Despite reforms, Vietnam remains a non-market economy, US declares

Vietnam will continue to be classified as a non-market economy, the US announced on Friday, one of only 12 nations Washington identifies as such.

The US designates countries as non-market economies if they do not operate on market principles or have pricing that reflects the fair market value of goods. China and Russia are among the other countries on Washington’s list.

“Despite Vietnam’s substantive reforms made over the past 20 years, the extensive government involvement in Vietnam’s economy distorts Vietnamese prices and costs and ultimately render them unusable for the purpose of calculating US anti-dumping duties,” the US Commerce Department said.

The department added that it would continue to use market-based prices and costs of similar goods from a country at a comparable level of economic development as Vietnam to calculate anti-dumping duties.

In response, the Vietnamese Ministry of Industry and Trade expressed its regret that the US has yet to recognise its market economy status although Washington has acknowledged positive changes in its economy in recent years.

The ministry said the decision meant that “Vietnamese businesses exporting goods to the US market will continue to face discrimination in US anti-dumping and anti-subsidy investigations.”

It noted that 72 countries recognise Vietnam as a market economy, including Australia, Britain, Canada, Japan, Mexico and South Korea.

It has also enforced 17 free trade agreements with Britain, the European Union and countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, with commitments on tax cuts, labour standards, environmental protection, sustainable development, government procurement and transparency.

The International Trade