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Reference ID	Created	Released	Classification	Origin
02HANOI2209	2002-09-10 09:42	2011-08-30 01:44	UNCLASSIFIED//FOR OFFICIAL USE ONLY	Embassy Hanoi

This record is a partial extract of the original cable. The full text of the original cable is not available.


2002HANOI02209 - UNCLASSIFIED
 
 
 
                           UNCLASSIFIED     PTQ1906

PAGE 01        HANOI  02209  01 OF 04  100948Z 
ACTION EAP-00   

INFO  LOG-00   NP-00    AID-00   ACQ-00   CEA-01   CIAE-00  COME-00  
      CTME-00  INL-00   DOEE-00  ITCE-00  DOTE-00  SRPP-00  DS-00    
      EB-00    ED-01    EXME-00  EUR-00   E-00     FAAE-00  FBIE-00  
      UTED-00  VC-00    FRB-00   HHS-01   H-01     TEDE-00  INR-00   
      ITC-01   JUSE-00  L-00     VCE-00   MOFM-05  MOF-01   AC-01    
      NSAE-00  NSCE-00  OES-01   OMB-01   OPIC-01  PA-00    PER-00   
      PM-00    PRS-00   ACE-00   P-00     SP-00    SSO-00   STR-00   
      TEST-00  TRSE-00  USIE-00  EPAE-00  PMB-00   DSCC-00  DRL-02   
      G-00     NFAT-00  SAS-00     /017W
                  ------------------E4FFA3  100951Z /38    
FM AMEMBASSY HANOI
TO SECSTATE WASHDC 7517
INFO AMCONSUL HO CHI MINH CITY 
ALL EUROPEAN UNION POST COLLECTIVE
USEU BRUSSELS
AMEMBASSY PHNOM PENH 
AMEMBASSY VIENTIANE 
SECDEF WASHDC//ISA/ACHAO//
USCINCPAC HONOLULU HI

UNCLAS SECTION 01 OF 04 HANOI 002209 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PREL ETRD SOCI EAID ECON XG XH VM HUMANR
SUBJECT:  VIETNAM AND THE EUROPEAN UNION 
 
                       UNCLASSIFIED 
 
PAGE 02        HANOI  02209  01 OF 04  100948Z 
 
 
¶1.  (U) SUMMARY.  THE EUROPEAN UNION (EU) IS ONE OF 
VIETNAM'S KEY DONORS AND AN IMPORTANT POLITICAL AND ECONOMIC 
PARTNER.  HUMAN RIGHTS IS AT THE TOP OF THE EU'S POLITICAL 
AGENDA, WHILE VIETNAM IS FOCUSED MORE ON INCREASING EXPORTS 
TO EU MEMBERS AND ENCOURAGING MORE INVESTMENT AND AID FROM 
THE EU AND ITS INDIVIDUAL MEMBERS.  THE GVN PROFESSES TO 
WELCOME EU ENLARGEMENT, NOTING ITS TRADITIONAL TIES WITH 
THOSE FORMERLY COMMUNIST EAST EUROPEAN NATIONS.  END 
SUMMARY. 
 
----------------------- 
VIETNAM LOOKING OUTWARD 
----------------------- 
 
¶2.  (U)  IN ACCORDANCE WITH A POLICY ADOPTED IN 1991 AT THE 
SEVENTH PARTY CONGRESS, VIETNAM HAS MOVED STEADILY TO ADOPT 
A MORE OUTWARD-LOOKING FOREIGN POLICY.  AS FOREIGN MINISTER 
NGUYEN DY NIEN REAFFIRMED IN A JANUARY 11 SPEECH, "VIETNAM 
IS PREPARED TO BE A FRIEND AND RELIABLE PARTNER OF ALL 
COUNTRIES IN THE INTERNATIONAL COMMUNITY."  MORE 
SPECIFICALLY, NIEN TOLD HIS DANISH COUNTERPART ON JUNE 3 
THAT "VIETNAM CONSIDERS THE EU AS AN IMPORTANT PARTNER." 
PRIME MINISTER PHAM VAN KHAI TOLD SPAIN'S AMBASSADOR TO 
VIETNAM ON MAY 2 THAT, "VIETNAM REGARDS RELATIONS WITH THE 
EU AS VITALLY IMPORTANT," ACCORDING TO PRESS REPORTS. 
 
