WT/REG436/1  
20 December  2023 
(23-8677) Page: 1/39 
Committee on Regional Trade Agreements    
 
FACTUAL PRESENTATION  
FREE TRADE  AGREEMENT BETWEEN THE UNITED KINGDOM  AND VIET NAM  
(GOODS AND SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Free Trade  Agreement between the 
United Kingdom  and Viet Nam , has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties. The factual presentation 
reproduces as closely as possible the terminology used in the Agreement and in the 
comments provided and does n ot imply official endorsement or acceptance by the 
Secretariat of such terminology. The report has been drawn up in accordance with the 
rules and procedures contained in the Decision for a Transparency Mechanism for 
Regional Trade Agreements (WT/L/671) and  thus does not imply any value judgement 
by the Secretariat regarding the contents of the Agreement.  
Any technical questions arising from this report may be addressed to Denby Probst 
(tel: +41 22 739 5847) . Any statistical questions arising from this repor t may be 
addressed to  Pamela Bayona (tel: +41 22 739 5529) .  WT/REG436/1  
 
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  Table o f Contents  
 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
1.1   Merchandise trade  ................................ ................................ ................................ ..... 4 
1.2   Trade in services and investment  ................................ ................................ .................  6 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ......................  8 
2.1   Background information  ................................ ................................ .............................  8 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ ...........  12 
3.1   Import duties and charges, and quantitative restrictions  ................................ ................  12 
3.1.1   General provisions  ................................ ................................ ................................ . 12 
3.1.2   Liberalization of trade and tariff lines  ................................ ................................ ........  13 
3.1.3   Liberalization schedule ................................ ................................ ............................  14 
3.1.3.1    United Kingdom  ................................ ................................ ................................ .. 14 
3.1.3.2    Viet Nam  ................................ ................................ ................................ ...........  15 
3.1.4   Tariff rate quotas  ................................ ................................ ................................ ... 18 
3.2   Rules of origin  ................................ ................................ ................................ ..........  18 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................  19 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ....... 20 
3.4.1   Standards  ................................ ................................ ................................ .............  20 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ .... 20 
3.4.1.2    Technical barriers to trade  ................................ ................................ ....................  20 
3.4.2   Safeguard mechanism s ................................ ................................ ...........................  20 
3.4.2.1    Global safeguards  ................................ ................................ ...............................  20 
3.4.2.2    Bilateral safeguards  ................................ ................................ .............................  20 
3.4.3   Anti-dumping and countervailing measures  ................................ ...............................  21 
3.4.4   Subsidies and state -aid ................................ ................................ ...........................  21 
3.4.5   Customs -related procedures  ................................ ................................ ....................  21 
3.4.6   Other regulations  ................................ ................................ ................................ ... 21 
3.4.6.1    State trading enterprises  ................................ ................................ ......................  21 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ . 21 
3.5.1   Motor vehicles, including parts and equipment and pharmaceuticals  ..............................  21 
3.5.2   Renewable energy generation  ................................ ................................ ..................  22 
4   PROVISIONS ON TRADE IN SERVICES  ................................ ................................ ....... 22 
4.1   Scope and definitions  ................................ ................................ ................................  22 
4.2   Denial of benefits  ................................ ................................ ................................ ..... 22 
4.3   General provisions on trade in services  ................................ ................................ ........  22 
4.3.1   Market access  ................................ ................................ ................................ ....... 22 
4.3.2   National treatment and MFN  ................................ ................................ ....................  23 
4.3.3   Commercial presence  ................................ ................................ .............................  23 
4.3.4   Movement of natural persons  ................................ ................................ ..................  23 
4.4   Liberalization commitments  ................................ ................................ ........................  23 WT/REG436/1  
 
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  4.4.1   United Kingdom  ................................ ................................ ................................ ..... 23 
4.4.1.1    MFN and horizonal commitments  ................................ ................................ ...........  23 
4.4.1.2    Sector specific commitments  ................................ ................................ ................  23 
4.4.2   Viet Nam  ................................ ................................ ................................ ..............  25 
4.4.2.1    MFN and horizonal commitments  ................................ ................................ ...........  25 
4.4.2.2    Sector specific commitments  ................................ ................................ ................  25 
4.5   Regulatory provisions  ................................ ................................ ................................  27 
4.5.1   Domestic regulation  ................................ ................................ ...............................  27 
4.5.2   Recognition  ................................ ................................ ................................ ...........  27 
4.5.3   Subsidies  ................................ ................................ ................................ ..............  27 
4.5.4   Safeguards  ................................ ................................ ................................ ...........  27 
4.5.5   Other  ................................ ................................ ................................ ...................  28 
4.6   Sector specific provisions on trade in services  ................................ ...............................  28 
4.6.1   Postal services  ................................ ................................ ................................ ...... 28 
4.6.2   Telecommunications networks and services  ................................ ...............................  28 
4.6.3   Financial services  ................................ ................................ ................................ ... 28 
4.6.4   International maritime transport services  ................................ ................................ .. 28 
5   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  28 
5.1   Transparency  ................................ ................................ ................................ ...........  28 
5.2   Current payments and capital movements  ................................ ................................ .... 28 
5.3   Exceptions  ................................ ................................ ................................ ...............  29 
5.4   Accession and withdrawal  ................................ ................................ ..........................  29 
5.5   Institutional framework  ................................ ................................ .............................  29 
5.6   Dispute settlement  ................................ ................................ ................................ ... 29 
5.7   Relationship with other agreements concluded by the parties  ................................ ..........  30 
5.8   Government procurement  ................................ ................................ ..........................  32 
5.9   Intellectual property rights  ................................ ................................ .........................  32 
5.10   Competition  ................................ ................................ ................................ ...........  32 
5.11   State -owned enterprises, enterprises granted special rights or privileges,  and  
designated monopolies  ................................ ................................ ................................ ..... 32 
5.12   Environment and labour  ................................ ................................ ...........................  33 
5.13   Electronic commerce  ................................ ................................ ...............................  33 
5.14   Balance of payments safeguard  ................................ ................................ ................  33 
5.15   Small and medium -sized enterprises  ................................ ................................ .........  33 
ANNEX 1  ................................ ................................ ................................ ........................  34 
ANNEX 2  ................................ ................................ ................................ ........................  38 
 
  WT/REG436/1  
 
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Key Facts  
 
Parties to the Agreement:  United Kingdom and Viet Nam  
 
Date of Signature:    29 December 2020  
 
Date of Entry into Force:  1 May 2021 
 
Date of Notification:   31 December 2020  
 
Full implementation:   1 August 2035  
 
 
1  TRADE ENVIRONMENT  
1.1.  The Free Trade Agreement between the United Kingdom and Viet Nam  (hereinafter referred to 
as "the Agreement" or the " UK-Vietnam Agreement ") is one of the UK's 38 RTAs and Viet Nam's 
15 RTAs notified to the WTO.  
1.1  Merchandise trade  
1.2.  In 202 1, the UK 's global merchandise exports amounted to USD 4 68.2 billion and imports of 
USD 6 93.8 billion while for Viet Nam, exports were USD 335.9  billion and imports, USD 331.6  billion, 
respectively.1 The UK is the world 's 8th largest importer and 14th largest exporter of go ods and 
Vietnam ranks 23rd in terms of imports and 20th in terms  of exports.2 
1.3.  Chart 1.1 presents the trends in global and bilateral  merchandise trade between 201 8 and 
2020. The UK shows a trade deficit throughout the period while Viet Nam shows a trade su rplus. At 
the bilateral level, Viet Nam is a net exporter of goods to the UK.  Trade  between the parties  has 
remained relatively stable during the period 201 7-21, with a slight increase in 2021 after a decline 
in 2020 . The UK has a bilateral trade deficit  with Viet Nam , similar to its global merchandise trade 
deficit, whereas the situation is the opposite with Viet Nam, who maintains  trade surpluses with the 
UK and the world.  
 
1 Based on data from the WTO Trade Profiles (202 2) viewed on 25 July 2023;  Viet Nam's exports in 
2020 represented 1.4% of global exports while its imports were 1.3% of global imports.  
2 Ranks in world trade and the shares of trade by main commodity group come from the Parties' WTO 
Trade Profiles 2022.  WT/REG436/1  
 
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  Chart 1.1 United Kingdom -Viet Nam: Merchandise bilateral trade and with world (2017 -
2021)  
 
Note:  Exchange rates used from GBP to USD: 0.78 (2017), 0.75 (2018), 0.78 (2019), 0.78 (2020), and 
0.73 (2021).  
Source:  UK authorities  and UNSD Comtrade , March 2 023. 
 
1.4.  Chart 1.2 shows the commodity structure of trade between the UK and Viet Nam, as well as of 
their global trade in the period 2018-2020 on the basis of product categories of the Harmonized 
System (HS).  Machinery forms the majority of Viet Nam's global  exports (43%) as well as the UK's 
imports from Viet Nam (46%). Other significant categories of UK imports from Viet Nam are wood 
pulp (12%) and textiles (10%). In turn, around half of Vietnamese imports from the UK consist of 
chemicals and machinery (51%); these also form two of the top three UK global export sectors.  
WT/REG436/1  
 
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  Chart 1.2 UK-Viet Nam: Product composition of merchandise trade, by HS Section (201 8-
2020) 
 
Note:  Exchange rates from GBP to US D: 0.7495 (2018), 0.7834 (2019) and 0.7800 (2020) . 
Source:  UK authorities; UNSD, Comtrade database.  
 
1.2  Trade in services and investment  
1.5.  Chart 1.3 depicts  the UK and Viet Nam 's global trade in commercial services from 2011-2021, 
in order of categories based on BPM6 . In 202 1, global  imports for the UK  were led by other business 
services, travel and financial services while global exports were dominated by other business 
services and financial services. F or Viet Nam, global imports in 202 1 were led by transport , travel , 
and other business  services, while global exports were led by manufacturing services, followed by 
transport services.  
WT/REG436/1  
 
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  Chart 1.3: UK and Viet Nam : Trade in commercial services with world, 201 1-2021 
 
 
 
Note:  Exchange rates  used from GBP to USD: 0.78 (2017), 0.75 (2018), 0.78 (2019), 0.78 (2020), and 
0.73 (2021).  No data for Manufacturing services on physical inputs owned by others  for Viet Nam 
from 2011 -2015, for both imports and exports.  No bilateral data available.  
Source :  WTOStat (2011 -2016) and UK authorities (201 7-2021) for UK; ASEAN Statistics for Viet Nam . 
 
1.6.  Tables 1.1 and 1.2 show inward and outward foreign direct investment stock and flows for the 
United Kingdom and Viet Nam for 2018 -2020 in millions of US dollars.  For the United Kingdom, both 
inward and outward stocks (world) were relatively stable  but grew slightly over the period 2018 -20. 
Most of the UK 's FDI with Viet Nam is outward, with relatively little inward FDI.  This is also reflective 
in Viet Nam 's global  FDI figures, whereby it is major recipient of FDI, and has relatively little outflows.  
WT/REG436/1  
 
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  Table 1.1 United Kingdom: FDI stock and flow with Viet Nam and world, 2018 -2020  
FDI 
Category  World (USD Billions)  Viet Nam (USD Millions)  
Outward  Inward  Outward  Inward  
2018  2019  2020  2018  2019  2020  2018  2019  2020  2018  2019  2020  
Total FDI 
Stock  1,939  2,103  2,129  2,098  2,094  2,473  686 1,918  1,195  .. 5 4 
Total FDI 
Flow  83 12 -70 88 54 44 157 .. .. .. .. -1 
.. Not available.  
Note:  Exchange rates from GBP to USD: 0.7495 (2018), 0.7834 (2019) and 0.7800 (2020)  
Source:  UK authorities.  
 
Table 1.2 Viet Nam: FDI stock and flow with world, 2018 -2020  
FDI Category  World (USD Millions)  
Outward  Inward  
2018  2019  2020  2018  2019  2020  
Total FDI Stock  10,668  11,133  11,513  144,991  161,111  176,911  
Total FDI Flow  598 465 380 15,500  16,120  15,800  
Note:  No data available for bilateral FDI.  
Source:  UNCTADStat.  
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background information  
2.1.  The Agreement was signed on 29 December  2020 and notified to the WTO on 31 December 
2020 under  Article XXIV:7(a) of GATT 1994 and Article V:7(a) of the GATS (see documents 
WT/REG4 36/N/1 - S/C/N/10 32). It entered into force on 1 May 2021 following the end of the 
transition period provided for in the Withdrawal Agreement between the UK and the EU.  
2.2.  The text of the Agreement, its Annexes, and Protocols are available on the Parties' official 
websites:  
United Kingdom:   
https://www.gov.uk/government/publications/ukvietnam -free-trade-agreement  
 
Viet Nam:  https: //fta.gov.vn/index.php?r=site%2Fcontent&id=279  
 
2.3.  The Agreement aims to ensure continuity in the UK 's trade relationship  with third parties post 
Brexit through a technical replication of the existing agreement  that was in place when the UK was 
a member of the EU. Thus, it has pursued a "short form agreement " that incorporates the relevant 
provisions of the existing EU -Viet Nam Free Trade Agreement (the "EVFTA "). Provisions of the EVFTA 
are applied mutatis mutandis . The EVFTA was considered by the Committee on Regional Trade 
Agreements (CRTA) on 1 November 2021 on the basis of a factual presentation prepared by the 
WTO Secretariat.3 This factual presentation therefore makes reference to the factual presentation of 
the EVFTA. Box 2.1 summarizes the structure of the Agreement whereas Box 2.2 gives an overview 
of the modifications made by the Agreement to the EVFTA.  
 
