VZCZCXRO4775
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RUEHMA RUEHMR RUEHPA RUEHPB RUEHRN
DE RUEHHI #1627/01 2550811
ZNR UUUUU ZZH
R 120811Z SEP 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 6327
INFO RUEHHM/AMCONSUL HO CHI MINH 3678
RUEHGV/USMISSION GENEVA 1206
RUEHZS/ASEAN REGIONAL FORUM COLLECTIVE
RUCNWTO/WORLD TRADE ORGANIZATION COLLECTIVE
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEHPH/CDC ATLANTA GA
RUEAUSA/DEPT OF HHS WASHINGTON DC
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RHEFDIA/DIA WASHINGTON DC//DHO-3//
RHMFIUU/CDR USPACOM HONOLULU HI//J00/J2/J3/J5//
RHEFAFM/DIRAFMIC FT DETRICK MD//MA-1A//
RUEHSUN/USUN ROME IT

UNCLAS SECTION 01 OF 03 HANOI 001627 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS TO USTR (BISBEE,GLAUBER,BURST) 
USDA FOR DUS TERPSTRA 
USDA PASS TO FAS (OA,OCRA,ONA,OFSO) 
STATE FOR EAP/MLS, EAP/EP, AIAG, OES/IHA, MED 
STATE PASS TO USAID FOR ANE AND GH 
STATE PASS TO HHS/OGHA (STIEGER/VALDEZ/BELL/HICKEY) 
CDC FOR OGHA (BLOUT/MCCALL) AND DIV-FLU (COX/MOHEN) 
DEPARTMENT OF DEFENSE FOR OSD/ISA/AP (STERN) 
HHS PASS TO FIC/NIH (GLASS) 
USDA PASS TO APHIS, FAS (OSTA AND OCRA), FSIS 
BANGKOK FOR RMO, CDC (MALISON), USAID (MACARTHUR/BRADY) 
BEIJING FOR HHS HEALTH ATTACHE (ROSS) 
PHNOM PENH FOR CDC INFLUENZA COORDINATOR(BRADY) 
VIENTIANE FOR CDC INFLUENZA COORDINATOR (CORWIN) 
ROME FOR FAO 
 
E.O. 12958: N/A 
TAGS: ETRD EAGR TBIO SOCI WTRO KFLU VM
SUBJECT: AMBASSADOR MICHALAK AND MARD MINISTER PHAT DISCUSS 
AGRICULTURAL TRADE, RURAL DEVELOPMENT, AND AVIAN INFLUENZA 
 
 
HANOI 00001627  001.2 OF 003 
 
 
¶1.  (SBU) Summary:  During his September 10 courtesy call with 
Minister of Agriculture and Rural Development (MARD) Cao Duc Phat, 
Ambassador Michalak advocated on behalf of U.S. agricultural 
products, praised Vietnam's adherence to international agricultural 
standards, and thanked Phat for Vietnam's strong cooperation on 
Avian Influenza (AI).  The Ambassador emphasized the U.S. commitment 
to provide fair access to Vietnamese agricultural products, 
particularly fruits currently under review by the U.S. Department of 
Agriculture (USDA) for import approval, and stated that the United 
States would continue to assist Vietnam' integration into the world 
agricultural trading system.  Phat stressed Vietnam's need to work 
with international partners, particularly the United States, to 
adjust to the global economy and its responsibilities as a new 
member of the World Trade Organization (WTO).  Phat noted that 
Vietnam faced many challenges as it looks to improve agricultural 
productivity and rural incomes, while introducing its agricultural 
businesses to world markets.  Phat commended the United States for 
its assistance to Vietnam in fighting Avian Influenza.  Phat agreed 
that Vietnamese consumers enjoy American agricultural products and 
asked that the U.S. continue to send beef to Vietnam.  End summary. 
 
Vietnam's International Commitments 
----------------------------------- 
 
¶2.  (SBU) Cao Duc Phat, a 1992 graduate of the Kennedy School at 
Harvard, stated that his studies in the United States introduced him 
to the United States, market economics and the international 
community. Phat then thanked the United States for the important 
role it played in Vietnam's accession to the WTO.  However, Phat 
stressed that Vietnam realized that it could not meet its 
commitments to the international community on its own and that the 
Government of Vietnam (GVN) needed to focus on transparency to 
better foster international cooperation. 
 
