VZCZCXRO4575
RR RUEHCHI RUEHDT RUEHHM RUEHLN RUEHMA RUEHPB
DE RUEHHI #0271/01 0430926
ZNR UUUUU ZZH
R 120926Z FEB 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 4594
INFO RUEHHM/AMCONSUL HO CHI MINH 2520
RUEHZS/ASEAN REGIONAL FORUM COLLECTIVE
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUEHGV/USMISSION GENEVA 1163

UNCLAS SECTION 01 OF 05 HANOI 000271 
 
SIPDIS 
 
STATE PASS TO EAP/MLS, EEB/TCC, and EEB/TPP/ABT 
STATE PASS TO USTR DBISBEE 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: TBIO OTRA EAGR ETRD EAID KPAO VM
SUBJECT: VISIT TO VIETNAM BY SENIOR AG BIOTECH ADVISOR SHARON 
WIENER 
 
Ref: Hanoi 198 
 
HANOI 00000271  001.2 OF 005 
 
 
SENSITIVE BUT UNCLASSIFIED.  PLEASE PROTECT ACCORDINGLY. 
 
¶1. (SBU) Summary:  Senior Advisor for Agricultural Biotechnology 
Sharon Wiener visited Vietnam from January 23 to 26 during an 
important moment in the country's agbiotech development.  The 
advance of agbiotech is an official national priority in Vietnam. 
In August 2005, the Prime Minister issued a decree which for the 
first time addresses the testing and commercialization of 
biotechnology products.  Drafting of implementing regulations, 
however, has proceeded slowly.  The Ministry of Agriculture and 
Rural Development (MARD) expects the regulations on field trials to 
be issued by March.  Still, a conflict with the Ministry of Health 
(MOH) and the Ministry of Natural Resources and Environment (MONRE) 
over environmental, food and feed safety standards will delay the 
regulations allowing for commercialization until an unspecified 
later date.  Moreover, a shallow knowledge base, poor facilities, 
and the institutional biases of leaders at MOH and the Vietnam Food 
Administration (VFA) are holding up development of the industry. 
Despite the delay, Vietnamese officials were generally receptive to 
Ms. Wiener's message urging the adoption of transparent, predictable 
and science-based regulations (including effective protection of 
intellectual property rights) that would allow quick development of 
the biotechnology industry.  Following the visit, Vietnam's 
immediate need is for a technical assistance project to help the GVN 
finish drafting its regulations.  Post submitted such a proposal on 
January 30 (reftel).  End Summary. 
 
¶2. (U) Ms. Wiener visited Ho Chi Minh City (HCMC) and Hanoi on 
January 22 to 26 to promote the development of agricultural 
biotechnology and urge the government of Vietnam to implement its 
ambitious biotechnology goals and develop regulations that would 
serve to facilitate the commercialization of the industry.  Her 
meetings were as follows: 
 
In HCMC: 
-- Institute of Agricultural Technology of Southern Vietnam 
-- Biotechnology Center of HCMC 
-- Quang Dung Company (distributor of Bunge Grains) 
-- Genetics and Gene Bank Department of Cuu Long Rice Research 
Institute 
-- Institute of Tropical Biology 
-- Vietnam Cotton Company 
-- Monsanto 
-- Local media 
 
In Hanoi: 
-- Ministry of Agriculture and Rural Development (Vice-Minister) 
-- Ministry of Science and Technology (Vice-Minister) 
-- Ministry of Foreign Affairs 
-- Office of the Government (the Prime Minister's Office) 
-- Vietnam Food Administration (under the MOH) 
-- Ministry of Environment and Natural Resources 
-- University of Agriculture No. 1 
-- National Seed Company (VINASEED) 
-- National Agriculture Institute 
-- Vietnam Agriculture Academy of Sciences 
-- Local media 
 