2.4.  The Agreement has 7 Articles and additional or changed elements such as a new protocol and 
joint declaration, which form an integral part of the Agreement ( Box 2.1). The Agreement  basically 
maintains the content and structure of the EVFTA  and most of the changes relate to the EU and the 
member States as a result of consequential adjustments,  e.g. territorial application. Specific 
adjust ments include modification of the  tariff quota volumes, changes to rules of origin to allow 
cumulation with the EU, and modifications to Geographical Indications . 
 
 
3 WT/REG406/1 . WT/REG436/1  
 
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  Box 2.1 Structure of the Agreement  
Articles  Titles  
Preamble   
Article 1  Definitions and interpretation  
Article 2  Incorporation of the EU -Viet Nam FTA  
Article 3  Objective s 
Article 4  Territorial application  
Article 5  References to the euro  
Article 6  Continuation of time periods  
Article 7 t  Further provision in relation to the Trade Committee  
Article 8  Review of rice tariff rate quotas  
Article 9  Final provisions  
Protocol 1  Text of new Protocol 1  
Joint Declarations   
Concerning a trilateral approach to rules of origin  
Explanatory Notes  
On how the United Kingdom  interprets references in incorporated trade  agreements to European Union law  
On mutatis mutandis  
Appendix I  
Source:  WTO Secretariat based on the Agreement.  
Box 2.2 Overview of the modifications to the  EU-Viet Nam  Agreement   
Chapters of the EU -Viet 
Nam  Agreement and 
other related 
instruments  Title/description  Modifications to the Agreement  
Preamble   New text replaces t he first paragraph of 
the preamble  
Chapter 1  Objectives and general definitions  Article 1.3 not incorporated  
Chapter 2  National treatment and market 
access for goods  Review of rice TRQ s 
Chapter 3  Trade remedies   
Chapter 4  Customs and trade facilitation   
Chapter 5  Technical barriers to trade   
Chapter 6  Sanitary and phytosanitary 
measures  Article 6.5.1(b)  is replaced with new 
text on competent authorities  
Chapter 7  Non-tariff barriers to trade and 
investment in renewable energy 
generation   
Chapter 8  Liberalisation of investment, trade 
in services and electronic 
commerce  Footnote 10 of subparagraph 1(j) of 
Article 8.2  not incorporated; new 
footnotes in Article 8.8 , and Article 8.8, 
para. 1; Paragraph 4 of Article 8.8  is 
replaced with new text  
Chapter 9  Government procurement  Modification to Article 9.6  on Notices  
Chapter 10  Competition policy  Modification to Section B, Subsidies, 
Article 10.4.1  WT/REG436/1  
 
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  Chapters of the EU -Viet 
Nam  Agreement and 
other related 
instruments  Title/description  Modifications to the Agreement  
Chapter 11  State -owned enterprises, 
enterprises granted special rights 
or privileges, and designated 
monopolies   
Chapter 12  Intellectual property  Modification s to Geographical  
Indications  
Chapter 13  Trade and sustainable development   
Chapter 14  Transparency   
Chapter 15  Dispute settlement   
Chapter 16  Cooperation and capacity building   
Chapter 17  Institutional, general and final 
provisions  Articles 17.1.5, 17.16, 17.18.2, 
17.22.2, 17.23, 17.24.1(a) and 17.25  
not incorporated  
Annexes and Appendices  
Annex 2 -A Elimination of customs duties  Subparagraph 1( j) of Section A is 
replaced with new text;  Sub-section 1 
of Section B  on TRQs, the volumes are 
modified  
Appendix 2 -A-1 Tariff schedule of the Union   
Appendix 2 -A-2 Tariff schedule of Viet Nam   
Appendix 2 -A-3 Export duty schedule of Viet Nam   
Appendix 2 -A-4 Goods to which Viet Nam may 
apply specific measures   
Appendix 2 -A-5 Goods excluded from the definition 
of remanufactured goods   
Annex 2 -B Motor vehicles and motor vehicles 
parts and equipment   
Annex 2 -C Pharmaceutical /medicinal  products 
and medical devices   
Annex 6  Requirements and procedures for 
approval of establishments for 
products   
Annex 7  List of tariff headings   
Annex 8 -A The Union's schedule of specific 
commitments  References to the d ifferentiated 
commitments of EU member  States  are 
removed  
Appendix 8 -A-1 Specific commitments on cross-
border supply of services  Paragraphs 7 and 8 are not 
incorporated; for  subsector 1.A(a)  the 
words in Footnote 5 relating to EU 
member States are not incorporated; 
for subsector 1.E(b) , the words relating 
to the Union are not incorporated; for 
subsect or 12.D(d) , the words relating to 
EU member States are not incorporated  
Appendix 8 -A-2 Specific commitments on 
liberalisation of investments  Paragraph 10 is not incorporated; a 
number of other modifications to the 
table have been incorporated to make 
the provisions relevant to the UK  
Appendix 8 -A-3 Specific commitments in conformity 
with Section D (temporary 
presence of natural persons  for Paragraph 11 is not incorporated; the 
reservation for "all sectors " for 
recognition and footnote 1 are not WT/REG436/1  
 
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  Chapters of the EU -Viet 
Nam  Agreement and 
other related 
instruments  Title/description  Modifications to the Agreement  
business purposes) of Chapter 8 
(liberalisation of investment, trade 
in services and  electronic 
commerce)  incorporated; for subsector 6.A(a) , the 
words in Footnote 4  relating to EU 
member States are not incorporated; 
for subsector 6.A(k) , the words in 
Footnote 6 relating to EU member 
States are not incorporated  
Annex 8 -B Viet Nam 's schedule of specific 
commitments   
Appendix 8 -B-1 Specific commitments on cross -
border supply of services and 
liberalisation of investments   
Appendix 8 -B-2 Specific commitments in conformity 
with Section D (temporary 
presence of natural persons  for 
business purposes) of Chapter 8 
(liberalisation of investments, trade 
in services and  electronic 
commerce)   
Annex 8 -C Exemption for Viet Nam on national 
treatment   
Annex 9 -A Coverage of government 
procurement for the Union Modification of the publication of notices  
information for the UK  
Annex 9 -B Coverage of government 
procurement for Viet Nam  
Annex 11  Specific rules for Viet Nam on 
state-owned enterprises, 
enterprises granted special rights 
or privileges,  and designated 
monopolies   
Annex 12 -A List of geographical indications  Modifications of GIs  
Annex 12 -B Product classes   
Annex 1 5-A Rules of Procedure   
Annex 1 5-B Code of Conduct for Arbitrators and 
Mediators   
Annex 15 -C Mediation mechanism   
Protocols  
Protocol 1  Concerning the Definition of the 
Concept of 'Originating Products' 
and Methods of Administrative 
Cooperation  Replaced and substituted with new 
Protocol and Annexes . Addition of a 
Joint Declaration Concerning a Trilateral 
Approach to Rules of Origin  
Annex I to Protocol 1  Introductory notes to Annex II (list 
of required working or processing)  
Annex II to Protocol 1  List of required working or 
processing  
Annex III to Protocol 1  Materials referred to in paragraph 2 
of Article 3 (cumulation of origin)  
Annex IV to Protocol 1  Products referred to in paragraph 2 
of Article 3 (cumulation of origin)  
Annex V to Protocol 1  Products referred to in paragraph 7 
of Article 3 (cumulation of origin)  
Annex VI to Protocol 1  Text of the origin declaration  WT/REG436/1  
 
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  Chapters of the EU -Viet 
Nam  Agreement and 
other related 
instruments  Title/description  Modifications to the Agreement  
Annex VII to Protocol 1  Specimens of a certificate of origin 
and of an application for a 
certificate of origin  
Annex VIII to Protocol 1  Explanatory notes  
Protocol 2  On mutual administrative 
assistance in customs matters  Subparagraph (c) of Article 13.1  not 
incorporated; replacement of Article 
13.2 with alternative text  
Understandings  
 Concerning bank equity  Not incorporated; however exchange of 
side letters on bank equity, reflected in 
Appendix I  
 Concerning specific commitments 
on distribution services for wine 
and spirits   
Joint Declaration s 
 Concerning the Principality of 
Andorra  Not incorporated  
 Concerning the Republic of San 
Marino  Not incorporated  
 Regarding the revision of the rules 
of origin contained in Protocol 1 
concerning the definition of the  
concept of "originating products" 
and methods of administrative 
cooperation   
 Concerning Custom s Unions  Not incorporated  
Source:  WTO Secretariat based on the EU-Viet Nam and UK -Viet Nam Agreements . 
3  PROVISIONS ON TRADE IN GOODS  
3.1.  The Agreement incorporates Chapters 2 to 7 of the EVFTA  on trade in goods with provisions on 
national treatment and market access, trade remedies, customs and trade facilitation, technical 
barriers to trade, sanitary and phytosanitary measures and non -tariff barriers to trade and 
investment in renewable energy  generation.  
3.2.  The main elements that have changed compared to the EVFTA are with respect to tariff rate 
quotas , mainly due to  amendments of quota volumes to reflect the size of the UK market , and to 
the rules of origin.  For details on the other main elemen ts, see paragraphs 3.1 -3.89 of the factual 
presentation on the EVFTA in document WT/REG406/1.  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.3.  For the liberalization of trade and tariff lines, the Agreement incorporates the existing 
provisions of the EVFTA on tariff reductions and staging. Most of the commitments in the EVFTA 
have been incorporated without change. However, the most prevalent amen dments  were with 
respect to tariff rate quota volumes. For other  details, see also paragraphs 3.1 -3.21 of the factual 
presentation on the EVFTA in document WT/REG406/1.  
3.4.  Article 2.7 outlines the reduction or elimination of customs duties  and refers to Annex  2-A on 
the reduction or elimination of customs duties. This Annex contains the staged tariff reductions and 
commitments on tariff rate quotas, as well as two appendices outlining the specific commitments of WT/REG436/1  
 
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  the United Kingdom, Appendix 2 -A-1, and Viet Nam , Appendix 2 -A-2. Protocol 2 includes provisions 
on mutual administrative assistance for customs matters, i.e. on the correct application of customs 
legislation, in particular on preventing, investigating and combating customs violations.4 
3.5.  The Parties sha ll not adopt or maintain prohibitions or restrictions on imports unless as provided 
by the Agreement (under Appendix 2 -A-4 by Viet Nam). GATT Article XI and its Notes and 
Supplementary provisions are incorporated into the Agreement mutatis mutandis (Articl e 2.14).5 
3.1.2   Liberalization of trade and tariff lines  
3.6.  The tariff elimination or reduction schedules and staging categories follow the same 
arrangements agreed in the EVFTA as implemented from 1 August 2020  with the exception of one 
change to staging category  1(j)6 regarding the entry price system. The staging provisions remain as 
in the EVFTA, i.e. elimination of the ad valorem  component  while maintaining the specific duty 
component, but an additional paragraph acknowledges that the United Kingdom may introduce an 
entry price system, in whole or in part, for fruit and vegetables and processed fruit and vegetables 
on or after the entry int o force of the Agreement .  
3.7.  Annex 2 -A, Section A,  provides for 12 staging categories for tariff elimination:  
i. category A: customs duties eliminated on the date of entry into force,  
ii. category B3: customs duties eliminated in four equal annual stages beginning on the date 
of entry into force,  
iii. category B5: customs duties eliminated in six equal annual stages beginning on the date of 
entry into force,  
iv. category B7: customs duties eliminated in eight equal annual stages beginning on the date 
of entry into force,  
v. category B9: customs duties eliminated in ten equal annual stages beginning on the date of 
entry into force,  
vi. category B10: customs duties eliminated in 11 equal annual stages beginning on the date 
of entry into force,  
vii. category B10* and category B10**: customs  duties eliminated in 11 specific annual stages 
indicated in annex 2 -A beginning on the date of entry into force,  
viii. category B15: customs duties eliminated in 16 equal annual stages beginning on the date 
of entry into force,  
ix. category A+EP: the ad valorem  component is eliminated on the date of entry into force while 
the specific duty is maintained , 
x. category R75: specific customs duties applied from the date of entry into force , 
xi. category CKD: excluded lines.  
 
3.8.  Remaining provisions on customs duties and eliminati ons are as outlined in the factual 
presentation on the EVFTA in document WT/REG406/1.  
 
