On August 2, the United States officially announced that it did not recognize Vietnam's market economy (MEE).
The commitment is still ahead from the important move that immediately followed the signing ceremony to upgrade 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 an official request from Vietnam asking the United States to consider recognizing market economy status. The United States will promptly consider this request from Vietnam in accordance with the law. The United States appreciates Vietnam's continuous efforts to continue to modernize and further enhance the transparency of Vietnam's monetary and exchange rate policy framework, promote macroeconomic stability, and ensure the safety and soundness of the banking system”.
Recognizing the transparency in monetary and exchange rate policy management, ensuring the safety and soundness of the banking system as well as determining that Vietnam does not manipulate currency is considered to have met one of the 6 important criteria of the US Department of Commerce in recognizing a country's market economy. However, as the 3rd country (after China and Mexico) with a significant trade surplus with the US, the competition of Vietnamese goods also puts pressure on domestic manufacturing industries in the US, forcing the US government to find solutions to limit imports, typically by investigating and applying trade defense measures.
By the end of April 2024, Vietnam's exports had faced 249 trade defense investigations from 24 markets. Of which, the US is the country that initiated the most lawsuits. According to statistics from the World Trade Organization (WTO), the US has investigated 62/249 foreign investigations with Vietnam, accounting for nearly 25%. With the new regulations of the US Department of Commerce (effective from April 24, 2024) on anti-dumping, anti-subsidy and anti-circumvention investigations, products from the Vietnamese market are being investigated more and more, increasing in number (anti-circumvention); focusing on exported products using raw materials of Chinese origin, continuous and prolonged investigations and using multiple measures on the same product with high trade defense tax rates...
It is worth noting that Vietnam is implementing many criteria better than some countries that have been recognized as a market economy, and the presence of large US corporations (Meta, Google, Intel, etc.) is a testament to the openness and attractiveness of this market. Even when not yet recognized as a market economy, Vietnam's exports still achieved stable growth with 3 consecutive years of exports reaching over 100 billion USD. In the first 6 months of 2024, exports to the US increased by more than 22% - an important driving force in bringing Vietnam's exports to a growth rate of nearly 15%.
Therefore, if recognized as a market economy, the barriers for Vietnam will be removed, in particular, the 62 cases under investigation 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 suitable for US supply such as mobile phones, computers and electronic products, garments, footwear, seafood, wood and wood products...
Just the market share of Ho Chi Minh City, with its "historical fate", there are many points that need to be evaluated and recognized fairly, beneficial to both sides. While the city is still making efforts to proactively monitor and have critical opinions on policies that may lead to the risk of being identified as violating US anti-subsidy regulations. The city also continuously monitors and updates the early warning list of goods at risk of being investigated for trade defense for businesses; coordinates with the Ministry of Industry and Trade, Industry Associations to update the developments of the case and support businesses to promptly handle arising situations (if any).
Once again the commitment is still ahead, and more effort is needed from all sides.
NGUYEN QUAN CAT
Source: https://www.sggp.org.vn/khi-loi-cam-ket-con-o-phia-truoc-post752337.html
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