Eight US senators have added their voices to those opposed to removing Vietnam’s non-market economy tag, signing a letter to that effect and addressed to the Secretary of Commerce. Among them are former US presidential hopefuls Elizabeth Warren and Bernie Sanders.
The letter argues that Vietnam fails to meet all of the criteria for being designated a market economy.
- On the convertibility of the Vietnamese dong it points out that Vietnam is on the currency manipulator watchlist;
- On collective bargaining it cites a US State Department report that found freedom of association and collective bargaining laws were not enforced;
- On market access for foreign firms it argues that FDI is strictly managed by the government based on the need to establish a direct investment capital account to manage investment capital, per a Bloomberg article.
- On government control of the means of production it argues that state-owned enterprises still dominate Vietnam’s economy via preferential access to credit and land; and
- On government control over the price and output decisions of enterprises it argues that the government’s influence over the banking sector and its exercise of price controls.
The letter goes on to press the issue of a lack of worker protections in Vietnam.