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

220349Z Aug 05

UNCLAS SECTION 01 OF 06 HANOI 002163 
 
SIPDIS 
 
STATE FOR OES MARSHA GOLDBERG 
STATE PASS TO AID/ANE TRESCH, PATRICIA CHAPLINPCHAPLIN 
STATE PASS TO NOAA/OIA JJUSTIEPA DENNIS CUNNINGHAM 
STATE PASS TO DOE 
STATE PASS TO DOE/EE/OAKRIDGE BRUCE BUNTING 
BANGKOK FOR ECON JAMES WALLER 
BANKKOK FOR , AID/RDMA TIM BEANS, AID/RDMA WINSTON BOWMAN 
 
E.O. 12958:  N/A 
TAGS: SENV KSCA TBIO VM
SUBJECT: US SUPPORT FOR MARINE SCIENCE AND INTEGRATED 
COASTAL MANAGEMENT IN VIETNAMVIETNAM: DUMPING GROUND FOR 
DIRTY FUELS? 
OR U.S. SUPPORT FOR CLEAN AIR IN VIETNAM 
 
 
¶1. Summary.  USAID's US-Asia Environmental Partnership (US- 
AEP) and U.S. Environmental Protection Agency (US-EPA) have 
supported a program for cleaner air quality in Vietnam for 
several yearssince 1999. Thise program, which ends in 
September, has been an example of strong bilateral support 
between the United States and Vietnam.  The program  has 
focusedfocuses on tightening vehicle emissions and fuel 
quality standards and, including has resulted in the phase- 
out of leaded gas in 2001 and the adoption of European 
("Euro") vehicle emission and fuel quality standards in 
¶2005. Equally significant, the Ministry of Science and 
Technology (MOST) has adopted a timetable for enacting Euro 
3 and 4 standards by 2010. This is the first comprehensive 
fuel quality strategy for Vietnam and will have a profound 
effect on the health and quality of life of 80 million 
people. While representatives of the national oil refineries 
and international automobile/ motorbike manufacturers were 
supportive of the initiative, the primary fuel retailer 
(PetroLimex) strongly resisted efforts to move forward a 
"Roadmap" toward Euro standards, preferring to continue 
importing dirtier, cheaper fuels at a higher relative profit 
margin. If GVN fails to ratify Euro 3 and 4 standards in 
2007 and 2010, Vietnam's predominantly import-oriented fuels 
market could effectively become a dumping ground for dirty 
fuels from China and elsewhere in the region. End Summary. 
 
Significant among these achievements is the broad 
stakeholder support catalyzed by US-AEP. Key government 
agencies, national refineries (under construction), and 
international vehicle/motorbike manufacturers including Ford 
Motor and Honda Motorbike have endorsed the US-supported 
"Roadmap" for Euro standards. However, Vietnam's primary 
fuel retailer, Petroleum Import Export Corporation 
(Petrolimex), has been recalcitrant. While GVN's recent 
announcement to enact Euro 2 standards is a positive step 
toward ensuring cleaner fuels, Vietnam still ranks near the 
bottom of a list of countries in Asia to enact Euro 3 and 4 
standards for gasoline and diesel. If GVN and public opinion 
fail to exert adequate political pressure on lagging line 
ministries and state-managed corporations such as Petrolimex 
to adopt stricter Euro 3 and 4 standards as negotiated in 
the Roadmap, Vietnam's predominantly import-oriented fuels 
market will effectively become a dumping ground for dirty 
fuels from China and elsewhere in the region. End Summary. 
 
¶2. In Vietnam's rapidly developing cities, ever increasing 
volumes of motorbikes, vehicles, and heavy-duty trucks are 
causing increasing levels of urban air pollution and 
associated health risks. The World Bank office in Hanoi 
estimates that approximately ten million motorbikes are on 
Vietnam's roads, comprising roughly 80 percent of vehicular 
traffic. The nation's automobile fleet, while still 
relatively small, is growing at about 15 percent per year in 
Ho Chi Minh City (HCMC) and twenty20 percent per year in 
Hanoi. Increasing levels of air pollution in Hanoi and HCMC 
often exceed recommended guidelines for urban air quality. 
Vietnam News reported earlier this year that five percent of 
the country's population, or four million individuals, 
suffer from asthma. Other health risks of urban air 
pollution include respiratory illness, lung disease, and 
premature death. 
 