4 Minor amendments were made to Article 13 of Protocol 2 due to consequential changes from  EU/EU 
member States to  the United Kingdom regarding "Other Agreements ". 
5 Including right hand steering vehicles, certain used consumer goods, used vehi cles and spare parts, 
asbestos products and materials under amphibole group and all types of specialized coding machines and 
cipher software programmes.  
6 The parties have advised that the Agreement text referring to a change in subparagraph 1(k) of 
Sectio n A of Annex 2 -A was in error and in fact should have referred to subparagraph 1(j).  WT/REG436/1  
 
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  3.1.3   Liberalization schedule  
3.1.3.1   United Kingdom  
3.9.  The elimination of tariff commitments under the Agreement aligns with the commitments under 
the EVFTA. The tariff preferences applied by the UK for products from Vietnam remained  the same 
as those applied by the EU under the EVFTA, and from the date the UK  cease d to be bound by the 
EVFTA  the existing tariff levels and staged reductions continued to apply uninterrupted. Table 3.1 
outlines the remaining phase -out schedule for the United Kingdom.7 The majority of UK tariffs are 
already duty -free under the Agr eement or on an MFN basis with over 80% with a zero rate of duty  
as of 2023. The rest will be eliminated after full implementation  in 2027 , with only 74 tariff lines 
(0.8% of all lines) remaining dutiable.8 
3.10.  When examining the tariff eliminations by HS Section (Table 3.2), tariff eliminat ion is still 
being implemented for most HS sections. After full implementation, d utiable goods remain 
exclusively  in the agricultural sector, i.e. Sections I (live animals), II (vegetables), IV (prepar ed 
food) and VI (chemicals , although these are all covered in the WTO Agreement on Agriculture, e.g. 
sorbitol, mannitol, starches, etc .). The products remaining dutiable  include  egg yolks, rice, tuna, 
sugar, c ocoa powder, mushrooms, and artificial sugars.   
Table 3.1 United Kingdom: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out period  Tariff lines in UK's tariff schedule  UK's imports from Viet Nam  
(2018 -20)a 
Number  % Value (USD 
million)b % 
2021 (MFN)  4,462  47.0 3,343.0  60.4 
2021 3,771  39.7 1,148.8  20.8 
2023 397 4.2 177.0  3.2 
2024 1 0.0 0.0 0.0 
2025 390 4.1 453.5  8.2 
2026 2 0.0 0.0 0.0 
2027 397 4.2 407.2  7.4 
Remain dutiable  74 0.8 2.5 0.0 
TOTAL  9,494  100.0  5,532.0  100.0  
a Import coverage is for HS chapters 1 -97.  
b  The import values were reported in GBP and converted into USD using the exchange rates of 0.7495 
(2018), 0.7834 (2019) and 0.7780 (2020).   
Note:  Tariff lines subject to in -quota rates are excluded in the computation. Based on the HS 2017 
nomenclature.  
Source:  WTO estimates based on data provided by UK.  
 
Table 3.2 United Kingdom: Tariff elimination under the Agreement, by HS Section  
HS Section  MFN 2021  Lines  under the Agreement  
Avg. 
Dutia -
ble 
Tariff  Avg. Tariff (%)  No. of lines  Duty free lines  Duty Free  
Remain 
Dutiable  2021  
2023  
2025  
2027  
I 8.9 956 109 504 116 87 135 5 * 
II 4.4 554 213 275 6 22 6 32 4.7 
 
7 Some variations exist in the number of lines phased out in the respective years compared to the EU 
tariff elimination due to nomenclature updates and because the UK phas e out reflects preferential rates as 
applied by the UK . 
8 The UK's MFN tariff in 2021 consisted of 9,494 lines at the eight -digit level. Around 90.7% (8,613 
lines) of the tariff had ad valorem  rates of duty. Of the remaining lines 647 had specific rates, 2 30 compound 
rates and 4 lines had mixed rates of duty.  WT/REG436/1  
 
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  HS Section  MFN 2021  Lines  under the Agreement  
Avg. 
Dutia -
ble 
Tariff  Avg. Tariff (%)  No. of lines  Duty free lines  Duty Free  
Remain 
Dutiable  2021  
2023  
2025  
2027  
III 4.8 129 30 95 2  2   
IV 12.9 869 119 511 50 60 99 30 16.1 
V 0.4 231 202 29      
VI 2.7 1,226  550 544 93 16 16 7 7.4 
VII 3.7 301 86 205  10    
VIII 1.4 130 73 57      
IX 1.1 235 189 14 2 30    
X 0.0 195 195       
XI 7.0 1,149  243 683 51 128 44   
XII 7.3 106 17 50 5 9 25   
XIII 2.0 234 162 31 35 6    
XIV 0.5 58 47 11      
XV 0.6 955 804 116 17  18   
XVI 0.7 1,338  981 346 5 6    
XVII 3.7 286 121 88 9 9 59   
XVIII 0.6 299 218 79  2    
XIX 1.4 22 7 8 7     
XX 1.4 214 89 125      
XXI 0.0 7 7       
Total  3.8 9,494  4,462  3,771  398 385 404 74 12.6 
*  Tariff lines subject to specific duties only.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are included.  For 
tariff lines subject to seasonal duties9, the average rate f or the entire year is used for the 
calculation. The products classified beyond the HS 8 -digit level are counted once and their tariff 
rates are averaged to the 8 -digit level.  Based on the HS 201 7 nomenclature.  
Source:  WTO estimates based on data provided by the UK.  
3.1.3.2   Viet Nam  
3.11.  Viet Nam 's commitments and phase -out schedule remain as provided in the EVFTA and 
continue uninterrupted under the Agreement  without amendment . Thus, duties continue to be 
phased out  over a longer period, until 2035, as compare d to the UK, and as of 2023 a lower 
percentage have achieved full liberalization , i.e. about 56% of total tariff lines (Table 3.3).10 In 2025 
the largest percent, about 20% of lines, will have duties eliminated. At the end of implementation, 
261 tariff lin es, i.e. 2.4% of all lines, will remain dutiable.  
3.12.  As shown in Table 3.4 on tariff elimination by HS Section, Viet Nam 's tariff elimination is 
slower and there are more dutiable goods at the end of implementation, mainly in the agricultural 
sector. The only  exception to this is 230 tariff lines in the motor vehicle sector designated as "CKD" 
that are subject to a special regime and are excluded from liberalization commitments.  Duties will 
 
9 Tariff lines 0302.41.00, 0302.43.90, 0302.44.00, 0303.51.00, 0303.53.90, 0303.54.10, 0303.89.40, 
0304.59.50, 0304.99.23, 0702.00.00, 0708.10.00, 0805.10.22, 0805.10.24, 0805.10.28, 0808.10.80, 
0808.3 0.90, 0809.29.00 and 0809.40.05 are subject to MFN seasonal duties ; and Tariff lines 0302.41.00, 
0302.43.90, 0302.44.00, 0303.51.00, 0303.53.90, 0303.54.10, 0304.59.50, and 0304.99.23  are subject to 
seasonal duties under the Agreement during the transition periods of tariff liberalization ( Fully liberalized at the 
end of implementation period ).  
10 Viet Nam's  MFN tariff in 2021 consisted of 10, 813 lines at the eight -digit level. A lmost  97.9% (10,583  
lines) of the tariff had ad valorem  rates of duty. Of the remaining lines 230 under HS Chapter 98 had no 
specific tariff rates.  WT/REG436/1  
 
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  remain in HS Sections I (live animals), IV (prepared food), V (mineral s) and XVII (vehicles).  The 
products under these sections pertain mainly to eggs, sugar, tobacco, salt, and motor vehicles.  
Table 3.3 Viet Nam: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out period  Tariff lines in Viet Nam 's tariff schedulea Viet Nam 's imports from the 
UK  
(2018 -2020 )  
Number  % Value  
(USD 
million)  % 
2021 (MFN)  3,156  29.2 527.2  63.0 
2021 1,826  16.9 54.6 6.5 
2023 1,123  10.4 41.4 4.9 
2025 2,130  19.7 119.9  14.3 
2027 1,300  12.0 53.6 6.4 
2029 58 0.5 1.9 0.2 
2030 940 8.7 36.0 4.3 
2035 19 0.2 2.7 0.3 
Remain dutiableb 261 2.4 0.0 0.0 
Total 10,813  100.0  837.4  100.0  
a Tariff coverage is from HS chapters 1 -97. 
b There are 230 tariff lines under HS Chapter 87 (motor vehicles) which are excluded from reduction 
commitment s but are included in the tariff line count. These are products based on special 
instruction s under HS Chapter 98.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation. Based on the HS 2017 
nomenclature.  
Source:  WTO estimates based on data provided by the Viet Nam authorities, the WTO -IDB and the 
information from the EU -Viet Nam FP . 
Table 3.4 Viet Nam: Tariff elimination under the Agreement, by HS Section  HS 
Section  MFN 2 021 Duty free l ines under the Agreement  
Remain 
Dutiable  Avg. 
Dutia -
ble 
Tariff  Avg. 
Tariff 
(%) Total 
linesa Duty 
free 
lines  
2021  
2023  
2025  
2027  
2029  
2030  
2035  
I 12.4 589 92 69 329 28 22 7 36  6 80.0 
II 15.2 491 65 31 94 255 34  12    
III 16.5 175   13 2 22  138    
IV 30.3 470 35 3 4 54 283 1 52 19 19 84.7 
V 6.9 218 69 61 27 1 6  48  6 53.3 
VI 3.0 1,259  749 197 56 110 133  14    
VII 8.8 565 85 143 169 116 6  46    
VIII 12.7 91 24 10 1 56       
IX 7.3 228 109 28  59 32      
X 12.7 300 37 25 15 85 138      
XI 12.6 1,175  92 859 49 130 40  5    
XII 23.0 84 4 38 5 31 6      
XIII 19.9 250 14 34 7 98 97      
XIV 12.2 86 19 30   37      
XV 8.0 1,035  364 78 64 335 65  129    
XVI 6.1 2,133  1,047  176 23 706 174  7    
XVII  34.3 1,033  85 4  29 186 50 449  230 b  
XVIII  4.5 326 220 35 23 35 13      
XIX 5.2 30 24 2     4    WT/REG436/1  
 
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HS 
Section  MFN 2 021 Duty free l ines under the Agreement  
Remain 
Dutiable  Avg. 
Dutia -
ble 
Tariff  Avg. 
Tariff 
(%) Total 
linesa Duty 
free 
lines  
2021  
2023  
2025  
2027  
2029  
2030  
2035  
XX 17.8 267 17  244  6      
XXI 3.8 8 5 3         
Total 12.0 10,813  3,156  1,826  1,123  2,130  1,300  58 940 19 261 77.7 
a Tariff coverage is from HS chapters 1 -97. 
b There are 230 tariff lines under HS Chapter 87 (motor vehicles) which are excluded from reduction 
commitment s but are included in the tariff line count. These are products based on special 
instruction s under HS Chapter 98.  
Note:  Tariff lin es subject to in -quota rates are excluded in the computation.  Based on the HS 2017 
nomenclature.  
Source:  WTO estimates based on data provided by the Viet Nam authorities, the WTO -IDB and information 
from the factual presentation of the EU-Viet Nam  Agreeme nt. 
 
3.13.  Charts 3.1 and 3.2 shows t he average ad valorem  rates remaining dutiable by HS Chapter 
applied by the UK to imports from Viet Nam  and vice versa at the end of the implementation period. 
For the UK, in Chapter s 7 and 20, average MFN rates remain  higher than the preferential  rate; and 
in Chapters 4, 8, 10, 11, 17, and 22 they are subject to only specific tariffs . No preferential treatment 
is granted in Chapters 16, 18, 29, 35 and 38. Meanwhile for Viet Nam, all rem aining dutiable lines 
for Chapters 4, 17, 24, and 25 are not granted preferential treatment.  
Chart 3.1 United Kingdom: Average of dutiable rates, by HS Chapter  
 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, the average rat e for the entire year is used for the 
calculation. The products classified beyond the HS 8 -digit level are counted once and their tariff 
rates are averaged to the 8 -digit level.  
Source:  WTO estimates based on data provided by the UK.  
WT/REG436/1  
 
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  Chart 3.2 Viet Nam : Average of dutiable rates, by HS Chapter  
 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
Source:  WTO estimates based on data provided by the Viet Nam authorities, the WTO -IDB and the 
information from the EU -Viet Nam f actual presentation.  
3.1.4   Tariff rate quotas  
3.14.  Section B of Annex 2 -A provides for the con cessions on tariff rate quotas for both parties. 
Sub-section 1 gives the details on the 14 quota categories for the UK ( birds' egg and egg yolks ; 
garlic ; sweet corn ; husked rice ; milled rice ; fragrant rice ; manioc ; tuna; surimi ; sugar and other 
products containing high levels of sugar ; speciality sugar ; mushrooms ; ethanol ; and mannitol, 
sorbitol, dextrins and other modified starches) which all have a zero rate of duty within the quota 
and remain unchanged from the EVFTA except that the quota volumes have been adjusted to provide 
for continuity of historical trade flows with the UK . The Agreement goes further to provide for the 
initiation of a review of  the rice TRQs three years after entry into force of th is Agreement  (Chapter  8) 
by acknowledging the importance of rice to Viet Nam 's economy  and potential changes in trade 
patterns .  
3.15.  Section B of Annex 2 -A on tariff rate quotas has been amended to re -size the quota volumes 
to reflect that the UK is a smaller importer and exporter with Viet Nam compared to the EU. The 
revised quota volumes are further elaborated in  Table A2.1 and in Annex  2 along with additional 
details.  
3.16.  Viet Nam has four quota categories o n agricultural and non -agricultural goods (birds' eggs, 
sugar, tobacco, and salt) which are the same as  its WTO TRQs.  The in -quota  tariff rates start from 
various base rates ( see Table A2.2) and will be eliminated in 11 equal annual stages beginning on 
the date of entry into force of the EVFTA. The quota volumes, administration methods , and other 
terms and conditions  are aligned with Viet Nam 's WTO commitments, meaning the quota volume 
continues to grow at a rate of 5% annually.   
3.2  Rules of origin  
3.17.  The rules o f origin provisions in the Agreement, as contained in Protocol 1 --Concerning the 
Definition of the Concept of 'Originating Products' and Methods of Administrative Cooperation, 
replace  the rules in Protocol 1 of EVFTA . The n ew Protocol 1 has a similar framework with eight 
Annexes and for the most part, the same rules of o rigin. The main change is a cumulation  provision 
allowing EU processing and content to count towards origin determination ; this is outlined in Article  3 
of Section B of Protocol 1. Furthermore, a n additional Joint Declaration was added at the end on a 
Trilateral Approach to Rules of Origin with the aim of updating  Protocol 1  following an  agreement  
between the UK and the EU on rules of origin appropriate for a trilateral approach .  
WT/REG436/1  
 
