VZCZCXRO9544
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHHI #1957/01 3230622
ZNR UUUUU ZZH
R 190622Z NOV 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 6734
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHHM/AMCONSUL HO CHI MINH 3959
RUCNASE/ASEAN MEMBER COLLECTIVE

UNCLAS SECTION 01 OF 02 HANOI 001957 
 
SIPDIS 
 
STATE FOR EAP/MLS 
STATE PASS USTR FOR DBISBEE 
USDOC FOR 4430/MAC/ASIA/OPB/VLC/HPPHO AND IMPORT ADMINISTRATION SSU 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KTEX ECON EIND ETRD ETTC VM
SUBJECT: MOIT EXPRESSES CONTINUED CONCERNS OVER APPAREL MONITORING 
MECHANISM 
 
REF: (A) HCMC 1144; (B) HCMC 1109; (C) HANOI 1731; (D) HANOI 1654 
 
HANOI 00001957  001.2 OF 002 
 
 
¶1. (U) The Ministry of Industry and Trade (MOIT) sent Post an 
October 31 Diplomatic Note addressed to the U.S. Department of 
Commerce, urging the United States not to self-initiate an 
antidumping investigation against Vietnam and to revoke its Textile 
and Apparel Import Monitoring Program.  Full text of the Diplomatic 
Note follows in paragraph 2.  Vietnamese Minister of Industry and 
Trade Vu Huy Hoang conveyed a similar message orally to U.S. 
Secretary of Commerce Carlos Gutierrez during their November 7 
 
SIPDIS 
meeting (Reftel A), when he asked the Secretary personally to help 
abolish the program, or, at a minimum, to reduce the number of line 
items subject to monitoring. 
 
¶2. (U) FULL TEXT OF DIPLOMATIC NOTE AS DELIVERED (Unofficial 
Translation): 
 
Department of Commerce 
The United States of America 
 
No.    /07 
 
The Ministry of Industry and Trade of the Socialist Republic of 
Vietnam presents its compliments to the United States Department of 
Commerce and has the honor to present the Department issues 
concerning the monitoring program of apparel imports from Vietnam. 
 
 
First of all, the Ministry of Industry and Trade would highly 
appreciate the Department of Commerce's decision not to 
self-initiate an antidumping investigation against Vietnam apparel 
imported into the United States after the first data review.   We 
see this is a fair and objective decision reflecting the reality. 
 
However, maintaining such a program contrary to the WTO's 
regulations and failing to clarify the criteria for a 
self-initiating investigation will continue to create an uncertain 
market causing many difficulties in business planning for both U.S. 
importers and Vietnam manufacturers; injuring the normal trade 
relations between our two countries in general and in textiles in 
particular. 
 
The Ministry of Industry and Trade of Vietnam once again would like 
to remind the Department of our objection to the program and would 
urge the Department to revoke the program of apparel imports from 
Vietnam or at least immediately stop monitoring product groups that 
the United States is not manufacturing or having a limited 
production capacity, product groups that have no imports from 
Vietnam, and product groups of which the unit prices are rising or 
have price reductions equivalently to those of imports from other 
countries into the United States over the past time. 
 
The Ministry of Industry and Trade wishes to receive early 
acceptance of the Department of our proposals in order to encourage 
the development of trade in textiles between our two countries in 
accordance with the aspiration of both United States and Vietnamese 
businesses. 
 
The Ministry of Industry and Trade of the Socialist Republic of 
Vietnam avails itself of the opportunity to renew to the Department 
of Commerce of the United States the assurances of its highest 
consideration. 
 
The Ministry of Industry and Trade 
The Socialist Republic of Vietnam 
Hanoi, October 31, 2007. 
 
CC: United States Trade Representative 
    The Embassy of the United States of America in Hanoi 
    The Embassy of the Socialist Republic of Vietnam in the 
    United States 
 
¶3. (U) No signed original to follow. 
 
¶4. (SBU) Comment: It appears that MOIT drafted this note prior to 
receiving official word that the U.S. Department of Commerce found 
insufficient evidence in the first six months of data from the 
monitoring program to initiate a case.  Although the Government of 
Vietnam and industry representatives expressed relief over 
Commerce's October 26 announcement (Reftel B), they continue to 
press for abolishment or, at a minimum, a reduction in scope of the 
program.  Amidst claims that the program is affecting negatively 
Vietnamese exports, the Vietnam Textile and Apparel Association is 
reporting that Vietnam is on track to export USD 4.3 billion in 
garments and textiles to the United States this year - an increase 
 
HANOI 00001957  002.2 OF 002 
 
 
of 26.5 percent over 2006.  End comment. 
 
MICHALAK