U.S. weighs upgrade for Viet Nam to 'market economy' status

The move, opposed by U.S. steelmakers and Gulf Coast shrimpers but backed by retailers and other business groups, would reduce the punitive anti-dumping duties set on Vietnamese imports because of its current status as a non-market economy with heavy state influence.

The Commerce Department will hear arguments from both sides during a virtual hearing on Wednesday afternoon in Washington as part of a review due to be completed in late July.

"Viet Nam is already a market economy," said Ted Osius, head of the U.S.-ASEAN Business Council, which backs the upgrade. "It has met key criteria such as currency convertibility and is ready for an accurate designation."

Last year, Vietnamese Prime Minister Pham Minh Chinh also urged U.S. Treasury Secretary Janet Yellen for an end to the non-market label.

Viet Nam and the U.S. elevated their ties to a comprehensive strategic partnership on the occasion of President Joe Biden's visit to Viet Nam in September 2023.

President Biden applauded Viet Nam's progress in significant market-based economic reforms, and affirmed enthusiasm and commitment for a broad, strengthened, supportive, and constructive engagement with Viet Nam in its transition to a market economy, and subsequently to market economy country status, under U.S. law.

The U.S. also appreciated Viet Nam's ongoing efforts to further modernize and enhance the transparency of its monetary policy and exchange rate management framework, to promote macroeconomic stability, and to ensure the safety and soundness of the banking system./.