Brian Jeffrey
Recently, Vietnam expressed disappointment regarding the U.S. Department of Commerce’s classification of Vietnam as a non-market economy. Despite significant strides in the Vietnamese economy, the decision does not acknowledge Vietnam’s efforts in establishing a market economy, a recognition granted by the international community.
Vietnamese authorities and businesses actively engaged with the U.S. Department of Commerce to demonstrate Vietnam’s compliance with the six criteria of a market economy under U.S. law. This stance was echoed by various U.S. and international entities, businesses, and experts.
To date, 72 countries have acknowledged Vietnam as a market economy, highlighting its economic advancements and participation in multiple high-quality free trade agreements.
“Encouraging broad, robust, and constructive cooperation, Vietnam urges the U.S. to work towards promptly recognizing Vietnam’s market economy status in line with the Comprehensive Strategic Partnership,” the spokesperson remarked.
In response to the U.S. decision on August 2, the Ministry of Industry and Trade highlighted that Vietnamese exporters would encounter continued discrimination in anti-dumping and subsidy investigations. This entails using “surrogate values” from a third country, instead of actual production costs for calculating dumping margins.
The Ministry asserted that a fair and objective review of Vietnam’s practices would reveal its status as a market economy, endorsed by 72 economies, including key players like the UK, Canada, and Japan.
Over the past twenty years, Vietnam’s economy has witnessed significant transformations. The Ministry stressed that recognizing Vietnam as a market economy aligns with specific U.S. criteria outlined in the Tariff Act of 1930.
The six criteria under consideration include currency convertibility, wage negotiations, foreign investment levels, ownership structures, and government intervention.
