Two state owned Vietnamese banks are to set up representative offices in New York, central bank officials said.

Their decisions would mark the first such moves into the US.

"We have just secured a licence to set up a representative office in New York," said Bank of Foreign Trade of Vietnam (Vietcombank) general director, Vu Viet Ngoan.

The bank for Investment & Development of Vietnam, or BIDV was also given consent.

The move follows the normalisation of trade between the US and Vietnam, sealed in an agreement last December.

The Vietnamese government is known to consider the US an important market.

Domestic focus

Vietcombank's foreign operations already include offices in Singapore, Russia and France.

BIDV, which does not yet have offices overseas, hopes to start negotiations with the US authorities about a New York office in the New Year.

The office should be opened sometime during 2003, said Le Dao Nguyen, deputy general director of the bank.

Closed market

Only 8% of the Vietnamese banking market is controlled by foreign banks involved in joint ventures with local players.

Among the US banks represented there are Citibank and JP Morgan Chase.

Banks that are semi-autonomous from the government control 12% of the market.

A market share of 80% is held by five state banks.