20 May, 2024
admin0 comments20/05/2024News

Benefits when the US recognizes Vietnam as a market economy

On May 8.5.2024, 26.7.2024, local time, the US Department of Commerce listened to an online debate in Washington DC on whether to recognize Vietnam as a market economy or not. The hearing is part of the review process, with a final decision due on July XNUMX, XNUMX.

Benefits when the US recognizes Vietnam as a market economy

                                                                      US President Joe Biden at a press conference in Hanoi on September 10.9.2023, XNUMX. Photo: AFP

During the hearing, Attorney Eric Emerson of Steptoe LLP – representing Vietnam’s Ministry of Industry and Trade – argued that Vietnam should be upgraded to a market economy because it has met 6 criteria of the US Department of Commerce.

“Vietnam has demonstrated performance in these criteria as good or often better than other countries that have been granted market economy status” – said Lawyer Eric Emerson.

In the argument, Vietnam believes that the non-market label should be removed because there have been recent economic reforms and being labeled a non-market economy is not good for Vietnam-US bilateral relations.

Supporting the US recognition of Vietnam as a market economy, Mr. Scott Thompson – Public Policy Director of Samsung Electronics US branch – said that Samsung Electronics Company has become one of the largest employers in Vietnam. Nam thanks to Vietnam’s market-oriented changes.

“Vietnam has emerged as a stable, safe supply chain partner of the US, bringing ultimate benefits to the US economy” – he said.

At the hearing, opposing parties argued that Vietnam’s policy commitments have not been matched by actions, and were concerned about Vietnam’s industries being heavily dependent on investment and imports. Input materials from China, many of which are subject to anti-dumping duties by the US.

Mr. Jeffrey Gerrish – former trade official of President Donald Trump’s administration, representative of steel manufacturer Steel Dynamics – said that the US recognition of Vietnam as a market economy will lead to a wave of non-commercial imports. fairness from Vietnam, thereby creating a foundation for China to avoid taxes in the US.

Currently, Vietnam, along with China, Russia, Belarus, Azerbaijan and 9 other countries, are on the list of non-market economies. This year, the US International Trade Commission extended the 25,76% anti-dumping tax on frozen farmed shrimp from Vietnam, while the tax on shrimp from Thailand – a market economy – is only at level of 5,34%.

At the press conference of the Ministry of Foreign Affairs of Vietnam on the afternoon of May 9.5, Spokesperson Pham Thu Hang welcomed the hearing of the US Department of Commerce on May 8.5.

“This is an important step in the process of reviewing the application for recognition of Vietnam’s market economy status” – Ms. Hang said.

A spokesperson for the Ministry of Foreign Affairs emphasized: “At the hearing, the Vietnamese side clearly stated arguments, information and data confirming that the Vietnamese economy completely meets the criteria of market economy regulations. market, while emphasizing that Vietnam’s economy is even doing better than many economies that have been recognized as market economy.

The representative of the Ministry of Foreign Affairs of Vietnam pointed out that up to now, 72 countries have recognized that Vietnam has a market economy, including large economies such as England, Canada, Australia, Japan… Vietnam has also recognized that Vietnam has a market economy. participating in 16 bilateral and multilateral free trade agreements with more than 60 partners across continents.

“The US’s early recognition of Vietnam’s market economy status will contribute to concretizing the commitments of the two countries’ senior leaders, strengthening the comprehensive strategic partnership between Vietnam and the US, thereby promoting Economic and trade relations bring practical benefits to businesses and people of the two countries” – The spokesperson emphasized.

Commenting in Deutsche Welle, Ms. Trinh Nguyen – senior economist in charge of emerging Asia at Natixis, a branch bank of the French banking group BPCE – emphasized: “Recognizing the economy The market helps Vietnam avoid US anti-dumping taxes, so if this status is recognized, Vietnam will make its products more competitive.”

Ms. Trinh Nguyen added: “The US is a key market, so being recognized as a market economy will help Vietnam.”

Source: https://laodong.vn/the-gioi/loi-ich-khi-my-cong-nhan-viet-nam-la-nen-lanh-te-thi-truong-1338417.ldo

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20 May, 2024
admin0 comments20/05/2024News

US Considers Vietnam’s Market Economy Status Amid Trade Tensions

Commerce Department to Decide Fate of Vietnamese Imports Tariffs as Tensions Rise.

In a pivotal move that could reshape trade dynamics between the United States and Vietnam, the US Department of Commerce is set to deliberate on whether to grant Vietnam the coveted status of a “market economy.”

This hearing, slated for May 8 but will continue for the next couple of months, carries significant implications for both nations, with the potential to impact trade relations and economic strategies in the Asia-Pacific region.

The deliberation comes against a backdrop of mounting tensions and competing interests. While proponents argue that recognizing Vietnam as a market economy would foster stronger bilateral ties and stimulate trade, opponents, including US steelmakers and shrimp producers, voice concerns over potential job losses and unfair competition.

Advocates for the upgrade, such as the US-ASEAN Business Council and various retailers, contend that Vietnam has already fulfilled crucial criteria for market economy status, including currency convertibility.

They emphasize the burgeoning investment landscape in Vietnam and assert that the current designation stifles its economic potential.

On the opposing front, US steelmakers and the Southern Shrimp Alliance express apprehensions regarding the ramifications of reduced tariffs on Vietnamese imports.

They highlight issues such as land ownership restrictions and labor laws, fearing adverse effects on domestic industries and employment.

The Commerce Department’s decision hinges on a set of stringent criteria, encompassing factors like currency convertibility, wage determination mechanisms, and government intervention in economic activities.

If Vietnam secures market economy status, it could lead to a significant reduction in anti-dumping duties on its exports to the US, enhancing its competitiveness in the global market.

