THE PRIME MINISTER ASKS BUSINESSES, ORGANIZATIONS, AND INDIVIDUALS TO PARTICIPATE IN THE PLAN TO PROMOTE THE UNITED STATES' RECOGNITION OF VIETNAM'S MARKET ECONOMY

According to Vietnamnet, on October 23, 2023, the U.S. Department of Commerce (DOC) officially initiated a Changed Circumstances Review (CCR) to reevaluate the market economic status of Vietnam. Unless extended, the involved parties have 30 days from the publication in the Federal Register (by October 30) to submit comments (deadline November 29, 2023) and an additional 14 days to submit rebuttal comments (deadline December 13, 2023). Following the CCR procedure, unless extended, the DOC has 270 days from the initiation date to complete the review and issue the final determination (expected by July 26, 2024).

As per U.S. legal regulations, determining a country as a market economy is based on the following criteria:

• The convertibility of the national currency into other currencies;
• The degree of freedom of contract for wages between labor and management;
• The extent to which joint ventures or investments by foreign enterprises are permitted on the territory;
• The degree of government ownership or control of the means of production;
• The degree of government control over the allocation of resources and decisions regarding prices and production by enterprises;
• Other factors deemed necessary by the investigating authority.

Currently, Vietnam have officially recognized by 72 countries as a market economy. This recognition facilitates favorable conditions for Vietnam in general and Vietnamese businesses in particular regarding exports of goods and services to these countries. However, despite being an essential partner, the lack of market economy recognition from the United States has led to frequent investigations into anti-dumping and countervailing duties. In practice, many Vietnamese goods face high tariffs, making them less competitive with equivalent products imported by the U.S. from other countries. Therefore, promoting the proposal for the United States to recognize Vietnam as a market economy was a key task for the Vietnamese government during this period.

Addressing this issue, on November 10, 2023, the Prime Minister issued Decision 1335/QD-TTg approving the Plan "Promoting the Proposal for the United States to Recognize Vietnam as a Market Economy in Trade Defense Cases." The plan outlines specific objectives and tasks for relevant ministries and sectors, with the Ministry of Industry and Trade taking the lead:

1. Develop a comprehensive plan of legal solutions according to the U.S. legal litigation process.
2. Lead the selection of legal consulting firms through a procurement process, if necessary, and effectively use legal representation to assist the Vietnamese government in U.S. legal proceedings.
3. Research, organize discussions on legal issues, seek expert opinions, and engage industry associations.
4. Participate with relevant parties in hearings, explanations, dialogues, exchanges, etc..
5. Establish a Standing Working Group on the proposal for the United States to recognize Vietnam as a market economy, consisting of representatives from 11 relevant ministries, sectors, and related agencies.
6. Enhance communication to ensure Vietnamese businesses understand the mechanism of the United States recognizing Vietnam as a market economy.

The plan also emphasizes the role and active participation of industry associations, businesses, organizations, and individuals, with specific responsibilities such as:

1. Coordinate with the Ministry of Industry and Trade to provide necessary information and data.
2. Mobilize support from businesses, industry associations, and organizations or individuals in the United States.
3. Coordinate efforts to garner support from U.S.-invested businesses operating in Vietnam.

Decision 1335 takes effect from the date of issuance./.