¶3. Since 1999, USAID's US-Asia Environmental Partnership (US- 
AEP) and U.S. Environmental Protection Agency (US-EPA) have 
supported a program for cleaner air quality in Vietnam. 
Activities have ranged from technical assistance to host 
country agencies and universities, small grants such as a 
sister-city clean air project between San Francisco and 
HCMC, and study exchanges to share environmental 
technologies and experiences in better air quality 
management from the U.S. and the region. Most notable 
outcome A significant milestone of these USG efforts in 
Vietnam is the successful phase-out of leaded gasoline in 
2001, which benefitsprofoundly affects the health and 
quality of life of  Vietnam's population of 80 million 
people. 
 
¶4. Over the past two years, the US-AEP/Vietnam program has 
intensified efforts to boost GVN's capacity to manage urban 
air quality and to raise public awareness to the health 
affects of mobile source pollution. This has included 
support for Hanoi's first roadside air quality monitoring 
activity and support to the Health Effects Institute and 
East West Center to research health risk exposure levels to 
mobile source air pollution in HCMC. Chief among these 
efforts is US-AEP technical assistance and support to MOST 
and Vietnam Register/Ministry of Transportation to 
developbroad-based governmental and industry-wide support 
for a "Roadmap" for EURO standards for vehicle emissions and 
fuels quality. that has been catalyzed by US-AEP. Other 
activities include US-AEP/US-EPA support for 
 
 
¶5. In July, the Minister of MOST signed Euro 2 vehicle 
emissions and fuel standards for gasoline and diesel. 
Equally as significant, MOST has adopted a timetable for 
enacting Euro 3 and 4 standards by 2010. This is the first 
comprehensive fuel quality strategy for Vietnam. According 
General Statistic Office figures reported in Vietnam News, 
Vietnam imported 7 million tons of fuel products in first 
seven months of 2005, which is a 7.1 percent increase in 
volume over the same period last year. The new fuel 
standards will be effective starting July 1, 2007. 
 
¶6. According to Mr. Vu Van Dien, Director of Vietnam 
Standards Center, the draft fuel standard was amended 
fifteen times during the USAID-supported stakeholder review 
process. 
Key government agencies (namely Vietnam Directorate of 
Standards and Quality of MOST and Vietnam Register of the 
Ministry of Transportation), PetroVietnam's refinery 
department (NOTE: Vietnam is currently planning to build the 
nation's first major refineries, Dung Quat in Quang Nghai 
Province and Nghi Son in Thanh Hoa Province), international 
vehicle/motorbike manufacturers including Ford Motor and 
Honda Motorbike, and the World Fuels Quality Center have all 
endorsed the US-supported "Roadmap" for Euro standards. 
Vietnam's primary fuel retailer, Petroleum Import Export 
Corporation (Petrolimex), has resisted these efforts, 
preferring to continue importing dirtier, cheaper fuels at a 
higher relative profit margin. 
 
¶7. COMMENT: GVN has made significant, positive steps toward 
improving vehicle emission and fuel quality standards. 
However, GVN could go further and faster in setting cleaner 
vehicle and fuel standards equal to the rest of ASEAN, 
especially given Vietnam's unique position as a fuel 
importer and that no refineries (in Vietnam) require costly 
retrofitting to produce cleaner fuels. If MOST succumbs to 
pressure from Petrolimex and ultimately fails to ratify Euro 
3 and 4 standards in 2007 and 2010, Vietnam's predominantly 
import-oriented fuels market will effectively become a 
dumping ground for dirty fuels from China and elsewhere in 
the region. 
 
 
US-AEP/Vietnam has also leveraged support from the ADB's 
Clean Air Initiative in Asia, the Health Effect's Institute, 
and the East West Center to investigate linkages between air 
pollution, exposure risk to high concentrations of mobile 
sources of pollution, and poorer city dwellers in HCMC. 
 
 
 
The vanguard promoting this Roadmap includes USAID, Vietnam 
Directorate of Standards and Quality of the Ministry of 
Science and Technology, Vietnam Register of the Ministry of 
Transportation, Ford Vietnam, Honda Motorbike Company, and 
the World Fuels Quality Center. 
 
 
¶5. One result of the US-AEP Cleaner Vehicles and Fuels 
program has been the 
 
 
¶6.  One result of the STATE/USAID/NOAA ICM project has been 
increased USG and NGO support for MOFI's mandate to develop 
and manage a national marine protected area system.  This 
has led to a separate initiative for a pilot Marine 
Protected Area Training and Certification Program in Hon Mun 
MPA in Nha Trang.  In partnership with MOFI, Danish 
International Development Agency (DANIDA), USAID, IUCN, 
Conservation International, The Nature Conservancy and 
United Nations Environment Program (UNEP), NOAA will have 
the lead for the pilot MPA training and certification 
program at Hon Mun MPA in Nha Trang.  The two-year project 
aims to develop local and regional capacity and expertise in 
designating, implementing and managing MPAs with a major 
emphasis on improving enforcement ability of Vietnam's newly 
established MPAs. 
 