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  3.18.  In order to benefit from the Agreement, i.e. preferential tariffs, a good must be originating in 
the exporting Party by being obtained there or by incorporating materials of a Party or the EU , 
provided that the working or processing carried out in the expo rting Party goes beyond the 
operations referred to in Article 6 . Additionally, working or processing carried out in the EU shall be 
considered as having been carried out in the UK when the products obtained undergo subsequent 
working or processing in the U K, beyond the operations referred to in Article 6 . A further cumulation 
provision allows materials listed in Annex III to Protocol  1 originating in an ASEAN country with 
which the UK applies a  preferential trade agreement to be considered as materials orig inating in 
Viet Nam when further processed or incorporated into one of the products listed in Annex IV to 
Protocol  1. A final cumulation provision allows for fabrics or iginating in Republic of Korea to be 
considered as originating in Viet Nam  when further processed or incorporated into certain products, 
provided that they have undergone working or processing in Viet Nam which goes beyond the 
operations referred to in Article 6 . The Agreement maintains the two basic routes for origin 
determination, i.e. wholly obtained and substantial transformation . Substantial transformation us es 
three basic meth odologies —value added, change in tariff classification, and specific processing or 
manufacturing method. These origin determining parameters  have not changed and remain as 
outlined in the EVFTA, see paras. 3.22 -3.30 of the factual presentation in document WT/REG406/1.  
3.3  Export duties and charges, and quantitative restrictions  
3.19.  The Agreement makes no changes to the export duty provisions of the EVFTA. Thus, export 
commitments of the Parties state that the maintenance  or adopt ion any duties, taxes, or other 
charges of any kind on export s of a good to the territory of the other Party  are not allowed in excess 
of those imposed on like goods for domestic consumption and other than in accordance with the 
scheduled commitments of Viet Nam.  
3.20.  The e xport duty schedule for Viet Nam is  contained in Appendix 2 -A-3 to Annex 2 -A and 
contains  commitments on 469 tariff lines . These are broadly on the following products:  Aquilaria 
Crassna Pierre  plant extracts , mineral products, rubber, raw hides and skins, wood, precious stones 
and metals, iron and steel, and base metals.  These export duties are gradually being reduced or 
eliminat ed per the commitments, the majority of which will be eliminated after the full transition 
period (Table 3.5). T here is no corresponding export duty schedule for the United Kingdom.  
Table 3.5 Viet Nam export duties, by category  
Categor
y Number of tariff 
linesa Initial Base Rates  Final rates 
B5a 1 40% 10% 
B5b 5 30% - 40% 20% 
B5*a 32 3% - 5% - 10% - 15% 0% 
B5*b 13 25% - 30% - 40% 20% 
B7* 9 5% - 10% 0% 
B10 74 15% - 20% 0% 
B10* 193 1% - 3% - 5% - 10% - 15% 0% 
B12 11 14% - 15% - 17% - 20% - 30% 0% 
B12* 21 5% - 7% - 10% - 20% - 30% 0% 
B15 35 15% - 17% - 20% - 22% - 25% - 
30% - 40% 0% 
B15*a  19 10% - 15% - 30% 0% 
B15*b  10 17% - 20% 0% 
B15*c  2 22% 0% 
B15*d  4 30% 0% 
B15*e  2 40% 0% 
S 38 2% - 10% - 13% - 15% - 17% - 20% 2% - 10% - 13% - 15% - 17% 
- 20% 
Total 
lines  469   
a  Includes double counting due to ex-lines.  
Source:  Viet Nam authorities based on Appendix 2 -A-3 of the Agreement.  WT/REG436/1  
 
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  3.21.  The Parties shall not adopt or maintain prohibitions or restrictions on exports unless as 
provided by the Agreement (under Appendix 2 -A-4 by Viet Nam). GATT Article XI and its Notes and 
Supplementary provisions are incorporated into the Agreement mutatis mutandis (Article 2.14).11 
3.4  Regulatory pro visions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.22.  The provisions on sanitary and phytosanitary measures are contained in Chapter 6 of the 
Agreement and remain essentially the same as in the EVFTA. There was one minor modification to 
Article 6.5.1(b) , Competent Authorities and Contact Points , whereby  the following phrase replaces 
the original text -- "The United Kingdom shall notify Viet Nam of its competent authorities on the 
date of entry into force of this Agreement ". 
3.23.  The Parties reconfirm their rights and obligations with respect to each other under the SPS 
Agreement and the remainder of the Chapter addresses matters  on equivalence, import 
requirements and procedures, verifications, measu res linked to animal and plant healt h, emergency 
measures, procedure for listing establishments, consultations,  transparency  and exchange of 
information , and technical assistance and special and differential treatment.  These are further 
elaborated in paras. 3.33 -3.39 of the factual presentat ion on the EVFTA in document WT/REG406/1.  
3.4.1.2   Technical barriers to trade  
3.24.  Chapter 5 of the Agreement covers technical barriers to trade and contains the same 
provisions as the EVFTA. The Parties reconfirm their rights and obligations with respect to each other 
under the TBT Agreement, which is incorporated in the Agreement, mutatis mutandis . The Chapter 
enhances bilateral cooperation between the Parties and aims to eliminate unnecessary obs tacles to 
trade as per the TBT Agreement. The main elements of the TBT Agreement are further expanded 
upon, e.g. technical regulations, standards, and conformity assessment procedures.  Provisions on 
market surveillance, marking and labelling, transparency,  consultation, and cooperation are also 
contained in the Agreement. These are further elaborated on in paras. 3.40 -3.48 of the factual 
presentation on the EVFTA in document WT/REG406/1.  
3.4.2   Safeguard mechanisms  
3.25.  Global and bilateral safeguard provisions are con tained in Sections B and C of Chapter 3.  
3.4.2.1   Global safeguards  
3.26.  The provisions on global safeguards  in Section B of Chapter 3 are identical to those in the 
EVFTA.  The Parties affirm  their commitments under Article XIX of GATT 1994, the Safeguards 
Agreement and Article  5 of the Agreement on Agriculture. The two other elements include provisions 
on transparency , covering notification and consultation requirements , and the exclusion  of global 
safeguards from the Dispute Settlement provisions under the Agreement.  
3.4.2.2   Bilateral safeguards  
3.27.  The Agreement also allows for the application of a bilateral safeguard  measure , if, as a result 
of the reduction or elimination of customs duty under the Agreement,  a good is imported  from a 
Party in such increased quantities and under such conditions to cause or threaten to cause serious 
injury to a domestic  industry producing like or directly competitive good s. The commitments remain 
identical to those in the EVFTA; see paras. 3.52 -3.57 of the factual presentation on the EVFTA in 
docum ent WT/REG406/1.  
 
11 Round timber and sawn timber and all types of specialized coding machines and cipher software 
programmes.  WT/REG436/1  
 
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  3.4.3   Anti-dumping and countervailing measures  
3.28.  Section A of Chapter 3provides the Agreement 's provisions on anti-dumping and 
countervailing duties.  The Agreement replicates the trade remedies provisions in the EVFTA without 
amendment. The commitments affirm the Parties ' rights and obligations under Article VI of GATT 
1994 and the Agreement on Subsidies and Countervailing Measures. Further more, there is 
recognition that measures  should be based on a fair and transparent system and interested parties  
should have an opportunity to comment. The Agreement also includes provisions on the 
consideration of public interest and application of the lesser duty ru le. 
3.4.4   Subsidies and state -aid 
3.29.  The provisions on subsidies in Section B of Chapter 10 of the EVFTA are incorporated with 
only one change to Article 10.4 in the Agreement.  This concerns the end of paragraph 1 whereby 
alternative text is incorporated to the eff ect that the parties should not grant subsidies to enterprises 
providing goods or services  if they have or could have a significa nt negative effect on  trade between 
the Parties . The remainder of the provisions on subsidies remain unchanged and are detailed in 
paras. 3.64 -3.69 of the factual presentation on the EVFTA in document WT/REG406/1.  
3.4.5   Customs -related procedures  
3.30.  Customs and trade facilitation measures are contained in Chapt er 4 of the Agreement and 
have not undergone any substantial change, thus they remain identical to those in the EVFTA.  The 
Agreement reinforces cooperation in this area  with a view to ensuring that respective customs 
legislation and procedures fulfil the o bjectives of promoting  trade facilitation while ensuring effective 
customs control. The main elements include c ustoms cooperation and mutual administrative 
assistance , customs  legislation  and procedures, release of goods, simplified customs procedures, 
transit and transhipment, risk management, transparency, advance rulings , fees and charges, 
customs brokers, customs valuation, preshipment inspections, review and appeal, and relations  with 
the business community.  Further details on these elements are in par as. 3.70 -3.78 of the factual 
presentation on the EVFTA in document WT/REG406/1.  The chapter also makes reference to the 
establishment of a Committee on Customs established under Article 17.2 (Specialised Committees) . 
3.4.6   Other regulations  
3.4.6.1   State trading enterpr ises 
3.31.  The Agreement recalls the parties ' obligations under Article XVII of GATT 1994, including its 
Notes and Supplementary Provisions, and the WTO Understanding on the Interpretation of Article 
XVII of GATT 1994, which are incorporated into and made part o f the Agreement, mutatis mutandis .  
3.32.  When a Party requests information from the other Party on individual cases of state trading 
enterprises and on their operations, including information on their bilateral trade, the requested 
Party shall ensure transparency subject to subparagraph 4(d) of Article XVII of GATT 1994.  
3.5  Sector -specific provisions on trade in goods  
3.5.1    Motor vehicles , including parts and equipment and pharmac euticals  
3.33.  The EVFTA  sets out specific Annexes on motor vehicles and pharmaceuticals to address non -
tariff barriers to these products; the Agreement has not amended these provisions. Thus, Article 
2.21 and the respective Annexes, 2 -B and 2 -C continue to apply  with the main go al of eliminating 
and preventing non -tariff barriers to bilateral trade in these products. The Annexes address the 
specific non -tariff barriers such as standards, market access, regulatory convergence, origin 
marking, and transparency. After ten years of e ntry into force at the request of either party, 
negotiations may be held to broaden the scope of commitments on  non-tariff measures  relating to 
motor vehicles , including parts and equipment . WT/REG436/1  
 
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  3.5.2   Renewable energy generation  
3.34.  The Agreement, in Chapter 7, also con tains provisions that affect trade and investment related 
to the generation of energy from renewable and sustainable sources. These have not changed and 
remain as outlined  in the factual presentation on the EVFTA in document WT/REG406/1.  
4  PROVISIONS ON TRAD E IN SERVICES  
4.1  Scope and definitions  
4.1.  Chapter 8 covers liberalisation of investment, trade in services and electronic commerce with 
the structure outlined in Box 4.1. Obligations and commitments of EU member States that had 
appeared in the EVFTA has been rem oved in the Agreement. In general, the same provisions and 
commitments otherwise continue to apply with minor modifications or technical alteration. Thus, the 
same scope applies under the Agreement and certain sectors are excluded from investment 
liberalis ation. Provisions on MFN and national treatment remain as in the EVFTA but there have been 
slight modifications to the performance requirement  provisions (Article 8.8) . Details on the scope 
and definitions are contained in the factual presentation on the E VFTA in document WT/REG406/1.  
Box 4.1 Structure of Chapter 8, liberalisation of investment, trade in services and 
electronic commerce  
Sub-sections  Title 
Section A  General provisions  
Section B  Liberalisation of investment  
Section C  Cross -border supply of services  
Section D  Temporary presence of natural persons for business 
purposes  
Section E  Regulatory framework  
Section F  Electronic commerce  
Section G  Exceptions  
Section H  Institutional provisions  
Source:  Compiled by the Secretariat.  
 
