Vietnam has participated in three new generations of FTAs, specifically with the United Kingdom. There are two FTAS: CPTPP and UKFTA. The combination of content and approach of both agreements creates favorable conditions for businesses in both countries to fully exploit trade and investment opportunities, including the export of Pangasius to the UK.

According to data from Vietnam’s customs, on January 1st, the export of Pangasius to the UK reached four million USD, which is a 30% decrease compared to the same period last year. The decline in the export value of pangasius is a part of the general trend of pangasius imports in other markets when the first month of the year coincides with the Vietnam Tet holiday. At the same time, the beginning of the year is the time for countries to spend thousands of billions on importing Pangasius to stockpile for the end-of-year holidays and festivals in 2024.

The UK has joint CPTPP which means the tariffs will be reduced or eliminated to 0% according to CPTPP commitments, and Vietnam’s Pangasius have advantages in price competition compared to countries that did not participate in CPTPP. Businesses in export Pangasius will find it easier when they approach markets thanks to the reduction of trade barriers and harmonized standards. They can also leverage the distribution networks and trade partners of other CPTPP member countries.

Previously, Vietnam had to meet the UK’s standards which may differ from other markets, and the cost of quality inspections and certification could be high. Now, under CPTPP, quality standards will be harmonized, helping to decrease costs and procedures, and exporters can make use of CPTPP quality certifications to export to the UK. Technical barriers have been minimized through harmonized regulations within the CPTPP, and businesses can receive technical support from other CPTPP countries to comply with regulations. Furthermore, Vietnamese Pangasius exporters are less likely to be affected by the UK-specific factors, as the markets now are expanded within the CPTPP, enabling them to diversify markets and reduce risks.

However, the UK's accession to the CPTPP also creates stronger competition between Vietnam and other CPTPP countries such as Canada, Australia, and Japan. Companies need to be cautious to meet higher quality standards and diversify products to meet market demands.

As one of the most comprehensive and dynamic free trade agreements in the world, providing significant opportunities for economic growth and international cooperation, the CPTPP currently has 11 member countries, accounting for 12% of global GDP.

Vietnam's exports to the UK now have a competitive advantage over other markets, as countries like India, Indonesia, and Thailand have no FTA with the UK. However, to better take advantage of the tariff preferences offered by this agreement, businesses need to be proactive in securing raw materials. Additionally, focusing on improving quality and supply capacity will help increase market share in the UK.