On August 2nd, the United States officially announced that it has not yet recognized Vietnam's market economy .
The commitment remains to be seen in the significant move following the signing ceremony that elevated the two countries to a Comprehensive Strategic Partnership, and also realized the commitment contained in this document: “On September 8, 2023, the United States received a formal request from Vietnam for the United States to consider recognizing Vietnam’s market economy status. The United States will expeditiously consider this request in accordance with the law. The United States appreciates Vietnam’s ongoing efforts to further modernize and enhance the transparency of its monetary and exchange rate policy framework, promote macroeconomic stability, and ensure the safety and soundness of its banking system.”
Acknowledging transparency in monetary and exchange rate policy management, ensuring the safety and soundness of the banking system, and determining that Vietnam does not manipulate its currency are considered to have met one of the six important criteria of the US Department of Commerce in recognizing a country's market economy. However, as the third largest country (after China and Mexico) with a significant trade surplus with the United States, the competitiveness of Vietnamese goods also puts pressure on domestic US industries, forcing the US government to seek solutions to restrict imports, typically through investigations and the application of trade safeguard measures.
As of the end of April 2024, Vietnamese exports had faced 249 trade defense investigations from 24 markets. The United States was the country initiating the most cases; according to statistics from the World Trade Organization (WTO), the US conducted investigations into 62 out of 249 foreign investigations against Vietnam, accounting for nearly 25%. With the new regulations of the US Department of Commerce (effective from April 24, 2024) on anti-dumping, countervailing, and anti-circumvention investigations, the number of products from the Vietnamese market subject to investigation is increasing rapidly (anti-circumvention); focusing on export products using raw materials originating from China, with continuous, prolonged investigations using multiple measures on the same product, along with increased trade defense tariffs…
It is noteworthy that Vietnam is meeting many criteria even better than some countries already recognized as market economies, and the presence of large US corporations (Meta, Google, Intel, etc.) is proof of the openness and attractiveness of this market. Even before being recognized as a market economy, Vietnam's exports achieved stable growth, exceeding $100 billion for three consecutive years. In the first six months of 2024, exports to the US increased by more than 22% - a crucial driver in bringing Vietnam's export growth to nearly 15%.
Therefore, if recognized as a market economy, the barriers for Vietnam will be removed, especially the 62 cases currently under investigation, which will be treated more fairly. Otherwise, this market of hundreds of millions of people will continue to bear the burden of taxes and prices on key products that are compatible with US supply, such as mobile phones, computers and electronic products, clothing, footwear, seafood, wood and wood products...
Considering the Ho Chi Minh City market share alone, with its long-standing historical ties, there are many points that need to be assessed and acknowledged fairly, benefiting both sides. The city is actively monitoring and providing feedback on policies that could potentially violate US anti-subsidy regulations. The city also continuously monitors and updates the early warning list of goods at risk of trade defense investigations for businesses; coordinating with the Ministry of Industry and Trade and industry associations to update developments and support businesses in promptly handling any arising situations.
Once again, commitment remains to be made, and further effort is needed from all parties.
NGUYEN QUAN CAT
Source: https://www.sggp.org.vn/khi-loi-cam-ket-con-o-phia-truoc-post752337.html
