Illustrative image (Photo: VNA)

The recognition follows the UK’s entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) earlier this month. 

Vietnamese goods will be treated fairer and exporters will gain more access to other markets, the Authority added.

71 countries and territories have recognized Vietnam as a market economy.

Vietnamese goods exported to the UK now enjoy preferential tariffs thanks to the UK-Vietnam Free Trade Agreement. In 2022, Vietnam earned 5.2 billion USD from exports to the UK. 

A market economy is determined by the extent of government intervention in business decisions within enterprises. Countries that exhibit excessive state intervention cannot be classified as market economies, leading to higher dumping margins and trade defense duties.