VZCZCXRO7333
RR RUEHHM
DE RUEHHI #1756/01 2781027
ZNR UUUUU ZZH
R 051027Z OCT 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 6475
INFO RUEHHM/AMCONSUL HO CHI MINH 3780
RUEHGV/USMISSION GENEVA 1212
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS SECTION 01 OF 03 HANOI 001756 
 
SIPDIS 
 
STATE FOR EAP/MLS 
STATE PASS USTR FOR DBISBEE AND RBAE 
COMMERCE FOR 4431/MAC/AP/OPB/VLC/HPPHO AND EMIKALIS 
COMMERCE FOR IMPORT ADMINISTRATION SSU 
 
SENSITIVE BUT UNCLASSIFIED 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD ECPS KTEX ECON WTRO KIPR VM
SUBJECT: NEW MINISTER OF INDUSTRY AND TRADE SHARES HIS PRIORITIES 
WITH THE AMBASSADOR 
 
REF:  Hanoi 1731 
 
¶1. (SBU) This cable contains biographical information for INR/B in 
para 14. 
 
¶2. (SBU) Summary: New Minister of Industry and Trade Vu Huy Hoang 
and the Ambassador discussed ways to enhance bilateral trade and 
investment, such as through a Bilateral Investment Treaty, GVN 
approval for pending U.S. commercial deals, and implementation of 
Vietnam's trade obligations.  The Ambassador thanked Minister Hoang 
for recent progress on several outstanding intellectual property 
rights commitments and encouraged further dialogue on trading 
rights.  The Minister raised the U.S. apparel monitoring mechanism 
and looked forward to holding a "frank and open" discussion with 
visiting Assistant Secretary of Commerce David Spooner.  After only 
two months in his new position, the Minister demonstrated a firm 
grasp of key bilateral issues and appears to be a willing and 
engaged interlocutor for the U.S. Embassy.  End Summary. 
 
A TALE OF TWO MINISTRIES 
------------------------ 
 
¶3. (SBU) In his initial courtesy call on September 25, the 
Ambassador congratulated new Minister of Industry and Trade (MOIT) 
Vu Huy Hoang on his appointment and solicited his views on the 
merger of the former Ministries of Industry and Trade into one 
organization.  Minister Hoang commented that the two ministries were 
merged in the 1950s, and since that time were split and have 
undergone a series of organizational changes to respond to Vietnam's 
needs at each stage of its economic development.  The GVN decided to 
combine them once again to align Vietnam's policy making with its 
increasing integration into the global economy.  The two former 
ministries' responsibilities were closely tied to domestic 
production and consumption, and through this merger MOIT can better 
coordinate policy decisions in these areas while focusing 
increasingly on governance issues, Hoang explained.  He noted that 
other ASEAN members and countries in the region have a similar 
model. 
 
THE MINISTER'S TOP PRIORITIES 
----------------------------- 
 
¶4. (U) The Minister stated that his top priorities in the new 
position are: promoting investment, trade and industrial 
development; facilitating domestic economic growth; ensuring that 
the Consumer Price Index (CPI) does not rise too rapidly; focusing 
additional efforts on economic integration through bilateral and 
multilateral agreements; and, preparing for the restart of the World 
Trade Organization's (WTO) Doha Round of negotiations.  On the 
latter issue, he said that Vietnam is currently reviewing two drafts 
from the WTO Agriculture and Non-Agriculture Committees, and in 
principle agrees with the content of each.  Hoang also explained 
that Vietnam hopes that long-established WTO members will not ask 
new members like Vietnam to agree to commitments beyond those that 
they negotiated in their own accession agreements.  The Ambassador 
responded that a successful conclusion to the Doha Round is 
something we all hope to achieve soon. 
 
BILATERAL INVESTMENT TIES 
------------------------- 
 
¶5. (SBU) Minister Hoang agreed with the Ambassador that our trade 
and commercial relationship is very strong and he looks forward to 
working with the Ambassador to broaden and deepen our ties. 
Foremost among his bilateral priorities, the Minister said, is his 
desire to see a "significant increase" in U.S. investment in 
Vietnam.  The Ambassador remarked that this will be important to 
attract more capital, as well as to promote technology transfer and 
create additional education and training opportunities. 
 
¶6. (SBU) Hoang told the Ambassador that he discussed launching 
exploratory talks for a Bilateral Investment Treaty (BIT) with U.S. 
Trade Representative Susan Schwab during their meeting earlier in 
September at the APEC Summit in Sydney.  Deputy Prime 
Minister/Foreign Minister Pham Gia Khiem also discussed this issue 
in Sydney with Secretary Rice, he said.  Hoang supports the launch 
of talks to explore further investment promotion opportunities 
between the two countries through a BIT. 
 
