VZCZCXRO7858
RR RUEHCHI RUEHDT RUEHHM
DE RUEHHI #2620 2860133
ZNR UUUUU ZZH
R 130133Z OCT 06
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 3686
INFO RUEHHM/AMCONSUL HO CHI MINH 1977
RUEHZS/ASEAN REGIONAL FORUM COLLECTIVE

UNCLAS HANOI 002620 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS AND DRL/IRF 
 
E.O. 12958: N/A 
TAGS: PHUM PREL PGOV OTRA ECON VM
SUBJECT: SENATOR HAGEL DISCUSSES PNTR AND ECONOMIC, SOCIAL REFORMS 
WITH NATIONAL ASSEMBLY CHAIRMAN 
 
Ref: Hanoi 771 
 
Summary 
------- 
 
¶1.  (SBU) On October 6, Vietnamese National Assembly (NA) Chairman 
and Politburo member Nguyen Phu Trong briefed Senator Chuck Hagel on 
the NA's developing oversight role in Vietnam's policymaking process 
and in promoting social and economic development.  Trong said 
passage of Permanent Normal Trading Relations (PNTR) before APEC 
would give the President's visit here "more meaning."  Senator Hagel 
stated that he strongly supports PNTR legislation and WTO entry for 
Vietnam.  Senator Hagel relayed American condolences for the loss of 
life in central Vietnam caused by Hurricane Xangsane.  End Summary. 
 
¶2.  (SBU) On October 6, Senator Chuck Hagel (R-NE) met Vietnamese 
National Assembly (NA) Chairman and Politburo member Nguyen Phu 
Trong.  Senator Hagel extended condolences over the loss of life in 
central Vietnam due to Hurricane Xangsane.  Trong responded that 
Hanoi is grateful for USG assistance.  Vietnam's leaders have taken 
strong measures to reduce the suffering in affected areas, he added. 
 
 
¶3. (SBU) Senator Hagel noted that many changes have taken place in 
Vietnam compared to his last visit in 1999.  Vietnam's entry into 
the WTO will further this development, and he predicted that, though 
PNTR passage "is not guaranteed," Congress may vote in favor of PNTR 
before the President comes for APEC.  Trong responded that passing 
the PNTR legislation would be good for Vietnam and make the 
President's APEC visit here "more meaningful." 
 
National Assembly's Growing Role 
-------------------------------- 
 
¶4. (SBU) Trong noted that Vietnam has not only undertaken economic 
reforms, but political reforms as well, in order to "better promote 
democracy and the voice of the people."  For example, of the nearly 
500 NA deputies, 28 percent are female and many represent ethnic 
minority groups.  (Comment:  The Party has maintained quotas on 
ethnic and social groups in the NA since the institution's 
inception, and the Vietnam Fatherland Front vets all candidates 
standing in NA elections.  End Comment.)  The NA's main tasks are: 
1) to make laws and regulations; 2) to "serve national economic and 
social development and economic integration;" and, 3) to increase 
the overall volume of legislation.  In his role as NA Chairman, 
Trong aims to accelerate this pace, he said. 
 
¶5. (SBU) Trong noted that the Prime Minister and Cabinet ministers 
must report to the NA on progress in their social and economic 
programs.  NA deputies are now authorized to question ministers 
about these policies in formal sessions broadcast live throughout 
the country.  When necessary, NA delegations visit provinces and 
cities to oversee program implementation, Trong said.  In addition, 
the NA recently passed an audit law, which will create a national 
audit agency, he noted. 
 
¶6.  (SBU) The NA has developed relations with foreign parliaments 
and hosted international conferences to improve the NA's capacity, 
Trong continued.  NA delegations have visited the U.S. Congress and 
the NA has hosted several important CODELs, including House Speaker 
Dennis Hastert's April visit.  Trong said that the NA "looks forward 
to receiving as many delegations as possible." 
 
¶7.  (SBU) Senator Hagel asked what role the NA plays in the 
oversight of infrastructure projects.  Trong stated that the 
Assembly spends "much time and money on this topic and, without good 
NA management and supervision, Vietnam suffers big losses," as in 
the Project Management Unit (PMU)-18 scandal (reftel).  The NA will 
focus its next session on implementing land reform programs and 
other development projects, such as the Dung Quat oil refinery and 
The Phu My fertilizer complex, and privatizing State-owned 
enterprises.  The NA will also question ministries on delays in 
implementing some already approved projects.  Trong said he would 
welcome any advice in the area of monitoring infrastructure 
development. 
 
¶8.  (SBU) Trong confirmed that private sector companies will be 
allowed to participate in future infrastructure projects.  In 
addition, administrative reform will remain a priority because the 
GVN aims to "create the most favorable conditions for foreign 
investors."  Although asked by the Senator, Trong declined to 
discuss the NA's role in banking regulation. 
 
¶9.  Senator Hagel has cleared this message. 
 
ALOISI