According to SSI, Vietnam is one of 12 countries with non-market economy status as listed by the US Department of Commerce. This means that in anti-dumping and anti-subsidy investigations, the prices of a third party will be used to calculate the production costs of Vietnamese products. 

Vietnam's efforts to meet the six criteria for being recognized as market economy status have been carried out for quite a long time and have been concretized after the two countries upgraded their relation comprehensive strategic partnership.

Many parties and institutions have expressed their support for the US recognizing Vietnam as a market economy, including AmCham, RILA (the Retail Industry Leaders Association, AAEI (The American Association of Exporters and Importers), NASDA (The National Association of State Departments of Agriculture), and AAFA (American Apparel & Footwear Association).

Vietnam has been recognized by 72 countries as a market economy, including Canada, Australia, Japan, South Korea and the UK. If the US recognizes Vietnam as a market economy, this would lay a premise for the EU to also recognize Vietnam’s market economy status.

According to SSI, the biggest benefit for Vietnam when it is recognized as a market economy is that export companies from Vietnam can use their production costs as official figures if the US carries out anti-dumping investigations, thus creating a fair competition between Vietnamese goods and other countries’ goods.

Also, goods from Vietnam may be able to enjoy preferences if the US applies GSP (Generalized System of Preferences) for Vietnam.

Thong Thuan Seafood JSC in KhanhHoa province is a company specializing in exporting frozen shrimp. According to its Nguyen Dinh Hien, the company’s factory in AnGiang mostly makes products for export to the US, while only 12 percent of seafood products at the factory in KhanhHoa are exported to the market.

The US now is one of the world’s largest shrimp consumers. Exporting shrimp is an advantage of Vietnam, and the US is the second largest client of Vietnam.

Therefore, if the US recognizes Vietnam as a market economy, Thong Thuan and other seafood export companies would see big benefits.

“Taxes will be more stable. In addition, we will have advantages in trade disputes,” he explained.

If so, the US partners would feel secure to place orders with Vietnam’s enterprises. Once Vietnam joins the same playing field with other economies, it has the chance to become a large partner of the US and compete with other countries there.

Nguyen Dinh Tung, CEO of Vina T&T Group, thinks that once Vietnam is recognized as a market economy, Vietnamese products would be more competitive in the US market.

In the US market, Vietnam’s farm produce have to compete with Thai, Mexican and Ecuadorean goods. If Vietnam is considered a market economy, it would be a fair playing field.

“Thailand, for example, has big advantages in the US market. It now can export more than 20 fruits to the market, while Vietnam can export only a few products. Once Vietnam is identified as a market economy, the negotiations for exporting products to the US would be more favorable,” Tung explained.

Previously, Vietnam had to spend several years, or even up to 10 years, to successfully negotiate exporting a fruit to the US market. But with the market economy status, there would be fewer barriers.

Vicente Nguyen, AFC Vietnam Fund’s CIO, said Vietnam’s shrimp industry would be the biggest beneficiary if the US grants market economy status to Vietnam.

Currently, Vietnam’s shrimp exports to the US bear an anti-dumping duty of 25.76 percent, while Thailand’s is 5.34 percent. 

He went on to comment that the upgrading of the Vietnam-US relationship to comprehensive strategic partnership has brought initial results. Vietnam’s exports to the US are likely to increase sharply in the next 10 years.

In the previous 10-year period (2013-2023), Vietnam’s exports to the US increased from $24 billion to $100 billion. In the next 10-year period, the figure would rise from $100  billion to $200 billion.

Prior to that, the US-ASEAN Business Council showed its support to the decision to upgrade Vietnam into a market economy with a statement from Ted Osius, the head of USABC, saying that Vietnam is already a market economy.

Tu Giang - Luong Bang - Manh Ha