INCREASING AND BALANCING BILATERAL TRADE 
---------------------------------------- 
 
¶7. (U) The Ambassador pointed to the U.S.-Vietnam Bilateral Trade 
Agreement (BTA), Vietnam's WTO accession, the granting of Permanent 
 
HANOI 00001756  002 OF 003 
 
 
Normal Trade Relations (PNTR) for Vietnam and the recently-signed 
Trade and Investment Framework Agreement (TIFA) as signs of how 
rapidly and successfully our trade relationship has developed in 
recent years.  Encouraging further improvement of Vietnam's 
regulatory system and investment climate to broaden and deepen that 
relationship is a top priority of his tenure, the Ambassador 
remarked. 
 
¶8. (SBU) While Vietnam has been very successful in exporting to the 
United States, U.S. exports to Vietnam have been much lower, the 
Ambassador said.  He told the Minister that he will focus on 
promoting U.S. goods and services exports during his tenure in an 
effort to improve the balance in our trade relationship.  One quick 
and simple way to accomplish this, while also increasing U.S. 
investment here, would be for Vietnam to buy Boeing aircraft and 
approve licenses for U.S. companies such as AES, Gannon, Motorola 
and Sikorsky, the Ambassador continued.  Positive responses to these 
companies' business proposals would also have social benefits for 
Vietnam, including increased education and training opportunities. 
 
¶9. (SBU) Minister Hoang responded that a number of Vietnamese firms 
accompanied Prime Minister Dzung to New York this week in hopes of 
negotiating and signing agreements with their U.S. counterparts.  He 
said that both governments should work to facilitate trade and 
investment opportunities such as these by working mutually to remove 
trade barriers and minimize burdensome regulations.  Hoang noted 
that in spite of the current trade imbalance, Vietnam's exports to 
the United States were "small compared to other countries' exports 
to the United States" and he hopes to see exports increase 
significantly while he is Minister. 
 
PROGRESS IN UPHOLDING ITS COMMITMENTS 
------------------------------------- 
 
¶10. (SBU) The United States is closely monitoring Vietnam's 
implementation of its WTO commitments, the Ambassador said.  He 
thanked the Minister for his government's assistance in providing 
the United States with a new draft circular on criminal remedies for 
commercial scale intellectual property rights (IPR) violations.  The 
Office of the United States Trade Representative (USTR) is now 
reviewing a translated version of the draft, he explained, and will 
provide comments to the GVN drafters.  The Ambassador also thanked 
the GVN for its help in getting the state-owned digital terrestrial 
television content provider VTC to cease illegally transmitting U.S. 
broadcast content without a license.  This is a "significant 
achievement," he said. 
 
¶11. (SBU) The Minister smiled knowingly as the Ambassador raised a 
third issue - trading and distribution rights.  The Ambassador 
explained his understanding that USTR's Director for Southeast Asia 
David Bisbee had productive discussions with MOIT officials during 
his September 17-19 visit which helped provide a better 
understanding of the regulation.  He expressed the hope that this 
dialogue will continue.  Hoang reported that the Ministry has 
received a number of comments from businesses and other interested 
parties and is working with its GVN counterparts to take these 
comments into "serious consideration." 
 
APPAREL MONITORING MECHANISM 
---------------------------- 
 
¶12. (SBU) The Minister raised the U.S. Department of Commerce's 
apparel monitoring mechanism, referring to it as a "problem" in our 
trade relationship that he hopes to see abolished.  He commented 
that he was looking forward to holding a "frank and open" discussion 
with visiting Commerce Assistant Secretary for Import Administration 
David Spooner during their September 26 meeting in Hanoi (see 
Reftel).  He hoped the exchange would help the two sides better 
understand their respective positions on this issue.  Commerce 
Secretary Carlos Gutierrez's November visit will be another 
 
SIPDIS 
opportunity to discuss the mechanism, the Minister continued. 
 
BIOGRAPHIC INFORMATION/COMMENT 
------------------------------ 
 
¶13. (SBU) The new Minister spoke clear English in informal 
conversations before and after the official meeting, but used 
Vietnamese and relied on interpretation during the meeting.  He 
spent five years in East Germany, and speaks German well.  Prior to 
his appointment as Minister, Hoang served as Party General Secretary 
in Lang Son Province.  Before that he was Chairman of the People's 
Committee in Ha Tay Province after serving as Vice Minister of 
Planning and Investment.  Some contacts were surprised to see Hoang 
appointed as Minister because he has not worked in either the 
 
HANOI 00001756  003 OF 003 
 
 
Ministry of Trade or the Ministry of Industry.  Nevertheless, the 
new Minister is apparently a quick study as he demonstrated a firm 
grasp of the key bilateral issues during the meeting.  He has thus 
far accepted all of the Embassy's meeting requests - three in the 
last week - and appears to be a willing and engaged interlocutor on 
bilateral trade and investment issues. 
 
MICHALAK