Increasing Agricultural Trade 
----------------------------- 
 
¶3.  (SBU) Phat remarked that Vietnamese consumers find American 
produce attractive, particularly grapes and apples, and asked the 
United States to send more beef.  Ambassador Michalak thanked Phat 
for Vietnam's continued purchases of U.S. agricultural products but, 
noting the trade disparity between the two nations, urged Vietnam to 
expand the range of American farm products it imports.  The 
Ambassador praised recent Vietnamese moves to lower tariffs and 
streamline regulations, along with Vietnam's quick action to comply 
with World Organization for Animal Health guidelines.  In turn, 
United States would continue to assist Vietnam better understand the 
U.S. regulatory system and to provide fair access to the U.S. 
market, including Vietnamese tropical fruits currently under USDA 
import review. 
 
Avian Influenza 
--------------- 
 
¶4.  (SBU) Ambassador Michalak praised Vietnam's cooperation on AI 
and noted that Vietnam's response is considered a model for national 
programs around the world.  He cautioned, however, that the GVN and 
the donors must stress to farmers and consumers that the threat has 
not diminished and all must continue their vigilance.  Though 
 
HANOI 00001627  002.2 OF 003 
 
 
responding to AI remained a challenge for the GVN, particularly 
given the huge numbers of ducks and chickens bred each year, Phat 
singled-out U.S. AI assistance as particularly helpful.  In response 
to a question from the Ambassador, Phat recognized that part of the 
problem came from poultry smuggled in from China.  Phat stated that 
Vietnam would soon hold a nationwide meeting to discuss the national 
poultry vaccination program. 
 
Agricultural Productivity 
------------------------- 
 
¶5.  (SBU) Phat acknowledged that Vietnam needed to focus on 
increasing agricultural productivity.  According to Phat, Vietnam's 
annual agricultural exports currently totaled about USD 8 billion. 
To increase that number (and to provide the Vietnamese people with 
safe food for domestic consumption), Vietnam needed to implement the 
Sanitary and Phyto-Sanitary (SPS) agreement.  However, while the GVN 
understood the need to conform to international regulations and to 
build public support for modernization efforts, it lacked the human 
resources to do so effectively.  Ambassador Michalak stated that the 
United States hoped to directly assist Vietnam to meet international 
SPS standards and that the United States also currently provides 
some assistance on SPS issues through projects pursuant to the Trade 
and Investment Framework Agreement with ASEAN.  The Ambassador also 
highlighted the positive role that biotechnology could play to help 
Vietnam increase agricultural productivity through increased yields 
and lower input costs.  Phat reiterated MARD's desire to learn more 
about biotechnology applications. 
 
Rural Development 
----------------- 
 
¶6.  (SBU) Phat detailed the main challenges Vietnam faces in 
promoting sustainable and environmentally acceptable rural 
development.  According to Phat, ninety percent of Vietnamese poor 
live in the countryside.  Seventy percent of Vietnamese rely on 
agriculture for their income, while agriculture now only makes up 
twenty percent of GDP.  Thus, the GVN worries about the growing gap 
between urban and rural incomes, while also noting decreases in 
agricultural land and an increase in migration to the cities.  Each 
year, Vietnam loses 200,000 members of its rural labor force.  At 
the same time, the GVN is developing plans to help those mired in 
extreme poverty and members of minority groups.  MARD seeks to 
increase competitiveness in rural provinces through reliance on 
science and technology to increase value-added to agricultural 
products.  MARD also plans to improve rural entrepreneurship to grow 
agricultural businesses and update and expand infrastructure to ease 
transportation of agricultural goods and attract investment to 
further upgrade facilities. 
 
Comment 
------- 
 
¶7.  (SBU) On agricultural issues, Vietnam gets it.  GVN agricultural 
policy-makers understand the benefits of trade and the need to 
reduce tariffs and other regulatory obstacles to imports and 
exports.  Though policies always are subject to change, we have seen 
few attempts to create obstacles to U.S. farm products.  To date, 
GVN efforts to comply with Vietnam's international obligations have 
 
HANOI 00001627  003.2 OF 003 
 
 
been excellent.  Embassy Hanoi urges continued United States efforts 
to assist Vietnam's integration into global agricultural markets and 
to ensure that Vietnam perceives it has fair access to the U.S. 
market - particularly for its tropical fruits.  We believe such 
actions will buttress Vietnam's policies to open its markets to 
American goods. 
 
MICHALAK