In the global trade landscape, Vietnam has rapidly risen into an important manufacturing and export hub in recent years.In this context, the latest decision by the U.S. Department of Commerce – initially recognizing Vietnam’s “market economy” status – has become a significant event in the field of international trade.

According to U.S. and international media reports, the U.S. decision has been strongly opposed by its domestic industries, especially the steel and fisheries sectors. These industries worry that once Vietnam is officially recognized as a market economy country, it will likely lead to the removal of various trade restrictions currently imposed on Vietnamese products, which poses a potential threat to U.S. domestic enterprises.

From a geopolitical point of view, Vietnam has a significant position in the U.S. Indo-Pacific strategy. This is not only due to Vietnam’s strategic position, but also because Vietnam, as a fast-growing market economy, plays an increasingly important role in multilateral trade. The United States has had to weigh its growing tensions with China and how to balance forces within the region by supporting Vietnam.

In 2023, Vietnam’s relationship with the United States rose to a “comprehensive strategic partnership” showing further deepening relations between the two countries.Ted Othus, former U.S. ambassador to Vietnam and head of the U.S.-ASEAN Business Council, has publicly supported Vietnam’s market economy status, emphasizing the importance of Vietnam not only in the economic sphere, but also in its role in regional security and politics.

In addition, this decision was also influenced by the internal political environment in the United States. With the presidential election in 2024 approaching, the Biden administration needed to find a balance in its domestic and foreign policies to ensure both support in the election and maintain its image and influence on the international stage. This decision on Vietnam may be an attempt to find a compromise between promoting the liberalization of international trade and protecting domestic industries.