4.2  Denial of benefits  
4.2.  There is no denial of benefits provision per se in the Agreement, although there are a few 
clarifications that may restrict its application. Article 8.2 defines judicial person of a Party and 
changes to the Agreement from t he EVFTA have removed footnote 10 to subparagraph 1(j) , thereby 
removing the further clarity on substantive business operations per this provision. Notwithstanding 
the provision on judicial person of a Party, shipping companies controlled by nationals  of either party 
are covered by provisions of the Chapter if registered under their regulations and fly the flag of the 
party.  
4.3  General provisions on trade in services  
4.3.1   Market access  
4.3.  Market access provisions for investment are contained in Article 8.4 and for the cross -border 
supply of services in Article 8.10. The Parties each have agreed to  accord treatment no less 
favourable than that provided for under the terms, limitations and co nditions agreed and specified 
in their respective  Schedule s of Specific Commitments . There have been no amendments and the 
same language as in the EVFTA remains ; see paras. 4.8-4.10 of the factual presentation on the 
EVFTA in document WT/REG406/1  for detai ls. WT/REG436/1  
 
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  4.3.2   National treatment and MFN  
4.4.  The provisions on national treatment for investment and services are contained in Articles 8.5 
and 8.11; and an MFN provision exists for inves tment (Article 8.6). Regarding measures affecting 
cross-border trade in services an d establishment in the sectors inscribed in its Schedule of Specific 
Commitments , Article 8.11  on national treatment is similar to  Article XVII of GATS and provide s for 
treatment no less favourable than accorded to each Party 's own like services and servic e suppliers.  
On investment, similar language is provided  with respect to no less favourable conditions in like 
situations, to its own investors.  
4.5.  The MFN provision on investment provides treatment no less favourable than accorded to 
investors in like situations, to investors of a third country and their enterprises. However, it does 
not apply to the following sectors:  communication services, except for postal services and 
telecommunication services; recreational, cultural and sporting services; fishery  and aquaculture; 
forestry and hunting; and mining, including oil and gas.  
4.3.3   Commercial presence  
4.6.  Commercial presence is provided in Articles 8.3 and 8.4 under Section B, Liberalisation of 
investment , whereby  the establishment and maintenance of an enterprise  treatment no less 
favourable than that provided for under respective Schedule of Specific Commitments  shall be 
accorded . The Schedules list various limitations on commercial presence through the market access  
commitments and also through reservations.  
4.3.4   Movement of natural persons  
4.7.  Chapter 8, Section D, provides for the limited movement of natural persons, for business 
purposes and includes specific, limited commitments on Entry and Temporary Stay in each Party's 
territory for different specified categories o f business professionals.  This Section has not changed 
and remains as in the EVFTA; for further details, see paragraphs 4.15 -4.19 of the factual 
presentation in document WT/REG406/1.  
4.4  Liberalization commitments  
4.8.  The Schedules of Specific Commitments pursuant  to Sections B and C of Chapter 8,  i.e. specific 
commitments on cross -border supply of services and liberalisation of investments , as well as 
temporary presence of natural persons for business purposes are set out in Annexes 8 -A and 8 -B. 
4.4.1    United Kingdom  
4.4.1.1   MFN and horizonal commitments  
4.9.  The Agreement incorporates, mutatis mutandis , the horizontal restrictions that are listed in 
Annex 8 -A and related Appendices of the EVFTA. However, certain amendments were made to 
remove differentiated commitments of EU member States and related changes as a result thereof.  
Details on the MFN and horizontal commitments are discussed in the Factual Presentation of the 
EVFTA, see paras. 4.22 -4.25 of document WT/REG406/1.  
4.4.1.2   Sector specific commitments  
4.10.  The UK incorporates, mutatis mutandis , Annex 8 -A and related Appendices of the EU's 
schedule of specific commitments under the EVFTA for most services sectors , these  remain identical  
except for minor elements. The main change compared to the EVFTA was with respect to the removal 
of all differentiated commitments of EU member States . This particularly impacts s ervices relating 
to aircraft, maritime transport services (cabotage), legal services, and pharmaceutical services . 
Thus, the details on the specific commitments are summarised in Table 4.1, as well as their 
comparison to the UK 's GATS commitments. Details of the sector specific commitments are discussed 
in depth in the Factual Presentation of the EVFTA, as contained in document WT/REG406/1.  WT/REG436/1  
 
- 24 - 
 
  4.11.  The UK 's GATS commitments are notified to  the WTO but not yet certified.12  
Table 4.1 UK: comparison between GATS and Agreement specific commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
1. Business services        
A. Professional  Services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Computer  and Related  Services  Full Same  Full Full Full Full 
C. Research  and Development  Services  Partial  Improved  Full Partial  Full Partial  
D. Real  Estate  Services  Full Same  Full Partial  Full Partial  
E. Rental/Leasing  Services  without   
Operators  Partial  Improved  Partial  Partial  Partial  Partial  
F. Other  Business  Services  Partial  Improved  Partial  Partial  Partial  Partial  
2. Communication services        
A. Postal  services  --- New Partial  Full Partial  Full 
B. Courier  services  --- New Partial  Full Partial  Full 
C. Telecommunication  services  Partial  Similar  Partial  Full Partial  Full 
D. Audiovisual services  --- Same  Excluded  Excluded  Excluded  Excluded  
E. Other  --- Same  --- --- --- --- 
3. Construction and related 
engineering services        
A. General  construction  work for buildings  Partial  Improved  Full Full Full Full 
B. General  construction  work for civil  
Engineering  Partial  Improved  Full Full Full Full 
C. Installation  and assembly  work  Partial  Improved  Full Full Full Full 
D. Building  completion  and finishing  work  Partial  Improved  Full Full Full Full 
E. Other  Partial  Improved  Full Full Full Full 
4. Distribution services        
A. Commission  agents'  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Wholesale  trade services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Retailing  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Franchising  Partial  Improved  Full Partial  Full Full 
E. Other  --- Same  --- --- --- --- 
5. Education services        
A. Primary education services  Partial  Similar  Partial  Partial  Partial  Partial  
B. Secondary education services  Partial  Similar  Partial  Partial  Partial  Partial  
C. Higher education services  Partial  Similar  Partial  Partial  Partial  Partial  
D. Adult education  Partial  Similar  Partial  Partial  Partial  Partial  
E. Other education services  --- Same   ---  ---  --- --- 
6. Environmental services        
A. Sewage services  Partial  Improved  Full Full Full Full 
B. Refuse disposal services  Partial  Improved  Partial  Full Full Full 
C. Sanitation and similar services  Partial  Improved  Partial  Full Full Full 
D. Other  Partial  Improved  Partial  Full Full Full 
7. Financial services        
A. All insurance  and insurance -
related  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  Partial  Partial  
8. Health related and social services        
A. Hospital services  Partial   Similar  Partial  Partial  Partial  Partial  
B. Other Human Health Services  --- New Partial  Partial  Partial   --- 
C. Social Services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Other  --- --- --- --- --- --- 
9. Tourism and travel related 
services        
A. Hotels  and restaurants (including 
catering)  Partial  Improved  Partial  Partial  Partial  Partial  
B. Travel  agencies  and tour operators   
services  Full Same  Partial  Partial  Partial  Partial  
C. Tourist  guides  services  Full Same  Partial  Partial  Full Full 
D. Other  --- Same  --- --- --- --- 
 
12 WTO document S/C/W/380 . WT/REG436/1  
 
- 25 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
10. Recreational and cultural and 
sporting services        
A. Entertainment  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. News agency services  Full Same  Partial  Partial  Partial  Partial  
C. Libraries, archives, museums and 
other cultural services  --- Improved  Partial  Partial  Partial  Partial  
D. Sporting and other recreational 
services  Partial  Improved  Partial  Partial  Partial  Partial  
E. Other  --- Improved  Partial  Full Partial  Full 
11. Transport services        
A. Maritime Transport Services  --- New Partial  Full Partial  Partial  
B. Internal Waterways Transport  ---  --- --- --- --- --- 
C. Air Transport  Services  Partial  Excluded  Excluded  Excluded  Excluded  Excluded  
D. Space  Transport  --- --- --- --- --- --- 
E. Rail  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
F. Road  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
G. Pipeline  Transport  --- New Partial  Partial  Partial  Partial  
H. Services  auxiliary  to all modes  of  
transport  Partial  Same  Partial  Partial  Partial  Partial  
I. Other  Transport  Services  Partial  Same  Partial  Partial  Partial  Partial  
12. Other services not included 
elsewhere  --- New Partial  Partial  Partial  Partial  
Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included.  
a Information in this column refers only to commitments in sectors or sub -sectors covered under the 
Agreement.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment.  
Partial:  Specific commitments subject to some limitation(s) under market access or nation al treatment.  
---: No specific commitment.  No existing or future measures are indicated . 
Improved: Overall improved commitments under the Agreement compared to those under the GATS.  
Narrower: Some additional limitations (as compared to GATS commitments).  
Same:  Identical commitments.  
Similar:  Similar liberalization possibly, in individual cases, with limited improvements and/or limited additional 
reservations. The assessment is based on a broad perspective taking into consideration both sectoral 
coverage an d the level of specific commitments.  
Excluded: Sector or subsector excluded from the Agreement; or broad reservations for future measures apply.  
Source:  The United Kingdom's Schedules  annexed to the Agreement  and the United Kingdom GATS Specific 
Commitme nts. 
 
4.4.2    Viet Nam  
4.4.2.1   MFN and horizonal commitments  
4.12.  Viet Nam incorporates, mutatis mutandis , the horizontal commitments  that are listed in Annex 
8-B and related Appendices of the E VFTA. Furthermore, Viet Nam's horizontal limitations under the 
GATS are the same as under the Agreement. Viet Nam 's MFN and horizontal commitments are 
explained in the Factual Presentation of the EVFTA, paras. as contained in document WT/REG406/1.  
4.4.2.2   Sector specific commitments  
4.13.  Similar to the situation noted above , Vietnam incorporates, mutatis mutandis , Annex 8 -B and 
related Appendices of its schedule of specific commitments under the FVFTA for the services sector 
without change. Table 4.2 outlines the commitments and makes a c omparison against Viet Nam 's 
GATS commitments. Details of the sector specific commitments are discussed in depth in the Factual 
Presentation of the EVFTA, as contained in para. 4.40 -4.53 of document WT/REG406/1.  
Table 4.2 Viet Nam: comparison between GATS and Agreement specific commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
1. Business services        
A. Professional  Services  Partial  Improved  Partial  Full Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  Full Full Full Partial  WT/REG436/1  
 
- 26 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
C. Research  and Development  Services  Partial  Improved  Partial  Full Partial  Partial  
D. Real  Estate  Services  --- Same  --- --- --- --- 
E. Rental/Leasing  Services  without   
Operators  Partial  Improved  Partial  Full Partial  Partial  
F. Other  Business  Services  Partial  Improved  Partial  Partial  Partial  Partial  
2. Communication services         
A. Postal  services  --- Improved  Partial  Partial  Partial  Partial  
B. Courier  services  Partial  Improved  Partial  Full Partial  Full 
C. Telecommunication  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Audiovisual services  Partial  Narrower  Excluded  Excluded  Excluded  Excluded  
E. Other  --- Same  --- --- --- --- 
3. Construction and related engineering 
services        
A. General  construction  work for buildings  Partial  Same  Full Partial  Full Partial  
B. General  construction  work for civil  
Engineering  Partial  Same  Full Partial  Full Partial  
C. Installation  and assembly  work  Partial  Same  Full Partial  Full Partial  
D. Building  completion  and finishing  work  Partial  Same  Full Partial  Full Partial  
E. Other  Partial  Same  Full Partial  Full Partial  
4. Distribution services        
A. Commission  agents'  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Wholesale  trade services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Retailing  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Franchising  Partial  Same  Partial  Partial  Partial  Partial  
E. Other  --- Same  --- --- --- --- 
5. Education services        
A. Primary education services  --- Same  --- --- --- --- 
B. Secondary education services  Partial  Same  Partial  Partial  Partial  Partial  
C. Higher education services  Partial  Improved  Partial  Full Partial  Partial  
D. Adult education  Partial  Improved  Partial  Full Partial  Partial  
E. Other education services  Partial  Improved  Partial  Full Partial  Partial  
6. Environmental services         
A. Sewage services  Partial  Improved  Partial  Partial  Full Partial  
B. Refuse disposal services  Partial  Same  Partial  Partial  Partial  Partial  
C. Sanitation and similar services  --- Improved  Full Full Full Full 
D. Other  Partial  Improved  Partial  Partial  Partial  Partial  
7. Financial services        
A. All insurance  and insurance -
related  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  Partial  Partial  
8. Health related and social services        
A. Hospital services  Partial  Improved  Full Full Full Full 
B. Other Human Health Services  --- Same  --- --- --- --- 
C. Social Services  --- Improved  Full Full Full Partial  
D. Other  --- Same  --- --- --- --- 
9. Tourism and travel related services        
A. Hotels  and restaurants (including 
catering)  Partial  Same  Partial  Full Partial  Full 
B. Travel  agencies  and tour operators   
services  Partial  Same  Full Full Full Partial  
C. Tourist  guides  services  --- Same  --- --- --- --- 
D. Other  --- Same  --- --- --- --- 
10. Recreational and cultural and 
sporting services        
A. Entertainment  services  Partial  Same  Partial  Partial  Partial  Partial  
B. News agency services  --- Same  --- --- --- --- 
C. Libraries, archives, museums and other 
cultural services  --- Same  --- --- --- --- 
D. Sporting and other recreational services  Partial  Same  Partial  Partial  Partial  Partial  
E. Other  --- Same  --- --- --- --- 
11. Transport services        
A. Maritime Transport Services  Partial  Improved  Partial  Full Partial  Partial  
B. Internal Waterways Transport  Partial  Lower  --- --- --- --- 
C. Air  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Space  Transport  --- --- --- --- --- --- 
E. Rail  Transport  Services  Partial  Same  Partial  Partial  Partial  Partial  
F. Road Transport  Services  Partial  Same  Partial  Partial  Partial  Partial  
G. Pipeline  Transport  --- Same  --- --- --- --- 
H. Services  auxiliary  to all modes  of  
transport  Partial  Improved  Partial  Partial  Partial  Partial  
I. Other  Transport  Services  --- Same  --- --- --- --- WT/REG436/1  
 
- 27 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
12. Other services not included 
elsewhere  --- Same  --- --- --- --- 
General:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included.  
a Information in this column refers only to commitments in sectors or sub -sectors covered under the 
Agreement.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment.  
Partial:  Specific commitments subject to some limitation(s) under market a ccess or national treatment.  
---: No specific commitment.  No existing or future measures are indicated . 
Improved: Overall improved commitments under the Agreement compared to those under the GATS.  
Narrower: Some additional limitations (as compared to GATS commitments).  
Same:  Identical commitments.  
Similar:  Similar liberalization possibly, in individual cases, with limited improvements and/or limited additional 
reservations. The assessment is based on a broad perspective taking into consideration both secto ral 
coverage and the level of specific commitments.  
Excluded: Sector or subsector excluded from the Agreement; or broad reservations for future measures apply.  
Source:  Viet Nam's Schedules annexed to the Agreement and GATS Schedule of Specific Commitment s. 
 
