• Thu. May 30th, 2024

US urged by Vietnam to grant ‘market economy’ status

Byeditor

Mar 26, 2024

Vietnam is urging the United States to recognize it as a market economy, citing the benefits of stronger trade ties between the two countries as an alternative to relying heavily on China. Currently, both Vietnam and China are considered non-market economies by the United States, leading to stricter actions on exports. President Joe Biden’s administration has agreed to review Vietnam’s status, a decision that could have significant implications for bilateral trade.

During a visit to Washington, Vietnamese Foreign Minister Bui Thanh Son emphasized the importance of the United States recognizing Vietnam’s market economy status. He highlighted the mutual benefits that could stem from closer cooperation in areas such as semiconductors, critical minerals, and artificial intelligence. These partnerships, he argued, could elevate Vietnam’s position in global value chains while also benefiting the United States and other partners.

Despite historic tensions, the United States and Vietnam have significantly expanded their cooperation since reestablishing diplomatic relations 30 years ago. Vietnam’s territorial disputes with China in the South China Sea have also led to closer alignment with the United States, as both countries seek to balance relations with Beijing. Bui stressed Vietnam’s commitment to maintaining positive ties with both the United States and China, expressing support for efforts to stabilize relations between the two major powers.

As Vietnam seeks recognition as a market economy from the United States, it also aims to build on existing partnerships in strategic areas of interest. By diversifying trade alliances and fostering closer ties with Washington, Vietnam hopes to enhance its economic resilience and prosperity while contributing to regional stability in Southeast Asia.

By editor

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