Vietnam pushes for market economy recognition by the US

THE HANOI TIMES — Vietnam has called on the US to soon recognize it as a market economy to ease access to high-tech sectors.

Deputy Prime Minister Tran Hong Ha requested on July 9 during his meeting with US Ambassador to Vietnam Marc Knapper and a United States Agency for International Development (USAID) delegation.

Ha reaffirmed that Vietnam considers the US a strategic economic and trade partner. However, the two countries need to keep working to resolve existing issues, especially those related to trade, investment, and advanced technologies.

He urged the US to officially recognize Vietnam’s market economy status to facilitate cooperation in high-tech sectors, energy, mining, and strategic industries.

“Vietnam is open to comprehensive cooperation with the US, sharing both benefits and risks in long-term joint projects based on transparency and fairness,” he stated.

Ha also requested US support in developing Vietnam’s artificial intelligence sector through technology transfer, investment, training, and joint ventures, saying that this support would symbolize future cooperation between the two nations.

Although the US acknowledges positive progress, it has not yet granted Vietnam market economy status. According to US regulations, a country qualifies as a market economy if it meets six criteria: currency convertibility; wage negotiations between workers and employers; foreign investment in economic activities; state and private ownership; government control over resources and pricing; and other relevant factors.

Without this recognition, Vietnamese exporters continue to face discrimination in US anti-dumping and countervailing duty investigations, as their actual production costs are disregarded in favor of third-country "surrogate values" when calculating dumping margins.

This year marks the 30th anniversary of the normalization of diplomatic relations between Vietnam and the US. Bilateral ties grew into a Comprehensive Strategic Partnership in 2023, covering a wide range of sectors, including trade, defense, energy, education, and culture.

Ambassador Marc Knapper reiterated the US commitment to deepening cooperation with Vietnam, particularly in high technology, AI, critical minerals supply chains, data, and education.

During the meeting, USAID representatives announced the closure of their office in Vietnam as part of a global restructuring by the US government. USAID's current programs, including those focused on HIV/AIDS prevention, war legacy remediation, environmental protection, and public health, will be transferred to the US Department of State to ensure continued support.