The Da Nang People's Committee has issued a note on the Ratchet principle in commitments in services and investment under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which has come into force for Viet Nam.

Accordingly, the Ratchet principle is understood that countries are entitled to unilaterally amend the reserved contents in a more favorable way but once given, they are not allowed to withdraw such modified contents. Notably, within 3 years from the date of entry into force of the CPTPP Agreement, Viet Nam does not have to comply with the ratchet principle. This is the flexibility that CPTPP countries have for Viet Nam.

The CPTPP officially came into effect for Viet Nam from January 14, 2019. Therefore, this principle has been officially applied to Viet Nam in the field of services and investment since January 14, 2022.

Therefore, the municipal People's Committee proposes relevant agencies and district-level authorities to base on the above content to well perform their functions and tasks in accordance with regulations.

Reporting by M.Q - Translating by M.D