What are the trade irritants between Vietnam and the US?

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Trade Irritants Between Vietnam and the United States

Vietnamese Prime Minister Pham Minh Chinh has requested US Treasury Secretary Janet Yellen's support in granting Vietnam "market economy" status and addressing other trade concerns, particularly concerning numerous US anti-dumping duty investigations on Vietnamese goods. Vietnam and China are currently treated as non-market economies by the US Commerce Department, which allows for the use of third-country pricing in determining the fair market value of goods. This methodology often results in significantly higher anti-dumping duties being imposed on exports from these nations.
US Anti-Dumping Duty Investigations

A primary trade irritant involves the substantial number of US anti-dumping duty investigations targeting Vietnamese exports. Prime Minister Chinh specifically called for a reduction in these investigations, which affect a range of products including footwear, apparel, and electronics. The imposition of these often high duty rates presents a significant challenge for Vietnam as its economic relationship with the United States continues to expand.
Non-Market Economy Classification

The classification of Vietnam as a non-market economy by the US Commerce Department is a core issue that contributes to higher anti-dumping duties. This designation allows the department to use pricing from third countries to establish the fair market value of Vietnamese goods, a practice that disadvantages Vietnamese exporters compared to those from countries recognized as market economies. Prime Minister Chinh explicitly asked for the US to recognize Vietnam's market economy status, drawing a parallel to a similar determination made for the Russian Federation in 2002, although Russia's status was later revoked.
Investigations into Duty Circumvention

Further complicating the trade relationship are investigations by the US Commerce Department into Vietnamese exports of goods such as steel and solar panels. These investigations examine whether Vietnamese products are potentially circumventing existing duties imposed on goods originating from China by undergoing further processing in Vietnam. Such inquiries add another layer of trade friction between the two nations.
Historical Currency and Trade Probes

Past actions by the US Treasury Department have also contributed to trade irritants. During the Trump administration, Vietnam was labelled a currency manipulator and faced a US “Section 301” investigation concerning its currency practices, which had threatened the imposition of broad tariffs. While this probe did not result in tariffs and Vietnam has since been removed from the Treasury's currency watch list, these historical investigations remain a point of concern in the bilateral economic ties.

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What are the trade irritants between Vietnam and the US?

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