US Denies Vietnam Market Economy Status

Vietnam's Ministry of Industry and Trade (MoIT) expressed disappointment over the U.S. Department of Commerce's (DOC) recent decision to not recognize Vietnam as a market economy, despite significant advancements in its economy. As a result, Vietnamese exporters will continue to face discrepancies in anti-dumping and countervailing investigations, with their actual production costs not recognized and a 'surrogate value' from a third country used instead. The MoIT argued that an objective review would reveal Vietnam meets the criteria for market economy status, similar to 72 other recognized nations. Over the past 20 years, Vietnam has signed 17 free trade agreements and demonstrated compliance with the six criteria outlined by the DOC. The ministry has submitted over 20,000 pages of documentation to support its case, highlighting Vietnam's progress in trade, labor standards, and environmental protection. Despite these efforts, the U.S. remains firm in its classification, which the MoIT continues to contest.