VZCZCXRO3993
RR RUEHCHI RUEHDT RUEHNH
DE RUEHHM #0606/01 2680205
ZNR UUUUU ZZH
R 250205Z SEP 09
FM AMCONSUL HO CHI MINH CITY
TO RUEHC/SECSTATE WASHDC 6041
INFO RUEHHI/AMEMBASSY HANOI 3939
RUEHHM/AMCONSUL HO CHI MINH CITY 6278
RUCNASE/ASEAN MEMBER COLLECTIVE

UNCLAS SECTION 01 OF 03 HO CHI MINH CITY 000606 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS 
 
E.O. 12958: N/A 
TAGS: ECON PGOV ETRD VM
SUBJECT: A SUCCESSFUL, MULTI-LAYERED EVENT IN BINH DUONG 
 
HO CHI MIN 00000606  001.2 OF 003 
 
 
Sensitive But Unclassified; please treat accordingly.  Not for 
Internet distribution. 
 
¶1. (SBU) SUMMARY: On September 22, ConGen HCMC and the Binh 
Duong provincial government jointly sponsored a day-long series 
of events that featured a conference on trade and investment, a 
visit to a U.S. high-technology investor, a cultural program, a 
presentation on student visas and a reception for 350 guests in 
the heart of Binh Duong's planned "new town" development.  At a 
time when some counterparts appear reluctant to be seen as 
cooperating too actively or publicly with the consulate, ConGen 
staff were pleasantly surprised on the day of the events to find 
banners -- complete with American flags and Consulate Seals -- 
hanging from light posts beginning several miles from the event 
site.  The media was well-represented and on the margins 
actively questioned presenters and audience members alike, and 
the conference was taped in its entirety to be broadcast on Binh 
Duong TV.  The event was a success on many levels: an important 
step toward raising the Consulate's profile outside of HCMC, an 
opportunity to promote U.S. exports and make commercial contacts 
in what is arguably Vietnam's most economically vibrant region, 
an opportunity to showcase the advantages of rapid reform and 
transparency, a day-long advertisement for the many advantages 
of open U.S.-Vietnam cooperation and -- perhaps most importantly 
-- an opportunity to convey the message to other Vietnamese 
provinces as well as top GVN/CPV leaders that a willingness to 
pursue an open, constructive dialog on all issues, including 
sensitive areas in need of reform, is an essential component to 
building a vibrant economy.  END SUMMARY. 
 
LAYER ONE: TRADE AND INVESTMENT 
------------------------------- 
¶2. (U) On the surface, the Binh Duong event was a trade and 
promotion event with Binh Duong authorities primarily interested 
in promoting inbound investment while the Consulate focused on 
promoting the export of U.S. goods -- machinery, materials, 
food, etc.  The Consulate and the Peoples Committee both 
understood our differing but compatible goals going in and were 
more than happy to help the other, with the CG praising Binh 
Duong for having created what many view as the most positive 
business climate in Vietnam while provincial officials warmly 
welcomed American suppliers.  Our colleagues from Foreign 
Commercial Service (FCS) and Foreign Agricultural Service (FAS) 
were on hand to participate in panel discussions and network 
with the more than 300 companies present.  Binh Duong's 
impressive economic performance (growth consistently averaging 
above 15% and Vietnam's third largest destination for FDI), Binh 
Duong is also a key market for U.S. products.  Beef and wine are 
joining cotton, hardwoods and leather as major U.S. agricultural 
exports to the province while the trend toward increased 
mechanization in factories is opening up new markets for U.S. 
leaders such as Rockwell Automation and Gerber Scientific. 
American engineering and architectural firms are already well 
established. 
 
LAYER TWO: PROMOTING CONTINUED REFORM 
---------------------------------- 
¶3. (U) At the same time the CG praised Binh Duong for its many 
successes, he pointed out that the province faced many 
challenges, such as further streamlining the business 
licensing/registration process (the province slid badly in that 
area on this year's Provincial Competitiveness Index, or PCI), 
improving the rule of law and the operation of the courts, 
balancing economic growth with environmental protection and 
protecting worker rights.  (Note:  The PCI uses business surveys 
to rank order the provinces in terms of the quality of economic 
governance.  The Vietnam Chamber of Commerce and Industry and 
USAID-funded Vietnam Competitiveness Initiative Project 
collaborate to produce this annual report.  Binh Duong topped 
the PCI since the index was first published 2005, but was edged 
out by Danang this year, sliding into the number two position. 
End note.)  The American Chamber of Commerce (AmCham) both 
praised the great business environment in Binh Duong and called 
for significant improvements in key areas such as labor unrest. 
People's Committee Chairman Nguyen Hoang Son and other Binh 
Duong officials took the criticisms in the constructive vein in 
which they were intended and responded with information on plans 
already underway for improving the province's performance.  One 
of the major segments of the conference focused on Binh Duong's 
plans to address both human and physical infrastructure 
limitations by building a new town center that will combine a 
university, hospital and administrative center with higher 
quality housing, parks and shopping/entertainment districts so 
as to make the province more attractive to both expatriates and 
highly qualified Vietnamese employees.  (Note: At present, 
nearly all expats as well as most senior level Vietnamese staff 
working in Binh Duong's industrial parks live in HCMC.)  Binh 
Duong is already number one on the PCI's ranking of 
infrastructure, but provincial leaders were quick to agree that 
 
HO CHI MIN 00000606  002.2 OF 003 
 
 
much remains to be done, particularly with respect to 
connections to air and sea ports. 
 
