VZCZCXRO8134
RR RUEHHM
DE RUEHHI #0440/01 0661010
ZNR UUUUU ZZH
R 071010Z MAR 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 4834
INFO RUEHHM/AMCONSUL HO CHI MINH 2707
RUEAIIA/CIA WASHINGTON DC
RHEHNSC/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS SECTION 01 OF 02 HANOI 000440 
 
SIPDIS 
 
STATE FOR EAP/MLS 
STATE PASS USTR DAVID BISBEE 
COMMERCE FOR 4431/MAC/AP/OPB/VLC/HPPHO 
TREASURY FOR OASIA 
 
SENSITIVE BUT UNCLASSIFIED 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON PGOV ETRD OVIP VM
SUBJECT: DEPUTY PRIME MINISTER PHAM GIA KHIEM'S AMCHAM LUNCHEON 
 
 
SENSITIVE - DO NOT POST ON INTERNET 
 
¶1. (SBU) Summary: Deputy Prime Minister/Foreign Minister Pham Gia 
Khiem delivered a less-than-spectacular performance at an 
off-the-record American Chamber of Commerce-hosted luncheon on March 
7, 2007.  Though the self-interested questions of luncheon 
participants were partly responsible for the quality of the event, 
Khiem's lackluster speech and vague answers exhibited an un-dynamic 
public persona which may be noticed in Washington next week.  Still, 
Khiem did demonstrate a quiet confidence and relaxed demeanor that 
may serve him well in smaller audiences.  EconOff attended the event 
along with Mainland Southeast Asia Office Director Rob Rapson.  End 
Summary. 
 
¶2. (SBU) Khiem began the AmCham luncheon with a five-minute prepared 
statement on Vietnam's broad goals in the coming years and 
U.S.-Vietnam relations.  He read his remarks in English, though his 
pronunciation and delivery suggested only a limited command of the 
language.  Vietnam had seen "great achievements" in all areas in 
2006, particularly with WTO entry and increasing integration into 
the world economy.  At the 10th Party Congress in 2006, Vietnam set 
out two important goals:  to become an industrialized nation by 
2020, and to become more engaged with the world. Much more needs to 
be done to meet both goals, he added.  The primary expression of the 
latter goal will come with Vietnam's bid for a non-permanent seat on 
the UN Security Council.  Asia has agreed to support this candidacy, 
and Vietnam looks forward to support from the United States. 
U.S.-Vietnam bilateral relations entered a new, fully normalized 
phase in the wake of President Bush's visit and PNTR status. 
Concluding his remarks, the DPM said that many opportunities exist 
for U.S. business in Vietnam and that the level of trade and 
investment is "far below its potential."  "Your participation in our 
market would be warmly welcomed," he said. 
 
Question/Answer Period 
---------------------- 
 
¶3. (SBU) After the remarks, luncheon participants posed a range of 
questions on economic and business matters, with about half focused 
on the narrow interests of the questioners.  A representative of the 
Vietnam Safety Products and Equipment Company, for example, asked 
why Vietnam was not enforcing its helmet laws.  Another man asked if 
the DPM could visit his company while in the United States.  On more 
substantive matters, David Knapp of Motorola asked what commercial 
matters would figure in Khiem's U.S. trip.  Khiem responded with a 
stock description of his agenda:  1) to deepen political and 
economic relations in the wake of President Bush's visit; 2) to 
prepare for President Triet's visit later this year; 3) to publicize 
opportunities for trade and investment in Vietnam to the U.S. 
business community; and, 4) to visit U.S. universities and explore 
cooperative efforts with them.  (Note:  Knapp, the AmCham President, 
had already stated this agenda with greater specificity in his 
opening remarks for Khiem.  End note.) 
 
¶4. (SBU) Citigroup's Charly Maden next expressed concern that 
Vietnam might impose a capital gains tax on foreign investment in 
Vietnam in order to calm the country's capital markets.  Such as tax 
on foreign investors would be tantamount to discrimination, he said, 
and any tax should be imposed on domestic investors also.  Khiem 
responded that "Vietnam is a WTO member, so we will not have 
discrimination against anyone in the private sector," a statement 
eliciting applause.  Jocylyn Tran, of MAST Industries, a 
manufacturing firm producing Victoria's Secret and other brands in 
Vietnam, urged the Ministry of Trade to put in place a system of 
export licenses in order to prevent self-initiated anti-dumping 
measures in the WTO by the United States.  Such a system would help 
prevent the trans-shipment of Chinese goods through Vietnam; she 
further asked if the issue will be on Khiem's U.S. trip agenda. 
Khiem responded only that:  "This is a very important issue with the 
United States administration." 
 
¶5. (SBU) AmCham Executive Director Adam Sitkoff next asked whether 
several large strikes in recent days, including one involving 7,000 
workers at a Japanese firm and one involving 3,000 workers at a 
Taiwanese firm, are causing concern in the government.  Khiem, in 
perhaps his longest response, stated that the government is paying 
attention to the issue and that he knows the issue is of concern to 
foreign investors.  Hedging, he said some of the problems at the 
firms are due to legitimate worker concerns, though Vietnamese 
workers were known to "lack discipline."  The government's policy is 
to "work out a solution through mediation and conciliation." 
Finally, a BBC reporter stated that he has been asked to leave the 
country and asked whether Khiem agreed to a policy to eject foreign 
 
HANOI 00000440  002 OF 002 
 
 
reporters from Vietnam.  Khiem asked MFA Spokesman Le Dzung to 
answer the question, and Dzung stated that the reporter's visa, 
provided in order to report on APEC and since renewed, has expired. 
He encouraged him to apply for a new visa. 
 
MARINE