GVN POSITION ON AGBIOTECH - SOME INTERNAL CONFLICT 
--------------------------------------------- ------ 
 
¶3. (SBU) The GVN officially has identified the development of 
biotechnology as a national priority and set specific (and very 
ambitious) goals for agbiotech production.  The Prime Minister 
approved in August 2005 Decree 212 that for the first time creates a 
legal framework for the approval of biotechnology products.  The 
GVN's naming biotech as one of four priority technology sectors for 
2007 has helped to boost the development of the industry.  Decree 
212 includes terms on the holding of both field trials and food and 
feed safety certification.  The decree delegates overall 
coordination to the Ministry of Natural Resources and the 
Environment (MONRE) but provides the Ministries of Health (MOH), 
Science and Technology (MOST), and Agriculture and Rural Development 
(MARD) with oversight on various aspects of the commercial use of 
biotech products.  Despite the ambitious nature of Decree 212, the 
Government of Vietnam (GVN) has still not issued its implementing 
regulations, which will contain field trial instructions and lay out 
safety and environmental standards for product approval.  Field 
trials and legal commercial production of biotechnology products can 
only begin once the implementing regulations are promulgated, a 
process that will require review by relevant GVN Ministries.  MARD 
will regulate field tests, review results and certify biotech crops 
 
HANOI 00000271  002.2 OF 005 
 
 
for production.  The MOH has purview over food safety certification, 
required prior to sale.  Later in 2007, the GVN, with MONRE in the 
lead, will also draft a new biodiversity law to be passed by the 
National Assembly. 
 
¶4. (SBU) The regulation drafting process meant that Ms. Wiener's 
visit came at a critical moment for biotech in Vietnam, particularly 
because a conflict has emerged in recent months between pro-biotech 
sectors of government (including officials at MARD, the Office of 
the Government (OOG), research institutions and universities) and 
more cautious elements (within MOH, MONRE, and the Vietnam Food 
Administration (VFA).  While all GVN officials told Ms. Wiener they 
unequivocally support the development of the sector in line with the 
Prime Minister's decree, the latter group wishes to impose stricter 
standards regarding environmental risk assessment, as well as food 
and animal feed safety, while the former is more confident as a 
result of the last 11 years of biotech experience.  These 
differences were highlighted during a recent visit to Vietnam by Val 
Giddings, a consultant for the U.S. Department of Agriculture, who 
had come to Vietnam to work with officials at MARD, VFA and MONRE 
with the tenth draft of the field trials regulation one week prior 
to Ms. Wiener's visit.  This conflict also provided the backdrop for 
Ms. Wiener's meetings in both cities. 
 
PROMOTION OF THE U.S. POSITION 
------------------------------ 
 
¶5. (SBU) Ms. Wiener began her meetings with a short introduction on 
U.S. policy on agricultural biotechnology.  The United States State 
Department created the Senior Biotech Advisor position because the 
technology has the potential to have a deep, positive impact on the 
developing world and on food security, which are foreign policy 
priorities of the United States, Ms. Wiener said.  With the world's 
population continuing to grow and environmental concerns mounting, 
the adoption of biotechnology (BT) in agriculture can help countries 
grow more food on less land and with less water.  It also allows for 
decreased pesticide use.  Ms. Wiener also noted some of the key 
statistics outlined in the 2006 annual report by the International 
Service for the Adoption of Agri-biotech Applications (ISAAA) 
report.  For example, more than 90 percent of the 10 million farmers 
growing biotech crops last year were small farmers from the 
developing world. 
 
¶6. (SBU) Turning to issues in Vietnam, Ms. Wiener congratulated her 
counterparts for Vietnam's recent WTO entry, noting the importance 
of drafting transparent, predictable and science-based regulations 
consistent with the country's WTO commitments.  She noted that 
Vietnam has the potential to become a leader in agricultural 
biotechnology for Southeast Asia, but only if Vietnamese regulations 
take due regard of product safety and facilitate approvals rather 
than create obstacles that discourage the industry.  Emphasizing 
that no scientific studies had found BT crops to be harmful to human 
health in any way, Ms. Wiener reiterated throughout her discussions 
the importance of public opinion.  Developing the industry will be 
difficult if inaccurate information on biotechnology is allowed to 
take root, she said.  Ms. Wiener also raised the recent WTO ruling 
on the biotech case which the United States, Argentina and Canada 
had brought against the EU.  The WTO's ruling in favor of the U.S. 
and its co-complainants should send a signal to countries like 
Vietnam that efforts to restrict trade in biotech products were 
inconsistent with the WTO.  She also noted figures in the recent 
ISAAA report indicating a five-fold increase in genetically modified 
(GM) crop acreage in Europe from 2005-2006. 
 
