What is at stake in the United States’ choice to assign ‘market economy’ status to Vietnam? – Diplomat

The most expected match in the Vietnam-US family at this time is to provide Vietnam with the status of the US financial system. On July 26, the US Department of Trade (DOC) will decide whether Vietnam meets the exchange’s standards. This came after the two countries upgraded their relationship from a comprehensive partnership to a comprehensive strategic partnership (CSP) during President Joe Biden’s visit to Hanoi in September.

This dramatic buildup in relations between the two former rivals has led curious witnesses to wonder what has caused the rapid rise in Vietnam-US relations in recent years. Virtually everyone understands that the solution has to be accepted as the truth. Now that the two countries have established a CSP, the question is what will be the base structure for future Vietnam-US relations – and the solution is the same: let it be true.

Of course, believing this to be true – and the lack thereof – has always been a major factor for Vietnam-US relations. This has alternately served as a driving force and hindrance to the family members. This stems from the history of the two countries, the difference in their political programs and the different understanding of the needs and national interests that both countries pursue in their bilateral relations. The trust becomes all the more remarkable given the uneven relations between the two countries, with Vietnam being a smaller, less developed country and a former victim of war. Then, how can this be considered true with an abstract variable in the relationship between the two countries?

The joint statement issued by the two countries in September reaffirms U.S. commitment to a comprehensive, strong, supportive, and constructive engagement with Vietnam in its transition to a market economy and subsequent market economy status under U.S. law. . ”Just before Biden arrived in Hanoi, Vietnam also formally asked the US to review the status of its market economy.

The joint statement additionally said the US would “review Vietnam’s request as expeditiously as possible, in accordance with US law.”

It seems that the Biden management has fulfilled this loyalty. Closest to CSP reform, the US began the process of reviewing the state of Vietnam’s market financial system. On May 8, DOC held a hearing on whether to upgrade Vietnam, a move that was welcomed by Hanoi. The Vietnamese side has also been actively advocating for this. In recent months, high-ranking Vietnamese officials, including the President, Prime Minister, and Foreign Minister, have taken advantage of meetings and contacts with US politicians and officials to push for early recognition of Vietnam as a market economy. During a meeting with Prime Minister Pham Minh Chinh last September, US National Security Adviser Jake Sullivan said he would press the US to provide security to Vietnam soon.

It is worth noting that during the reception of an industry delegation of the US-ASEAN Industry Council in March, Vuong Dinh Hue, the incoming chair of the Vietnam Nationwide Meeting, immediately said that the market financial system status for Vietnam could be the initial popularization of the US. Is. This can be seen as evidence of growing acceptance between the two countries.

This moment was preceded by changes in Vietnam’s high-level leadership in the months leading up to Vietnam’s anti-corruption campaign, as an immediate consequence of communist birthday celebrations, as well as Hanoi’s red carpet welcome for Russian President Vladimir Putin on June 19. In-20, this appears to have generated some consideration among international buyers and governments. Then, speaking with Click in Hanoi during two-day temporary consultations on June 21–22, Daniel Krittenbrink, the US Assistant Secretary of State for East Asia and Pacific Affairs, was urgently contacted for consultation with Putin. The US Ambassador to Vietnam said that the level of acceptance between the two countries was never before.

This is largely true: bilateral communications are not hidden, they are clear and concrete; Contact and delegation exchanges are more prevalent; And Vietnam could become an increasingly more attractive and important destination for American companies and buyers. In the past two years many high-level corporate delegations have come to Vietnam looking for investment cooperation opportunities. For example, in the closing moments, a delegation of about 60 major American companies visited Vietnam.

Throughout their tenure in Hanoi, Biden and Chin participated in the Vietnam-US Prime-Degree Convention on Funding and Innovation. Many leaders of major US generation companies, such as Jensen Huang, Chairman and CEO of Nvidia, who has already invested $250 million and intends to establish a chip manufacturing center in Vietnam, and Apple CEO Tim Cook, who Has invested more than $16 billion in Vietnam with people visiting the community in a month.

On the other hand, many Vietnamese companies planning to invest in the US final show and more than 70 Vietnamese enterprises attended SelectUSA Investment Zenith in Maryland to explore investments in the US in various disciplines, including equipment, information technology. And logistics.

To be sure, there are a number of concerns on the US side regarding Vietnam’s financial situation. On the other hand, Vietnamese financial professionals and officials will find it unclear whether the US does not currently accept Vietnam as a market financial system, as they believe Vietnam is already a market financial system. Vietnam has made policy changes to meet the statutory criteria of DOC since the last review in 2002. For generations, more than 70 countries, including US allies such as Canada, Japan, the UK, and Australia, have granted market economy status to Vietnam. , Given the strategic relations between the two countries and the recent operation of Vietnam’s financial system, some influential voices have advised that the time has come for the US to “free Vietnam from its non-market economy status.”

Differences in Vietnam-US relations will inevitably remain, including over human rights issues. On the other hand, the strategic activities of both the countries should not be affected by those diversities. Vietnam-US relations have come a long way, and it has been very difficult for both countries to reach the tidal potential of their relationship, which is based on a foundation of trust established over more than three decades. Additionally, much American consideration of potential improvements in Vietnam’s financial situation should be based on information rather than local protectionism. A powerful, remote, and self-reliant Vietnam should no longer lack US aid, and may also be consistent with US strategic interests in the Indo-Pacific region.

Associating Vietnam’s family members with core nations, without context of who they are, leaves out the basic structure and must be solidified through specific movements and urban influences. Speaking at the Center for Strategic and Global Research, a Washington-based think tank, Vietnamese Ambassador Nguyen Quoc Dzung did not hide his disappointment, saying that if the DOC were to eliminate market financial conditions for Vietnam, “it would be both” Very, very bad for the countries.” It was expected that the trust that has accompanied Vietnam-US relations would only gain momentum if the two countries remained at the post-peak moment of diplomatic reform.