VZCZCXRO7907
RR RUEHHM
DE RUEHHI #1360/01 2131822
ZNR UUUUU ZZH
R 011822Z AUG 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 5971
INFO RUEHHM/AMCONSUL HO CHI MINH 3438

UNCLAS SECTION 01 OF 02 HANOI 001360 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS 
 
E.O. 12958: N/A 
TAGS: PGOV SOCI PREL CH VM
SUBJECT: PRESS REVEALS VIETNAM'S NEW CABINET 
 
REF: HANOI 1312 
 
Summary 
------- 
 
¶1. (SBU) On August 2, Vietnam's National Assembly (NA) will 
officially announce the make-up of Prime Minister Nguyen Tan Dzung's 
Cabinet, approve the PM's plan to increase the number of Deputy Vice 
Ministers from three to five, and reduce the number of government 
ministries from 26 to 22, a move the GVN claims will "streamline 
administrative procedures."  The names of the new ministers were 
revealed by the state press a day early, with ministers at National 
Defense, Public Security, Foreign Affairs, Planning and Investment, 
Finance, Transportation, Construction, Science and Technology, 
Education and Training, and the Government Inspectorate remaining 
the same.  Some contacts expressed initial reservations about the 
selection of the new Supreme People's Court Chief Justice, who hails 
from the Ministry of Public Security.  The changes in government 
structure -- coupled with earlier decisions to reduce Party 
interference in policy implementation -- appear to continue the 
trend of strengthening PM Dzung's hand relative to that of Vietnam's 
other top leaders.  This remains to be seen, however, as a number of 
powerful figures unrelated to Dzung survived the shakeup.  We will 
have to see how powers are distributed among the new set of players, 
which will take some time.  End Summary. 
 
Hanoi's New (and Old) Faces 
--------------------------- 
 
¶2. (SBU) One day ahead of the National Assembly's planned 
announcement, the Vietnamese state-press on August 1 revealed who 
will serve in Prime Minister Nguyen Tan Dzung's Cabinet.  The 
Communist Party's Central Committee, reportedly after receiving the 
Politburo's recommendations, put forth its own proposals for the 
Cabinet at last week's Plenum (Reftel).  After formally endorsing 
these recommendations, the National Assembly (NA) will announce the 
Cabinet line-up tomorrow.  It also will approve PM Dzung's plan to 
reduce the number of government ministries from 26 to 22, a move the 
GVN claims will "streamline administrative procedures." 
 
¶3. (SBU) The NA will sign off on merging the Ministry of Fisheries 
into the Ministry of Agriculture and Rural Development; combining 
the Industry and Trade Ministries; rolling the Department for Sports 
and Physical Training and the National Administration of Tourism 
into the Ministry of Culture, Sports and Tourism; and creating a 
Ministry of Information and Communication that is the combination of 
the Ministry of Posts and Telematics and offices for management of 
the press and publication-related issues of the Ministry of Culture 
and Information. 
 
¶4. (SBU) The NA has already given its formal stamp of approval to 
Prime Minister Nguyen Tan Dzung, President Nguyen Minh Triet and NA 
Chairman Nguyen Phu Trong by re-electing them in their respective 
positions.  On August 2, it will announce that ministry heads who 
will remain unchanged include National Defense, Public Security, 
Foreign Affairs, Planning and Investment, Finance, Transportation, 
Construction, Science and Technology, Education and Training, and 
the Government Inspectorate.  New ministers will take over at the 
Ministry of Culture, Sports and Tourism, Natural Resources and 
Environment, the Ministry of Industry and Commerce, the Ministry of 
Information and Communications, Ministry of Interior, Ministry of 
Justice, Ministry of Labor, War Invalids and Social Affairs, 
Ministry of Public Health, at the Committee for Ethnic Affairs, as 
State Bank Governor and as Minister-Chairman of the Office of the 
Government. 
 
