VZCZCXRO1141
RR RUEHDT RUEHPB
DE RUEHHM #0066/01 0180913
ZNR UUUUU ZZH
R 180913Z JAN 07
FM AMCONSUL HO CHI MINH CITY
TO RUEHC/SECSTATE WASHDC 2011
INFO RUEHHI/AMEMBASSY HANOI 1459
RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE
RHEHNSC/WHITE HOUSE NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEHHM/AMCONSUL HO CHI MINH CITY 2176

UNCLAS SECTION 01 OF 03 HO CHI MINH CITY 000066 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PHUM SOCI ECON EINV KIPR ETRD VM
SUBJECT: VIETNAM'S MUSIC INDUSTRY: PARTY CONTROL AND IPR ISSUES 
 
 
HO CHI MIN 00000066  001.2 OF 003 
 
 
¶1. (SBU) Summary:  Three leading pop musicians told us that 
Vietnam's music industry remains constrained by rampant 
violations of Intellectual Property Rights (IPR) and direct 
and indirect government controls over content and 
presentation.  The singers were optimistic that Vietnam's 
global integration would lead to a strengthening of its 
IPR-enforcement regime.  However, so long as the Government 
and Communist Party oversee virtually all aspects of the 
music business -- from approving song lyrics to licensing 
and renting out concert venues -- it is hard to see how 
musicians will be able to harness the power of music to 
promote social change and new thinking in Vietnam.  End 
Summary. 
 
Introduction 
------------ 
 
¶2. (SBU) Pop music and pop musicians play an increasingly 
influential role in Vietnamese society, especially among 
Vietnam's youth.  While the Communist Party may still opt 
for patriotic standards, millions of ordinary Vietnamese 
choose the modern pop songs being belted out on CDs and in 
nightclubs flourishing in major cities.  ConGenOffs 
recently met with three singer/songwriters -- HCMC-based 
leaders in the Vietnamese pop music business -- to discuss 
the state of Vietnam's music industry, issues of State 
control, Intellectual Property Rights (IPR) and CD piracy. 
Le Quang is a prolific songwriter and composer who has been 
in the music business for 17 years.  He has also been a 
performer and the owner of a popular HCMC night club.  Dam 
Vinh Hung has been performing for ten years and is regarded 
by many to be the preeminent male vocalist in Vietnam. 
Phuong Thanh has been a singer for 16 years and is among 
the top female vocalists in Vietnam. 
 
No IPR Protection 
----------------- 
 
¶3. (SBU) The singers tell us that Vietnam's music business 
is very tough, principally because of a lack of IPR 
protection.  Most Vietnamese singers get their bread and 
butter from live appearances on television and in concert. 
For VND 50,000 to 140,000, depending on the popularity of 
the performer (USD 3 to 9), fans of all ages pour into 
concert halls to enjoy three hours of music by Vietnam's 
vocalists.  For those at the top, concerts and overseas 
tours can bring them hefty six-figure USD incomes.  Others 
take up grueling tour schedules just to make ends meet in 
part because Vietnam's lax IPR protections mean that their 
CDs are pirated, sometimes just hours after their official 
release. 
 
¶4. (SBU) Although the protection of foreign intellectual 
property receives the majority of media and corporate 
attention in Vietnam, IPR continues to be a major concern 
for local artists.  Quang described the situation as "out 
of control for local artists."  He is seldom paid his due 
royalties and artists rarely ask permission to use his 
works.  Quang has never filed grievances with the 
authorities because he anticipates that it will not lead to 
a satisfactory result.  Quang has had some success, 
however, in obtaining minimal compensation from IPR 
violators in unofficial arbitration proceedings.  He noted 
that Vietnamese song writers have begun to band together to 
press singers and other users of their intellectual 
property for compensation. 
 
¶5. (SBU) Quang said that CD piracy is rampant in Vietnam in 
part because of popular ignorance.  With pirated CDs so 
widely available, some Vietnamese are not aware that the 
copy they are buying is illegal.  Quang noted that, apart 
from genuine fans who are willing to pay for genuine CDs 
for their collections, the artistic value of Vietnamese 
music is not highly appreciated.  Many people buy cheap 
CDs, listen to them a few times and throw them away.  Costs 
also play a role in proliferating IPR violations.  Many pop 
music fans are teenagers who cannot afford to buy genuine 
CDs and so they buy the pirated ones.  The cost of a 
genuine, new-release music CD is roughly VND 50,000 (USD 
3.25).  A pirated CD costs between VND 6,000 to 16,000 
(between 37.5 cents and one dollar).  Quang estimated that 
total losses to Vietnamese artists from piracy are, at a 
minimum, tens of billion of VND (millions of dollars) every 
year.  Anecdotally, Hung knows a producer of pirated CDs 
who admitted to selling at least 200,000 of Dam Vinh Hung's 
CDs alone. 
 
¶6. (SBU) According to Thanh, another side effect of piracy 
is that Vietnamese artists often do not put their best 
effort into producing a CD.  They are less motivated 
 
HO CHI MIN 00000066  002.2 OF 003 
 
 
because they know they won't be fairly compensated because 
of piracy. 
 
¶7. (SBU) The artists acknowledged that the GVN has carried 
out a few investigations and anti-piracy raids. One raid 
netted several million counterfeit CDs. However, due to the 
lack of a comprehensive IPR enforcement strategy, the 
situation remains largely unchanged after each operation. 
When one CD pirate is put out of business temporarily, 
another is ready to take his place.  Quang added that 
Vietnam's proximity to China -- what he termed the "IPR 
violation center of the world" -- stymies the limited 
enforcement efforts of GVN authorities.  He noted that 
during a recent crackdown campaign, local pirating/copying 
was suspended and replaced by CDs produced in China and 
smuggled into Vietnam for sale. 
 
