Việt Nam’s Ministry of Industry and Trade Responds to US Non-Market Economy Determination
Hanoi, The Gulf Observer: The Ministry of Industry and Trade of Việt Nam has expressed regret over the US Department of Commerce’s recent determination that Việt Nam continues to be recognized as a non-market economy, despite the country’s significant economic progress in recent years. This decision means that Vietnamese enterprises exporting to the US will face different treatment in anti-dumping and countervailing investigations, with their actual production costs not being recognized. Instead, a “surrogate value” from a third country will be used to calculate dumping or subsidy margins.
The Ministry emphasized that if the US Department of Commerce had objectively and fairly examined the records and practices in Việt Nam, they would have recognized Việt Nam as a market economy, similar to the 72 other market economies, including major economies like the United Kingdom, Canada, Mexico, Australia, Japan, India, South Korea, and New Zealand.
Over the past two decades, Việt Nam’s economy has undergone remarkable changes and development. The country has successfully signed and implemented 17 free trade agreements, including high-standard agreements with the European Union, CPTPP countries, and the United Kingdom. These agreements encompass extensive commitments, from reducing duties to raising labor standards, environmental protection, sustainable development, government procurement, and transparency.
The Ministry of Industry and Trade noted that they had provided more than 20,000 pages of information and documents to the US Department of Commerce, demonstrating Việt Nam’s strong progress on all six criteria set forth by the US for market economy consideration. These briefs fully and consistently showed that Việt Nam’s implementation of these criteria is at least equal to, and generally better than, that of other recognized market economies.
According to Section 771(18) of the US Tariff Act of 1930, the six criteria for considering a market economy include:
- The extent to which the currency of the foreign country is convertible into the currency of other countries.
- The extent to which wage rates in the foreign country are determined by free bargaining between labor and management.
- The extent to which joint ventures or other investments by firms of other foreign countries are permitted.
- The extent of government ownership or control of the means of production.
- The extent of government control over the allocation of resources and over the price and output decisions of enterprises.
- Other factors as deemed appropriate by the administering authority.
The Ministry also extended its sincere thanks to 41 organizations, individuals, business associations, and trade associations in both Việt Nam and the United States for their strong support in recognizing Việt Nam as a market economy. Notable supporters include the National Association of State Departments of Agriculture (NASDA), the American Chamber of Commerce (AmCham), the US-ASEAN Business Council (USABC), and the Retail Industry Leaders Association.
Looking ahead, the Ministry of Industry and Trade will continue to study and analyze the arguments in the US Department of Commerce’s report on the Vietnamese economy. They plan to supplement and complete the briefs and relevant dossier to submit another review request for recognizing Việt Nam’s market economy status. This recognition would further solidify the Comprehensive Strategic Partnership between Việt Nam and the United States, promoting bilateral economic, trade, and investment cooperation, and bringing practical benefits to businesses and people of both countries.
Additionally, the Ministry pledged ongoing support for Vietnamese enterprises exporting to the US market, ensuring the highest benefits for the Vietnamese business community in trade remedy investigations.
