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Friday, July 19, 2024

UK to recognize Vietnam as market economy

The Saigon Times

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HCMC – The Vietnamese Ministry of Industry and Trade has announced that the U.K. will recognize Vietnam as a market economy.

The Trade Defense Agency under the Ministry of Industry and Trade stated on July 21 that the U.K. acknowledges Vietnam’s manufacturing sector as operating under market economic conditions.

This decision comes after the U.K.’s recent entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

This will lead to the waiver of unfavorable regulations against goods imported from Vietnam.

The recognition of Vietnam as a market economy by the U.K. is expected to create fairer and better conditions for market penetration and growth in Vietnam. It will also support sustainable production and business activities within the country.

Currently, Vietnamese goods exported to the U.K. already enjoy preferential tariffs due to the UK-Vietnam Free Trade Agreement. In 2022, Vietnam’s merchandise exports to the U.K. reached US$5.2 billion, a 9.5% increase compared to the previous year.

Determining whether a country is a market economy depends on the extent of government intervention in business decisions within enterprises. Countries that exhibit excessive state intervention cannot be classified as market economies, leading to higher dumping margins and trade defense duties.

Vietnam has been recognized as a market economy by 71 countries and territories, further solidifying its position in the global trade landscape.

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