¶3.  (U)  SIX MONTHS PRIOR TO THE SEVENTH PARTY CONGRESS, IN 
NOVEMBER 1990, THE EU AND VIETNAM HAD NORMALIZED DIPLOMATIC 
RELATIONS.  THE INITIAL FOCUS OF COOPERATION WAS ON SUPPORT 
                       UNCLASSIFIED 
 
PAGE 03        HANOI  02209  01 OF 04  100948Z 
FOR THE RETURN AND REINTEGRATION OF VIETNAM WAR REFUGEES. 
BETWEEN 1989 AND 1996, THE EU PROVIDED ALMOST USD 106.5 
MILLION FOR THIS PROGRAM.  IN DECEMBER 1992, THE EUROPEAN 
COMMISSION (EC) AND VIETNAM SIGNED A TEXTILE AND CLOTHING 
AGREEMENT, SUBSEQUENTLY RENEWED IN NOVEMBER 1997 AND OCTOBER 
2000, TO ALLOW INCREASED ACCESS TO THE EU MARKET FOR 
VIETNAMESE PRODUCTS.  IN ADDITION, VIETNAM AND THE EU SIGNED 
A FRAMEWORK COOPERATION AGREEMENT IN JULY 1995, WHICH 
PROVIDED BOTH FOR HUMAN RIGHTS DIALOGUES AS WELL AS MOST 
FAVORED NATION STATUS FOR VIETNAM'S EXPORTS.  VIETNAM 
FORMALLY ACCEDED TO THE EC-ASEAN COOPERATION AGREEMENT ON 
MAY 1, 1999. 
 
------------------------------------ 
"IMPORTANT" RELATIONSHIP FOR VIETNAM 
------------------------------------ 
 
¶4.  (U)  ELEVEN OF 15 EU MEMBER STATES HAVE EMBASSIES IN 
VIETNAM:  AUSTRIA, BELGIUM, DENMARK, FINLAND, FRANCE, 
GERMANY, ITALY, THE NETHERLANDS, SPAIN, SWEDEN, AND THE 
UNITED KINGDOM.  DR. BUI HUY KHOAT, DIRECTOR OF THE 
INSTITUTE OF EUROPEAN STUDIES OF THE NATIONAL CENTRE FOR 
SOCIAL SCIENCES AND HUMANITIES, DESCRIBED THE RELATIONSHIP 
WITH THE EU IS "ONE OF THE MOST IMPORTANT" FOR VIETNAM.  HE 
OPINED THAT, AS ECONOMIC RELATIONS HAVE GROWN, THIS HAS ALSO 
LED TO A STRONGER POLITICAL RELATIONSHIP WITH THE EU IN 
GENERAL AND INDIVIDUAL MEMBER STATES.  DR. KHOAT NOTED THAT 
ONE WELCOME DEVELOPMENT MORE RECENTLY WAS THE EU'S 
DESIGNATION OF VIETNAM AS AN "EMERGING MARKET ECONOMY" AND 
NEW EU LEGISLATION TO ALLOW VIETNAM BETTER MARKET ACCESS. 
 
                       UNCLASSIFIED 
 
PAGE 04        HANOI  02209  01 OF 04  100948Z 
¶5.  (U)  SUPPORTED BY THE EU, A "EUROPEAN STUDIES PROGRAM-- 
VIETNAM" PROJECT BEGAN OPERATION LOCALLY IN MAY 2002 IN 
COOPERATION WITH THE INSTITUTE OF EUROPEAN STUDIES.  STEFAN 
HELL, HEAD OF PROJECT IMPLEMENTATION, SAID PROJECT GOALS 
INCLUDE ENHANCING KNOWLEDGE AND AWARENESS OF THE EU AND 
PROMOTING EUROPEAN STUDIES IN VIETNAM.  THE PROJECT WILL 
ALSO SUPPORT EXCHANGES OF VIETNAMESE AND EUROPEAN ACADEMICS 
IN HOPES OF PROVIDING THE VIETNAMESE A BROADER EXPOSURE TO 
EUROPE, HELL ADDED. 
 
