Vietnam wants market economy recognition from Brazil

Prime Minister Pham Minh Chinh of Vietnam on Monday said he hopes that Brazil will “very soon” recognize his country as a market economy. This follows similar efforts made with officials in the United States.

The U.S. currently classifies Vietnam as a “non-market economy,” a disadvantageous status for Vietnamese exporters during anti-dumping petitions.

On September 10, President Joe Biden met in Hanoi with the General Secretary of the Communist Party of Vietnam, Nguyen Phu Trong. A White House statement says “the United States will review Vietnam’s request” to be considered a market economy “as expeditiously as possible, in accordance with U.S. law.”

Last week, Mr. Chinh reiterated the request when he met with U.S. Trade Representative Katherine Tai and Treasury Secretary Janet Yellen in Washington.

Speaking at Brazil’s Ministry of Foreign Affairs on Monday, Mr. Chinh said the classification is “very important for [his] country.” He highlighted that Brazil is Vietnam’s number one Latin American trade partner. Likewise, Vietnam, a country of around 100 million people, is Brazil’s number one commercial partner in Southeast Asia.

Back in 2004, during Luiz Inácio Lula da Silva’s first spell as president, Brazil endorsed China’s bid to be considered a market economy under the WTO. However, China withdrew its request in 2019 before the organization reached a ruling.

Speaking off the cuff, Lula reiterated Brazil’s campaign for “a more active, more representative global governance” with “more decision power” on issues such as conflicts and “the climate issue.”

Lula also said he accepted Mr. Chinh’s invitation to visit Hanoi in 2024, when Brazil and Vietnam will celebrate 35 years of diplomatic relationship.

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