¶8. (SBU) Quang believes that current financial and criminal 
penalties against IPR violators are inadequate.  The 
maximum fine of 100 million VND (6,250 USD) is not a 
deterrent and is seen as a cost of doing business.  Fines 
should be higher and the authorities should have the 
ability to revoke the business licenses of pirated goods, 
he suggested. 
 
Government Control and Censorship 
---------------------------------- 
 
¶9. (SBU) The three performers acknowledged pervasive direct 
and indirect government controls over their artistic 
creativity.  There are clear restrictions on song content. 
Songs that contain tragic lyrics, references to misery and 
loss in the Vietnam War, soldiers, or covers of pre-war 
songs from the Republic of Vietnam almost certainly will 
not pass the censor's scrutiny.  That said, Hung noted a 
slight easing of censorship compared to a decade ago.  For 
example, artists are now permitted to perform some pre-war 
songs in clubs (although they can not release them on CD). 
Another example is the return to Vietnam and rehabilitation 
of well-known American Viet Kieu songwriter Pham Duy, who 
until recently had been called "a traitor" and "a 
reactionary element."  (Note: Duy fled the North around 
1955 and later worked for "Radio Saigon" during the Vietnam 
War.  End note.)  Since granting permission for Duy to 
return to Vietnam, the GVN has allowed him to release CDs 
and perform on stage, although his material is limited to 
love ballads, patriotic standards and other non- 
controversial content.  Foreign -- principally English -- 
songs that have been translated into Vietnamese now are 
banned unless the singer can show that royalties were paid 
in compliance with international IPR protection standards. 
 
¶10. (SBU) The singers also noted official supervision of 
hair styles and costumes of singers had been on the rise, 
even though the regulations are not defined clearly. 
According to Hung, the government is always concerned that 
youth tend to imitate what their idols are doing which may 
affect Vietnamese habits and customs. Thanh has encountered 
instances when a Ministry of Culture and Information 
official decided "arbitrarily" that a costume is not 
acceptable and she had to pay a fine. Thanh also told us 
that her government minders expressed disapproval for her 
having a child out-of-wedlock, citing concerns about the 
message for young fans. (Note: Thanh did not say who the 
father of her child is, but he works for the Office of 
Government.  His family reportedly did not want to accept a 
singer as a daughter-in-law.  End note.) 
 
¶11. (SBU) The content and program of all concerts must be 
approved by a representative of the Ministry of Culture and 
Information.  Thanh noted that, after approval, live 
concerts usually are not monitored closely, although she 
has had some shows during which officials attempted to halt 
the show for "various reasons."  She ignored them and did 
not suffer any repercussions.  Hung added that he assumes 
that his concerts in the United States are monitored as 
well.  Official delegations appointed by the government to 
perform abroad are accompanied by the cultural affairs 
section of the Ministry of Public Security (known by its 
internal designation of A-25). 
 
Producing a CD 
-------------- 
 
¶12. (SBU) Producing a CD generally takes two to six months, 
although, a special CD can take up to two years to make. 
Once the artist has chosen the concept or theme of the CD, 
he or she chooses the songs and -- if the artist complies 
with the law -- pays royalties.  After arranging and 
recording the songs, the artist creates a cover design for 
 
HO CHI MIN 00000066  003.2 OF 003 
 
 
the CD.   Once the artistic process is completed, the 
material must be submitted to the local Department of 
Culture and Information for vetting.  After the local 
Department of Culture and information approves the content, 
the Ministry of Culture and Information must grant final 
approval, after which it will issue a license.  So long as 
the artist complies with government restrictions on 
content, the licensing process is relatively 
straightforward, our contacts noted. 
 
¶13. (SBU) Hung encountered one instance when his license 
was nearly revoked just days before a CD was set to be 
released.  All of the cuts on the CD were pre-1975 songs, 
but inoffensive standards that complied with GVN standards. 
He followed the regulations in submitting all titles to the 
Ministry of Culture and Information and had all titles 
approved.  Days before the CD was released, someone in the 
Ministry noticed that one of the titles was a song that had 
been banned.  In reality, it was a song with the same title 
but written by a different composer.  The license was 
restored, and the CD was released on time. 
 
Comment:  A Gilded Musicbox 
--------------------------- 
 
¶14. (SBU) Comment:  The singers were optimistic that global 
integration would increase opportunities for artistic 
expression inside Vietnam and slowly strengthen enforcement 
of their IPR rights.  However, we are less certain about 
how Vietnamese musical creativity will be unleashed and the 
extent to which music will be a force for social change. 
While our pop star contacts were keenly aware that they 
could influence young people through their music, they were 
unwilling or unable to articulate how and when they would 
be prepared to tackle more controversial issues.  Under the 
present system, self-censorship is a bigger problem than 
overt, official censorship.  Edgier, budding musicians know 
that they would have their microphones unplugged and their 
CDs banned should they dare to touch on "unacceptable" 
social or political issues.  Established stars such as 
Hung, Thanh and Quang know that they can enjoy stardom and 
a relatively a comfortable living as long as they follow 
GVN and Party parameters, both explicit and implicit.   End 
Comment. 
WINNICK