¶7. (SBU) Ms. Wiener also urged officials to approve regulations 
quickly so that field trials and commercialization can start soon. 
The standards for already tested products such as BT corn should be 
lower than those for new, untested products that Vietnam developed, 
she asserted, noting that Monsanto has an application pending (in 
conjunction with the HCMC Agriculture Genetic Institute and 
Biotechnology Center) for field trials of Roundup Ready Corn.  The 
greatest risk, she concluded, was that Vietnam would not take 
advantage of agricultural biotechnology, foregoing the clear 
benefits these products provide just as Vietnam's agriculture 
industry needs to become more competitive as a member of the WTO. 
Ms. Wiener commended officials for the GVN's efforts on agbiotech 
thus far.  She noted the active Vietnamese participation in the 
recent APEC High Level Policy Dialogue on Agricultural Biotechnology 
and urged Vietnam to coordinate with other countries that might 
serve as models, in particular the Philippines, as it took its next 
steps to further its biotech agenda. She asked all her interlocutors 
about their sense of the government's progress on the issuance of 
regulations for Decree 212.  The following paragraphs outline her 
discussions with key officials. 
 
HANOI 00000271  003.2 OF 005 
 
 
 
MINISTRY OF AGRICULTURE 
----------------------- 
 
¶8. (SBU) Ms. Wiener's meeting with MARD Vice Minister Bui Baa Bong 
demonstrated that he is a strong advocate of agricultural 
biotechnology, though the Ministry's planned timeline for 
development of ag biotech products is slower than expected. 
Regarding the regulatory framework, Bong said MARD aims to finish 
the implementing regulations for field trials in March.  The 
Ministry aims to have commercialization of biotech crops by 2011, 
widespread cultivation by 2015 and 70 percent cultivation of 
approved biotech crops by 2020.  Though pleased about the impending 
issuance of regulations, Ms. Wiener stressed that the timeline was 
"slower and more pessimistic" than she had expected.  Foreign firms 
have said they may not be willing to remain in Vietnam if 
commercialization cannot start soon, she stressed.  Bong, however, 
pushed back, saying that "history is long."  "We would like to run 
fast, but we are weak."  Bong then added that if the United States 
wants Vietnam to move faster, it will have to provide the GVN with 
resources to do so. 
 
¶9. (SBU) Vice Minister Bong noted that the ministry was considering 
two options for field trials: allow either three biotech crops to be 
tested, or just one.  The three crops would be cotton, soybean and 
maize, though he stressed it was possible that only one crop would 
be approved, Bong said.  (Note: It is understood that this crop 
would be cotton.  Experts believe Vietnam already grows as much as 
20,000 hectares of pirated biotech cotton, likely smuggled from 
India, which Vietnam wants to legalize.  Monsanto told Ms. Wiener in 
HCMC it has no interest in working in Vietnam with biotech cotton 
because its intellectual property rights for biotech cotton could 
not be guaranteed.  Because Vietnam is the world's second largest 
rice exporter, and does not wish to risk its markets in  Japan and 
the European Union, it is not likely to include biotech rice as a 
test crop at this time.  None of the other three products, however, 
would present biotech export challenges for Vietnam; cotton is not a 
food product, while neither maize nor soy is exported.  End Note.) 
When Ms. Wiener asked Bong if an expedited approval process could be 
applied to imported biotech products which have already been found 
safe and approved in other countries, Mr. Bong said, "This is under 
consideration." 
 
¶10. (SBU) Throughout the meeting, Mr. Bong stressed "the gap between 
the government's promises and its ability" to move forward on 
biotech, noting the GVN's deficits in human resources, facilities 
and regulations.  The GVN is open to United States assistance, he 
said, asking for assistance to 1) identify universities which could 
receive and give tuition "discounts" to Vietnamese students; 2) 
consult on biosafety and risk assessment, including reviewing 
Vietnamese draft regulations; and 3) to identify and develop 
research projects.  In regard to item one, Bong said, the government 
plans to send 60 students for master's degrees and doctorates in the 
United States this year.  The GVN also needs assistance building 
facilities and drafting regulations, he said. 
 
