Vietnam has been pushing the President Joe Biden administration to quickly change its “non-market economy” classification to “market economy”, in a bid to avoid high taxes imposed by the US on the goods imported from the Southeastern country.
Although Vietnam has emerged as one of the top trading partners of the US and helped thwart China’s expanding influence in the region, it has continued to be on Washington’s list of non-market economies for more than two decades. In total, the list includes 12 non-market economies such as Russia, China, and some countries which used to be a part of the erstwhile Soviet Union.
What are ‘non-market economies’?
The US designates a country as a non-market economy based on several factors. These are: if the country’s currency is convertible; if wage rates are determined by free bargaining between labour and management; if joint…
