Expand export opportunities to the US

The US's recognition of Vietnam as a market economy will help expand business opportunities for Vietnamese businesses. In particular, with the growing trade flow between the two countries, exports to the US are more favorable.

Efforts to meet the criteria

In early May 5, the US Department of Commerce conducted an assessment on whether to bring Vietnam to "market economy" status or not. This is currently in the process of being considered for about 2024 days, expected to be completed by July.

Vietnam's efforts in meeting 6 criteria for the US to recognize market economy status have been implemented for a long time and were concretized after the two countries upgraded their comprehensive strategic partnership in September. /9.

Vietnam has implemented economic reforms to meet the criteria prescribed by the US, including: currency convertibility; negotiate salaries and wages between employees and employers; level of foreign investment in economic activities; issues of state ownership, private ownership...

According to the assessment of many international analysts, Vietnam has demonstrated its performance according to the above criteria as good or often better than other countries that have been granted market economy status. Vietnam intervenes less in state-owned enterprises than India, and is more open to foreign investment than Indonesia, Canada and the Philippines.

Ms. Nguyen Thi Thu Trang, Director of the Center for WTO and Integration (Vietnam Confederation of Commerce and Industry - VCCI) analyzed that being recognized by the US as a market economy has great significance for manufacturing industries. , exported by Vietnam. Many products exported to this market will receive tax reductions, which can encourage US companies to diversify their supply chains.
Similarly, Mr. James Borton, senior researcher at the Johns Hopkins Foreign Policy Institute/SAIS, added that Vietnam can benefit from being recognized by the US as a market economy.

Specifically, this will help reduce anti-dumping taxes on Vietnamese imports. Goods from non-market economies are subject to higher tariffs in anti-dumping tax investigations. If anti-dumping taxes are eliminated, or taxes on exported goods are significantly reduced, it will help Vietnamese goods become more competitive in the US market.

On the contrary, American consumers will also benefit, because they will have access to quality Vietnamese goods at affordable prices. From there, exports will accelerate and Vietnam's position will also increase accordingly.

In recent years, Vietnam has emerged as a stable, safe and beneficial supply chain partner for the US economy. In 2022, more than 110 billion USD of goods, from electronics, components, machinery and equipment, to furniture, textiles, agricultural and aquatic products... have been exported to the US by suppliers. In 2023, affected by the global economic downturn, exports to the US will only be 97 billion USD, but this is still the market that imports the most Vietnamese goods.

Update regulations of the US market

Not being recognized as a market economy makes our country's exports suffer many disadvantages and encounter more barriers, especially in trade defense cases, and are susceptible to anti-dumping taxes.

"According to Mr. Nguyen Dinh Luong, former Head of the Vietnam-US Trade Agreement (BTA) negotiation team for Vietnam, to be truly recognized by the US as a market economy, Vietnam must learn from the world. Laws, especially in areas that are still new to us, must apply universal laws of the world. At the same time, there is a step-by-step roadmap to integrate and advance into the common playing field."

More importantly, when the US "nods", Vietnam's name will be recognized by many major partners in the world, including many countries allied with the US, opening up more opportunities for Vietnamese businesses.

Broadly speaking, the US recognition of Vietnam as a market economy means that the business activities of domestic enterprises are truly open to the world. However, according to VCCI, the ongoing task of businesses is to have a methodical and standardized business strategy in all activities to go the long way.

Regarding this issue, Ms. Nguyen Thi Thu Trang noted that businesses must learn and regularly update regulations of the US market, paying attention to regulations related to trade remedies, epidemic prevention hygiene, and standards. techniques, origin, or regulations related to labor standards...

As a textile and garment exporter, having had trade relations with the US for several decades, Mr. Than Duc Viet, General Director of Garment 10 Joint Stock Company, said that being recognized by the US as a market economy, trade will fairer, with better opportunities to welcome investment flows from the US. The problem for businesses is to meet strict standards from importers. If these criteria are met, the long-term benefits will be huge.

“Enterprises must be customer-oriented, continuously improve quality as well as production technology, attach importance to environmental factors, labor... That is the way for businesses to compete better, no matter in any situation. What circumstances?" Mr. Viet said.

Source: Vietnam.vn