Which groups are concerned?
Theo Reuters, currently steel manufacturers, shrimp farmers on the Gulf of Mexico coast and US honey farmers oppose raising Vietnam to “market economy” status. However, retail groups and many other business groups support this move.
The reason American shrimp farmers object is because they believe that raising such regulations will help reduce anti-dumping taxes on Vietnamese imports.
Besides, there are some concerns about Vietnam’s industry being heavily dependent on investment and input imports from China. Many products are subject to US anti-dumping taxes.
Mr. Jeffrey Gerrish, representative of steel manufacturer Steel Dynamics, said that the upgrade will cause a sharp increase in imports from Vietnam to the US and will be a gateway for China to circumvent US tariffs.
What benefits does Vietnam benefit?
Theo Reuters, upgrading Vietnam to “market economy” status in an effort to strengthen the US-Vietnam economic relationship. This is supported by many American businesses, including members of the US-ASEAN Business Council.
According to a representative of a foreign investment fund in Vietnam, if upgraded to a market economy, Vietnamese exporters will benefit first. In particular, shrimp export businesses will benefit greatly.
Currently, Vietnamese shrimp is subject to high taxes. This year, the US International Trade Commission extended the imposition of 25.76% anti-dumping tax on frozen farmed shrimp imported from Vietnam, while the tax was imposed on shrimp from Thailand (which has been approved by the US). recognized market economy) at only 5.34%.
Accordingly, if raised to the “market economy” level, businesses exporting shrimp to the US will gradually reduce this tax rate over time, thereby increasing their competitiveness in the US.
During the trading session on May 9, many stock codes in the Vietnamese seafood industry increased quite strongly. Names such as Vinh Hoan Seafood (VHC), shrimp export enterprises such as MPC, FMC… are expected to benefit.
During the visit of a high-level US business delegation in March, Mr. Marc Knapper, US Ambassador to Vietnam, emphasized that this is a new era between the two countries, with a comprehensive relationship and many cooperative frameworks. work. Thereby promoting prosperity for the region, including Vietnam, the US and other members of APEC. The US representative believes in Vietnam’s development as well as Vietnam’s strategic position in the world.
Assessing Vietnam in the new period, US Ambassador to Vietnam Marc Knapper said that Vietnam is increasingly playing a larger and more important role in the global supply chain. Vietnam is a major trading partner of the US and Vietnam has a dynamic economy.
Regarding US FDI capital into Vietnam, Mr. Ted Osius forecasts that there will be more FDI capital flows into Vietnam. The current FDI capital flow is not only shown as statistical numbers, but in fact many American businesses invest in Vietnam through other countries such as Singapore, as in the case of Coca Cola.
Sharing with VietNamNet late last year, Mr. Vicente Nguyen, Chief Investment Officer (CIO) of the investment fund AFC Vietnam Fund, said that Vietnam’s economy has prospered, accelerated and achieved a lot of success in 10 years. after the two sides established a Comprehensive Partnership in 2013. In the past 10 years, Vietnam’s exports to the US have exceeded 100 billion USD, increasing more than 5 times. In the new decade, it is entirely possible to expect export revenue to the US will grow strongly again, possibly exceeding 200 billion USD.