The United Kingdom’s (UK) entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) marks a new era in its trade and investment relationship with regional countries, including Vietnam. In an exclusive interview with The Saigon Times, British Consul General Alexandra Smith pointed out the potential of the deal driving growth in key sectors, while also emphasizing the continued strengthening of other pillars of the UK-Vietnam Strategic Partnership, including education, innovation, and cultural exchange.
The Saigon Times: With the UK’s accession to the CPTPP, how do you envision the future of UK-Vietnam trade and investment relations? What specific sectors or industries are poised for significant growth?
British Consul General Alexandra Smith: The CPTPP is the most advanced trade agreement globally. It is one of the few agreements encompassing digital trade with multiple countries, and it includes commitments not only to reduce costs but also to address regulations and facilitate business operations. I am confident that both the UK and Vietnam are deeply committed to collaboratively addressing these issues, and I am delighted that the UK can now actively participate in these discussions as a CPTPP member.
I view the CPTPP as a crucial gateway for the UK to enter the Indo-Pacific markets, encompassing Southeast Asia and Vietnam. The entire ASEAN region is poised to become the world’s fourth-largest economy, and it will represent over half of the global middle class. This presents an opportunity for the UK to actively participate in the future of global trade and the global economy.
The UK already has an established trade agreement with Vietnam, the UK-Vietnam Free Trade Agreement, which came into effect in 2021. Over the past decade, UK-Vietnam trade has demonstrated remarkable growth, doubling from GBP3 billion to GBP6 billion. With this new agreement, I anticipate further substantial growth.
In the short term, I expect to see tangible benefits in consumer trade, particularly in sectors like food and drink. For instance, British exports of high-quality confectionery and alcohol have surged by 97% as a result of our existing free trade agreement. I am optimistic that this trend will continue to accelerate.
In the long term, the CPTPP provides an ideal framework for collaborative discussions on shaping the global economy and working together to promote free and fair trade internationally.
What are the key priorities for the UK in maximizing the benefits of the UKVFTA and CPTPP? How can we address potential challenges and ensure a level playing field for businesses?
My priority is to assist our business community in leveraging the CPTPP to expand our trade relationship. I am particularly focused on sectors such as medicine and pharmaceuticals, financial services, education, and all aspects of the green transition in Vietnam, including green infrastructure.
Supporting our small businesses to engage in the Vietnamese market is crucial. The UK and Vietnam share a commonality: both economies are predominantly composed of small and medium-sized enterprises, constituting about 98-99% of our respective businesses. Therefore, it is imperative that I collaborate with the Vietnamese Government to facilitate market access for these companies.
I believe both countries are genuinely striving to adapt to the ever-changing global landscape. Given this dynamic environment, it is important to maintain open and frequent international dialogue on how we collectively respond to global trends and challenges.
As we approach the 15-year milestone of the UK-Vietnam Strategic Partnership established in 2010, what are the key achievements and lessons learned?
For me, a key achievement has been the successful implementation of our trade agreement. It has been instrumental in fostering economic growth between our two countries.
At the same time, we have witnessed major strides in our education partnership. Vietnam holds a strategic position as a key partner for UK education. In my daily interactions here in HCMC, I encounter many individuals with some connection to British education. This may range from English language learning at our office years ago to participation in English language curricula through renowned institutions like Oxford University Press and Cambridge University Press.
Many individuals aspire to attend British universities, and 14,000 Vietnamese students are currently pursuing higher education in the UK. I am particularly proud of our Chevening Scholarship program, which provides students with the opportunity to pursue master’s degrees in the UK at no cost. I am hopeful that this number will continue to grow.
We have also made progress in dialogue on crucial issues of mutual interest, such as migration and defense. The strategic partnership has facilitated a notable increase in high-level visits between Vietnam and the UK in 2024, under the leadership of our Prime Minister Keir Starmer. In September, Vietnamese Deputy Prime Minister and Foreign Minister Bui Thanh Son met with our Foreign Secretary David Lammy. A month later, Vietnamese Deputy Minister Le Thi Thu Hang met with our Minister for the Indo-Pacific Catherine West.
Fifteen years is a remarkable milestone, and I eagerly anticipate further strengthening our relationship.
How will the UK adapt to the evolving landscape in the Indo-Pacific region to strengthen its strategic partnership with Vietnam and ASEAN countries?
The UK’s role as ASEAN’s first new dialogue partner in 25 years has underscored our commitment to the Indo-Pacific region, a critical area for global influence. Prior to my appointment in HCMC, I served at the UK Mission to ASEAN in Jakarta, where I spearheaded the development of economic relations between the UK and the ASEAN Economic Community.
Moreover, membership in the CPTPP serves as another key example of the UK’s dedication to deepening its regional engagement and collaboration. The UK is currently the sole European country to be a member of the CPTPP.
I am immensely pleased to be residing here in Vietnam, at the heart of this dynamic region, and to witness the further strengthening of our bilateral relationship.
Given the global shift towards sustainable development, how can the UK and Vietnam collaborate to drive innovation and growth in emerging sectors like renewable energy, green finance, and circular economy?
The climate crisis demands urgent and collective action. I view climate action as a cornerstone of strengthened UK-Vietnam cooperation. The UK remains committed to our net-zero goals and supporting Vietnam’s net-zero targets, as pledged at COP26. Both countries have cooperated on climate action through international partnerships, bilateral collaborations, and by fostering business-to-business engagement in the green economy.
Internationally, the UK, as part of the International Partners Group within the Just Energy Transition Partnership (JETP), is mobilizing GBP15.5 billion in public and private funding to support Vietnam’s green transition.
Bilaterally, we are actively assisting Vietnam in developing green infrastructure, such as through our Green Cities and Infrastructure Program to support HCMC’s and Hanoi’s sustainable urbanism. We also share best practices through initiatives like the UK Pact, fostering knowledge exchange on effective green transition policies.
At the business level, we recognize Vietnam’s huge offshore wind potential and recently facilitated a mission for British green energy companies to connect with Vietnamese stakeholders and explore business opportunities.
I believe there is no issue more critical than climate change, impacting both our bilateral relations and the global community.
How can HCMC, as Vietnam’s economic and cultural hub, further strengthen its ties with the UK? What specific initiatives or programs are being implemented to attract UK investment and promote cultural exchange?
Three key areas drive enhanced UK-HCMC collaboration: finance, healthcare, and education.
We are supporting HCMC’s ambition to become an international financial center, drawing on the City of London’s expertise. In September, I accompanied Michael Mainelli, the then Lord Mayor of London, to discuss this with city and national leaders. Our aim extends beyond finance to fostering a business-friendly environment that attracts international investment, including from British firms.
Vietnam’s strong emphasis on health is evident. We are facilitating collaboration in medical technology through an upcoming delegation of British companies in March. The HCMC-Liverpool City partnership, solidified by a November agreement between leading children’s hospitals in both cities, will foster knowledge exchange in pediatric care.
We strongly support HCMC’s goal of making English a second language. The UK stands ready to provide expertise, enabling Vietnamese citizens to thrive in an increasingly interconnected world.
Reported by Do An