------------------- 
THE POLITICAL FRONT 
------------------- 
 
¶6.  (SBU)  THE EU-VIETNAM POLITICAL RELATIONSHIP HAS 
ADVANCED STEADILY, ACCORDING TO NGUYEN VIET ANH, SENIOR 
EXPERT IN THE MINISTRY OF FOREIGN AFFAIRS' (MFA) EUROPE II 
DIVISION.  THERE ARE REGULAR HIGH-LEVEL VISITS AND 
EXCHANGES.  SHE POINTED SPECIFICALLY TO PRIME MINISTER PHAN 
VAN KHAI'S "SUCCESSFUL" 2001 TRIP TO GERMANY, THE 
NETHERLANDS, AND SPAIN.  IN SEPTEMBER 2002, KHAI IS 
SCHEDULED TO TRAVEL TO BRUSSELS TO MEET ROMANO PRADI, THE EU 
PRESIDENT.  IN ADDITION, VIETNAM HAS "VERY GOOD" POLITICAL 
RELATIONS WITH THE INDIVIDUAL MEMBER STATES, ANH NOTED. 
MAURICIO CALDARONE, COUNSELOR OF THE DELEGATION OF THE 
EUROPEAN COMMISSION TO VIETNAM, DESCRIBED THE POLITICAL 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ1907 
 
PAGE 01        HANOI  02209  02 OF 04  100948Z 
ACTION EAP-00 
 
INFO  LOG-00   NP-00    AID-00   ACQ-00   CEA-01   CIAE-00  COME-00 
      CTME-00  INL-00   DOEE-00  ITCE-00  DOTE-00  SRPP-00  DS-00 
      EB-00    ED-01    EXME-00  EUR-00   E-00     FAAE-00  FBIE-00 
      UTED-00  VC-00    FRB-00   HHS-01   H-01     TEDE-00  INR-00 
      ITC-01   L-00     VCE-00   MOFM-05  MOF-01   AC-01    NSAE-00 
      NSCE-00  OES-01   OMB-01   OPIC-01  PA-00    PM-00    PRS-00 
      ACE-00   P-00     SP-00    SSO-00   STR-00   TEST-00  TRSE-00 
      USIE-00  EPAE-00  PMB-00   DSCC-00  DRL-02   G-00     NFAT-00 
      SAS-00     /017W 
                  ------------------E4FFB4  100951Z /38 
R 100942Z SEP 02 
FM AMEMBASSY HANOI 
TO SECSTATE WASHDC 7518 
INFO AMCONSUL HO CHI MINH CITY 
ALL EUROPEAN UNION POST COLLECTIVE 
USEU BRUSSELS 
AMEMBASSY PHNOM PENH 
AMEMBASSY VIENTIANE 
SECDEF WASHDC//ISA/ACHAO// 
USCINCPAC HONOLULU HI 
 
UNCLAS SECTION 02 OF 04 HANOI 002209 
 
SIPDIS 
 
SENSITIVE 
                       UNCLASSIFIED 
 
PAGE 02        HANOI  02209  02 OF 04  100948Z 
SUBJECT:  VIETNAM AND THE EUROPEAN UNION 
 
RELATIONSHIP AS "STRONG AND GETTING STRONGER."  AT THE 
INSTITUTE OF INTERNATIONAL RELATIONS (IIR) (ROUGHLY 
EQUIVALENT TO THE DEPARTMENT'S NFTAC), SENIOR RESEARCHER 
PHAN NGHO UYEN CALLED VIETNAM'S RELATIONS WITH THE EU AND 
WITH THE INDIVIDUAL MEMBER STATES "VERY GOOD," WHILE 
ADMITTING THEY WERE "PERHAPS NOT AS DEVELOPED AS THE 
ECONOMIC RELATIONS." 
 
