Decision

31 July 2023: joint report of the second meeting of the Committee on Trade and Sustainable Development (TSD)

Updated 13 September 2024

This page relates to a meeting that took place on 31 July 2023, during the 2022 to 2024 Sunak Conservative government, and was published later.

Joint report of the second meeting of the Committee on Trade and Sustainable Development (TSD)

31 July 2023, virtually in Ha Noi, Viet Nam and London, UK

1. Greetings and opening remarks

The second meeting of the Trade and Sustainable Development (TSD) Committee under the UK-Viet Nam Free Trade Agreement (UKVFTA) took place on 31 July 2023 in Ha Noi, Viet Nam and London, UK via videoconference.

The meeting was co-chaired by Mr. Ngo Chung Khanh, Deputy Director General of the Multilateral Trade Policy Department at Viet Nam Ministry of Industry and Trade and Mr. Justin Armitage, Head of TSD Implementation at the UK’s Department for Business and Trade.

Other Vietnamese participants were from the Ministry of Industry and Trade (MOIT), Ministry of Labour, Invalids and Social Affairs (MOLISA), Ministry of Agriculture and Rural Development (MARD), Ministry of Natural Resources and Environment (MONRE), Ministry of Foreign Affairs (MOFA), and Ministry of Justice (MoJ). Meanwhile, other UK participants were from the Department for Business and Trade (DBT), the Department of Environment Food and Rural Affairs (DEFRA), the Home Office (HO) and the UK Embassy in Ha Noi, Viet Nam.

2. Approval of the agenda

The TSD Committee established under Article 17(2) of the UKVFTA approved the meeting agenda as indicated in the annex.

3. Discussion of the institutional arrangements

The committee confirmed that both sides would continue their work on establishing the rules of procedure for the TSD Committee as well as a list of individuals who would be willing and able to serve as experts on a Panel of Experts, as stipulated in Articles 13.15.3 and Article 13.17.3 of the UKVFTA.

The committee discussed the text of the TSD Committee rules of procedure. The two sides acknowledged the importance of the TSD Committee rules of procedure in establishing clear processes for the TSD Committee. In this regard, Viet Nam raised concerns about Article 4.2 (Delegations and Attendees) and Article 7.3 (Publicity and Confidentiality). It emphasised that the current wording of the former will need to be reported to the Trade Committee, while proposed new wording for the latter. The UK said it will consider Viet Nam’s proposals and comments before making an official decision.

With regard to the selection of roster list of the Panel of Experts, the Viet Nam side updated that it has completed its preliminary sub-lists of Vietnamese individuals as well as potential candidates for the chair position. The Viet Nam side has also completed its internal consultation on this list and is preparing documents to submit to the Prime Minister for consideration and approval. The Viet Nam side further noted that during the first TSD meeting, the UK proposed that each side propose three candidates for the list of chairpersons. Based on such proposal, the Viet Nam side has shortlisted three candidates for the chairperson position. The UK also noted it has shortlisted three candidates for the chairperson position, which Viet Nam asked the UK double-check.

The two sides agreed to exchange their respective proposed lists after completing internal procedures.   

The Viet Nam and the UK updated on their Domestic Advisory Group (DAG) members and shared information on how they have been working with the respective groups. Viet Nam informed that it currently has seven members in the DAG and is still welcoming interested organisations that meet sufficient criteria. Viet Nam also established a number of mechanisms to support and monitor the operation of the DAG, including setting up a secretariat for Viet Nam DAG. The UK noted it set up its DAG in September 2022, and had held several meetings since, including a monthly meeting with the DAG chair to discuss upcoming engagements.

The two sides agreed to continue collaboration in the operation of their DAGs as an important way to effectively implement the TSD Chapter.

4. Dedicated discussion on trade and environment

Both sides discussed carbon leakage. Viet Nam showed interest in knowing the status quo of the UK’s internal consultation on carbon leakage. Furthermore, Viet Nam noted that such a mechanism should carefully take into account the different levels of development among countries, and be compatible with WTO’s fundamental principles, especially the MFN principle. UK acknowledged Viet Nam’s comment, however said that it currently is not able to share its official position on this matter. It will publish its official response in due course and is happy to continue engaging on this issue.

The Viet Nam side updated on Viet Nam’s implementation of the Paris Agreement. On 26 July 2022, Viet Nam’s Prime Minister issued the National Strategy for Climate Change until 2050 with several measures to meet the Plan’s target, including the reduction of greenhouse gas emissions in line with its net zero emission target by 2050. The UK reaffirmed its commitment to net zero and outlined updates to its hydrogen strategy.

The Viet Nam side informed that the Law on Environment Protection is now in place and Viet Nam has issued Decree No. 06/2022/ND-CP and Decree No. 08/2023/ND-CP to implement it.

The Viet Nam side provided an overview of its decarbonisation strategy, in particular in the electricity sector. Viet Nam proposed potential cooperation with the UK on areas such as carbon footprints and calculation methods, capacity building, sustainable energy transition, and technology transfer. The UK welcomed further detail on these proposals for consideration.

The UK offered congratulations for the approval of Viet Nam’s eighth National Power Development Plan, which Viet Nam appreciated, and accordingly provided updates on a number of follow-up actions to implement the plan.

The UK updated on its accession to CPTPP, where it looks forward to supporting ongoing and future work on issues including the low-carbon transition and on trade in environmental goods and services.

