VZCZCXRO5872
OO RUEHDT RUEHPB
DE RUEHHM #1096/01 3641040
ZNR UUUUU ZZH
O P 291040Z DEC 08
FM AMCONSUL HO CHI MINH CITY
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5254
INFO RUEHHI/AMEMBASSY HANOI PRIORITY 3497
RUEHHM/AMCONSUL HO CHI MINH CITY PRIORITY 5484
RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE
RUCPDOC/USDOC WASHDC PRIORITY 0101
RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC

UNCLAS SECTION 01 OF 02 HO CHI MINH CITY 001096 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS, USAID/ANE, EEB/TPP/BTA/ANA, OES/STC 
USDOC FOR 4431/MAC/AP/OPB/VLC/HPPHO 
USTR FOR BISBEE 
TREASURY FOR CHUN 
 
E.O. 12958: N/A 
TAGS: ECON EAGR ETRD EFIN SOCI PGOV PREL OTRA OVIP VM
SUBJECT: VIETNAMESE FISH INDUSTRY COURTS CODEL BOSWELL 
 
REF: A) HCMC 1075; B) HCMC 1092 
 
HO CHI MIN 00001096  001.2 OF 002 
 
 
¶1. (SBU) Summary: During CODEL Boswell's visit to the Mekong 
Delta on December 18, GVN officials and business executives 
appealed for greater U.S.-Vietnamese cooperation on trade issues 
and emphasized the concerted efforts Vietnam has made toward 
improving food safety standards for its aquaculture products. 
Delegation members evaluated one leading fishery's commitment to 
food safety by touring its tra and basa ("catfish") processing 
plant, from the arrival of fish fresh off the boat to the final 
flash freezing.  Overall, Members appeared impressed with 
conditions in the plant, though they raised some concerns about 
the plant's technical hygiene and safety standards, such as 
temperature at various points in the production chain. 
Vietnamese representatives noted that a significant portion of 
the feed inputs, products, training, and technology used in the 
aquaculture industry are from the U.S. -- further evidenced by a 
visit to a Cargill feed mill -- and urged the same fair 
treatment for Vietnamese products entering the United States. 
End Summary. 
 
The Case for Food Safety and Fair Treatment 
------------------------------------------- 
¶2. (SBU) Chairman of the House Subcommittee on Livestock, Dairy, 
and Poultry, Leonard Boswell (D-IA), accompanied by House 
Agriculture Committee colleagues Robert Goodlatte (R-VA), Henry 
Cuellar (D-TX), Adrien Smith (R-NE), Steve King (R-IA), and a 
USDA Food Safety Inspection Service (FSIS) representative, 
Christopher Gould, visited Vietnam on December 17-19 to raise 
agriculture-related issues.  In light of the possible changes to 
the way the United States regulates imported Vietnamese tra and 
basa, CODEL members heard an emphatic endorsement of Vietnam's 
aquaculture industry by GVN and business representatives at the 
Huong Vung Corporation in My Tho on December 18.  The Deputy 
Minister for Agriculture and Rural Development (MARD), Luong Le 
Phuong, along with Director of the Ministry's seafood 
food-safety authority (NAFIQAD), emphasized the GVN's commitment 
to food safety that extends "from the farmer to the food on the 
table."  Mr. Phuong said the agency has increased human 
resources and developed a solid technical infrastructure to 
ensure food quality, including six regional centers dedicated to 
quality control and the recent completion of a state-of-the-art 
national testing center.  Mr. Phuong noted that the GVN's 
dedication to safety has earned Vietnam valued certifications of 
recognition by the European Union, Canada, and Korea. 
 
¶3. (SBU) Pointing to a plate with American grapes and small, 
round Vietnamese longan fruit side by side, Secretary General of 
the Vietnam Association of Seafood Exporters and Processors 
(VASEP), Truong Dinh Ho, offered the fruits as a symbol of the 
close relationship between the United States and Vietnam that he 
hopes will result in greater trade cooperation.  Noting that the 
European Union is still the largest destination for the 
industry's 30 percent yearly expansion, Mr. Truong said he was 
disappointed that Vietnamese exporters are still subject to 
obstacles such as anti-dumping actions on imports into the 
United States and asked CODEL members to review these measures 
and consider giving Vietnamese products the same fair treatment 
that U.S. products in Vietnam receive. 
 