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.14.  The provisions on domestic regulation are provided for Sub -Section 1 of Section E of Chapter 
8 and include scope and definition, conditions for licensing and qualification, and licensing and 
qualification proc edures. These elements have not changed compared to the EVFTA, thus details can 
be found in paras. 4.54 -4.55 of the Factual Presentation in document WT/REG406/1.  
4.5.2   Recognition  
4.15.  Article 8.21 covers mutual recognition of professional qualifications in which the re have been 
no changes compared to the EVFTA. The parties shall promote mutual recognition of professional 
qualifications by encouraging the relevant professional bodies or authorities to provide joint 
recommendations to the Committee on Investment, Trade in Services, Electronic Commerce and 
Government Procurement with a view to negotiating Mutual Recognition Agreement s.  
4.5.3   Subsidies  
4.16.  Section B of Chapter 10 (Competition Policy) contains provisions on subsidies that also apply 
to the services  sector.13 While recognising subsides may be granted for a public policy objective , it 
is also noted that subsidies to enterprises should not negatively affect competition and trade  (Article 
10.4) . The 'transparency ' and 'specific subsidies subject to condition s' articles pertain only to certain 
services sectors , i.e. telecommunications, banking, insurance, transport including maritime 
transport, energy, computer services, architecture and engineering, and construction and 
environmental services , and subject to certain reservations provided for in Chapter 8  (Article 10.5) . 
The inclusion of additional services sectors will be reviewed after five years and regularly thereafter . 
4.5.4   Safeguards  
4.17.  As elaborated in section 5.2, the Agre ement allows for certain safeguards for balance of 
payment reasons and a Party may invoke temporary safeguard measures for up to one year under 
certain circumstances (Articles 17.11 and 17.12).  
 
13 The Agreement adopts the definition of subsidy per Article 1.1. of the SCM Agreement for the supply 
of services.  It also only applies to subsidies that are specific in accordance with Article 2 of the SCM 
Agreement.  WT/REG436/1  
 
- 28 - 
 
  4.5.5   Other  
4.6  Sector specific provisions on trade in services  
4.6.1   Postal services  
4.18.  There have been no changes to the postal service provisions , and they remain as outlined in 
the EVFTA. Sub-section 4 of Section E  (Articles 8.23 -25) cover s anti-competitive practices, licensing, 
and regulatory bod y measures for postal services.  
4.6.2    Telecommunications networks and services  
4.19.  The telecommunications  sub-section 5 of Section E has no changes and has measures  on the 
regulatory authority, scarce resou rces, the authorization to provide telecommunications networks 
and services, access to and use of public telecommunications networks and services, 
interconnection, competitive safeguards, universal service, number portability, confidentiality of 
informatio n, resolution of disputes, co -location, leased circuits services and unbundled network 
elements (Article 8.28 through 8.40) . 
4.6.3   Financial services  
4.20.  Chapter 8, Sub-section 6 of Section E  provides  the principles of the regulatory framework for 
all financial serv ices liberalized under the Agreement , i.e. investment, cross -border supply, and 
temporary movement of natural persons  for business purposes  related in insurance, banking, and 
other financial services . The provisions under the EVFTA on prudential carve -out, transparent 
regulation, new financial service, data processing, specific exceptions, self -regulatory organisations, 
and clearing and payment systems  are uncha nged and details are outlined in the factual presentation 
on the EVFTA in document WT/REG406/1.  
4.21.  The main change from the EVFTA is that the Understanding Concerning  Bank Equity was not 
incorporated in the Agreement, rather  an exchange of side letters was included  for bank equity, 
which are contained  in Appendix I. The side letters are  similar  to the Understanding but the main  
change was the reduction to  one, instead of two, for the number of joint -stock commercial banks of 
Viet Nam that allow  up to 49 % of foreign equity in the enterprise's chartered capital . This provision 
applies until 1 Augus t 2025 and it also excludes four commercial banks in which the Government of  
Viet Nam held the  majority of equity . 
4.6.4   International maritime transport services  
4.22.  Chapter 8, Sub -section 7 of Section E has provisions on the principles regarding the 
liberalisation  of international maritime transport services for investment, cross -border supply, and 
temporary movement of natural persons (Article 8.49). The main principle is of unrestricted access 
to the international maritime markets and trades on a commercial and n on-discriminatory basis. The 
provisions have not changed and remain as outlined in the factual presentation on the EVFTA in 
document WT/REG406/1.  
5  GENERAL PROVISIONS OF THE AGREEMENT  
5.1  Transparency  
5.1.  The provisions on transparency in Chapter  14, Articles 14.1 -14.8, have not changed and remain 
as in the EVFTA. The main aim of the chapter is to promote a predictable regulatory environment, 
in particular for SMEs, through publication, good regulatory practice and administrative behaviour. 
The transparency provision s also provide for enquiry and contact points, administration of measures, 
review and appeal proce dures, and for specific rules in other chapters to apply without prejudice.  
5.2  Current payments and capital movements  
5.2.  Chapter 17 on Inst itutional, general, and final provisions contain specific provisions on the 
current account (Article 17.8), capital movements (Article 17.9), and application of laws and 
regulations relating to these (Article 17.9). The agreement provides for free movement of currency WT/REG436/1  
 
- 29 - 
 
  or capital for balance of payments (BOP) purposes in respect of the current account, capital account, 
and financial account. Free movement of capital in particular relates to investments liberalised within 
the scope of the Agreement.  
5.3.  Furthermore Articles 17.10 , 17.11 , and 17.12  allow each party to apply laws and regulations 
related to the current account or capital movements in a non -discriminatory way for certain 
purposes, invoke temporary safeguard measures, and impose restrictions in cases of B OP or external 
financial difficulties.  
5.3  Exceptions  
5.4.  For goods, g eneral exceptions are provided for in Article 2.22 and incorporate Article XX of 
GATT 1994 mutatis mutandis , including its Notes and Supplementary Provisions. Further more, 
taking measures provided for in subparagraphs (i) and (j) of Article XX  require an information 
exchange between the parties and consultations upon request.  Article 17.13 contains similar 
language as contained in Article XXI of GATT 1994 and Article XIV bis of GAT S, thereby combining 
the security exceptions of goods and services  in this Article . General exceptions on services , similar 
to but expanded compared to Article XIV of GATS, are contained in Article 8.53.  
5.5.  Article 9.3 on Government Procurement also contains  general and security exceptions related 
specifically to procurement ; this Article  essentially incorporate s the same provision of  Article III of 
the GPA (GPA 2012).  
5.4  Accession and withdrawal  
5.6.  There are no provisions on accession, as Article 17.23 of the EVFTA on Future Accessions to 
the Union was not incorporated into the Agreement. Article 17.17 covers duration and termination, 
whereby the agreement remains valid indefinitely; either party may initiate termination which 
becomes effec tive 6 months after notification to the other party.  The Agreement may also be 
amended through the provisions of Article 17.5 by an exchange of written letters indicating the 
completion of legal procedures or by a decision of the Trade Committee  where this  is provided for in 
the Agreement . Special amendment procedures may also apply for certain government procurement 
provisions.  
5.5  Institutional frame work  
5.7.  The same institutional framework established under the EVFTA is maintained under the 
Agreement. Namely, th e Trade Committee is the main body that ensures the overall operation, 
implementation, and application of the Agreement. However, Article 7 of the UK -Vietnam Agreement 
further expands on the framework  by incorporating the decisions a dopted by the EVFTA Tra de 
Committee before it ceased to apply to the United Kingdom to this Agreement mutatis mutandis . 
However, subsequent decisions under this Agreement through the relevant bodies may revoke or 
supersede the incorporated decisions.  
5.8.  The Trade Committee  oversees  five specialised Committees on Trade in Goods; Customs; 
Sanitary and Phytosanitary Measures; Investment, Trade in Services, Electronic Commerce and 
Government Procurement; and Trade and Sustainable Development  (Article 17.2) . Working groups 
also form part  of the framework and there are two established already, on Intellectual Property 
Rights, including Geographical Indications, and on Motor Vehicles and Parts. The Trade Committee 
may decide to establish other working groups as needed for a specific task or  subject matter.  
5.6  Dispute settlement  
5.9.  The Agreement incorporates the provisions on dispute settlement of the EVFTA without 
amendment. Thus, disputes are addressed through consultation and mediation, dispute settlement 
procedures, including arbitration , and there are respective  compliance measures.  For further details, 
see paragraphs 5.20 -5.29 of the factual presentation on the EVFTA in document WT/REG406/1.  WT/REG436/1  
 
- 30 - 
 
  5.7  Relationship with other agreements concluded by the parties  
5.10.  Article 17.2 2 on relations to other agreeme nts provides that previous agreements between 
the Partys are not superseded by this Agreement; that the Agreement will be part of the overall 
relations between the Parties; and nothing is to be construed as requiring a Party to act in a manner 
inconsistent with its obligations under the WTO Agreement.  
5.11.  Paragraph 4 of Article 1 of the Agreement provides that, in the event of an inconsistency 
between the Agreement and the Protocol on Ireland/Northern Ireland to the Agreement on the 
Withdrawal of th e United Kingdom of Great Britain and Northern Ireland from the European Union 
and the European Atomic Energy Community, signed in London and Brussels on 24 January 2020, 
the Agreement does not prevent the parties from taking a measure relating to the inco nsistency. 
This permission is subject to general constraints on discrimination or disguised trade restriction, and 
to notification and consultation requirements.  
5.12.  Table 5.1 shows the Parties' RTAs in force, notified and non -notified, other than the 
Agreement.  
Table 5.1 United Kingdom and Viet Nam: participation in other RTAs (notified and non -
notified in force), a s of 2 1 November 2023  
RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
UNITED KINGDOM  
United Kingdom – Australia  31-May-23 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
 
United Kingdom – New Zealand  31-May-23 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
 
United Kingdom – Iceland, 
Liechtenstein and Norway  01-Dec-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V   
United Kingdom – Mexico  01-Jun-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom – Serbia  20-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom – Albania  03-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom – Jordan  01-May-21 Goods  2021 GATT Art. XXIV  
United Kingdom – Ghana  05-Mar-21 Goods  2021 GATT Art. XXIV  
European Union – United Kingdom  01-Jan-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom – Cameroon  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom – Canada  01-Jan-21 
01-Apr-21 Goods  
Services  2020 
2021 GATT Art. XXIV  
GATS Art. V  
United Kingdom – CARIFORUM 
States  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Central America  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Chile 01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Colombia, 
Ecuador and Peru  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Côte d'Ivoire  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom – Eastern and 
Southern Africa States  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom – Egypt  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom – Faeroe Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom – Georgia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Israel  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom – Japan  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Kenya  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom – Kosovob 01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom – Lebanon  01-Jan-21 Goods  2020 GATT Art. XXIV  WT/REG436/1  
 
- 31 - 
 
  RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
United Kingdom – Morocco  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom – North Macedonia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Pacific States  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom – Pacific States – 
Accession of Samoa  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom – Pacific States – 
Accession of Solomon Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom – Palestine  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom – Republic of 
Korea  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Republic of 
Moldova  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – SACU and 
Mozambique  01-Jan-21 Goods  2021 GATT Art. XXIV  
United Kingdom – Singapore  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Switzerland – 
Liechtenstein  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom – Tunisia  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom – Türkiye  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom – Ukraine  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
VIET NAM  
EU – Viet Nam  01-Aug-20 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
ASEAN - Hong Kong, China  11-Jun-19 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
Comprehensive and Progressive 
Agreement for Trans -Pacific 
Partnership (CPTPP)  14-Jan-19 Goods & 
Services  2018 GATT Art. XXIV & GATS Art. V  
Eurasian Economic Union (EAEU) – 
Viet Nam  05-Oct-16 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
Republic of Korea – Viet Nam 20-Dec-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Chile – Viet Nam  01-Jan-14 Goods  2015 GATT Art. XXIV  
ASEAN - Republic of Korea  01-Jan-10 
01-May-09 Goods  
Services  2010 GATT Art. XXIV, Enabling Clause 
& GATS Art. V  
ASEAN – Australia and New 
Zealand  01-Jan-10 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V  
Japan – Viet Nam  01-Oct-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
ASEAN - India 01-Jan-10 
01-Jul-15 Goods  
Services  2010 
2015 Enabling Clause  
GATS Art. V  
ASEAN - Japan  01-Dec-08 
01-Aug-20 Goods  
Services  2009 
2022 GATT Art. XXIV  
GATS Art. V  
ASEAN - China  01-Jan-05 
01-Jul-07 Goods  
Services  2005 
2008 Enabling Clause  
GATS Art. V  
ASEAN Free Trade Area (AFTA)  
• ATIGA  
• AFAS 
• ATISA   
17-May-10 
12-Aug-98 
29-Oct-21  
Goods  
Services  
Services   
2021 
2022 
  
GATT Art. XXIV  
GATS Art. V  
Not notified  
Global System of Trade Preferences 
among Developing Countries 
(GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Regional Comprehensive Economic 
Partnership (RCEP) Agreement  01-Jan-22 Goods & 
Services  Not notified  
a Dates of the first entry into force/provisional application for at least one of the Parties.  
b Reference to Kosovo in this table shall be understood to be in the context of the United Nations 
Security Council resolution 1244 (1999).  
Source:  WTO Secretariat. Further information on these Agreements and on specific dates of entry into 
force/provisional applications may be found in the WTO Database on RTAs: http://rtais.wto.org .  
 