------------------ 
HUMAN RIGHTS FOCUS 
------------------ 
 
¶7.  (U)  DESPITE THE GENERALLY POSITIVE TREND IN THE EU- 
VIETNAM RELATIONSHIP, HUMAN RIGHTS REMAIN A KEY ISSUE OF 
CONCERN TO THE EU.  THE MFA'S ANH NOTED THAT "WE TALK ABOUT 
HUMAN RIGHTS WHEN THE EU WANTS TO," ADDING THAT THE "TWO 
SIDES SHOULD BE MORE UNDERSTANDING OF EACH OTHER."  SHE 
ADDED THAT THE GVN IS SOMETIMES "UPSET" OVER HUMAN RIGHTS 
ISSUES RAISED BY EUROPEAN PARLIAMENTARY VISITS (ONE IS 
ONGOING SEPTEMBER 9-14), SINCE SOME EU PARLIAMENTARIANS "DO 
NOT UNDERSTAND THE HUMAN RIGHTS SITUATION IN VIETNAM AND 
MAKE INACCURATE STATEMENTS." 
 
¶8.  (SBU) TO COUNTER WHAT ANH TERMED "DISTORTION" FROM EU 
PARLIAMENTARIANS, THE MFA ORGANIZED A TRIP TO THE CENTRAL 
HIGHLANDS IN MARCH 2002 TO PROVIDE AN "ACCURATE PICTURE" OF 
THE HUMAN RIGHTS SITUATION IN THAT AREA.  ONE EU PARTICIPANT 
SUBSEQUENTLY COMPLAINED PRIVATELY TO US THAT THE TRIP HAD 
BEEN "CAREFULLY MANAGED" BY THE GVN, LEAVING "ALMOST NO" 
                       UNCLASSIFIED 
 
PAGE 03        HANOI  02209  02 OF 04  100948Z 
INTERACTION BETWEEN THE EU REPRESENTATIVES AND THE LOCAL 
POPULATION.  ANOTHER PARTICIPANT COMPLAINED THAT THE TRIP 
HAD TAKEN A "LONG TIME" TO GET ORGANIZED.  THE DIPLOMATS 
WERE ACCOMPANIED BY A LARGE GROUP OF ESCORTS INCLUDING MANY 
"REPORTERS," HE ADDED; LOCAL PEOPLE WERE PROBABLY 
INTIMIDATED BY THE ESCORT, HE LAMENTED. 
 
¶9.  (SBU)  THE EU'S CALDARONE INSISTED THAT THE EU CONTINUES 
"TO PUSH THE GVN ON HUMAN RIGHTS," BUT "PERHAPS NOT AS 
STRONGLY AS THE U.S."  HE POINTED TO THE EU'S VIETNAM FIVE- 
YEAR COUNTRY STRATEGY, RELEASED IN MAY 2002, WHICH LISTS 
HUMAN RIGHTS AS ONE OF THE "CROSS-CUTTING THEMES" AND AS AN 
"INTEGRAL PART" OF THE EU'S ASSISTANCE.  WITH "LESS 
HISTORICAL BAGGAGE" THAN THE U.S., THE EU PROBABLY DOES NOT 
FIND AS MUCH HOSTILITY TOWARDS HUMAN RIGHTS ISSUES AS DOES 
THE U.S., HE OPINED. 
 
¶10.  (U)  AT THE EU HEADQUARTERS LEVEL, EU COMMISSIONER FOR 
EXTERNAL RELATIONS CHRIS PATTEN EXPRESSED "CONCERN" ABOUT 
THE HUMAN RIGHTS SITUATION IN VIETNAM IN JULY 2001.  THE EU 
FOLLOWED WITH A STRONGER STATEMENT AT THE NOVEMBER JOINT 
COMMISSION MEETING, EXPLICITLY CITING PROBLEMS WITH FREEDOM 
OF OPINION AND RELIGION, THE SITUATION OF ETHNIC MINORITIES, 
AND CONTINUED APPLICATION OF THE DEATH PENALTY.  THE GVN 
RESPONDED FORCEFULLY TO THIS STATEMENT, PUBLICLY CLAIMING IT 
DID "NOT REFLECT REALITY."  MORE RECENTLY, THE MAY STRATEGY 
PAPER NOTED THAT THE GVN'S PROGRESS IN HUMAN RIGHTS HAS BEEN 
"LIMITED" AND THAT "NUMEROUS INSTITUTIONS OUTSIDE VIETNAM, 
INCLUDING THE EUROPEAN PARLIAMENT, HAVE CRITICIZED THE GVN'S 
HUMAN RIGHTS RECORD, PARTICULARLY CONCERNING THE DETENTION 
AND IMPRISONMENT OF RELIGIOUS LEADERS. . ." 
                       UNCLASSIFIED 
 
