3:26:43 PM | 7/8/2005
The EU has granted Vietnam the "Ad hoc Market Economy Regime" for 2005 in recognition of the country's major progress in economic development and global integration, though still refusing to consider it a full market economy.
The statement was announced by the EU and Vietnam’s Trade Ministry at a press briefing in Hanoi on June 28, marking a new achievement in Vietnam’s efforts to win a full market economy status.
Under the current regime, if a Vietnamese business has a trade dispute, it can prove it operates according to the market forces and therefore will have its data on prices and production costs accepted by judges, instead of being asked to have alternative sources from a third country.
A full market economy regime is very important for Vietnam, not only for businesses who face international trade disputes, but also to help boost bilateral economic ties to a comprehensive level, according to the Trade Ministry.
Vietnam filed a request to the EU for market economy status three years ago and sent a preliminary report on the country’s legal system and economic situation to the EU last May, based on the five requirements set forth by the EU law. Later last year, the country also offered detailed explanations on issues questioned by the EU.
While highly valuing Vietnam’s achievements in turning itself into a market economy, the EU, however, has yet to announce when it will grant Vietnam the full market economy status.
“It is now still too early to make the last decision,” said Fritz Harald Wenig, head of the Trade Protection Department under the EU Trade Commission, who is leading a EU working group to Vietnam.
EC will continue researching the new explanations submitted by Vietnam in order to be able to grant the full market economy status to Vietnam as soon as possible, he said.
The two sides are expected to continue discussing this matter in the next meeting slated for October this year.
In 2002, Vietnam also asked the US to recognize the country as a market economy within the framework of the US catfish-dumping petition, but it was not successful.
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