¶7.  Comment: NOAA has effectively built partnerships, 
bridged traditional barriers and delivered tangible, highly 
valued products here in Vietnam in a relatively short period 
of time.  NOAA's work with Vietnam and China has stimulated 
improved dialogue between these two countries on marine 
management and conservation in the Gulf of Tonkin.  NOAA 
also is the technical coordinator for a UNDP/Global 
Environment Facility/NOAA initiative launched this year for 
marine biodiversity conservation in China's southern seas. 
Three of the sites for this initiative are in the greater 
Tonkin Gulf region of China (Shankou, Weizhou and Sanya). 
NOAA's simultaneous presence in Vietnam and China and its 
credibility with both countries could lead to a new regional 
management framework for the Gulf of Tonkin in the future. 
Such a framework could help assuage the offshore territorial 
concerns.  The Vietnam Mission strongly endorses providing 
funds for NOAA's continued engagement in the coastal Tonkin 
Gulf region. 
 
MARINE 
Assistant Administrator of NOAA's National Ocean Service Dr. 
Richard Spinrad led a five-person NOAA delegation to attend 
a wrap-up workshop of EAP-EI/USAID/NOAA project Building 
Capacity for ICM in Tonkin Gulf in Quang Ninh Province, 
Vietnam on March 13-16, 2005.  Dr. Spinrad's visit to Hanoi 
and Ha Long City, Vietnam, highlighted the good cooperation 
between the GVN and USG on science and technology, 
particularly in the topics of coastal management, oil spill 
planning, and weather/flood forecasting.  STATE/USAID/NOAA 
support during 2002-2005 is estimated at $850,000, funding 
projects such as Building Capacity for Integrated Coastal 
Management (ICM) in Tonkin Gulf; Improved Oil Spill 
Contingency Planning in Saigon River; and Establishing Pilot 
Marine Protected Area (MPA) Training and Certification 
Program in Vietnam.  The ICM project has also facilitated 
greater cooperation and exchange between coastal managers in 
Vietnam and China.  During the visit, Minister of Fisheries 
Dr. Ta Quang Ngoc and Dr. Nguyen Khoa Son, the Vice 
President of the Vietnamese Academy of Science and 
Technology, expressed gratitude for the good cooperation 
between the GVN and USG in marine science and highlighted 
interest for increased support and cooperation in integrated 
coastal management, marine protected areas management, 
fisheries management, and oceanography.  End Summary. 
 
¶2. On March 14-16, Assistant Administrator of NOAA's 
National Ocean Service Dr. Richard Spinrad led a five-person 
NOAA delegation to attend a wrap-up workshop of EAP- 
EI/USAID/NOAA project Building Capacity for ICM in Tonkin 
Gulf in Quang Ninh Province, Vietnam.  Dr. Spinrad also met 
with Minister of Fisheries Ta Quan Ngoc and Dr. Nguyen Khoa 
Son, the Vice President of the Vietnamese Academy of Science 
and Technology. Dr. Spinrad made a presentation on the U.S. 
Commission on Ocean Policy (USCOP) and the U.S. Ocean Action 
Plan to Vice Minister of Fisheries Nguyen Viet Thang, Vice 
Chairmen Nguyen Van Thanh of the Hai Phong People's 
Committee, and Mr. Tran Duc Lam, a representative of the 
Quang Ninh People's Committee. Advancing international ocean 
science and policy is one of the six recommended responses 
detailed in the U.S. Ocean Action Plan signed by President 
Bush in December 2004. 
 
Integrated Coastal Management in Northern Tonkin Archipelago 
--------------------------------------------- ------------ 
 
¶3. Since 2002, the Department of State's East Asia Pacific 
Environmental Initiative (EAP-EI), USAID, and NOAA have 
supported the project Building Capacity for Integrated 
Coastal Management in Tonkin Gulf in Quang Ninh Province, 
Vietnam.  NOAA and the World Conservation Union (IUCN) are 
carrying out the project in partnership with Vietnam's 
Ministry of Fisheries (MOFI), the Hai Phong Institute of 
Oceanography (HIO), and the Ha Long Bay Management Authority 
(HLBMA) of Quang Ninh Province with technical support from 
NOAA's National Marine Sanctuaries Program (NMSP), USAID's 
US-Asia Environmental Partnership (US-AEP), UCLA 
(Reefcheck), and University of New Hampshire (Sea Grant). 
 