On broader geopolitical dynamics, the deliberation assumes added significance. As the US seeks to bolster its alliances in the Asia-Pacific region as a counterbalance to China’s influence, Vietnam emerges as a key player.

Last year’s elevation of bilateral ties to a “comprehensive strategic partnership” underscores the mutual strategic interests of both nations.

Trade Landscape

The US-Vietnam trade relationship has witnessed exponential growth in recent decades, with trade turnover skyrocketing nearly 300 times since the establishment of diplomatic relations.

The US stands as Vietnam’s largest export market, with trade volumes reaching nearly USD 111 billion by the end of 2023. However, the ongoing deliberations over market economy status add a layer of complexity to this robust economic partnership.

As the Commerce Department convenes to address the contentious issue of Vietnam’s market economy status, the outcome carries far-reaching implications for trade dynamics, economic partnerships, and geopolitical alignments.

Given the divergent interests and rising trade tensions, the decision underscores the intricate interplay between economic policy and strategic imperatives in shaping the global economic landscape.

Source: https://vneconomy.vn/us-considers-vietnams-market-economy-status-amid-trade-tensions.htm

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27 Dec, 2022
admin0 comments27/12/2022Uncategorized

Vietnam, EU seek to cooperation in green, sustainable growth

Vietnamese enterprises should focus on meeting quality requirements and ensuring green and sustainable growth, experts said at the Vietnam-EU Trade Forum held in Ho Chi Minh City on September 29.

Speaking at the event co-organised by the Vietnamese Ministry of Industry and Trade, and the EU Delegation to Vietnam, Minister of Industry and Trade Nguyen Hong Dien said that over the past more than two years since the EU-Vietnam Free Trade Agreement (EVFTA) took effect, the two sides have witnessed fluctuations of the global economy as well as the economies of the EU and Vietnam amid the COVID-19 pandemic, regional and global geo-political instability.

Data from the General Department of Vietnam Customs showed that the EU is now a leading trade partner, the third biggest export market and the fifth largest import market of Vietnam. Meanwhile, Vietnam surpassed Singapore to become the biggest trade partner of the EU in ASEAN and the world’s 11th biggest supplier of goods to the bloc.

From August 2021 to July 2022, two-way trade between Vietnam and the EU reached 61.4 billion USD, up 11.9% from the first year of EVFTA enforcement. Of which, Vietnam shipped 45 billion USD worth of products to the EU, up 17%.

In the first eight months of this year, the figure hit 42.4 billion USD, marking a 14.85% rise year-on-year. Vietnam mainly exported machinery, garment and footwear, coffee, aquatic products, fruits and vegetables, pepper and rice to the EU.

Dien added that the Vietnamese Government is keen on expanding the markets and boosting its comprehensive partnership with the EU and its member states, thus making it easier to expand bilateral ties, not only in trade but also other economic areas.

Chairman of the European Chamber of Commerce in Vietnam (EuroCham) Alain Cany said in order to be able to compete in the EU and fully tap advantages from the signed FTAs, Vietnamese enterprises need to comply with strict environment standards and meet demands for green and sustainable consumption trend, which is inevitable in the world and a mandatory path for them to deeply join the new value chain.

The EU encourages the development of green and renewable energy sources in Vietnam, he said, adding that European firms want to be present in Vietnam to share their experience, technology and investment.

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27 Dec, 2022
admin0 comments27/12/2022Uncategorized

Potentials for Vietnamese coffee industry from UKVFTA

 

According to data from the International Trade Center (ITC), in 2021, total coffee imports from the world market into the UK will reach 203.38 thousand tons, worth $945.56 million. Also in 2021, the average import price of coffee into the UK reached $4,649/ton, up 7.5% compared to 2020.

Coffee market in the UK

According to data from the International Trade Center (ITC), in 2021, total coffee imports from the world market into the UK will reach 203.38 thousand tons, worth $945.56 million. Also in 2021, the average import price of coffee into the UK reached $4,649/ton, up 7.5% compared to 2020.

Statistics show that the EU is still the largest coffee supplier to the UK market, while Asia (including Vietnam) only supplies about 90 million tons/year. However, it should be noted that coffee from Vietnam and some other suppliers has also been purchased, packaged, and exported by international roasters to the UK market with their own labels, including: many EU roasters.

According to Statista, the UK coffee market revenue is estimated to reach $8.81 billion by 2022. The market is expected to grow 10.98% annually (CAGR 2022-2025). Thus, the UK market’s revenue is currently about 1/10 of that of the US market ($85.16 billion). Revenue per capita is 128.70 USD in 2022. By 2025, 83% of spending and 29% of coffee consumption in the UK market will be for non-family consumption activities ( e.g. at cafes, hotels, bars and restaurants).

UK consumers traditionally drink more instant coffee than European countries. However, the reality also shows that sales of ground coffee and specialty coffee are increasing. Certification is highly important for UK consumers, especially with regard to quality, labour and environmental factors.

Situation of Vietnam’s coffee exports to the UK

Coffee is one of 13 key agricultural products of Vietnam. The coffee industry contributes 3% of the country’s GDP, creating jobs and stable incomes for over 600,000 farming households. According to the General Department of Customs, in April 2022, Vietnam exported a total of 2137 tons of coffee to the UK market, with an average monthly export price of 2137 USD/ton, worth 4.56 million USD. In the first 4 months of 2022, Vietnam’s coffee exports to the UK reached 50.3 million USD, up 145.84% in volume and 196.67% in value over the same period in 2021.

The UKVFTA agreement opens up opportunities for Vietnam’s coffee industry to better access the UK market, thereby contributing to improving its value and stabilizing exports in difficult conditions of the COVID-19 pandemic.

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