Vietnam's Nonmarket Economy (NME) Status (CRS Report for Congress)
| Release Date |
Revised Aug. 29, 2024 |
| Report Number |
IN12326 |
| Report Type |
Insight |
| Authors |
Liana Wong; Mark E. Manyin |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
Shortly after extending normal trade relations (NTR) status to Vietnam in 2001, the United States
designated Vietnam as a “nonmarket economy” (NME) for the purposes of antidumping (AD) and
countervailing duty (CVD) investigations. The government of Vietnam has long sought to remove the
designation, arguing it may hinder closer bilateral ties. During President Joseph Biden’s September 2023
visit to Hanoi, where he and then-Communist Party of Vietnam (CPV) Secretary-General Nguyen Phu
Trong elevated the U.S.-Vietnam relationship to a “comprehensive strategic partnership,” Biden agreed to
review Vietnam’s request to review its NME status. The following month, the Department of Commerce
initiated an official review. During the review period, some Members of Congress raised concerns over
whether Vietnam meets the conditions to be designated as a market economy. On August 2, 2024,
Commerce announced its decision to sustain Vietnam’s NME designation, citing the Vietnamese
government’s involvement in the economy, despite “substantive reforms,” as a factor for not lifting the
designation.