¶4. The project has been highlighted in the Annual US-Vietnam 
Bilateral Science & Technology Meeting as an example of 
strong bilateral partnership support with both science-based 
and policy/management-driven project outcomes.  Specific 
project outcomes to date include: baseline socio-economic 
assessments; habitat mapping of seagrasses and corals; SCUBA 
training; ecotourism planning workshops; policy analysis; 
environmental awareness/public outreach materials; 
translation of ICM technical documents into Vietnamese; and 
study exchanges to Florida Keys, Chesapeake Bay, and NOAA 
headquarters in Silver Spring, MD. 
 
¶5. Project activities were designed to share information and 
knowledge amongst stakeholders from central-level agencies, 
provincial planning departments, and non-governmental 
organizations (NGOs) working in Ha Long Bay World Heritage 
site and to build cooperation and to build programmatic 
linkages between resource managers and institutions in the 
US, Vietnam, and China.  For example, mooring buoys were 
installed in Vietnam by technical experts from China using 
US-funded equipment. A June-2005 study exchange of 
Vietnamese officials to China is another example of the 
regional linkages of the USAID/NOAA project. 
 
¶6. ICM seeks to balance inherent conflicts between economic 
development and environmental protection in the coastal 
zone.  ICM emphasizes coordination in development planning 
horizontally across line ministries/departments and across 
geographic boundaries as well as horizontally from central 
to local levels and vice-versa.  Conflicts in the project 
area include coal mining, aquaculture, deep seaport 
development, tourism development, and protection of unique 
cultural, biological, and seascape values of the World 
Heritage Site. 
 
¶7. The first phase of this four-phase project began in 2002 
and ends in March 2005.  There is no funding for the second 
phase of the project.  In December 2003, Embassy Science 
Fellow Anne Walton (NOAA) developed a Strategic Plan for 
Integrated Coastal management in the Northern Tonkin 
Archipelago, which forms the basis for next two phases of 
the project (see reftel 12958).  Limited activities will 
continue in the interim, such as a GVN-funded study exchange 
to China's National Ocean Service.  NOAA intends to submit a 
proposal to STATE/OESI for Phase II project support. During 
meeting between Ambassador Marine and Assistant 
Administrator Spinrad, Ambassador Marine expressed support 
for NOAA's continued technical assistance to GVN in a few 
targeted, results-oriented projects, including ICM in the 
Northern Tonkin Archipelago. 
 
Improving Oil Spill Response Planning in Saigon River 
Estuary 
--------------------------------------------- -------------- 
 
¶8. Since 2003, the USAID's US-Asia Environmental Partnership 
(US-AEP) and NOAA's Office of Response and Restoration have 
supported the project Improved Oil Spill Contingency 
Planning in Saigon River in Vung Tau Province, Vietnam in 
partnership with PetroVietnam and Ba Ria-Vung Tau Province 
People's Committee.  The project seeks to improve the human 
and institutional capacity at local and regional levels to 
respond to and plan for coastal/marine oil spills.  Outcomes 
include study exchanges to US to understand Tier 1-3 
response systems, stakeholder discussions on adopted oil 
spill contingency plan, technical training in science of oil 
spills and shoreline assessment, and development of 
geographic response planning (GRP) maps for the Vung Tau 
province. 
 
¶9. During March 7-11, USAID, NOAA, and US Coast Guard Strike 
Team staff and contractors conducted a 5-day training 
workshop on Oil Spill Response and Shoreline Assessment in 
the Saigon River in Vung Tau City.  The workshop was co- 
sponsored by the Ba Ria-Vung Tau Province People's Committee 
and PetroVietnam.  The training focused on the science of 
oil spills, response planning at local, regional and 
national levels, and a field trip/shoreline assessment of 
how to respond to oil spills at beach, mangrove, and mudflat 
habitats. Over thirty officials from government agencies, 
port authorities, and regional oil spill response teams from 
Vung Tau, HCMC, Dong Nai, Binh Thuan, Danang, and Hanoi 
participated in a tabletop oil spill emergency response 
drill. 
 
