The US Department of Commerce has held a hearing into Vietnam’s application to have its non-market economy status revoked, Reuters is reporting.
Reuters notes that opponents of the change cited the volume of investment and input goods from China that are powering Vietnam’s growing export-orientated economy, suggesting Vietnam was being used to circumvent trade barriers on Chinese goods.
There were also objections to claims that Vietnamese workers were permitted to organise freely and independently. Human Rights Watch released this statement outlining key arguments supporting this claim which is a worthwhile read: Vietnam: False Claims on Labor Rights.
An outcome of the review is due in July.
Background: In September of 2023 Vietnam made an official request for a review of its non-market economy status to the DOC. This was approved on October 23. The review is centred around six key criteria: currency convertibility, worker’s rights, market access for foreign investors, government control over the means of production, government control over the allocation of resources, and anything else the DOC feels is relevant.
For a full write-up see: Unpacked: Vietnam’s Non-Market Economy Review