THE MINISTRY OF HEALTH: "A BIG MESS" 
------------------------------------ 
 
¶11. (SBU) The MOH and the VFA (under the ministry as the equivalent 
of the U.S. Food and Drug Administration) provide the greatest 
impediment to the widespread adoption of commercial biotech in 
Vietnam, many observers told Ms. Wiener.  Decree 212 gives MOH 
responsibility for food safety approval of biotech products.  A 
shallow knowledge base, poor facilities, and the institutional 
biases of leaders at both institutions curb their enthusiasm.  VFA 
Director Tran Dang is particularly hostile to commercial 
biotechnology, said Weraphon Charoenpanit, Chief Representative for 
Monsanto in HCMC.  "The Minister of Health (Tran Tri Trung Chien) 
does not want to have GM food in Vietnam," added Le Huy Ham, the 
acting Director General of the Institute of Agricultural Genetics at 
the Vietnam Academy of Agriculture Sciences in Hanoi.  Dr. Bui Chi 
Buu, Director of the Southern Vietnam Institute of Agricultural 
Technology, also blamed a lack of technical capacity and desire to 
obtain more research funding for the MOH's reluctance to move 
forward. 
 
¶12. (SBU) Notwithstanding differences of opinion, the tone of Ms. 
Wiener's meeting with VFA was positive.  Deputy Director Nguyen Hung 
Long stated unequivocally: "We have no problem with GMOs 
(genetically modified organisms), but we have to prepare guidelines 
on a scientific basis."  He also admitted frankly that the agency 
was hampered by a lack of knowledge about biotechnology.  Still, 
Long defended a set of positions including rigorous testing for 
 
HANOI 00000271  004.2 OF 005 
 
 
imported products and biotech product labeling.  Ms. Wiener noted 
that no adverse health effects had ever been demonstrated from BT 
products currently approved for commercialization, but Long noted 
that decree 212 directed officials to "confirm" product safety.  He 
defended labeling on the basis of the public's "right to know" about 
"a totally new product." Ms. Wiener pointed out that in the U.S., 
there is no requirement to label the process.  Ms. Wiener added that 
the VFA should try to avoid creating a regulatory regime that was so 
cumbersome that it would be economically prohibitive to plant or 
sell biotech crops.  Despite these differences, VFA officials 
expressed a clear desire for greater cooperation with the United 
States to help overcome their lack of information as they sought to 
develop food safety guidelines.  Ms. Wiener noted that the United 
States looks forward to working with the Vietnamese administration 
on the issue. 
 
PUBLIC PERCEPTIONS ON BIOTECH: A "BLANK PAGE," FOR NOW 
--------------------------------------------- --------- 
 
¶13. (SBU) While promulgating a regulatory regime is Vietnam's most 
immediate issue, the shadow of public perception of biotech products 
hung over Ms. Wiener's meetings.  In HCMC, officials told her public 
opinion was unimportant due to the top-down policy making process in 
Vietnam.  Ms. Wiener repeatedly emphasized that while public opinion 
may not seem to be an important driver of policy in Vietnam, the 
issue of the public opinion of biotech was vital in a market economy 
where consumer preferences dominate.  While currently Vietnam is a 
"blank page" in terms of public perceptions of biotechnology, 
pro-biotech organizations need to act fast before groups hostile to 
biotech begin to act, said Biotechnology Center Deputy Director Binh 
in HCMC. 
 
¶14. (U) Local HCMC media who spoke with Ms. Wiener and officials at 
the Institute for Tropical Biotechnology were not well-versed in 
biotech issues, but expressed their interest in spending more time 
with Ms. Weiner and learning more about the future of biotech in 
Vietnam.  The Consulate General has to date seen little follow-up, 
however, with only a short piece in Tuoi Tre (Youth) online 
newspaper about Ms. Wiener's visit, and a promised upcoming feature 
on biotech crops to appear on VietnamNet. 
 
