Vietnam Gov’t to request US’s reconsideration of market economy status
Currently, 72 countries recognize Vietnam as a market economy, including major economies such as the UK, Canada, Australia, Japan, South Korea, and New Zealand.
The Ministry of Industry and Trade (MoIT) said it would analyze the US Department of Commerce's report on Vietnam's economy, then refine its arguments to request the US to reconsider Vietnam's market economy status.
| Electronics production at Yen Phong Industrial Park. Photo: Pham Hung/The Hanoi Times |
This action follows news that the US has decided not to recognize Vietnam as a market economy despite recent progress.
According to the MoIT, the US not recognizing Vietnam as a market economy means that Vietnamese exporters will continue to face discrimination in anti-dumping and subsidy investigations. The actual production costs of Vietnamese enterprises are not used to calculate dumping margins; instead, "substitute values" from a third country are applied.
Under US regulations, six criteria determine market economy status: currency convertibility, wage negotiations between workers and employers, foreign investment levels, state ownership and private property rights, government control over resources and prices, and other relevant factors.
For non-market economies, normal price calculation principles do not apply. Importing countries may use alternative methods, which can disadvantage producers and exporters from non-market economies, leading to inflated dumping margins that do not reflect actual production conditions.
"If the US Department of Commerce objectively and fairly assessed the situation in Vietnam, they would recognize that Vietnam is a market economy," stated the ministry.
Over the past 20 years, Vietnam's economy has advanced significantly. The country has signed and implemented 17 free trade agreements, including high-standard, next-generation agreements with the EU, CPTPP countries, and the UK. These agreements encompass comprehensive commitments, from tariff reductions to labor standards, environmental protection, sustainable development, government procurement, and transparency.
The MoIT has provided over 20,000 pages of information and documentation to the US Department of Commerce, demonstrating Vietnam's progress on all six criteria for market economy recognition.
"Vietnam's performance on these six criteria is at least on par with, and often better than, other recognized market economies," the ministry noted.
Furthermore, over 40 organizations, individuals, and US business associations have strongly supported Vietnam's market economy recognition, including the National Association of State Departments of Agriculture (NASDA), the American Chamber of Commerce (AmCham), the US-ASEAN Business Council (USABC), and the Retail Industry Leaders Association (RILA).
Going forward, the Ministry of Industry and Trade will analyze the arguments in the US Department of Commerce's evaluation report and refine their submission to request a reconsideration of Vietnam's market economy status.
"This effort aims to solidify the Comprehensive Strategic Partnership between Vietnam and the US, thereby enhancing bilateral economic, trade, and investment cooperation for the benefit of businesses and people in both countries," stated the Ministry of Industry and Trade.
The ministry also committed to supporting Vietnamese exporters in anti-dumping and subsidy investigations to protect their interests.
Currently, 72 countries recognize Vietnam as a market economy, including major economies such as the UK, Canada, Australia, Japan, South Korea, and New Zealand.
In 2023, the U.S. was Vietnam's largest export market, with exports totaling $97 billion, accounting for 27% of Vietnam's total exports. Key export sectors to the U.S. included textiles, footwear, wood products, and seafood, contributing 43%, 35%, 54%, and 17% to their respective total export values.
