US Department of Commerce holds hearing on designating VN as a market economy

Workers process tra fish for exports at Sao Mai Corp's factory in An Giang Province. The designation would result in a reduction of anti-dumping duties imposed on Vietnamese imports. — VNA/VNS Photo Vũ Sinh

The US Department of Commerce held a hearing lately to discuss the potential designation of Việt Nam as a "market economy", according to Reuters.

This designation, which is supported by retailers and business groups, would result in a reduction of anti-dumping duties imposed on Vietnamese imports.

Currently, Việt Nam is classified as a non-market economy due to significant state influence.

During the virtual hearing in Washington on Wednesday, arguments were presented as part of a review process scheduled to conclude in late July.

Ted Osius, the head of the US-ASEAN Business Council, which supports the upgrade, stated that Việt Nam already operates as a market economy and meets key criteria such as currency convertibility.

Vietnamese Prime Minister Phạm Minh Chính also appealed to US Treasury Secretary Janet Yellen last year to remove the non-market label.

In September 2023, Việt Nam and the US elevated their relationship to a comprehensive strategic partnership during President Joe Biden's visit. President Biden praised Việt Nam's significant progress in implementing market-based economic reforms and expressed eagerness to engage with Việt Nam in its transition to a market economy.

The US also acknowledged Việt Nam's continued efforts to modernise its monetary policy, enhance transparency in exchange rate management, promote macroeconomic stability, and ensure the soundness of its banking system.