about 35% of this product to the Canadian market, while for tra fish, Mexico is now one of Vietnam’s top three largest buyers.
Le Hang, Director of Communications at the Vietnam Association of Seafood Exporters and Producers (VASEP), said from the business perspective, the market share of Vietnamese aquatic products in these markets has increased, demonstrating a strong competitive advantage, supported by the CPTPP.
For example, she said, in Canada, Vietnam's market share has risen from 7-8% in previous years to 10%. Specifically, for shrimp, its market share has increased from 18% to 25%, with Vietnamese shrimp now holding the top position in Canada. In Australia, Vietnamese shrimp also dominates the market with a chunk of 70%, doubling that recorded before Vietnam joined the CPTPP.
Adapting to move deeper into value chain
According to Ngo Chung Khanh, Deputy Director of the MoIT’s Multilateral Trade Policy Department, there is significant potential for Vietnamese products to penetrate more intensively into CPTPP markets, especially in America, Canada, Mexico, and Peru. He explained that for certain products, Vietnam currently holds only about 3-5% of the market share in these nations.
Khanh assessed that the UK's accession to the CPTPP will create new market opportunities for Vietnam. During negotiations, the Ministry of Industry and Trade secured additional commitments, further opening up market access for Vietnam beyond the existing bilateral FTAs.
This is one of the bright spots of this trade deal, and with additional economies such as Costa Rica, Ecuador, and Uruguay seeking to join, it demonstrates the growing significance of the CPTPP. This will undoubtedly create new momentum for businesses and investors to pay interest in CPTPP member economies, especially Vietnam, he added.
According to experts, the CPTPP provides opportunities for goods exports thanks to the expanded market access. However, as a new-generation free trade agreement, it requires continuous efforts from Vietnamese businesses to meet stringent requirements of international markets.
The agreement imposes requirements on certificate of origin, which helps businesses improve the quality of production from raw materials. Going green is also a key condition for Vietnamese enterprises to master product acceptance within the CPTPP./.
