Việt Nam regrets that US not yet recognising its market economy

Containers are transported at Gemalink International Port in Bà Rịa-Vũng Tàu Province. — VNA/VNS Photo

HÀ NỘI — Việt Nam’s Ministry of Industry and Trade regrets that on August 2, 2024, the US Department of Commerce issued a determination, according to which although many positive changes have been recorded in Việt Nam’s economy in recent years, Việt Nam continues to be recognised as a non-market economy, the ministry said in a press release issued on the same day. 

This means that enterprises exporting Vietnamese goods to the US market will continue to be treated differently in anti-dumping and countervailing investigations of the United States, the actual production costs of Vietnamese enterprises will continue to be not recognised, instead, the “surrogate value” of a third country will be used to calculate dumping/subsidy margin in such cases, the ministry emphasised.

The ministry also stated that if the US Department of Commerce had examined the records and practices in Việt Nam objectively and fairly, they would have been able to acknowledge the fact that Việt Nam was already a market economy like 72 other market economies recognised, in which there are major economies such as the United Kingdom, Canada, Mexico, Australia, Japan, India, South Korea, and New Zealand.

Over the past 20 years, Việt Nam’s economy has undergone remarkable changes and development. Việt Nam has successfully signed and put into practice 17 free trade agreements, including new-generation, high-standard free trade agreements with the European Union, CPTPP countries, and the United Kingdom with many extensive and comprehensive commitments from reduction of duties to raising labour standards, environmental protection, sustainable development, government procurement, transparency.

These changes have been clarified in more than 20,000 pages of information and documents sent by the country’s Ministry of Industry and Trade to the US Department of Commerce, demonstrating Việt Nam’s strong progress on all six criteria set forth by the US Department of Commerce when considering a market economy, the ministry noted.

The briefs provided by the ministry to the US Department of Commerce also fully and consistently demonstrate that Việt Nam’s level of implementation of these six criteria is at least equal to and generally better than the level of implementation of other countries that have been recognised as market economies; and in fact, equal to or better than countries that have always been considered as market economies. Therefore, based on the specific statutory criteria of US law, the recognition of the market economy for Việt Nam is an objective and fair reality.

According to Section 771(18) of the US Tariff Act of 1930, six criteria when considering a market economy country include: (i) the extent to which the currency of the foreign country is convertible into the currency of other countries; (ii) the extent to which wage rates in the foreign country are determined by free bargaining between labour and management; (iii) the extent to which joint ventures or other investments by firms of other foreign countries are permitted in the foreign country; (iv) the extent of government ownership or control of the means of production; (v) the extent of government control over the allocation of resources and over the price and output decisions of enterprises, and (vi) such other factors as the administering authority considers appropriate.

In the press release, the Ministry of Industry and Trade also extends its sincere thanks to 41 organisations, individuals, business associations and trade associations in Việt Nam and also the United States for expressing strong support for the recognition of Việt Nam as a market economy, including organisations and individuals representing US businesses such as the National Association of State Departments of Agriculture (NASDA), the American Chamber of Commerce (AmCham), the US-ASEAN Business Council (USABC), the Retail Industry Leaders Association and looks forward to the further companionship of the above-mentioned organisations and individuals in the future.

The Ministry of Industry and Trade highllighted that in the coming time, it will continue to study and analyse the arguments in the Report of the US Department of Commerce assessing Vietnamese economy so as to continue the supplement and completion of the briefs and relevant dossier to submit to the US Department of Commerce to request another review to recognise the market economy status of Việt Nam, which will further concretise the Comprehensive Strategic Partnership between Việt Nam and the United States, thereby promoting bilateral economic, trade and investment cooperation, bringing practical benefits to businesses and people of the two countries.

In addition, the Ministry of Industry and Trade will always support and accompany Vietnamese enterprises exporting to the US market in trade remedy investigations to ensure the highest benefits for the Vietnamese business community. — VNS