PAGE 04        HANOI  02209  02 OF 04  100948Z 
 
¶11.  (SBU)  EUROPEAN EMBOFFS IN HANOI VARIOUSLY NOTED THE 
IMPORTANCE THEIR INDIVIDUAL COUNTRIES PLACE ON HUMAN RIGHTS 
PROBLEMS IN VIETNAM.  MIKAEL WINTHER, DANISH EMBASSY 
COUNSELOR, SAID THAT HIS GOVERNMENT IS A "STRONG ADVOCATE" 
OF HUMAN RIGHTS ISSUES AND "FULLY SUPPORTS" THE EU'S 
DIALOGUE WITH THE GVN.  THE NETHERLANDS' POLITICAL COUNSELOR 
MICHIEL VAN DER VEN SAID HIS GOVERNMENT "STRONGLY SUPPORTS" 
THE EU'S DIALOGUE AND ALSO BRINGS UP HUMAN RIGHTS ISSUES 
BILATERALLY WITH THE GVN.  SWEDISH EMBASSY COUNSELOR FOR 
DEVELOPMENT COOPERATION PER LUNDELL SAID THAT HIS EMBASSY 
DISCUSSES HUMAN RIGHTS "FORCEFULLY" WITH VIETNAM.  HE ALSO 
NOTED SWEDEN'S "CONTINUED" SUPPORT FOR THE EU HUMAN RIGHTS 
DIALOGUE. 
 
--------------------------------------------- - 
DEVELOPMENT ASSISTANCE:  EU'S HELP APPRECIATED 
--------------------------------------------- - 
 
¶12.  (SBU)  IN 2001, THE TOTAL DISBURSEMENTS OF EU MEMBER 
STATES AND EU PROJECTS AND PROGRAMS IN VIETNAM AMOUNTED TO 
USD 292 MILLION, ABOUT 20 PERCENT HIGHER THAN 2000 AND 40 
PERCENT HIGHER THAN 1998, ACCORDING TO THE "EU DEVELOPMENT 
COOPERATION ACTIVITIES IN VIETNAM" 2001 REPORT.  THIS 
REPRESENTS APPROXIMATELY 20 PCT OF ALL ODA FOR VIETNAM ON AN 
ANNUAL BASIS.  EU PROJECT ASSISTANCE ALONE AMOUNTED TO 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ1910 
 
PAGE 01        HANOI  02209  03 OF 04  100949Z 
ACTION EAP-00 
 
INFO  LOG-00   NP-00    AID-00   ACQ-00   CEA-01   CIAE-00  COME-00 
      CTME-00  INL-00   DOEE-00  ITCE-00  DOTE-00  SRPP-00  DS-00 
      MEDE-00  EB-00    ED-01    EXME-00  EUR-00   OIGO-00  E-00 
      FAAE-00  FBIE-00  UTED-00  VC-00    FRB-00   HHS-01   H-01 
      TEDE-00  INR-00   ITC-01   JUSE-00  L-00     VCE-00   MOFM-05 
      MOF-01   AC-01    NSAE-00  NSCE-00  OES-01   OMB-01   OPIC-01 
      PA-00    PM-00    PRS-00   ACE-00   P-00     SP-00    SSO-00 
      STR-00   TEST-00  TRSE-00  USIE-00  EPAE-00  PMB-00   DSCC-00 
      DRL-02   G-00     NFAT-00  SAS-00     /017W 
                  ------------------E4FFD0  100952Z /38 
R 100942Z SEP 02 
FM AMEMBASSY HANOI 
TO SECSTATE WASHDC 7519 
INFO AMCONSUL HO CHI MINH CITY 
ALL EUROPEAN UNION POST COLLECTIVE 
USEU BRUSSELS 
AMEMBASSY PHNOM PENH 
AMEMBASSY VIENTIANE 
SECDEF WASHDC//ISA/ACHAO// 
USCINCPAC HONOLULU HI 
 
