VZCZCXRO2968
RR RUEHHM
DE RUEHHI #1550/01 2411708
ZNR UUUUU ZZH
R 291708Z AUG 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 6211
INFO RUEHHM/AMCONSUL HO CHI MINH 3596

UNCLAS SECTION 01 OF 02 HANOI 001550 
 
SIPDIS 
 
STATE FOR EAP/MLS AND INR/B 
STATE PASS TO USTR DAVID BISBEE 
 
SENSITIVE BUT UNCLASSIFIED 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON ETRD EFIN VM
SUBJECT: NEW CZARS IN THE MAKING? THE NEW DPM PORTFOLIOS 
 
REF: HANOI 1360 
 
(U) This cable is sensitive but unclassified.  Not for Internet. 
 
¶1. (SBU) Summary.  Prime Minister Nguyen Tan Dzung signed a Decision 
this week assigning duties and portfolios to himself and his five 
Deputy Prime Ministers (DPMs), two of which are newly-created 
positions.  Broadly defined, the Prime Minister will oversee all 
Government of Vietnam (GVN) operations, while assigning one DPM each 
to cover banking and finance; international relations; 
anti-corruption and judicial reform efforts; economic affairs; and 
education and training.  While expectations are high for new DPM and 
Minister of Education and Training Nguyen Thien Nhan, the new DPM in 
charge of economic affairs, Hoang Trung Hai, has elicited mixed 
reviews.  End Summary. 
 
THE PRIME MINISTER'S DOMAIN 
--------------------------- 
¶2. (U) Prime Minister Nguyen Tan Dzung announced on August 27 
Decision 1120, assigning duties and portfolios to himself and his 
five DPMs, two of which are positions created after the August 2 
cabinet reshuffle (Reftel).  Dzung reserved for himself 
responsibility for "all operations of the government" and oversight 
of the Central Anti-Corruption Steering Committee.  He will also 
directly supervise the functions of the ministries of Planning and 
Investment, Defense, Public Security, and Internal Affairs and 
Health, the Office of the Government (OOG), the National Political 
and Administrative Institute, and major media outlets such as the 
Vietnam News Agency, Vietnam Television and Voice of Vietnam Radio. 
 
FINANCE AND BANKING 
------------------- 
 
¶3. (U) DPM Nguyen Sinh Hung, the highest ranking of the DPMs, has 
been assigned as the finance and banking czar, with responsibilities 
for monetary policy, finance, customs, securities and the 
"equitization" of state-owned enterprises (SOEs).  Under his direct 
supervision will be the Ministries of Finance and Labor, Invalids 
and Social Affairs, as well as the State Bank, the State Capital 
Investment Corporation (SCIC), the Committee of Ethnic Minorities, 
Vietnam Social Insurance and the Vietnam Development Bank.  Contacts 
in the Ministry of Finance commented to the Embassy that his prior 
experience as Vice Minister and Minister of Finance made him an 
obvious choice for this portfolio. 
 
INTERNATIONAL RELATIONS 
----------------------- 
 
¶4. (SBU) Deputy Prime Minister Pham Gia Khiem, who will continue to 
retain dual responsibilities as Foreign Minister (as he did under 
the old Cabinet), is in charge of international relations, border 
issues and, significantly, "international economic relations."  The 
media reports that he will be responsible for overseeing Vietnam's 
integration into the world economy and ensuring that Vietnam meets 
its bilateral, multilateral and World Trade Organization (WTO) trade 
commitments.  The PM has also assigned DPM Khiem responsibilities 
for human rights and "related" issues.  Notwithstanding Khiem's new 
duties, a contact at the Ministry of Industry and Trade (MOIT) 
thought that trade obligation issues would still be resolved at the 
Ministerial level, or if necessary, go directly to the Prime 
Minister for action, bypassing Khiem. 
 
ANTI-CORRUPTION AND JUDICIAL REFORM 
----------------------------------- 
 
¶5. (U) DPM Truong Vinh Trong, the oldest of the five DPMs, will 
serve as the "judicial czar."  Trong will continue as Deputy 
Chairman of the Central Anti-Corruption Steering Committee and 
manage its day-to-day activities.  He is also responsible for 
overseeing the Government Inspectorate and judicial reform, among 
other things. 
 
ECONOMIC AFFAIRS 
---------------- 
 
¶6. (SBU) The first and youngest of the two new DPMs, Hoang Trung 
Hai, has been tasked with "economic affairs," including industry, 
agriculture, fisheries, trade and services (domestic and 
export/import activities), construction, transportation, natural 
resources and the environment.  DPM Hai will oversee the Ministries 
of Industry and Trade, Agriculture and Rural Development, and 
Natural Resources and the Environment.  The fact that Hai, who was 
expected to handle all the economic ministries, did not get Finance 
and international economic issues, was surprising, and we are told 
by an MOIT contact that his lack of experience (at the state power 
company and the Ministry of Industry) did not help. 
 
¶7. (SBU) A contact who worked under Hai at Industry described the 
new DPM as a skilled technocrat with great competency in the 
 
HANOI 00001550  002 OF 002 
 
 
industrial sector, as well as a savvy but cautious political 
operator.  The contact commented that Hai's careful approach may 
limit his influence over the ministries under his portfolio.  Others 
were harsher in their assessment. National Assembly Vice Chairman 
Nguyen Sy Dzung, for instance, said that Hai had a lackluster record 
as Minister of Industry, and quoted former Prime Minister Vo Van 
Khiet as saying that Hai, "did not have a good vision as Minister." 
Despite this, Hai is seen as a rising star within the GVN and 
someone whose power could continue to rise as he grows into his new 
role. 
 
EDUCATION AND TRAINING 
---------------------- 
 
¶8. (SBU) Nguyen Thien Nhan, the second new Deputy Prime Minister, 
will serve concurrently as Minister of Education and Training.  In 
addition, Nhan will oversee the Ministries of Information and 
Communication, Science and Technology, Culture, Sports and Tourism 
and the Vietnamese Institutes of Science and Technology and Social 
Sciences.  DPM Nhan is viewed as hard-charging and tough - a 
reputation earned through his personal involvement in a successful 
campaign to crack down on cheating on Vietnam's national exams, and 
other similar efforts. 
 
¶9. (SBU) Nhan's promotion to the position of DPM would seem a good 
fit not only in terms of his working style - which he shares with 
the PM - but also well-timed because the GVN is placing great focus 
and effort into reforming its education system, including through 
outreach to the U.S. Government, U.S. universities and other 
international organizations.  (Note: Nhan is a former Fulbright 
Scholar with an MA from the University of Oregon.  End note.) 
According to Nguyen Chi Dzung, former Editor-in-Chief of the Office 
of the National Assembly's Legislative Affairs Journal, DPM Nhan is 
said to be a protege of President Nguyen Minh Triet, who believes 
that large U.S. companies and organizations have a significant role 
to play in helping Vietnam's development and growing global profile. 
 The Prime Minister is said to also share this view. 
 
MICHALAK