 WT/REG436/1  
 
- 32 - 
 
  5.8  Government procurement  
5.13.  Minor amendments have been made to the EVFTA provisions on government procurement to 
provide for the commitments between the UK and Viet Na m. These concern an amendment to 
Annex  9-A (Coverage of Government Procurement for United Kingdom) and Article 9.6.4 on Notices. 
The minor amendment to the Annex , Paragraph 28 of Part B of Sub -section 2 of Section H, is for 
publication of procurement notic es by the UK, thereby amending the reference to the EU Official 
Journal and replacing it with "the United Kingdom shall provide Viet Nam with details of the United 
Kingdom 's means of publication of notices ". Paragraph 4 of Article 9.6 has been amended to r emove 
the words "and financial ", thus the UK is committed to only providing technical assistance in this 
respect. A footnote has been added to the same paragraph to clarif y that these provisions are only 
applicable for Viet Nam when an automatic system for  translation and publication of summary notices 
in English is operational.  
5.14.  The rest of the provision s on government procurement remain as in the EVFTA; details are 
explained in paras. 5. 34-5.40 of document WT/REG406/1.14 
5.9  Intellectual property rights  
5.15.  There  have been no changes to the intellectual property provisions in the Agreement as 
compared to the EVFTA except with respect to the sub -section on geographical indications (GIs) . 
Exceptions relating to certain GIs of European Union (EU) Member States under Article 12.28 
(paragraphs 1-3) are not incorporated into  the Agreement . GIs specific to  parts of the  EU that are 
not in the United Kingdom,  as listed under Annex 12 -A, Part A, are not incorporated into the 
Agreement . Notwithstanding the removal of GIs  specific to parts of the EU that are not in the 
United  Kingdom from Annex 12 -A, the Agreement  retains GI protections for "Irish Whisky/Irish 
Whiskey/Uisce Beatha Eireannach " and "Irish Cream " produced in the Republic of Ireland and 
Northern Ireland.  With respect to  the GI  Scottish Farmed Salmon, the Agreement adds a footnote 
clarifying this GI shall continue to be protected under Viet Nam 's domestic laws.  The remainder of 
the intellectual property provisions remain as  outlined in paras. 5.41 -5.53 of document 
WT/REG406/1 .  
5.10  Competition  
5.16.  No changes have been made to the competition provisions in the Agreement and they remain 
as in the EVFTA , Chapter 10, Section s A and C . This covers anti -competitive conduct and certain 
definitions and common principles related to competit ion.15 Further, the anti -competitive conduct 
provisions cannot have recourse to the dispute settlement provisions of the Agreement. The 
competi tion provisions are further explained in the factual presentation on the EVFTA, paras. 
5.54-5.58 of document WT/REG406/1.  
5.11  State -owned enterprises, enterprises granted special rights  or privileges , and 
designated monopolies  
5.17.  The Agreement contains no changes  to the state -owned enterprise provisions in Chapter 11, 
as contained in the EVFTA. The WTO rules on state trading enterprises as well as monopolies and 
exclusive services suppliers  are incorporated into the Agreement . 
5.18.  With regard to state -owned enterprises, the Chapter does not prevent a party from 
establishing or maintaining them, granting them special rights or privileges, or designating or 
maintaining monopolies. However, certain elements are imposed or recommended such as to act in 
a non-discriminatory way  and in accordance with commercial considerations  (Article 11.4) , to 
observe internationally recognised standards of corporate governance  (Article 11.5) , and 
transparency provisions  (Article 11.6) . 
 
14 The thresholds in the UK 's GPA schedule remain the same as those of the EU.  
15 Chapter 10, Section B covers subsidies which are covered in section 4.5.3 of this report.  WT/REG436/1  
 
- 33 - 
 
  5.12  Environment  and labour  
5.19.  Environmental p rovisions remain identical to those contained in the EVFTA, Chapter 13, Trade 
and Sustainable Development. The Agreement aims to promote sustainable development  by 
recognizing the importance of environmental protections and their role in fostering trade an d 
investment. Provisions  include those  on trade -related environmental cooperation, upholding levels 
of protection on the environment, multilateral environmental agreements, climate change, biological 
diversity, sustainable forest management and trade in fo rest products,  trade and sustainable 
management of living marine resources and aquaculture products.  The details of the  environment  
provisions are in the factual presentation on the EVFTA, paras. 5.66 -5.75 of document 
WT/REG406/1.  
5.20.  The provisions on labour in the Agreement have not changed and remain as in the EVFTA. 
Chapter 13 on Trade and Sustainable Development contain several provisions  integrating labour 
issues as they relate to trade and investment matters. The Chapter has provisions on upholding 
levels of protection on labour matters, multilateral labour standards and agreements, and 
transparency. Details of the labour provisions are contained in the factual presentation on the EVFTA, 
paras. 5.76 -5.82 of document WT/REG406/1.  
5.13  Electronic commerce  
5.21.  There are no changes to the provisions on electronic commerce compared to the EVFTA. In 
Chapter 8 , Section F, Articles 8.50 -8.52 cover  provisions on  electronic commerce  with the basic 
objective to promote the development of electronic commerce . Article 8.51 on c ustoms duties, 
specifies  that no customs duties will be applied on electronic transmissions; and Article 8.52 provides 
for a dialogue on regulatory cooperation on electronic commerce . 
5.14  Balance of payments safeguard  
5.22.  Article 17.12 contains provisions for using restrictive measures to safeguard a Party 's balance 
of payments position or when experiencing external financial difficulties. These measures may apply 
to capital movements, payments or transfers, subject to certain conditions, or be adopted  in 
accordance with GATT 1994 and the Understanding on the Balance -of-Payments Provisions of GATT 
1994 or Article XII of the GATS.  
5.15  Small and medium -sized enterprises  
5.23.  Certain  provisions give recognition, exceptions, or special treatment to small and medium -
sized enterprises (SMEs). On government procurement, Viet Nam may provide preferences to SMEs; 
on state-owned enterprises, the non -discrimination clause does not apply to certain Vietnamese 
SMEs; simplified customs procedures (Article 4.5) should be provided for SMEs; on subsidies, an 
exception  is provided  for subsidies in favour of SMEs;  Article 11.6 on  transparency provisions for 
state-owned enterprises do es not apply to SMEs; and on transparency, a predictable regulatory 
environment and efficient p rocedures should be provided , in particular  for SMEs .  WT/REG436/1  
 
- 34 - 
 
  ANNEX 1  
1. Table A1.1 compares MFN and preferential rates under the Agreement for imports by the UK 
from Viet Nam. In 2021 the UK's average applied MFN tariff was 3.8% overall, 2.5% for industrial 
products and considerably higher at 8.9% for agricultural products. Ar ound 47% of the tariff was 
duty free for imports from all MFN sources, 57.1% for industrial products and considerably lower at 
18.8% for agricultural products. Under the Agreement average tariffs for imports from Viet Nam in 
2021 were 0.7% overall and 0.5%  and 1.4% respectively for industrial and agricultural products. As 
a result, Viet Nam's exporters benefited from a relative margin of preference of 81.6% overall and 
80% and 84.3%  for industrial and agricultural products respectively. The share of duty fr ee lines 
was 86.7% for imports from Viet Nam (91.3% for industrial products and 74% for agricultural 
products) and is expected to rise to 99.2% by the end of implementation in 2027 (99.9% for 
industrial products and 97.3% for agricultural products).  
Table  A1.1 United Kingdom: Indicators of MFN and preferential rates for imports from 
Viet Nam  
Origin of 
goods  Year  ALL PRODUCTS  HS Chapters 01 -24 HS Chapters 25 -97 
Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  
Share of 
duty-free 
tariff lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 3.8 7.8 47.0 8.9 12.0 18.8 2.5 5.8 57.1 
Viet Nam  2021 0.7 6.3 86.7 1.4 7.8 74.0 0.5 5.4 91.3 
 2022 0.5 4.9 86.7 1.1 6.0 74.0 0.4 4.1 91.3 
 2023 0.3 5.0 90.9 0.7 6.3 80.9 0.2 4.1 94.5 
 2024 0.2 3.4 90.9 0.5 4.4 80.9 0.1 2.7 94.5 
 2025 0.1 4.1 95.0 0.3 6.0 87.7 0.1 2.9 97.6 
 2026 0.1 2.6 95.0 0.2 4.2 87.7 0.04 1.6 97.6 
 2027  0.0 12.6 99.2 0.1 14.8 97.3 0.01 7.4 99.9 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, the average rat e for the entire year is used for the 
calculation. The products classified beyond the HS 8 -digit level are counted once and their tariff 
rates are averaged to the 8 -digit level.  
 Based on the HS 201 7 nomenclature.  
Source:  WTO estimates based on data provi ded by the UK.  
 
2. Viet Nam's top 25 exports which accounted for 45.4% of its exports were covered by 87 tariff 
lines at the HS six -digit level in the UK market in 2021  (Table A1.2) . Of these lines 32 were already 
duty-free at the MFN level. Following implementation of the Agreement a further 39 lines will become 
duty free for imports from Viet Nam. The 16 lines which will remain dutiable correspond to rice and 
faced a specific rate of duty in the UK in 2021.  WT/REG436/1  
 
- 35 - 
 
  Table A1. 2 United Kingdom: Market access opportunities under the agreement for Viet 
Nam's top 25 exports to the world  
Viet Nam's top export products in 2018 -20 Access Conditions to UK's markets  
HS number and description  
Share in global 
exports (%)  MFN 2021  
No. of duty -free lines 
under the agreement  
Remain 
Dutiable  Average 
Tariff (%)  
No. of duty -
free lines  
No. of 
dutiable 
lines  
2021  
2023  
2025  
2027  
851712  Telephones for cellular networks  12.2 0.0 1       
851770  Parts of telephone sets, telephones 
for cellular networks or for other 
wireless networks  7.2 0.0 1       
854231  Electronic integrated circuits  3.9 0.0 3       
851762  Machines for the reception, 
conversion and transmission  2.2 0.0 1       
640411  Sports footwear  1.9 16.
0  1 1     
640419  Footwear  1.4 16.
0  2  2    
852990  Parts suitable for use solely or 
principally with transmission and 
reception apparatus  1.3 0.0 8       
640399  Footwear  1.3 7.5  11 1   10  
847130  Data-processing machines  1.3 0.0 1       
854140  Photosensitive semiconductor devices  1.3 0.0 2       
080132  Fresh or dried cashew nuts  1.1 0.0 1       
854430  Ignition wiring sets and other wiring 
sets for vehicles, aircraft or ships  1.0 1.8  1 1     
100630  Semi-milled or wholly milled rice  0.9 *  16     16 
090111  Coffee  0.9 0.0 1       
640299  Footwear  0.8 16.
0  9 9     
852580  Television cameras, digital cameras 
and video camera recorders  0.8 0.0 5       
940360  Wooden furniture  0.8 0.0 3       
030617  Frozen shrimps and prawns  0.7 12.
0  5 4  1   
844331  Machines which perform two or more 
of the functions of printing, copying 
or facsimile transmission  0.7 0.0 1       
270900  Petroleum oils and oils obtained from 
bituminous minerals  0.7 0.0 2       
611020  Jerseys, pullovers, cardigans, 
waistcoats and similar articles, of 
cotton  0.7 12.
0  3   3   
852872  Reception apparatus for television, 
colour  0.6 14.
0  6   6   
030462  Frozen fillets of catfish "pangasius 
spp., silurus spp., clarias spp., 
ictalurus spp."  0.6 8.0  1  1    
900691  Parts and accessories for 
photographic cameras  0.6 0.0 1       
851830  Headphones and earphones  0.6 0.0 1       
Total of above  45.4  32 55 16 3 10 10 16 
* Dutiable tariff lin es are subject to specific duties only.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of averages, 
specific rates are excluded, and the ad valorem  part of alternate rates are included.  For the tariff lines 
subject to seasonal duties, the average rate  for the entire year is used for the calculation. The products 
classified beyond the HS 8 -digit level are counted once and their tariff rates are averaged to the 8 -
digit level.  Based on the HS 201 7 nomenclature.  
Source:  WTO estimates based on data provide d by the UK.  WT/REG436/1  
 
