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24 June 2025: UK-Vietnam FTA Committee on Trade and Sustainable Development (TSD) – joint report

Published 29 January 2026

1. Greetings and opening remarks

The third meeting of the Trade and Sustainable Development (TSD) Committee under the UK-Vietnam Free Trade Agreement (UKVFTA) took place on 24 June 2025 in Hannoi, Vietnam and London, UK via videoconference.

The meeting was co-chaired by the Head of TSD Implementation Delivery at the UK’s Department for Business and Trade (DBT), and the Deputy Director General of Multilateral Trade Policy at Vietnam’s Ministry of Industry and Trade (MOIT).

UK participants included representatives from DBT, the Department for Environment, Food and Rural Affairs (DEFRA), the Department of Energy Security and Net Zero (DESNZ) and the UK Embassy in Ha Noi, Viet Nam.

Vietnamese representatives included officials from the MOIT, Ministry of Finance, Ministry of Home Affairs, Ministry of Agriculture and Environment, Ministry of Justice, and Ministry of Foreign Affairs.

2. Approval of the agenda

The TSD Committee established under incorporated Article 17(2) of the UKVFTA approved the meeting agenda as detailed in Annex 1.

3. Discussion of the institutional arrangements

The committee confirmed the mutual agreement of the rules of procedure for the TSD Committee and endorsed their formal adoption.

Both sides reaffirmed their commitment to advancing the institutional framework of the UKVFTA by continuing collaborative efforts to identify and nominate qualified individuals to serve on the panel of experts, in accordance with incorporated Article 13.17.3 of the UKVFTA. In this respect, the two sides agreed to share lists of proposed candidates and their curriculum vitae by September 2025. Following such exchange, the two sides would discuss next steps with a view to completing the lists by the end of the year. In addition, the UK proposed to establish Rules of Procedure for the Panel of Experts in accordance with incorporated Article 13.17.2, of which Vietnam took note and proposed both sides to follow up after the meeting.

4. Discussion on trade and environment, including climate

The UK and Vietnam exchanged recent environment developments related to trade under incorporated Chapter 13 of the UKVFTA.

Net zero measures were discussed, with the UK providing an overview of recent progress on the transition to net zero, outlining the success of international partnerships and congratulating Vietnam for progress under their Power Development Plan 8 (PDP 8).

Vietnam updated the UK on some outstanding points of the Prime Minister’s decision No.768/QD-TTg dated 15 April 2025 on the amended PDP 8, especially its aim to vigorously expand renewable and green energy sources, such as wind, solar, and biomass, to ensure energy security and affordability. By 2030 and 2050, renewables are expected to make up a significant share of the power generation mix, among which solar and wind energy will lead the transition.

For the Just Energy Transition Partnership (JETP), Vietnam informed that its implementation has shown some noticeable achievements. Vietnam encouraged the UK, as one of the International Partners Group (IPG) co-chairs, to play a strong role in mobilising financial resources and broader support. Strengthened support would help Vietnam transition more quickly and smoothly to a low Green House Gas (GHG) emission energy system, and ensure national energy security during the transition.

Vietnam introduced some highlights of Resolution No. 68-NQ/TW of the Politburo dated 4 May 2025 on development of the private sector. This resolution sets a national target of having 2 million enterprises by 2030, including at least 20 large ones participating in global value chains. It emphasises sustainable private sector development through innovation, digital and green transformation. To do so, tax incentives, technology development funds, and regulatory sandboxes for emerging technologies will be offered to enterprises, and public research infrastructure and innovation ecosystems will also be made more accessible the private sector.

The UK highlighted recent co-operation between the 2 parties in Offshore Wind (OSW) development, including the planned establishment of the Offshore Wind Centre of Excellence, and noted this is a key area of interest for the UK. Follow up questions from the UK subsequently raised the OSW regulatory framework progress and the Auction Process. Vietnam responded that such matters are covered in 2 key regulations: the PDP 8 (Prime Minister’s Decision No. 500/QD-TTg dated of 15 May 2023) and the amended PDP 8 (Prime Minister’s Decision No. 768/QD-TTg dated of 15 April 2025).

