Leading US businesses such as the Harley-Davidson Motor Company have already made initial moves to expand into the post-WTO Vietnamese market.

Harley-Davidson Vice president, Tim Hoelter, said the Vietnamese market is more attractive than India, where the company has also conducted market research.

Hoelter said that under the agreement between Vietnam and the US, Vietnam will abolish a ban on importing and using high capacity motorbikes, reduce import tariffs for completely built units (CBU) by 56 percent and 32 percent for motorbike parts.

Vietnam imposes an import tariff of 100 percent on motorbikes under 175cc while 175cc-plus motorbikes require special import licenses.

Other corporations are also eyeing expansion in the Vietnamese market. Citibank has 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 Mr 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.
Only 20 percent of fully State-owned enterprises and 38 percent of private enterprises are partially automated in production.

VNA