UNCLAS SECTION 03 OF 04 HANOI 002209 
 
SIPDIS 
 
SENSITIVE 
                       UNCLASSIFIED 
 
PAGE 02        HANOI  02209  03 OF 04  100949Z 
SUBJECT:  VIETNAM AND THE EUROPEAN UNION 
 
ALMOST USD 26.4 MILLION.  WHILE THE EU'S ASSISTANCE IS 
DIVIDED AMONG 19 SECTORS, ABOUT 40 PERCENT GOES TO THREE 
MAIN AREAS:  (1) AGRICULTURE, FORESTRY, AND FISHERIES (16 
PERCENT); (2) SOCIAL DEVELOPMENT (13 PERCENT); AND, (3) 
HEALTH (11 PERCENT), ACCORDING TO THE REPORT.  THE EU 
DELEGATION'S FIRST SECRETARY FOR DEVELOPMENT, ANDREW JACOBS, 
NOTED THAT THE EU SEEKS TO ENSURE THAT ITS PROJECTS AGREE 
WITH THE GVN'S DEVELOPMENT GOALS, PARTICULARLY POVERTY 
ALLEVIATION. 
 
¶13.  (SBU)  INDIVIDUAL MEMBER STATES -- MOST SIGNIFICANTLY 
FRANCE, DENMARK, GERMANY, AND SWEDEN -- ALSO ADMINISTER 
EXTENSIVE BILATERAL DEVELOPMENT ASSISTANCE PROGRAMS IN 
VIETNAM, ACCORDING TO THE EU REPORT.  FRENCH ASSISTANCE, 
WHICH AMOUNTED TO ABOUT USD 70 MILLION IN 2001, SUPPORTS 
PROJECTS IN: (1) LEGAL AND POLITICAL TRANSITION; (2) 
RESEARCH FOR EDUCATION MODERNIZATION; (3) RURAL DEVELOPMENT; 
AND, (4) POVERTY ALLEVIATION AND MEDICAL ASSISTANCE. 
DENMARK OUTSTRIPS ALL OTHER EU DONORS IN VIETNAM ON A PER 
CAPITA BASIS, WITH ABOUT USD 48 MILLION IN 2001, FOCUSED ON 
FISHERIES, WATER RESOURCES, AND AGRICULTURE.  GERMANY 
CONTRIBUTED ABOUT USD 25 MILLION IN 2001, MOSTLY FOR: (1) 
REFORM OF STATE ENTERPRISES AND PROMOTION OF PRIVATE 
ENTERPRISE; (2) VOCATIONAL TRAINING; (3) SUSTAINABLE USE OF 
NATURAL RESOURCES; AND, (4) HEALTH CARE.  CONTINUING A LONG 
HISTORY OF ASSISTANCE TO VIETNAM, SWEDEN IN 2001 DISBURSED 
ABOUT USD 33 MILLION IN ODA, FOCUSED ON: (1) TRANSFORMATION 
TO A MARKET ECONOMY; (2) ETHNIC MINORITY AREAS; (3) 
ENVIRONMENT; (4) HUMAN RIGHTS, DEMOCRACY, AND TRANSPARENCY; 
                       UNCLASSIFIED 
 
PAGE 03        HANOI  02209  03 OF 04  100949Z 
AND, (5) ENERGY, ACCORDING TO THE EU REPORT. 
 
