The US considers Vietnam a market economy, seafood and textile stocks "jump up"

According to Reuters, on May 8, 2024, the US Department of Commerce held a hearing to consider granting market economy status to Vietnam. The US Department of Commerce listened to arguments from all parties on granting market economy status to Vietnam. This is part of the process of assessing Vietnam's market economy issue. The US government is expected to make a decision on the issue in July 2024.

Currently, the US considers Vietnam to be among the countries that are considered non-market economies in trade defense cases. Being considered a non-market economy has a big impact on Vietnamese businesses, especially in anti-dumping investigations. Because goods from non-market economies are subject to higher tax rates in anti-dumping investigations.

One of the major impacts is that the US still maintains the anti-dumping tax rate of 25.76% on frozen warm-water shrimp imported from Vietnam in 2024. Meanwhile, the US recognizes Thailand as a market economy, so the tax rate on this Thai product is only 5.34%.

Many shrimp stocks increased sharply after the news that the US considered Vietnam a market economy. (Illustration photo, source: hanoimoi.com.vn)

The US's consideration of making Vietnam a market economy is strongly supported by the US business community, with the expectation that goods from Vietnam imported into the US will be more favorable and will have anti-dumping taxes reduced.

Before the above information, the stock market of some industries, especially the group of industries exporting to the US such as seafood or textiles, began to show positive signs of increase.

Regarding shrimp, on the stock market, stocks in this industry group have increased sharply in the past 2 days. VHC shares of Vinh Hoan Seafood Joint Stock Company increased by 0.65% on May 8, but this morning, May 9, they increased by 4.03%; FMC of Sao Ta Food Joint Stock Company from yesterday to today also increased by 0.19% and 4.25% respectively; MPC of Minh Phu Seafood Corporation also increased by 1.86% and 4.9%.

Or some stocks of pangasius enterprises also increased slightly. In which, IDI shares of IDI Multinational Investment and Development Joint Stock Company increased by 2.68% yesterday, increased by 2.61% this morning; ACL shares of Cuu Long An Giang Seafood Import-Export Joint Stock Company increased to 12,700 VND/share this morning (up 2.83%).

Not only that, some textile stocks also increased sharply since yesterday. In particular, MSH shares of Song Hong Garment Joint Stock Company on May 8 increased to the ceiling price of VND 49,200/share (up 6.96%), and continued to increase by 0.20% at the end of the morning session on May 9; TCM shares of Thanh Cong Textile - Investment - Trading Joint Stock Company, after many days of price decline, increased by 2.68% and 2.27% from yesterday to the end of this morning session; NDT shares of Nam Dinh Textile - Garment Joint Stock Corporation also increased by 3.23% and 1.56%, respectively.

Last year, the Ministry of Industry and Trade officially submitted a request to the US Department of Commerce to review Vietnam's market economy status. The information submitted by Vietnam contains full arguments proving that Vietnam's economy fully meets the six factors for market economy recognition under US law.

These include: The level of currency conversion; the issue of salary and wage negotiations between employees and employers; the level of foreign investment in economic activities; the issue of state ownership and private ownership; the level of government control over certain resources and prices; and other factors.

Source: https://congthuong.vn/my-xem-xet-viet-nam-la-nen-kinh-te-thi-truong-co-phieu-thuy-san-det-may-bat-tang-319121.html