VZCZCXRO7771
OO RUEHDT RUEHPB
DE RUEHHM #0915/01 2770947
ZNR UUUUU ZZH
O P 030947Z OCT 08
FM AMCONSUL HO CHI MINH CITY
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4997
INFO RUEHHI/AMEMBASSY HANOI PRIORITY 3352
RUEHHM/AMCONSUL HO CHI MINH CITY PRIORITY 5226
RUCPDOC/USDOC WASHDC PRIORITY 0081
RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE

UNCLAS SECTION 01 OF 02 HO CHI MINH CITY 000915 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS, USAID/ANE, EEB/TPP/BTA/ANA 
USAID/ANE/EAA FOR FRANK DONOVAN 
STATE PASS USTR FOR BISBEE 
USDOC FOR 4431/MAC/AP/OPB/VLC/HPPHO 
 
E.O. 12958: N/A 
TAGS: ECON ETRD PREL SOCI VM
SUBJECT: VIETNAMESE EXPORTERS WELCOME CPSC SAFETY STANDARDS MESSAGE 
 
HO CHI MIN 00000915  001.2 OF 002 
 
 
Subject: (U) Vietnamese Exporters Receptive to CPSC Safety 
Standards Message 
 
¶1. (SBU) Consumer product exports have been a central pillar of 
Vietnam's economic development success story -- in 2007 Vietnam 
was the 31st largest source of imports to the United States and 
the surprising leader in some products, candles for instance. 
So when Consumer Product Safety Commission Chair Nancy Nord came 
to Vietnam to explain new U.S. product safety regulations, local 
businesses turned out in force.  Company managers said they are 
eager to understand and meet new U.S. safety regulations, in 
order to expand their exports to the United States.  Their 
enthusiasm is creating a new market for 
internationally-certified product testing services in Vietnam 
and also slowly beginning the process of improving the safety of 
consumer product in Vietnam.  End summary. 
 
Exporters Flock to CPSC Seminars 
-------------------------------- 
¶2. (U) Consumer Product Safety Commission (CPSC) Chair Nancy 
Nord led a series of industry seminars from September 11-12 in 
Hanoi and September 15-17 industry seminars in Ho Chi Minh City 
(HCMC) to educate Vietnam's export sector about new U.S. 
consumer product safety regulations.  The HCMC branches of the 
Vietnam Chamber of Commerce and Industry (VCCI) and Vietnam 
Textile and Apparel Association (VITAS) each played host to 
CPSC, drawing 120 and 130 company representatives respectively. 
Participants said they were looking to understand how the CPSC 
would implement new safety requirements.  Chairman Nord 
explained product safety regulation in the United States, 
outlining new requirements in the Consumer Product Safety 
Improvement Act of 2008 ("CPSIA") including mandatory third 
party testing for children's products and textile production 
safety. 
 
¶3. (SBU) Companies focused their questions on international 
harmonization of safety standards, chain of custody and 
liability, and expressed concern that new safety regulations be 
implemented in a way that does not disrupt trade.  [Comment: 
The level of sophistication of these questions demonstrates the 
Vietnamese trade experts have matured dramatically from the days 
of diplomatic protests over catfish labeling or proscribed 
substances in seafood.  End comment.]  Chairwoman Nord urged 
Vietnamese producers to maintain an ongoing safety dialogue with 
their U.S. importers, saying this is a proven strategy for 
keeping abreast of changing safety regulations. 
 
¶4. (U) The CPSC seminars were widely covered in the press, both 
in trade journals and in the mainstream media.  Chairwoman 
Nord's speech to HCMC University of Technology faculty and 
students resulted in reporting that cast proactive U.S.-Vietnam 
cooperation on consumer product safety standards as crucial to 
exporters and consumers, especially in light of growing worries 
of the safety of products from China, Vietnam's largest source 
of imports. 
 
New Standards Improve Domestic Testing, even Quality 
--------------------------------------------- ------- 
 
¶5. (U) Vietnamese companies recognize the need to meet 
standards, even at a steep cost.  One furniture factory said it 
exports 80 percent of production to the European Union.  To meet 
safety standards the company spends over USD 50,000 each year to 
air freight furniture samples to Germany for stability testing. 
The result is a production process aimed at European standards, 
but that provides better quality furniture for the domestic 
market as well and raises the bar for its local competition. 
 
¶6. (U) Another spillover effect of stronger international 
product safety standards is increased demand for 
internationally-accredited Vietnamese laboratories capable of 
performing product safety testing.  Representatives from 
international product safety testing firms expect the new U.S. 
requirements for independent testing of flammability and lead 
content of children's products, coupled with the high costs of 
international testing, will lead to more local laboratory 
testing capacity because locally-based firms employing 
Vietnamese technicians can offer equivalent testing services at 
30 to 40 percent below international rates. 
 
Comment: 
-------- 
¶7. (SBU) The Vietnamese press is currently seized with product 
safety issues -- soy sauce, unsafe helmets and tainted milk 
products -- creating a receptive environment for messages on the 
 
HO CHI MIN 00000915  002.2 OF 002 
 
 
importance of ensuring product safety. The CPSC encountered 
audiences and press that were engaged and approachable.  This 
bodes well for the Vietnamese exporters trying to successfully 
assimilate the latest regulatory changes and suggests that 
product safety seminars are effective tools for expanding 
Vietnamese exports and ensuring the safety of U.S. consumers. 
Growing concerns about the safety of Chinese imports creates a 
window of opportunity for Vietnamese producers to enhance the 
reputation of the 'made in Vietnam' brand and expand U.S. market 
share.  End comment. 
 
¶8. (U) This cable was coordinated with Embassy Hanoi. 
FAIRFAX