- 36 - 
 
  3. Table A1.3 compares MFN and preferential rates under the Agreement for imports by Viet Nam 
from the UK. In 2021 Viet Nam's average applied MFN tariff was 12% overall, 10.7% for industrial 
products and considerably higher at 18.5% for agricultural products.  Around 29% of the tariff was 
duty free for imports from all MFN sources, 32.6% for industrial products and considerably lower at 
11.1% for agricultural products. Under the Agreement average tariffs for imports from the UK in 
2021 were 7.7% overall and 6.7 % and 12.8% respectively for industrial and agricultural products. 
As a result, UK exporters benefited from a relative margin of preference of 35.8% overall and 37.4% 
and 30.8% for industrial and agricultural products respectively. The share of duty -free l ines was 
46.1% for imports from the UK  (51.6% for industrial products and 17.1% for agricultural products) 
and is expected to rise to 97.6% by the end of implementation  in 2035  (97.4% for industrial products 
and 98.6% for agricultural products).  
Table A1. 3 Viet Nam: Indicators of MFN tariff rates and preferential rates for imports 
from the United Kingdom  
Origin 
of goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied 
tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 12.0 17.1 29.2 18.5 20.8 11.1 10.7 16.1 32.6 
UK 2021 7.7 14.5 46.1 12.8 15.4 17.1 6.7 14.1 51.6 
 2022 6.2 11.7 46.1 10.3 12.4 17.1 5.4 11.5 51.6 
 2023 4.7 11.1 56.5 7.8 13.5 42.6 4.1 10.4 59.1 
 2024 3.6 8.4 56.5 6.1 10.6 42.6 3.1 7.8 59.1 
 2025 2.4 10.9 76.2 4.4 11.7 62.3 2.0 10.6 78.8 
 2026 1.8 8.0 76.2 3.4 8.9 62.3 1.5 7.6 78.8 
 2027 1.2 11.6 88.2 2.4 14.0 83.2 0.9 10.7 89.1 
 2028 0.9 8.6 88.2 2.0 12.2 83.2 0.6 7.3 89.1 
 2029 0.6 5.9 88.7 1.8 10.8 83.7 0.3 4.0 89.7 
 2030 0.3 56.2 97.4 1.4 56.6 97.4 0.0 53.3 97.4 
 2031 0.3 54.6 97.4 1.4 54.8 97.4 0.0 53.3 97.4 
 2032 0.3 53.0 97.4 1.4 53.0 97.4 0.0 53.3 97.4 
 2033 0.2 51.4 97.4 1.3 51.1 97.4 0.0 53.3 97.4 
 2034 0.2 49.8 97.4 1.3 49.3 97.4 0.0 53.3 97.4 
 2035 0.2 77.7 97.6 1.2 83.6 98.6 0.0 53.3 97.4 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Viet Nam authorities, the WTO -IDB and information 
from the factual presentation of the EU-Viet Nam Agreement . 
4. Table A1.4 shows  market access in Viet Nam for the UK's top 25 exports which accounted for 
38.4% of its exports and were covered by 323 tariff lines at the HS six -digit level in Viet Nam  in 
2021. Of these lines 45 were already duty -free at the MFN level. Following implementation of the 
Agreement a further 200 lines will become duty free for imports from the UK with most tariff 
liberalization bac kloaded to 2030 . The 78 lines which will remain dutiable all correspond to motor 
vehicles  and faced average MFN tariffs ranging from 41.2% to 60.3%  in Viet Nam  in 2021.  WT/REG436/1  
 
- 37 - 
 
  Table A1. 4 Viet Nam: Market access opportunities under the  agreement for United 
Kingdom's top 25 exports to the world  
United Kingdom 's top export products  
in 201 8 -2020 Access Conditions to Viet Nam 's import markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 202 1 Duty -free lines under 
the Agreement  
Remain 
Dutiable  Average 
Tariff ( %) Number 
of lines  duty-
free  
duti-
able 
2021 
2023  
2027  
2029  
2030  
710813  Gold 5.6 0.0 1        
270900  Petroleum oils, crude  4.9 1.0 2 1 1      
300490  Medicaments  3.2 2.6 13 16 1  15    
880330  Parts of aeroplanes  2.9 0.0 1        
841112  Turbojets of a thrust > 25 kn  2.6 0.0 1        
870323  Motor cars principally designed for 
the transport of <10 persons, of a 
cylinder capacity>1.500cm³ 
but<=3.000 cm³  2.4 58.1  36     20 16 
841191  Parts of turbojets.  2.1 0.0 1        
870324  Motor cars principally designed for 
the transport of<10 persons, of a 
cylinder capacity>3.000 cm³  1.7 41.2  18    7 3 8 
220830  Whiskies  1.3 45.0  1   1    
271012  Light oils and preparations  1.3 18.8  22     22  
970110  Paintings  1.3 5.0  1 1      
870322  Motor cars principally designed for 
the transport of <10 persons, of a 
cylinder capacity>1.000 cm³ but 
<=1.500 cm³  1.2 55.0  20     10 10 
711319  Articles of jewellery and parts  1.0 25.0  2   2    
271019  Medium oils and preparations  1.0 5.6  16     16  
870332  Motor cars principally designed for 
the transport of <10 persons, of a 
cylinder capacity>1.500cm³ 
but<=2.500 cm³  0.7 60.3  32     16 16 
300220  Vaccines for human medicine  0.6 0.0 3        
870340  Motor cars principally designed for 
the transport of <10 persons, of a 
cylinder capacity>1.500cm³ 
but<=2.500 cm³  0.6 51.0  68    5 46 17 
711021  Palladium, unwrought or in powder 
form 0.6 1.0  2 2      
300215  Immunological products  0.6 0.0 1        
851762  Machines for the reception, 
conversion and transmission  0.6 0.6 15 1  1     
382200  Diagnostic or laboratory reagents  0.5 0.0 4        
490199  Printed books, brochures  0.5 2.5 1 1   1    
870333  Motor cars principally designed for 
the transport of <10 persons, of a 
cylinder capacity > 2.500 cm³  0.5 54.0  21    10  11 
840890  Compression -ignition internal 
combustion piston engine  0.4 7.9 2 5   2  3  
870899  Parts and accessories, for tractors, 
motor vehicles  0.4 15.0  15   15    
 Total of above  38.4  45 278 5 1 36 22 136 78 
Note:  Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Viet Nam authorities, the WTO -IDB, information from 
the factual presentation on the EU-Viet Nam Agreement  and the UK authorities.   WT/REG436/1  
 
- 38 - 
 
  ANNEX 2  
Table A2. 1 United King dom: Tariff rate quotas  
Description  Quota 
volume 
(metric 
tonnes)  Tariff Lines  Out of quota rate MFN  
(% or as indicated  
as non -ad valorem  
 duty)  
Birds' egg and 
egg yolks  68 04081180  119 GBP / 100 kg  
04081981  51 GBP / 100 kg  
04081989  55 GBP / 100 kg 
04089180  114 GBP / 100 kg  
04089980  29 GBP / 100 kg  
Garlic  54 07032000*  8% + 100 GBP / 100 kg  
Sweet corn  681 0710400099 , 2001903010 , 
2001903099 , 2005800010 , 2005800099   4% + 7.80 GBP /  
100 kg / net drained wt  
Rice (husked)  3,356 
(expressed 
in husked 
rice 
equivalent)  10061030*, 10061050*, 10061071* , 
10061079*  176 GBP / tonne  
10062011*,  10062013*, 10062015* , 
10062017*, 10062092*, 10062094*, 
10062096*, 10062098*  25 GBP / tonne  
Rice (milled)  5,001 
(expressed 
in milled 
rice 
equivalent)  10063021*, 10063023*, 10063025*, 
1006302 7*, 100630 42*, 1006304 4*, 
100630 46*, 100630 48*, 100630 61*, 
1006306 3*, 1006306 5*, 100630 67*, 
100630 92*, 100630 94*, 100630 96*, 
1006309 8* 121 GBP / tonne  
Rice 
(fragrant)a 5,001 
(expressed 
in milled 
rice 
equivalent)  10061030*, 10061050*, 10061071*, 
10061079*  176 GBP / tonne  
10062011*, 10062013*, 10062015*, 
10062017*, 10062092*, 10062094* , 
10062096*, 10062098*  25 GBP / tonne  
10063021*, 10063023*, 10063025*, 
1006302 7*, 100630 42*, 1006304 4*, 
100630 46*, 100630 48*, 100630 61*, 
1006306 3*, 1006306 5*, 100630 67*, 
100630 92*, 100630 94*, 100630 96*, 
1006309 8* 121 GBP / tonne  
Manioc 
(cassava)  12,215  11081400 * 138 GBP / tonne  
Tuna 1,566  16041421 , 16041428 , 16041431 , 
16041438 , 16041441 ,16041448 ,  
16041939 ,16042070  20 
16041490  
 25 
Surimi  68 16042005  20 
Sugar and 
other products 
containing 
high levels of 
sugar  2,724 
(expressed 
in raw 
sugar 
equivalent ) 17011310 *, 17011410 * 
  28 GBP / 100 kg / std qual  
17011390*, 17019100*, 17019910*, 
17019990*  35 GBP /  100 kg  
17023050*  22 GBP / 100 kg  
17029050*, 17029079*  16 GBP / 100 kg  
17029071*, 17029095*  0.30 GBP / 100 kg / % sacchar.  
17029075*  23 GBP / 100 kg  
18061030 , 18061090  8% + 26 GBP / 100 kg  
Speciality 
sugar  54 17011490 * 35 GBP / 100 kg  
Mushrooms  48 07115100 , 20031020  
20031030  0 
20019050  16 
Ethanol  136 20071000  16 GBP / hl  
20072000  8.5 GBP / hl  
272 29054300  8% + 105 GBP / 100 kg  WT/REG436/1  
 
- 39 - 
 
  Description  Quota 
volume 
(metric 
tonnes)  Tariff Lines  Out of quota rate MFN  
(% or as indicated  
as non -ad valorem  
 duty)  
Mannitol, 
Sorbitol, 
Dextrins and 
other modified 
starches  29054411  6% + 13 GBP / 100 kg  
29054419 , 38246019  8% + 31 GBP / 100 kg  
29054491  6% + 19 GBP / 100 kg  
35051010 , 35051090  8% + 14 GBP / 100 kg  
a At the time of conclusion of the Agreement, only fragrant rice of the following varieties: Jasmine 85, 
ST 5, ST 20, Nang Hoa 9 (NàngHoa 9), VD 20, RVT, OM 4900, OM 5451 and Tai nguyen Cho Dao 
(Tàinguyên Ch ợ Đào). List may be amended by a decision of the Tr ade Committee.  
* Tariff lines also subject to MFN TRQs.  
Note:  The in -quota duty rates are all 0%.  
Source:  UK's schedule , UK Tariff Rate Quotas (https://www.gov.uk/guidance/uk -tariff-rate-quotas),  WTO 
document G/AG/N/GBR/6/Rev.1, and data provided by the U K. 
Table A2. 2 Viet Nam: Tariff rate quotas  
Description  Quota 
volumea 
(metric 
tonnes, 
except 
eggs , in 
dozen)  Tariff Lines  In-quota 
rateb (%) Out-of-quota  
rate MFNc (%) 
Birds' eggs  59,396  04072100, 04072910, 04072990,  
04079010, 04079020, 04079090  30 to 0  40 
Sugar  108,896  17011200, 17011300, 17011400  15 to 0   25  
17019100, 17019910, 17019990  15 to 0  40 
Tobacco  61,378  24011010, 24011020, 24011040, 
24011050, 24011090, 24012010, 
24012020, 24012030, 24012040,  
24012050, 24012090, 24013090  30 to 0  30 
24013010  15 to 0  15 
Salt 296,990  25010010, 25010020  30 to 0  30 
25010050  15 to 0  15 
25010091, 25010092, 25010099  10 to 0  13 
a Quota volume on date of entry into force  of this Agreement  based on Viet Nam 's commitments in 
Schedule CLX – Socialist Republic of Viet Nam . The quota volume continues with  an annual growth 
rate of 5% consistent with Viet Nam's WTO commitments.  
b The in -quota customs duties shall be removed in 11 equal annual stages beginning on the date of 
entry into force of the Agreement.  The rate s provided are the base rate of duty on the date of entry 
into force  and the final rate.  
c Unbound.  
Source:  Viet Nam's schedule  and data provided by Viet Nam.  
 
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