¶10. Over 10,000 vessels per year traverse the shipping lanes 
of the lower Saigon River, an area that supports 
aquaculture, tourism, and mangroves of the Can Gio UNESCO 
Man and Biosphere Reserve.  Roughly 6-8 significant oil 
spills occur every year, challenging local authorities and 
fisherfolk to improve response and remedies.  With oil/gas 
development, tourism, and fisheries topping the list of 
Vietnam's hard-currency earning sectors, GVN has been keen 
to improve their capacity in oil spill response. 
 
¶11. In February 2005, Deputy Prime Minister Nguyen Tan Dung 
reportedly requested the National Committee for Search and 
Rescue to expedite plans to establish three regional oil 
spill response centers for the northern, central, and 
southern regions of Vietnam.  PetroVietnam has been 
authorized to manage and operate the oil spill response 
center for the southern region, while a company owned by the 
Vietnamese Navy operates the oil spill response center for 
the middle region. 
 
Support for Pilot Marine Protected Area Training and 
Certification Program in Hon Mun MPA in Nha Trang 
--------------------------------------------- ------- 
 
¶12. On March 18, NOAA and USAID staff met with MOFI, DANIDA, 
IUCN, and Conservation International officials to discuss 
development of a pilot project Marine Protected Area (MPA) 
training program in Vietnam.  Working in partnership with 
MOFI, DANIDA, USAID, IUCN, Conservation International, The 
Nature Conservancy, SeaWeb, and UNEP, NOAA's National Marine 
Sanctuary Program (NMSP) will be the lead USG office to 
support the pilot MPA training and certification program at 
Hon Mun MPA in Nha Trang.  The two-year project aims to 
provide a knowledge base for developing local and regional 
capacity and expertise in designation, implementation, and 
management of MPAs with major emphasis on improving 
enforcement capacity of Vietnam's newly established MPAs. 
The Embassy Science Fellow Anne Walton (NOAA/NMSP) is the 
project coordinator. 
 
¶13. Under the Law on Fisheries (2004), MOFI has authority to 
designate and manage a national MPA system.  The MPA system 
currently consists of 15 sites, most of which are "paper 
parks" that lack on-the-ground law enforcement or 
conservation capabilities.  Since 2001, the World 
Bank/Global Environment Facility, DANIDA, and IUCN have 
supported a four-year, US$2 million project with the 
Ministry of Fisheries and Khanh Hoa Province to develop an 
effective provincial MPA authority and a system for co- 
management with local resource users.  A follow-on DANIDA 
project is under development and will likely focus on 
support to the National MPA System, including support to Hon 
Mun, Cu Lao Cham, and Phu Quoc Island MPAs. 
 
GVN Interest in Continued US Support for Marine Sciences 
Research and Education 
--------------------------------------------- -------------- 
 
¶14. On March 16, Dr. Spinrad met with Minister of Fisheries 
Ta Quang Ngoc.  The Minister noted that fisheries are a 
vital economic and food resource for the Vietnamese people, 
especially poorer populations. The Minister expressed deep 
gratitude for U.S. cooperation and support for coastal 
management initiatives in Vietnam and could expand to 
include fisheries resource conservation.  The Minister also 
expressed a desire to move beyond multilateral (e.g. APEC) 
and bilateral talks and develop long-term technical 
assistance initiatives.  The Minister was very pleased to 
receive a copy of the U.S. Ocean Action Plan that was 
presented by Dr. Spinrad. 
 
¶15. Dr. Spinrad also made called on Dr. Nguyen Khoa Son, the 
Vice President of the Vietnamese Academy of Science and 
Technology (VAST).  Dr. Son listed VAST's programmatic 
priorities as follows: biotechnologies; information 
technologies; environmental technologies; biological 
research; marine science and technologies; disaster 
prevention and natural hazardous; electronics and 
instrumentation; and seismology and earthquakes. VAST's 
annual budget for 18 research institutes, including the 
National Oceanographic Institute, is approximately US$50-80 
million. VAST is constructing new laboratories (US$3 million 
each) for genetics, information technologies/ electronics, 
and plant science technologies.  Future laboratories are 
reportedly planned to include microbiology, robotics, and 
satellite/earth observing. 
 
¶16. Remarking on the good cooperation between GVN and USG in 
science and technology, the Dr. Son expressed strong 
interest in expanding scientific cooperation with NOAA, 
especially in oceanography.  Dr. Son wants to expand 
bilateral cooperation beyond short visits between 
researchers and to engage in joint-research projects, but 
needs financial support and seeks identification of 
mechanisms to fund US-Vietnam research projects. 
Dr. Son was also interested in placing more Vietnamese 
candidates in U.S. universities through the Vietnam 
Education Fund. 
 
 
BOARDMAN