¶15. (U) Journalists who attended her roundtable discussion in Hanoi 
on January 26 seemed more familiar with biotech issues and raised a 
number of good questions during her one hour press interaction.  Ms. 
Wiener provided an excellent background of U.S. biotech efforts and 
an overview of our cooperation with Vietnam on various technical 
issues, including regulation development.  The journalists, 
representing several major publications and a prominent online news 
service, raised issues such as EU concerns about biotech crops, U.S. 
assistance toward Vietnam's development of biotechnology, and some 
of the major challenges facing Vietnam in this arena.  Coverage was 
good over the weekend, with several papers printing summaries of her 
visit and press event.  Nong Thon Ngay Nay included a large portion 
of the interview transcript with the headline, "Vietnam Has 
Potential to Develop Genetically Modified Crops." 
 
 
¶16. (SBU) Officials at MONRE hinted that biotech opponents had 
approached them.  The VFA's statements on health risks and the 
consumer's right to know were reminiscent of the arguments commonly 
put forward by BT opponents.  Still, MONRE officials noted they had 
"their own ideas," and were not easily swayed.  Officials at both 
the Office of the Government (also known as the Prime Minister's 
Office) and the Ministry of Foreign Affairs eagerly agreed with Ms. 
Wiener's assessment that a strong public information campaign must 
be mounted in Vietnam to set a positive course for biotech opinion. 
The officials had no concrete plans for these campaigns, however. 
 
¶17. (SBU) Seed companies noted that demand from farmers is also 
minimal.  Ly Anh Dung, Director of Quang Dung Company, an importer 
of soy and corn, cited a lack of information on biotech as the 
reason.  He posited that this could change, however, when farmers 
see proof of the benefits that commercial biotech crops offer. 
 
INDUSTRY CONCERNS 
----------------- 
 
¶18. (SBU) Ms. Wiener's meetings with foreign biotechnology companies 
demonstrated that they are unlikely to remain active in the country 
for long unless the GVN takes a more proactive approach to 
protecting intellectual property rights (IPR).  She advised that the 
field trial risk assessment and food and feed safety standards, and 
the speed by which commercialization can begin, will be key for 
foreign investors.  In HCMC, Monsanto criticized the GVN's lack of 
 
HANOI 00000271  005.2 OF 005 
 
 
IPR protections and accused state-owned enterprises of attempting to 
steal products for use and distribution.  The firm told Ms. Wiener 
it has no interest in testing or selling genetically modified cotton 
because biotech cotton is already being cultivated illegally in 
Vietnam.  During Ms. Wiener's visit to the Vietnam Cotton 
Corporation (VCC), the firm confirmed such cultivation.  VCC 
indicated it had purchased biotech cotton grown in Vietnam and 
received funding by the GVN to develop additional genetically 
modified strains. 
 
¶19. (SBU) While officials admitted weak IPR protections and MARD, 
VFA and others did not know what standards would apply to imported 
biotech product, officials -- particularly in the OOG -- expressed a 
positive attitude toward foreign investors.  "We want to move 
forward, and if we have to rely on Vietnamese scientists, this will 
take a very long time," said Pham Quoc Doanh, the Deputy Director of 
the Department of Agriculture at the OOG.  Doanh pointed out that 
the Prime Minister had emphasized three important tasks for 2007 -- 
to achieve high-growth, to carry out administrative reform and to 
fight corruption -- and said these priorities would benefit 
agbiotech.  "In case you know of investors facing problems with 
administrative procedures, ask them to forward their cases to the 
OOG," he said. 
 
Comment 
-------- 
 
¶20. (SBU) Ms. Wiener's visit comes at a time when a small amount of 
well placed assistance can be leveraged for long-term benefits. 
While the USG is playing a positive role in shaping GVN policy, we 
need to continue working with the GVN to ensure that regulations are 
written which facilitate biotech development.  Post has submitted a 
proposal (Reftel) for use of EB's FY 2007 Agriculture Biotech 
Outreach Funds to assist with GVN's drafting of biotech regulations. 
 End Comment. 
 
¶21. (U) Senior Advisor Wiener cleared this cable. 
 
ALOISI