Last updated: 15:0 - June 27, 2006
US businesses eye post-WTO local market http://www.nhandan.com.vn/english/business/270606/property_us.htm
Market researchers from the US are expected to increasingly target Vietnam in the coming years after Vietnam and the US reached an agreement on Vietnam's accession to the World Trade Organisation (WTO).
Leading US businesses such as the Harley-Davidson Motor Company have already made initial moves to expand into the post-WTO Vietnamese market.
Vice president of Harley-Davidson, Tim Hoelter, said the Vietnamese market was more attractive than India, where the company had also conducted market research.
Hoelter said that under the agreement between Vietnam and the US, Vietnam would abolish a ban on improving and using high capacity motorbikes, reduce import tariff for completely built units (CBU) by 56% and for motorbike parts by 32%.
Vietnam imports motorbikes lower than 175cc with an import tariff of 100% while imports of 175cc-plus motorbikes require special import licences. Other corporations are also eyeing expansion in the Vietnamese market. Citibank has also paid more attention to investment in Vietnam. Charly Madan, Citigroup Country Officer in Vietnam, said banks have opportunities for quick growth in Vietnam, although there is intense competition in the banking market.
Citibank is eyeing Vietnam's securities market, said Madan.
According to the Ministry of Industry, many domestic enterprises involved in processing milk, food and beverage products, have received information on the requirement of working with US partners.
Industry Minister Hoang Trung Hai said that with current technologies, domestic enterprises face difficulties in improving capacity and quality of products while also having to deal with cuts to export prices.
Just 20% of fully State-owned enterprises and 38% of private enterprises have reached automation for 20% of total works. (VNS)
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