VZCZCXRO6109
RR RUEHHM
DE RUEHHI #2785/01 3051019
ZNR UUUUU ZZH
R 011019Z NOV 06
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 3881
INFO RUEHHM/AMCONSUL HO CHI MINH 2075
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS SECTION 01 OF 02 HANOI 002785 
 
SIPDIS 
 
STATE FOR EAP/MLS AND EB/CIP 
STATE PASS USTR DAVID BISBEE 
COMMERCE FOR 4431/MAC/AP/OPB/VLC/HPPHO 
 
SENSITIVE BUT UNCLASSIFIED 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD WTRO VM
SUBJECT: MPT REACTS TO INDUSTRY LETTERS ON DECISION 169 
 
REF: HANOI 2770 
 
SENSITIVE - DO NOT POST ON THE INTERNET 
 
¶1.  (SBU) Summary.  Ministry of Posts and Telematics (MPT) official 
acknowledged information technology (IT) industry concerns over two 
Decisions which give domestic preference for government IT 
procurements.  On the positive side, he said the Vietnamese 
government will soon begin work on a circular which clearly excludes 
state-owned enterprises and state trading enterprises (SOEs/STEs) 
from the scope of this policy.  He was less forthcoming, however, 
regarding the issues of open-source and domestic preference, and 
willing only to consult on these issues.  He noted that the 
government has the right and flexibility to determine its own 
procurement policies for government agencies.  The official stopped 
short of agreeing to the IT industry's request to create a technical 
working group but showed a willingness to consult with interested 
parties via open workshops and seminars throughout the drafting 
process.  End summary. 
 
Upcoming Revisions 
------------------ 
 
¶2.  (SBU) On October 31, MPT International Cooperation Department 
Deputy Director General Dr. Phan Tam discussed  with Econoff the 
October 25 letters from the Emergency Committee for American Trade 
(ECAT) and a group of U.S. Information Technology (IT) business 
associations (reftel).  Tam claimed to have only "briefly reviewed" 
the letters, but was clearly aware of the concerns raised over IT 
procurement provisions contained in Decision 169/2006/QD-TTg of July 
17, 2006 and Decision 223/2006/QD-TTg of October 4, 2006 from 
earlier discussions and e-mail exchanges with industry 
representatives and the USG. 
 
¶3.  (SBU) Tam said that the MPT, working together with the 
Ministries of Trade (MOT) and Science and Technology (MOST), will 
soon begin drafting a circular which will make the government IT 
procurement policy compliant with Vietnam's WTO commitments.  He 
said the circular will clearly state that SOEs/STEs are excluded 
from the scope of Decision 169.  Dr. Tam acknowledged the additional 
concerns cited in ECAT's letters, e.g., open-source and domestic 
preference, and expressed a willingness to consult on these issues. 
He was careful to emphasize, however, that the Government of Vietnam 
(GVN) has the right and flexibility to determine its own procurement 
policies for government agencies.  (Note: Vietnam will not 
participate in the optional Agreement on Government Procurement as 
part of its WTO accession.) 
 
Consultations with the IT Industry 
---------------------------------- 
 
¶4.  (SBU) Regarding the IT industry proposal to create a technical 
working group raised in the October 25 letters, Dr. Tam committed to 
discuss the idea with the other relevant ministries.  The GVN is 
interested in consultations in an "official manner," Dr. Tam said. 
He noted that after the drafting committee is established, it will 
invite all interested parties to comment and provide feedback 
through open workshops or seminars.  Tam stated that these workshops 
will "meet the industry's request" for a forum enabling 
representatives from the IT industry to meet with relevant GVN 
officials to exchange points of view on draft language for the 
circular. 
 
¶5. (SBU) According to Dr. Tam, MPT will lead the implementing 
circular drafting committee.  Due to other demands, he expects that 
the committee will not convene to begin work on the circular to 
clarify the language in the Decisions until "sometime between 
November 15-20."  In the meantime, Dr. Tam asked for concrete 
proposals of requested language changes.  He also requested sample 
provisions from other countries' IT procurement policies, saying 
that his counterparts respond well to this "best practices" 
approach.  Post is working with USTR to respond to Tam's requests. 
 
Comment 
------- 
 
¶6. (SBU) Vietnam agreed to join the Technology Choice Pathfinder 
initiative at the APEC SOM III meeting in Danang this past 
September.  This initiative promotes "the principles of technology 
choice in a market-opening, trade-liberalizing manner that spurs the 
cycle of innovation and opportunity and promotes economic 
development across the region."  Decision 169 flies in the face of 
this approach.  Members of the IT industry are furious.  They view 
the discriminatory elements of this procurement policy as bad faith, 
even if it is does not violate WTO obligations.  Having the drafting 
committee hold open workshops to allow industry input is welcome 
news, but falls short of addressing the other industry concerns. 
 
HANOI 00002785  002 OF 002 
 
 
Post will continue to work with the U.S. IT industry to promote a 
more open procurement policy consistent with the APEC initiative. 
 
ALOISI