Non-Market Economy Status:
Vietnam has been pushing the President United States of America to quickly change its “non-market economy” classification to “market economy” status.
- The United States of America designates a country as non-market economy based on several factors namely
- If the country’s currency is convertible;
- If wage rates are determined by free bargaining between labour and management;
- If joint ventures or other foreign investment are allowed; whether the means of production are owned by the state; and
- If the state controls the allocation of resources and price and output decisions.
- The non-market economy label allows the US to impose “anti-dumping” duties on goods imported from designated countries.
Market Economy: It is a system in which production decisions and the prices of goods and services are guided primarily by the interactions of consumers and businesses.
