Vietnam president asks for US recognition of market economy status by bypassing ‘rigid’ rules

Vietnam’s President Vo Van Thuong has called on the U.S. government to recognize the country’s status as a market economy with political will and by omitting rigid regulations so that a recent double upgrade of relations can be fully exploited.

The president made the suggestion in reply to a question about the U.S.-Vietnam agreement to promote cooperation in semiconductor production, during a policy discussion at the Council on Foreign Relations (CFR) in San Francisco on Wednesday (local time).

Thuong, who took office in March, is on a trip to attend the APEC Economic Leaders’ Week and bilateral activities in the U.S. from November 14 to 17.

In addition, the U.S. should remove Vietnam from the list of countries subject to restricted cooperation in chips and semiconductors, the president said. He expressed hope for U.S. support in training manpower in this field.

Vietnam’s trade ministry officially filed a request to the U.S. Department of Commerce (DOC) on September 8 asking for recognition as a market economy, just two days before the visit of President Biden to Hanoi that saw the two countries elevate their relations to a comprehensive strategic partnership, the highest designation in Vietnam’s diplomatic hierarchy.

The DOC is processing the request, it said in a document dated October 24, after determining that “good cause exists to review Vietnam’s status as a non-market economy.” Final results are due no later than 270 days after the date on which the review was initiated. The last review took place in 2002.

The Vietnamese government has repeatedly requested such recognition, which will help Vietnamese goods avoid unfavorable rules should they be investigated under trade defense measures.

Over 70 countries and territories have recognized Vietnam’s market economy status.

At the policy dialogue at the CFR, the Vietnamese president said the Vietnam-U.S. relationship is now at its best ever, with the two former war foes becoming comprehensive strategic partners.

“Vietnam’s motto is to ‘shelve the past, overcome differences, promote similarities and look toward the future,” Thuong stressed, adding that the country considers the U.S. a partner of strategic importance in its foreign diplomacy.