LAYER THREE: PROMOTING THE VALUE OF OPENNESS AND COOPERATION 
--------------------------------------------- --------------- 
¶4. (SBU) Faced with frequent difficulties in getting cultural 
events, speaker programs and other USG-sponsored activities 
approved in HCMC (and elsewhere), we used this event to promote 
the mutual advantages of cooperation.  For example, while the 
Consulate's largest cultural program of the year, the visit of 
the triple Grammy winning fusion group Ozomatli, was especially 
difficult to arrange in HCMC, Binh Duong provincial leaders 
welcomed the event enthusiastically, volunteering to share costs 
by providing the My Phuoc Theater free of charge and even 
providing buses so that workers at the province's industrial 
parks could reach the venue easily.  On concert night, top 
provincial and party leaders from Binh Duong joined ConGen staff 
and about four thousand clearly ecstatic workers attending the 
packed concert. 
 
¶5. (SBU) In addition to highlighting the Ozomatli tour, the 
conference and related events highlighted other successful 
USG-sponsored programs such as a program led by U.S. Federal 
Judge Judith Arterton on increasing the professionalism and 
independence of the judiciary, multiple PEPFAR-supported events 
aimed at helping reduce the risk of HIV/AIDS among the 
province's huge migrant worker population, and other speaker 
programs.  Recognizing that economic prosperity in Binh Duong 
may well translate into parents and students interested in US 
study, Vice Consul Jeff Hay gave a presentation for 150 high 
school, community college, and university students. 
Additionally, the Public Affairs Section offered a presentation 
on American Business Culture to support the focus on trade and 
investment in the day's activities, and also to foster mutual 
understanding. 
 
LEVEL 4: A MODEL TO FOLLOW 
-------------------------- 
¶6. (SBU) At their core, the day's events were focused as much -- 
if not more -- on other provinces than on Binh Duong. The 
overall sub-plot to the entire day's events was plain: progress 
on the economic front is inextricably tied to progress on all 
other fronts, including overall good governance, openness to 
both criticism and new ideas and cooperation with the USA. 
We were particularly pleased with our success on this front 
since Binh Duong's leadership stepped up to the plate, 
delivering the message more effectively than if it had come from 
a USG representative.  Rather than leaving it to U.S. officials 
to praise the advantages of a huge event such as the Ozomatli 
concert, for example, provincial officials flagged it in their 
presentation as an example of one of the province's major 
successes of this past year.  Similarly, it was Binh Duong 
officials, and not USG representatives, that first broached 
topics such as religious freedom and the importance of 
maintaining an open dialog with religious leaders.  (Comment: 
While not perfect, the religious freedom environment in Binh 
Duong is certainly quite good and far in advance of many other 
provinces.  End Comment.)  In contrast to a recent MPS-produced 
video that linked programs to increase the independence and 
professionalization of the judiciary to "anti-state plots," Binh 
Duong officials publicly praised exactly that type of 
cooperation in their province.  Similarly, the willingness of 
Binh Duong officials to accept live, unscripted questions from 
the floor concerning topics such as tax collection and business 
registration problems provided a wonderful example of dealing 
openly and honestly with constructive criticism -- an example we 
hope other provinces will follow.  When it became clear there 
were more questions than time, Binh Duong's External Relations 
Office agreed to answer questions submitted in writing on the 
provincial website. 
 
¶7. (SBU) While the day's events were jointly sponsored by the 
U.S. Consulate General and the Binh Duong People's Committee 
with a target audience of current and potential investors, the 
proceedings also attracted participation from several other 
consulates, multinational corporations and, perhaps most 
importantly, senior GVN officials including members of the 
Central Committee of the Communist Party, the National Assembly, 
the Office of Government (OOG), MPI and others.  Thanks to its 
leadership in building a positive business climate that attracts 
both foreign and domestic investment, Binh Duong province is 
widely recognized as a role model.  Provincial Chairmen, Party 
Secretaries and economic officials from literally every province 
in Vietnam visit Binh Duong to try to learn some of the 
province's "economic magic."  The events on September 22 helped 
spread the message that a big part of that magic is not a 
specific set of rules or organizational structure but an 
attitude of openness combined with a genuine desire to improve 
constantly. 
 
HO CHI MIN 00000606  003.2 OF 003 
 
 
 
¶8. (SBU) COMMENT: We chose Binh Duong for this event for the 
simple reason they provincial leaders there genuinely "get it." 
The province is certainly not without problems, as labor strife, 
rampant pollution and other issues attest, but these problems 
are tempered by the realization that the province is working to 
address them.  While we do not agree with Binh Duong officials 
on every issue; indeed, when planning for this event began we 
ran into multiple areas where their vision and ours diverged. 
What makes Binh Duong such an encouraging place to work is that 
despite our disagreements over such issues as the extent of 
audience interaction or having private business representatives 
share the stage on a panel with government officials, we simply 
worked through them.  The end result was a great event that 
included bits of American and Vietnamese approaches in a 
uniquely effective cross-cultural event. END COMMENT. 
 
¶9. (U) This cable was coordinated with Embassy Hanoi. 
FAIRFAX