Tran Quoc Khanh, head of the Multilateral Trade Policy Department of the Ministry of Trade said, “the US approval of PNTR for Vietnam will help enterprises of both countries feel secure about exporting and importing goods as well as creating a stable business environment. Moreover, it provides a firm foundation for the two countries to bring bilateral relations, especially economic relations to a new level.

“Vietnam’s small and medium-sized enterprises (SMEs) are also interested in the event as it offers trade opportunities,” said Dinh Hanh, Vice Chairman of the Hanoi SMEs Association. “This is good news for not only Vietnamese but also US businesses as they won’t face any barriers. I hope that Vietnamese enterprises will take this opportunity to boost exports to the US – the world’s largest and potential market.”

According to Dao Phan Long, Vice Chairman of Mechanic Enterprises Association, if enterprises produce and compete by themselves they won’t have strong capacity to compete, as most enterprises still stick to “three no” – no trademarks, no quality and no markets. Therefore, the approval of PNTR for Vietnam will open up new opportunities for the country’s industry in general and mechanic enterprises in particular to join the global supply chain.

Mr Long said, “the association wants US enterprises to invest in Vietnam, with the aim of attracting Vietnamese enterprises to do export manufacturing for them. This is a desire of Vietnamese Mechanic Enterprises.”

Many economic enterprises believe joining many international trade organisations brings about a lot of opportunities for Vietnam. However, grasping the earliest opportunity depends on enterprises’ activeness and dynamic.

Mr Long said to get orders from US investors Vietnamese enterprises need some changes in management methods, human resources and opinions that the WTO is a regional and international minimum playground.

Dao Thi Nhien, Deputy Director of Kova Painting Company said the current trend is that US investors want to coordinate with Vietnamese enterprises to expand consumption markets, but, when doing business with US investors, domestic enterprises face difficulties in gaining understanding of international laws. If Vietnamese enterprises fail to overcome their weaknesses they will face lawsuits and suffer losses.

Ms Nhien noted that in the course of doing business with US enterprises Kova Company has never pulled out of any deals with US enterprises. When the two sides have trusted each other, work will run smoothly. They are willing to provide money for the company to buy materials and the company can pay later with reasonable interest rates.

As for domestic joint-stock enterprises, this is a good opportunity for them to penetrate the US securities market, mobilise capital and attract strategic investors as US enterprises have potential financial sources and modern management methods.

Currently, Vietnam Investment and Construction Joint-Stock Company is the first domestic enterprise to join the US securities market.

Henry Fahman, Vietnamese American, President and CEO of Providential Holding Fund said, “Vietnamese enterprises should buy or merge with US enterprises which are listed on the securities market so Vietnamese enterprises will find it easy to join the US securities market.”

In the US, even enterprises that are small or suffering losses can be listed in the securities market, Mr Fahman said. There is no limit on US enterprises to join the securities market but if they have run long-term operations they will find it easy to mobilise capital. After China, Vietnam will be a new opportunity for international investors.

PNTR will create a new wave of investment into Vietnam, says Vietnamese Consul General in San Francisco Tran Tuan Anh.

Reporter: How does the bicameral US Congress’s approval of Permanent Normal Trade Relations (PNTR) legislation for Vietnam affect trade and investment between the US and Vietnam?

Mr Tuan Anh: PNTR will have positive and strong impacts on trade and investment activities run by the US and Vietnamese business communities. Vietnam’s entry into the World Trade Organisation (WTO) and its achievements recorded in foreign affairs and external economic relations demonstrate Vietnam’s new position in relations with the International Community and with the US as well. In fact, Vietnam is being considered a new phenomenon for US businesses.

Reporter: What are US investors’ assessments of the investment environment in Vietnam, particularly business opportunities in the country in the wake of PNTR approval for Vietnam and its becoming a full member of the WTO?

Mr Tuan Anh: Vietnam’s becoming the 150th member of the WTO will provide business opportunities for Vietnamese and foreign entrepreneurs including US businesses. As US President Bush said, if he was still young, he would have chosen Vietnam as a place to run business. This opinion is also shared by US entrepreneurs which are paying special attention to the Vietnamese investment environment after its accession to the WTO and the bicameral US Congress’s approval of (PNTR) legislation for it.

After becoming an equal member of the world’s largest trade body, Vietnamese enterprises will have more opportunities to achieve greater global market penetration.

Reporter: The Bilateral Vietnam-US Agreement (BTA) has been implemented for six years- a rather long period which has had a certain impact on trade and investment activities between Vietnam and the US. What lessons of experience has Vietnam drawn from the BTA implementation for enterprises doing business with US partners and accelerating the integration process?

Mr Tuan Anh: The BTA implementation with the US prior to Vietnam’s entry into the WTO is the practical experience from which Vietnam learn to comply with common rules. In fact, the BTA implementation has helped Vietnam reach a robust and rapid growth in trade ties with the US, particularly in exploring the export potential of the US market. From the BTA, Vietnamese enterprises should draw experience in seizing major opportunities and coping with challenges to access and effectively explore the US market. However, to reach this goal, enterprises also need support from ministries, sectors, the business community and the entire society.

Reporter: You have lived in the US for a long time. How do you evaluate the potential of the US market?

Mr. Tuan Anh: The US is a strategic market for Vietnam’s socio-economic development. Why is it called strategic? First, the US market has great potential, meeting our demands for capital inflows to serve national construction and development. Second, the US is topping the world in technologies such as biological technology, information technology, and healthcare high technology. Third, the US market has a rapid growth in importing Vietnamese products. Fourth, it is a potential market which can help Vietnam with human resource training and scientific and educational development. Fifth, the US can be seen as a basic market to help Vietnam accelerate tourism growth both in the number and quality of tourists. Finally, I want to highlight the role of the overseas Vietnamese community in promoting Vietnam-US relations politically, culturally and socially.

Source: VOV