Analysts cite reasons why the US should soon recognize Vietnam as a market economy

Author Borton commented that in the context of the US Government's efforts to promote the Indo-Pacific Economic Framework for Prosperity (IPEF), the recognition of market status will help Vietnam increase trade and investment with the US. In return, the benefits that US companies gain are market access and export opportunities, especially in the fields of agriculture, machinery, aircraft and pharmaceuticals. All contribute to promoting supply chains in line with US interests. Recognizing Vietnam's market status will also contribute to reducing trade barriers, making it easier and cheaper for US businesses to export goods and services to Vietnam.

According to the article, the US recognition of Vietnam as a market economy could encourage US companies to diversify their supply chains. In addition, lower import prices and greater market access could allow US companies to increase production and output in Vietnam. This has the potential to increase sales and profits for US companies operating in Vietnam.
Telecommunications, information technology, power generation, transportation infrastructure construction, environmental project management and technology will continue to offer promising opportunities for US companies.

The article also assessed Vietnam's efforts in promoting a favorable and fair business environment for international investors. The author cited the World Bank's 2020 business report, which showed that the agency ranked Vietnam 70th out of 190 commendable economies, reflecting Vietnam's commitment to facilitating business activities. US News and World Report ranked Vietnam 7th out of 78 countries to start a business in 2021, up 5 places compared to 2020.

Currently, a total of 72 countries recognize Vietnam as a market economy, including the UK, Canada, Australia and Japan.