The United Kingdom will recognise Vietnam as a market economy during the investigation of trade remedy measures.

DNHN - Within the context of joining the CPTPP Agreement, the United Kingdom will recognise Vietnam's market-based manufacturing industries. According to the Trade Remedies Department of the Ministry of Industry and Trade.

Trade envoy Mark Garnier thanked Vietnam for supporting the UK in the negotiation process to join the CPTPP. Ministry of Industry and Trade's photo
Trade envoy Mark Garnier thanked Vietnam for supporting the UK in the negotiation process to join the CPTPP. Ministry of Industry and Trade's photo.

According to the Trade Remedies Department of the Ministry of Industry and Trade, the United Kingdom has pledged not to apply adverse regulations to Vietnamese imports when investigating trade remedies cases. This creates opportunities to expand markets and strengthen trade cooperation between the two countries, as well as good news and positive impetus for the Vietnamese economy.

When determining whether a country has a market economy, the degree of state intervention in the business decisions of enterprises, as well as the degree of state control and intervention in factors of production such as capital and labour, are crucial factors. Priority will be given to the exporting country of goods with a market economy when calculating the dumping margin using the information on the costs and prices of the manufacturing and exporting enterprises themselves. In contrast, the importing nation will utilise information representative of businesses in a third nation with a market economy. Consequently, the margin of dumping is frequently determined to be greater, resulting in a much higher level of trade defence tax compared to market economies. In some instances, this tax rate can exceed 100 per cent, causing importers great difficulty and pressure.

With 71 countries and territories recognised as market economies in various forms, Vietnam has demonstrated business stability and transparency. This creates favourable conditions for Vietnamese exports, ensures that partner companies have fair access to the British market, and helps to increase the penetration of Vietnamese products into this market.

The Trade Remedies Administration has made a clear statement regarding the advantages of market economy status. Vietnam will be treated more fairly in international trade transactions if it is viewed as a trading partner with a market economy, creating more favourable conditions for market penetration and expansion and maintaining more stable production and business activities. A stable and transparent business environment will also attract investment capital, thereby contributing to Vietnam's long-term economic growth.

The United Kingdom is an important trading partner for Vietnam, and a commitment not to impose unfavourable regulations on Vietnamese imports will be highly advantageous for both parties. Respecting and valuing Vietnam's market economy in trade remedy cases not only demonstrates mutual trust and support but also contributes to the consolidation and expansion of economic cooperation between the two nations.

Promoting a transparent and fair business environment is a prerequisite for supporting the comprehensive and sustainable development of countries in an increasingly interconnected world. The United Kingdom's commitment not to apply adverse regulations to Vietnamese imports when investigating trade remedy cases is a remarkable step that should be replicated internationally.

Huu Uong

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