Vietnam Deputy PM urges US Treasury Secretary to facilitate recognition of market economy status

Vietnam’s Deputy Prime Minister Le Minh Khai has asked U.S. Secretary of the Treasury Janet Yellen to advocate for the recognition of Vietnam's market economy status by the U.S. administration and Congress, with a final decision set to be made next month.

“This will be a token of trust, paving the foundation for further collaboration, benefiting businesses and citizens of both countries,” Khai said during phone talks with Yellen on late Wednesday (Hanoi time).

Khai welcomed the hearing organized by the U.S. Department of Commerce for May 8 to discuss such recognition.

Khai admitted that there would be discrepancies during the revision process. However, Vietnam stands open to any recommendations and is ready to make adjustments to reach a consensus, he noted, asking for Yellen’s support.

At a regular press briefing on May 9, spokesperson Pham Thu Hang with the Ministry of Foreign Affairs said Vietnam welcomed the Commerce Department’s consideration of upgrading Vietnam to market economy status.

At the hearing, the Vietnamese side presented arguments, information, and data affirming that the Vietnamese economy completely meets the criteria of a market economy. At the same time, it emphasized that Vietnam's economy is doing even better than many countries that have gained market economy status, Hang said.

She noted that up to 72 countries have so far recognized Vietnam as a market economy, including large economies such as the UK, Canada, Australia, Japan, and South Korea.

During the phone talks on Wednesday, Khai noted that such recognition is highly anticipated by Vietnamese leaders and people as it is not only meaningful in terms of economics and trade but also demonstrates the U.S. commitment to deepening the bilateral Comprehensive Strategic Partnership reached during President Biden’s Hanoi visit last September.

Khai assessed that economic and trade relations between the two countries have maintained positive momentum after the bilateral relationship upgrade.

Two-way trade reached $38.6 billion in the first four months of this year, and the U.S. remains the largest export market of Vietnam.

The new partnership framework has opened up new spaces for cooperation in areas such as cybersecurity and emerging technologies, transfer of core technologies, strengthening supply chains to develop the semiconductor and electronics industry ecosystem, and addressing the consequences of war, Khai said.

Khai and Yellen discussed openly bilateral collaboration in finance, banking, energy transition, and macroeconomic management.

Yellen informed Khai about the cooperative relationship between the State Bank of Vietnam and her department, expressing support for this collaboration and noting their shared goal of fostering strong, inclusive, and sustainable economic development.

Both sides also engaged in open discussions on bilateral collaboration in finance, banking, energy transition, and macroeconomic management.

Khai welcomed the US Department of the Treasury’s positives assessments of Vietnam’s handling of monetary policy and the foreign exchange rate. He expected the department to continue providing objective assessments, considering each country's unique economic factors and contexts.

He also asked for continued U.S. financial support for Vietnam's development goals, particularly in infrastructure, sustainable energy transition, and climate change response, through bilateral and multilateral initiatives like the Just Energy Transition Partnership (JETP).

Yellen, who visited Vietnam last July, expressed her willingness to engage in discussions across all fields to further deepen the bilateral relationship.