Vietnam Urges U.S. to Recognize Market Economy Status Amid Tariff Talks

Vietnam’s Trade Minister Nguyen Hong Dien met with U.S. Commerce Secretary Howard Lutnick and several senators during a visit to the United States this week, aiming to ease trade tensions and avoid steep tariffs on Vietnamese exports. As part of ongoing trade negotiations, Dien pledged to address the $123 billion trade surplus Vietnam holds with the U.S. and to take stronger action against trade fraud and illegal transshipment.

The Southeast Asian manufacturing hub is seeking to prevent the imposition of a 46% tariff rate on its goods, which Washington justifies by citing Vietnam’s significant surplus and its designation as a non-market economy. Vietnam, however, argues that its market reforms and participation in multiple free-trade agreements qualify it for a market economy upgrade.

During talks, Dien also urged the U.S. to remove Vietnam from strategic export control lists, a move that could significantly boost Vietnamese exports and strengthen bilateral economic ties. According to Vietnam’s Ministry of Industry and Trade, such actions would create a more balanced and sustainable trade relationship.

Vietnam has been one of Asia’s fastest-growing economies over the past two decades, and the U.S. remains its largest export destination. Despite rapid economic progress, the U.S. has yet to formally recognize Vietnam’s market economy status—an issue that has become central to current trade discussions.

In addition to meeting Commerce Secretary Lutnick, Minister Dien also held separate talks with Senators Ted Cruz and Steve Daines. He reaffirmed Vietnam’s commitment to promoting fairer trade practices and building a more equitable economic partnership with the U.S. amid rising protectionist pressures.