RoK Trade Committee recognizes Viet Nam as market driven economy
Ha Noi, Mar. 6 (VNA) - The Ministry of Trade (MoT) has welcomed the (Republic of) Korea Trade Committee's decision to recognise Viet Nam as a market driven economy.
Thanks to that decision which was made by the Korea Trade Committee (KTC) in relation to Viet Nam's export of gas lighters to the RoK, establishment of the production cost and the selling price of Vietnamese businesses' products will be considered case by case.
Businesses in the RoK recently filed a law suit against Vietnamese gas lighter producers, accusing the latter of price dumping.
The RoK's businesses reasoned that Viet Nam was not a market economy, therefore market conditions would not be applied to Vietnamese businesses.
In a bid to address the question, MoT provided the KTC with a list of reasons why the Vietnamese economy justifies the production of low cost exports.
On January 20 and 21, MoT representatives met with KTC's officials, reiterating Viet Nam's consistent policy to ensure equal rights for production and business operations by all economic sectors. Specifically pointing out that subsidies are not provided to businesses to support them in lowering prices of their products in the world market, including the RoK market.
"Viet Nam has created, and is further creating a liberal legal corridor for foreign investors to conduct business and production operations in Viet Nam," assured MoT officials.
On this occasion, MoT asked the KTC to take into deeper consideration Vietnamese businesses' competitive edge, such as low salaries, in order to come to an objective conclusion.
The ministry also asked the RoK to open door for the Vietnamese goods and not to produce any more barriers to reduce Viet Nam's trade deficit from the RoK.