One Industry Leader's Experience, First-Hand 
-------------------------------------------- 
¶4. (SBU)  To further the point about fair treatment, Hung Vuong 
President Duong Ngoc Minh noted that half of the million metric 
tons of soybean meal (SBM) that Hung Vuong company uses for fish 
feed comes from U.S. producers.  Although the company currently 
purchases most SBM through intermediaries in Singapore and 
Thailand, he said they would like to import directly from U.S. 
companies. (Note: In a separate prior meeting, Mr. Minh told 
ConGenOff that Hung Vuong's whole factory is based on American 
standards, most of the technology for its cold chain is from the 
United States and he intends to purchase another $20 million of 
American equipment.)  Hung Vuong Corporation, which became a 
joint stock company in 2007, is a leading producer and exporter 
of tra and basa products and also has interests in animal feed 
production, cold storage, and real estate, among others. 
 
¶5. (SBU) Chairman Boswell told representatives that he was 
impressed by Vietnam's leading world position in aquaculture 
exports and commended the steps the GVN and producers have taken 
to improve food safety.  To get a first-hand look at some of 
those efforts, CODEL toured the Hung Vuong fish processing 
plant.  Each member donned protective gear, underwent 
disinfection, and walked through each stage of the 
labor-intensive fish production line.  Afterwards, one 
 
HO CHI MIN 00001096  002.2 OF 002 
 
 
delegation member noted a few potential concerns, such as the 
increased food safety risk posed by so many different people 
handling the fish, questions about cross-contamination of waste 
disposal and whether the temperatures were sufficiently cold. 
In contrast, however, another member stated that if the Hung 
Vuong plant is representative of all fish processing plants in 
the region, then Vietnam could probably hold its own in a U.S. 
Department of Agriculture equivalency review.  (Note: Hung Vuong 
was chosen because of its convenient location.  Many other fish 
processing plants that ConGenOffs have visited exceed the 
hygiene/safety standards of the Huong Vung plant.) 
 
Road signs for the Two Way Street 
--------------------------------- 
¶6. (SBU) At the Cargill feed mill, CODEL Boswell observed how 
the 100 percent U.S.-invested company has established a strong 
presence in the Delta region as a leading supplier for fish 
feed, as well as training farmers.  With a distribution chain 
that reaches far and wide, Cargill said its products are used in 
more than 10 million farms.  Interestingly, although the feed 
mill imports more than fifty percent of its inputs and has 
utilized 1,000 tons of U.S. soybean meal since its opening, 
U.S.-imported SMB currently represent only a small portion of 
Cargill's total imports for fish feed since it is relatively 
expensive compared to Argentine and Indian SBM.  Nevertheless, 
soy meal is one of the fast growing categories of U.S. exports 
to Vietnam, growing 491 percent in the first three quarters of 
2008 (over the same period last year) to reach $55 million, 
excluding the indirect shipments mentioned earlier. 
 
¶7. (SBU) In addition to the roundtable dialogue and tour at Hung 
Vuong Corporation and the visit to the Cargill feed mill, CODEL 
toured a rice processing plant and observed some floating fish 
farms in the Mekong River.  The prior day, delegation members 
met with the Vice Chairman of the Ho Chi Minh City People's 
Council and with members from the American Chamber of Commerce, 
where they learned more about the economic progress that Vietnam 
has made and the challenges that remain. 
 
Comment: 
------- 
¶8. (SBU) Municipal and provincial officials have now raised U.S. 
"catfish" safety regulations with StaffDel Nelson (ref A), CoDel 
Baucus (ref B) and CoDel Boswell, the three congressional and 
staff delegations to visit the HCMC in the last two weeks.  The 
GVN is particularly sensitive about fish and seafood processing 
because the industry employs two million workers (according to 
industry estimates), many in poor areas.  With exports falling 
due to weak demand in Western Europe, Russia and Japan, Vietnam 
is trying to head off potential issues that could further 
depress exports.  This also explains their great concern over 
the potential switch of U.S. food-safety oversight for tra and 
basa from FDA to what is widely accepted to be the more 
restrictive USDA/FSIS regime.  One GVN strategy has been to 
emphasize the extent to which rapidly growing U.S. agriculture 
exports -- expected to reach $1 billion for the first time this 
year, up from $113 million just five years ago -- depend on 
Vietnam's access to U.S. markets.  End comment. 
 
¶9. (U) This cable was coordinated with Embassy Hanoi.  CODEL 
Boswell did not have an opportunity to clear this message before 
departure from Post. 
FAIRFAX