Adding Deputy Prime Ministers 
----------------------------- 
 
¶5. (SBU) The NA will also bless a slate of five deputy prime 
ministers, an increase of two from the previous administration.  The 
NA's Nguyen Minh Thuyen said that adding two deputy prime premiers 
is an important element in GVN efforts to promote administrative 
reform.  The three current incumbents will remain.  These are 
permanent Deputy PM Nguyen Sinh Hung; Deputy PM Pham Gia Khiem, who 
will double as Foreign Minister; and Deputy PM Truong Vinh Trong, 
who will continue to preside over the GVN's Anti-Corruption Steering 
Committee.  The newcomers are Deputy PM Hoang Trung Hai, who will be 
in charge of economic affairs; and Deputy PM Nguyen Thien Nhan, who 
will be responsible for cultural and social affairs and double as 
minister of education and training.  Hung, Khiem and Trong are 
Politburo members, and are not known to be beholden to Dzung. 
Newcomer Hai -- at 48 -- will be Vietnam's youngest ever deputy 
premier.  Nhan is a former Fulbright scholar and is regarded by many 
inside and outside the government as one of the most forward 
thinking and competent of the new team.  These two are presumed to 
owe their positions to Dzung, which is sparking some of the current 
analysis that Dzung has strengthened his hand. 
 
Changes Draw Mixed Reaction 
 
HANOI 00001360  002 OF 002 
 
 
--------------------------- 
 
¶6. (SBU) NA Deputy Director Dzung and NA Vice Chairman Dzung praised 
the new cabinet line-up.  Deputy Director Dzung said that adding two 
deputy prime ministers will help PM Dzung focus more on "strategic 
issues."  In the past, the GVN had five deputy prime ministers, so 
the addition of two more simply restores this past model, he added. 
 
¶7. (SBU) A knowledgeable observer at the Supreme People's Court 
(SPC) told us July 31 that Truong Hoa Binh, the new SPC Chief 
Justice, was a "last-minute choice" imposed on the government by the 
Party.  Strong pressure from the Politburo-appointed Party Committee 
at the National Assembly was brought to bear to replace Nguyen Van 
Hien as Chief Justice.  Party officials were reportedly angered by 
Hien's "reckless comments" last year before the NA which were 
critical of the qualifications of new judges being appointed in 
Vietnam, this source said.  Separately, HCMC contacts point to Binh 
as yet another southerner, like Dzung (though a Long An native who 
rose through the police ranks), taking up a key position in Hanoi. 
 
 
¶8. (SBU) Hien himself was surprised to hear that he was to be 
replaced, as top leaders had earlier confirmed that he would be 
re-nominated despite his "uncontrolled remarks" about the quality of 
judges, according to this source.  Another source in the NA's 
offices told us that Vietnam's current system puts the SPC Chief 
Justice "in the awkward position" of being responsible to the 
"common people's demands" and reporting to a Party-led National 
Assembly, which is part of the "Party-controlled political system." 
The courts, he averred, should be independent.  Lack of judicial 
independence leads to distrust and contributes to the problem of 
repeated appeals of court rulings, he added.  The selection of Binh, 
who hails from the Ministry of Public Security, as Chief Justice was 
a "Party-driven phenomenon," the two sources separately agreed. 
 
 
Comment 
------- 
 
¶9. (SBU) It is impossible to immediately analyze the significance of 
these changes for Vietnam's future.  There are plenty of old faces, 
including a good number who clearly in no way owe allegiance - or 
their positions -- to the Prime Minister.  A couple of deeply 
corrupt and incompetent officials have moved on, others remain. 
Nonetheless, observers here are initially scoring this as a step 
ahead for PM Dzung.  The two new deputy prime ministers owe their 
elevation to the Prime Minister, and are expected to be dynamic 
players. 
 
¶10. (SBU) This cable was coordinated with Consulate Ho Chi Minh 
City. 
 
MARINE