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On 26 June 2019, the Government issued Decree No. 57/2019/ND-CP (“Decree No. 57”) effective on 26 June 2019 to implement Vietnam’s tariff commitments on exports and imports under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”)

Decree No. 57 sets forth the tariff rates applicable to countries which already ratified the CPTPP including Australia, Canada, Japan, Mexico, New Zealand, and Singapore for the period from 2019 to 2022.

Decree No. 57 consists of 2 Annexes, of which one is for exports and the other for imports. This demonstrates the more comprehensive approach of the CPTPP as compared to other Free Trade Agreements (FTA), where not only tariff on imports but also tariff on exports are covered under a FTA.

There are two main requirements deciding whether a trader may take advantage of CPTPP import tariff rates available under Decree No. 57: (1) whether goods ‘originate’ in a CPTPP member country; and (2) goods must be imported into another CPTPP member’s territory.

(1) Originating Goods

To be an ‘originating good’, a good must be grown, raised, caught, hunted, mined or extracted within a CPTPP member country. A product that is made from materials originating in a CPTPP territory would likewise be originating, as would a product that has undergone substantial manufacturing within CPTPP member territories. The actual manufacturing inputs required to qualify a good as CPTPP-originating are product specific. Manufacturers looking to capitalize on this origin category are encouraged to contact Baker McKenzie for a product specific analysis.

(2) Member Countries

Only member countries who have legally adopted the CPTPP and notified other members of their adoption may enjoy preferential tariff rates. This includes the first 6 members to ratify the CPTPP (Australia, Canada, Japan, Mexico, New Zealand and Singapore), and Vietnam, the seventh member to ratify. Annual tariff rate reductions occur on 1 January of each calendar year following ratification.1 The first 6 members and Vietnam have completed two rounds of tariff cuts on CPTPP originating goods, with round three cuts set to occur on 1 January 2020.2

To read more on the opportunities available for importers to Vietnam, please download the full publication here.

1 This excludes Japan who will apply 1 April in accordance with their fiscal calendar.
2 Note: imports between Mexico and Vietnam will receive Year 1 tariff rate treatment for 2019. Such difference results from the acceleration that Vietnam made with Australia, Canada, Japan, New Zealand, and Singapore. To that end, the same goods exported from Vietnam to Australia, Canada, Japan, New Zealand, and Singapore, or imported from these countries into Vietnam would receive lower tariff rates as compared to those exported to Mexico or imported into Vietnam from Mexico.


Frederick Burke is a member of Baker McKenzie’s Global Policy Committee, comprised of the Firm’s Managing Partners globally, responsible for driving the overall strategy of the Firm. He is also the Managing Partner of our Baker McKenzie offices in Vietnam, more particularly in Hanoi and Ho Chi Minh City. He has more than 30 years’ experience practicing in the areas of corporate law, real estate, international trade and is highly regarded for his work on foreign investment projects in Vietnam and China for key players in property development, trade, IT/C, and project finance, among other areas. Mr. Burke is the go-to advisor for big deals in Vietnam’s flourishing industries including: renewable energy, agribusiness, airlines, hotels, resorts and tourism and large scale infrastructure projects. He is currently the representative of the American Chamber of Commerce in Vietnam to the Prime Minister’s Advisory Council on Administrative Reform in Vietnam and he has been recognized by the Ministry of Justice of Vietnam for his “Outstanding contributions in the field of international legal cooperation”. Mr. Burke is consistently ranked as a Leading Lawyer in Corporate / M&A by leading legal publications in Vietnam (Legal 500 AP 2007-2018; Chambers and Partners AP 2012-2018; IFLR1000 2010-2018).


Thanh Vinh Nguyen is a partner in Baker McKenzie's Ho Chi Minh City office. Prior to joining the Firm, he practiced tax and consultancy work for two international accounting firms and worked as a compliance counsel for an international insurance company. He has co-written Business Operations in Vietnam, published by The Bureau of National Affairs, Inc.


Phuong is a senior corporate/M&A practitioner with over 20 years of advising clients on FDI and M&A transactions in Vietnam. She has worked on deals covering a wide range of areas, including real estate, renewable energy, consumer goods and retailing, logistics, production. Over the last few years, she has established a strong reputation in the retail distribution market, having helped several global clothing brands and global retailers to establish their stores chain in Vietnam. Phuong also heads our Vietnam offices' corporate services department. An active member of the Vietnam Business Forum, Phuong has contributed comment and consultation to the drafting of major laws of Vietnam, including the current Enterprise Law and Investment Law.