Approval of CPTPP brings Vietnam closer to international labour standards

The CPTPP covers specific requirements on labour rights and working conditions

The National Assembly (NA) of Vietnam has passed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), marking a new stride for Vietnam to make progress in labour reform in the future.

Accordingly, Vietnam has become the seventh among 11 countries ratifying the CPTPP which will take effect on December 30, 2018. Canada, Australia, Japan, Mexico, New Zealand and Singapore previously ratified the agreement.

The CPTPP along with the EU-Vietnam FTA covers specific requirements on labour rights and working conditions to ensure that free trade will contribute to sustainable development while helping workers and businesses enjoy economic benefits equitably.

These new-generation FTAs require all participating countries to adopt and maintain the rights set out in the 1998 ILO Declaration on Fundamental Principles and Rights at Work. These rights are regulated in eight ILO conventions, based on: freedom of association and the effective recognition of the right to collective bargaining, the elimination of forced or compulsory labour, the abolition of child labour and the elimination of discrimination in respect of employment and occupation.

The CPTPP's Chapter 19 on labour was built based on the 1998 ILO Declaration. The chapter also lays down links between the implementation of the 1998 Declaration and trade conditions within a time frame, including possible sanctions.

Implementation mechanisms scheduled in the agreement include cooperative activities, the involvement of business representatives and representatives of workers' organisations as well as international organisations, such as the ILO, in order to consolidate labour market institutions and create a platform to improve social dialogue (dialogue between employers and employees) which adhere to the 1998 ILO Declaration.

According to the Ministry of Planning and Investment, the 11-member agreement, with a large market of 500 million people, is expected to increase Vietnam's GDP by 1.32% by 2035.