Check on China?…US Considers Upgrading Vietnam's Trade Status to 'Market Economy'

On the 8th (local time), major foreign media reported that the United States is considering upgrading Vietnam's trade status from the current 'Non-Market Economy' (NME) to 'Market Economy.' This move is interpreted as an effort to counter China.

[Image source=AFP Yonhap News]

According to the reports, the U.S. Department of Commerce plans to hold a public hearing in Washington, D.C. on the afternoon of the same day to gather opinions for and against the change in Vietnam's trade status. The Department aims to complete the review by the end of July.

The countries designated as non-market economies by the U.S. include Vietnam, China, Russia, Belarus, and eight others, totaling 12 countries. These countries are subject to different treatment from market economies during anti-dumping investigations and generally face higher anti-dumping tariffs.

Vietnam has been requesting a reconsideration of its non-market economy status. In September last year, U.S. President Joe Biden visited Vietnam and agreed to upgrade bilateral relations to a 'Comprehensive Strategic Partnership.' Previously, only four countries?South Korea, India, Russia, and China?had established comprehensive strategic partnerships with Vietnam.

The U.S. Department of Commerce applies criteria such as currency convertibility, whether wages are determined through labor negotiations, the level of foreign investment allowed including joint ventures, the degree of government control over production, and government control over resource allocation and corporate pricing and production decisions when determining market economy status.