The UK shared an update on Illegal Unreported and Unregulated (IUU) fishing, highlighting the UK is highly active on this topic internationally. The UK further outlined the preparations underway for adapting to EU IUU regulation changes. Vietnam similarly provided an update and discussed key areas of focus in progressing IUU fishing management. This included law enforcement, fleet and fishing management, traceability, engagement with international agreement and Regional Fisheries Management Organisations (RFMOs) enhancing public awareness. The UK offered further discussions on this with Vietnam fisheries colleagues on the EU’s new rules on catch certificate of imports through CATCH that will enter into force on 10 January 2026.

The UK provided a presentation on its Carbon Border Adjustment Mechanism (CBAM), which offered a brief overview of the policy and highlighted the introduction of the UK CBAM international group, which Vietnam has been invited to join. Vietnam acknowledged receipt of UK’s invitation and noted that it was consulting internally on the focal point in charge of this matter. Vietnam considered the UK CBAM policy to be of substantial interest, though has concerns over the potential impact it may have on trade. Interest was expressed in further guidance, assistance and co-operation on this topic.

The section concluded with a joint discussion on potential areas of mutual interest which may be suitable for future cooperation efforts. In particular, OSW, IUU fishing and UK CBAM were identified as areas for potential future cooperation.

5. Discussion on trade and labour

The UK and Vietnam sides exchanged recent developments in the field of labour, under Chapter 13 of the UKVFTA.

The UK opened discussions by highlighting the sizeable presence it has at the International Labour Organization (ILO). The UK’s support has been essential in lifting labour standards with partner countries and promoting sustainable growth internationally.

The UK provided updates on its plan to Make Work Pay, including ambitions to promote long-term, sustainable, and inclusive economic growth reforms. Discussions also focused on how the Employment Rights Bill strengthens collective bargaining rights and trade union recognition. Finally, the UK shared its experience on migrant worker management and labour protections which Vietnam expressed an interest in.

Vietnam informed of its efforts to effectively implement commitments on labour standards, including its ratification of 25 ILO Conventions (9 out of 10 ILO fundamental conventions). On Convention No. 87 (Freedom of Association), Vietnam provided information on their scrutinisation plan for ratification, including continuous cooperation with relevant agencies and ministries.

In addition, Vietnam set out the current state’s organisational restructuring that affects this process. Vietnam affirmed that it had ratified Convention No. 29 (Forced Labour) and was assessing the possibility of ratifying the 2014 Protocol, while noting that the ratification of the 2014 Protocol is optional. Vietnam also noted that the fundamentals of both Convention No. 29 and the 2014 Protocol have been specified in national laws (such as the 2019 Labor Code, the 2019 Penal Code and the draft on amended Penal Code 2025, the 2024 Law on Human Trafficking Prevention and Combat). The UK emphasised the importance of ratification and implementation of these conventions and requested to be kept updated on Vietnam’s progress.

6. Closing remarks and next steps

The meeting concluded with the co-chairs summarising the key takeaways and next steps and reiterated shared commitment for continued engagement, cooperation and to work closely in this and other forums. The co-chairs thanked all participants for their contributions and the fruitful discussions held.

Annex 1

Agenda

1. Greetings and opening remarks by UK and Vietnam
2. Approval of the agenda of the 3rd meeting of the TSD Committee
3. Discussion of institutional arrangements
   • discussion and adoption on the TSDC Rules of Procedure co-chairs
   • next steps on the establishment TSD Panel of Experts
   • discussion on preparation for the second joint forum
4. Discussion on trade and environment, including climate
   • net zero measures
   • sustainable fishing
   • UK Carbon Border Adjustment Mechanism (CBAM)
   • potential areas of mutual interest
5. Discussion on trade and labour
   • progress towards ratification of fundamental ILO conventions
   • policy/legislative updates related to Trade and Labour
   • discussion on migrant worker management and labour protection measures
6. Next steps and joint minutes
7. Closing remarks