¶14.  (SBU)  THE MFA'S ANH SAID THAT THE GVN IS "VERY 
GRATEFUL" FOR THE ASSISTANCE FROM THE EU AND MEMBER STATES, 
NOTING THE PROJECTS "FIT WELL WITH OUR DEVELOPMENT 
PRIORITIES."  THE EU'S JACOBS SAID THE EU "WORKS CLOSELY" 
WITH RELEVANT GVN MINISTRIES, ESPECIALLY THE MINISTRY OF 
PLANNING AND INVESTMENT AND THE MINISTRY OF AGRICULTURE AND 
RURAL DEVELOPMENT, TO ENSURE THE EU'S FOCUS STAYS ON TRACK 
WITH THE GVN'S DEVELOPMENT GOALS.  SOME EUROPEAN DIPLOMATS 
ADMITTED PRIVATELY, HOWEVER, THAT THE EU HAS OCCASIONALLY 
BEEN "SOMEWHAT HEAVY HANDED" IN PUSHING PROJECTS WITHOUT 
GIVING THE GVN MUCH INPUT. 
 
--------------------- 
A KEY TRADING PARTNER 
--------------------- 
 
¶15.  (U)  ACCORDING TO STATISTICS OF THE GVN'S MINISTRY OF 
TRADE (MOT), THE EU AS A WHOLE IS VIETNAM'S LARGEST EXPORT 
MARKET, RECEIVING OVER USD 3.2 BILLION OF GOODS, OR 21 
PERCENT OF VIETNAM'S EXPORTS IN 2001.  A SIGNIFICANT PORTION 
OF VIETNAM'S EXPORTS TRANSIT THIRD COUNTRIES, HOWEVER.  IN 
2001, VIETNAM HAD A TRADE SURPLUS OF AROUND USD 3 BILLION 
(THE EU'S FIGURE) OR ABOUT USD 2 BILLION (MOT'S FIGURE). 
VIETNAM'S EXPORTS INCLUDE TEXTILES, FOOTWEAR, SEAFOOD 
PRODUCTS, AND OTHER AGRICULTURAL PRODUCTS, MAINLY TO FRANCE, 
GERMANY, THE UNITED KINGDOM, ITALY, THE NETHERLANDS, SWEDEN, 
BELGIUM, AND SPAIN.  VIETNAM'S IMPORTS FROM THE EU CONSIST 
MAINLY OF MACHINERY AND OTHER MANUFACTURED GOODS, ANH NOTED. 
 
                       UNCLASSIFIED 
 
PAGE 04        HANOI  02209  03 OF 04  100949Z 
¶16.  (U)   HOWEVER, THE GVN OFTEN VIEWS EU QUALITY CONTROL 
REQUIREMENTS FOR AGRICULTURAL AND SEA PRODUCTS AS A WAY TO 
LIMIT MARKET ACCESS, ACCORDING TO COLONEL TRAN NHUNG, 
INTERNATIONAL DEPARTMENT DIRECTOR OF THE "PEOPLE'S ARMY" 
NEWSPAPER.  EU MEMBER STATES' EMBOFFS AND THE MFA'S ANH SAID 
SEPARATELY THAT THE GVN SOMETIMES APPROACHES INDIVIDUAL 
MEMBER STATE EMBASSIES FOR RESOLUTION OF SUCH ISSUES.  AS 
ANH NOTED, "WE VALUE THE MULTILATERAL RELATIONSHIP, BUT WE 
LOOK TO THE SINGLE (EUROPEAN) COUNTRIES FOR SUPPORT FOR OUR 
POSITIONS."  UK EMBOFF DUNN SAID THE GVN "HAS DIFFICULTY" 
DEALING WITH THE EU AS A WHOLE AND MAY BE "MORE COMFORTABLE" 
APPEALING TO INDIVIDUAL MEMBER STATES FOR SUPPORT. 
 
----------------------- 
NOT CONCERNED ABOUT BTA 
----------------------- 
 
¶17.  (SBU)  ACCORDING TO THE EU'S CALDARONE, THE GVN HAS 
EXPLICITLY PROMISED THAT THERE WILL BE "NO DISCRIMINATION" 
AGAINST THE EU DUE TO THE US-VIETNAM BILATERAL TRADE 
AGREEMENT (BTA).  HE ADDED THAT THE EU HAS PROMISED TO 
SUPPORT VIETNAM'S ACCESSION TO THE WORLD TRADE ORGANIZATION, 
A GOAL THAT BTA IMPLEMENTATION WILL ADVANCE.  THE 2001 "EU 
ECONOMIC AND COMMERCIAL COUNSELORS' REPORT" NOTED THAT THE 
GVN HAS CONFIRMED "BY AN EXCHANGE OF LETTERS" THE BTA "WILL 
NOT LEAD TO ANY DISCRIMINATION AGAINST EU COMPANIES."  THE 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ1911 
 
