WASHINGTON/HANOI -The U.S. Commerce Department announced on Friday it will continue to classify Vietnam as a non-market economy country, a decision disappointing to Hanoi, which the U.S. has been wooing in its efforts to push back against China.
"Today, the U.S. Department of Commerce announced its determination that Vietnam will continue to be classified as a non-market economy country for purposes of calculating U.S. antidumping duties on imports from Vietnam," the department said in a statement after a year-long review. "Vietnam regrets that despite several positive improvements in the Vietnamese economy recently, the U.S. Department of Commerce still has not recognized Vietnam as a market economy country," it said in a statement.
Some analysts said before the announcement a failure to upgrade Vietnam could be negative for U.S.-Vietnam relations. "Vietnam's market is as free as many others not on the NME list," he said, adding that the decision seemed"out of whack" with U.S. President Joe Biden's visit to Hanoi last year, when the two sides elevated ties to a comprehensive strategic partnership.
Nazak Nikakhtar, a former Commerce Department official in the Trump administration now with the Wiley Rein law firm, said the decision reflected"ample" evidence from industry groups"that Vietnam’s economy has not transformed to the extent that would warrant treatment as a market economy."