Both sides shared information on their approaches to circular economy. With regard to plastics and marine litter, the Viet Nam side informed that it issued a decree to ban the use of certain plastic bags by 2026, and after 2030 stop producing and importing single-use plastic products. It also informed the UK about Viet Nam’s issuance of a plan to join the Global Agreement on Marine Litter. The UK updated on its plastic packaging tax and upcoming ban on single-use plastics.

The Viet Nam side reiterated its participation in the Global Agreement on Plastic Waste and welcomed UK’s support and closer cooperation on this issue.

Regarding IUU fishing, the UK explained its domestic measures, and welcomed the further information that Viet Nam were able to provide. The Viet Nam side informed that it has continued consolidating its legal framework on IUU policy for the last five years and welcomed support from the UK on this issue, especially capacity building. Viet Nam listed specific achievements on fisheries policies, in particular on establishing strategies and implementing regulations, and signing cooperation agreements at the regional level.

In response to the questions raised by the UK regarding to IUU fishing combating in Viet Nam; the cooperation between Viet Nam and the EU over yellow card issue; Viet Nam cooperation against IUU fishing globally, regionally and domestically, Viet Nam affirmed its global and regional efforts in fully implementing the commitment to combat IUU fishing as a member of PSMA, UNFSA; promoting the establishment of information network on IUU fishing with ASEAN members; signed MOUs on anti-IUU cooperation with a number of small island countries. The efforts and determination to fight IUU have been harmonized through implementation of the Fisheries Law 2017, Decree 26/2019, Decree 42/2019 and Circular 01/2022.

Viet Nam has affirmed its efforts to cooperate at the highest possible level with the EU to handle the yellow card issue, but also stated that the achieved results require cooperation on the basis of mutual understanding from both sides for the tropical multi-species, multi-fishing gears and artisanal fisheries. Viet Nam affirmed its willingness to cooperate with the UK in combating IUU fishing.

Responding to a request to share information from the UK, Viet Nam said that it is currently in the process of assessing the impact of the application of reference points in resource assessment, determining the biological sustainability threshold for WTO Agreement on Fisheries Subsidies implementation. If the assessment does not show any burdensome obligations, MARD will submit to the Government for consideration in September 2023, then submit to the National Assembly for consideration and approval.

The UK outlined its priority areas for further cooperation including net zero measures, sustainable fishing, sustainable forestry and biodiversity, and asked Viet Nam to share further information on their wider priorities for TSD cooperation.

5. Dedicated discussion on trade and labour

The UK and Viet Nam sides exchanged on recent developments in the field of labour under Chapter 13 of the UKVFTA.         

Both Viet Nam and the UK provided an update on the status of their respective ILO convention ratifications, including the ILO fundamental conventions. With regard to two newly fundamental ILO conventions on occupational safety and health (OSH), Viet Nam informed that both have been joined and ratified by Viet Nam, and asked the UK about their status quo in ratification of these conventions. The UK updated Viet Nam on their ratification of ILO convention 190 on violence and harassment in the workplace and asked Viet Nam about their timeline for ratifying ILO convention 87. Discussions were also held on freedom of association and collective bargaining, including Viet Nam’s updates to implementing its international obligations in this regard.

Viet Nam informed of its efforts to effectively implement commitments on labour, especially the successful ratification of 9 out of 10 ILO fundamental conventions. With regard to the remaining ILO convention, 87, Viet Nam is undertaking domestic procedures for early ratification.  

The Viet Nam side updated the UK that the Government of Viet Nam has promulgated a number of decrees, Prime Minister’s Decision and Circulars to implement the revised Labour Code. Regarding the decree on workers’ representative organisations and collective bargaining, Viet Nam is still consulting internally as this is very new to Viet Nam with complexity, and there are some regulations that need to be harmonised with the Trade Union Law which will be revised in 2024.

With regard to child labour, the Viet Nam side affirmed that it has been actively amending its legal framework and issuing action plans to reduce and prevent child labour. The new “National Programme on Prevention and Reduction of illegal child labour for the Period of 2021 to 2025 and Orientation towards 2030” sets the target of reducing child labour to 4.5% by 2030.

The UK provided information on key legislative changes in labour policy, including an increase to the National Living Wage as well as commitments to enhance workers’ rights and support people to stay in work in a number of private members’ bills. The UK also acknowledged the UK and Viet Nam’s cooperation on tackling forced labour, which includes the joint memorandum of understanding on human trafficking that was signed between the UK and Viet Nam in 2018 and they also presented on the UK’s approach to tackling forced labour in global supply chains.

As a priority area for future work, the UK and Viet Nam agreed to continue working on the implementation of the commitments in the field of labour, in particular issues discussed in the TSD Committee meeting, and agreed to continue to update each other on efforts made to ratify ILO Fundamental Conventions classified as up-to-date and to exchange information in this regard. Both sides also exchanged views on potential cooperation in the Trade and Labour space, with Viet Nam highlighting ILO convention 190 on Violence and Harassment, and the UK highlighting freedom of association and forced labour, and both sides discussed sharing their priorities via correspondence in due course.

Annex

Agenda

1. Greetings and opening remarks
2. Approval of the agenda
3. Discussion of the institutional arrangements:
   • TSDC rules of procedure
   • establishment of TSD Panel of Experts
   • establishment and operation of the 2 DAGs
   • discussion on preparation for the first joint forum
4. Dedicated discussion on trade and environment
5. Dedicated discussion on trade and labour
6. Next steps and joint minutes
7. Closing remarks