PAGE 01        HANOI  02209  04 OF 04  100949Z 
ACTION EAP-00 
 
INFO  LOG-00   NP-00    AID-00   ACQ-00   CEA-01   CIAE-00  COME-00 
      CTME-00  DOEE-00  ITCE-00  DOTE-00  SRPP-00  DS-00    EB-00 
      ED-01    EXME-00  EUR-00   E-00     FAAE-00  FBIE-00  UTED-00 
      VC-00    FRB-00   HHS-01   H-01     TEDE-00  INR-00   ITC-01 
      JUSE-00  LAB-01   L-00     VCE-00   MOFM-05  MOF-01   AC-01 
      NSAE-00  NSCE-00  OES-01   OMB-01   OPIC-01  PA-00    PM-00 
      PRS-00   ACE-00   P-00     SP-00    SSO-00   STR-00   TEST-00 
      TRSE-00  USIE-00  EPAE-00  PMB-00   DSCC-00  DRL-02   G-00 
      NFAT-00  SAS-00     /018W 
                  ------------------E4FFD3  100952Z /38 
R 100942Z SEP 02 
FM AMEMBASSY HANOI 
TO SECSTATE WASHDC 7520 
INFO AMCONSUL HO CHI MINH CITY 
ALL EUROPEAN UNION POST COLLECTIVE 
USEU BRUSSELS 
AMEMBASSY PHNOM PENH 
AMEMBASSY VIENTIANE 
SECDEF WASHDC//ISA/ACHAO// 
USCINCPAC HONOLULU HI 
 
UNCLAS SECTION 04 OF 04 HANOI 002209 
 
SIPDIS 
 
SENSITIVE 
 
                       UNCLASSIFIED 
 
PAGE 02        HANOI  02209  04 OF 04  100949Z 
SUBJECT:  VIETNAM AND THE EUROPEAN UNION 
 
MFA'S ANH NOTED THAT THE GVN "VALUES" THE EU AS A TRADING 
PARTNER AND EXPECTED THE BTA WOULD "BE HEALTHY FOR ALL 
SIDES." 
 
----------------------- 
EU ENLARGEMENT POSITIVE 
----------------------- 
 
¶18.  (U)  THE MFA'S ANH EXPRESSED WELCOME FOR THE UPCOMING 
EU ENLARGEMENT, NOTING SPECIFICALLY THAT "MANY OF THE NEW 
MEMBER STATES ARE OUR TRADITIONAL FRIENDS."  THE IIR'S UYEN 
SEPARATELY AGREED, CITING VIETNAM'S "EXTENSIVE EXPERIENCE 
AND GOOD MARKET ACCESS IN EASTERN EUROPE."  HE ALSO NOTED 
THE ADVANTAGE OF SUBSTANTIAL VIETNAMESE MIGR COMMUNITIES 
IN SEVERAL NEW MEMBER STATES, ESPECIALLY POLAND, ROMANIA, 
AND THE CZECH REPUBLIC.  UYEN ADMITTED THAT VIETNAM COULD 
FIND ITSELF COMPETING AGAINST SOME EASTERN AND SOUTHERN 
EUROPEAN COUNTRIES TO EXPORT CERTAIN TEXTILE PRODUCTS. 
. 
HOWEVER, HE ADDED THAT THIS WOULD BE A "MINOR PROBLEM, 
OUTWEIGHED BY THE OVERALL PLUSES OF MORE POLITICAL 
STABILITY, A STRONGER, MORE UNITED EUROPE, AND GENERAL 
ECONOMIC DEVELOP THAT WILL BENEFIT EVERYONE." 
PORTER 
 
                       UNCLASSIFIED

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Viewing cable 02HANOI2209, VIETNAM AND THE EUROPEAN UNION