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DE RUEHHI #0218/01 0551039
ZNR UUUUU ZZH
R 241038Z FEB 10
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 0967
INFO RHMFIUU/HQ EPA WASHINGTON DC
RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEHC/DEPT OF AGRICULTURE WASHINGTON DC
RUEHC/USAID WASHDC 0038
RUEHHI/AMEMBASSY HANOI
RUEHHM/AMCONSUL HO CHI MINH CITY 0533
RUEHJA/AMEMBASSY JAKARTA 0038
RUEHPH/CDC ATLANTA GA

UNCLAS SECTION 01 OF 07 HANOI 000218 
 
SENSITIVE 
SIPDIS 
SIPDIS 
STATE FOR OES, EAP/MLS 
 
E.O. 12958: N/A 
TAGS: SENV TBIO SOCI PREL ECON KGHG KHIV VM
SUBJECT: SCENESETTER FOR VISIT BY OES ASSISTANT SECRETARY JONES TO 
VIETNAM 
 
REF: A. 09 HANOI 330; B. 09 HANOI 899; C. HANOI 7; D. 09 HANOI 672 
¶E. HANOI 11; F. HANOI 198; G. 09 HANOI 925; H. 09 HANOI 1300 
¶I. HANOI 202; J. 09 HANOI 1418; K. 09 HANOI 1300; L. 09 HANOI 558 
¶M. 09 HANOI 722; N. 09 HANOI 578; O. 08 HANOI 1293; P. 08 HANOI 406 
¶Q. 08 HANOI 370; R. HANOI 58; S. 08 HANOI 1370; T. 08 HANOI 1100 
¶U. 08 HANOI 1088; V. 09 HANOI 1020; W. 08 HANOI 981; X. 08 HANOI 119 
¶Y. 09 HCMC 595; Z. 08 HANOI 1261; AA. 09 HANOI 639; BB. 09 HCMC 573 
CC. 09 HANOI 1274; DD. 09 HCMC 674; EE. HANOI 32 
 
Introduction 
 
------------ 
 
 
 
¶1. (SBU) Mission Vietnam looks forward to welcoming you to Hanoi. 
Your visit will be an important signal to the Vietnamese of 
continued U.S. engagement on health and environmental issues.  Your 
meetings with the Government of Vietnam (GVN), the United Nations 
(UN), and the European Union will allow us to finalize preparations 
for the April International Ministerial Conference on Animal and 
Pandemic Influenza.  You will meet with high-ranking GVN officials 
and scientists to discuss opportunities to build U.S.-Vietnamese 
Science and Technology cooperation.  The GVN considers climate 
change to be the second most important issue that it faces, behind 
economic growth and poverty reduction.  In turn, you will have the 
opportunity to advocate for Vietnamese support in international 
climate change negotiations.  You should be prepared for questions 
regarding the Lower Mekong Initiative and your interlocutors may 
seek increased U.S. assistance for responses to Agent Orange, and 
its contaminant, dioxin. 
 
 
 
United States-Vietnam Relations 
 
------------------------------- 
 
 
 
¶2. (SBU) Our bilateral relationship with Vietnam is arguably at its 
most productive since relations were normalized in 1995, in large 
part due to Vietnam and the United States seeing the mutual 
strategic value of expanding their partnership.  Vietnam is the 
13th most populous country in the world and a critical 
geo-strategic partner for the United States in Asia, while the 
United States is one of Vietnam's largest economic and trading 
partners, as well as the key balancing force in maintaining a 
stable geopolitical environment, assured independence and freedom 
of action.  We are Vietnam's largest export market, its 
third-largest trading partner, and one of its largest foreign 
investors.  We have broadened our cooperation in public health, 
education, mine clearance, and WTO and BTA compliance. 
Strategically, Vietnam views the U.S. presence in the region as a 
force for stability, and security cooperation has expanded as our 
two militaries explore opportunities to cooperate effectively. 
Powerful conservative voices in Vietnam's Communist Party and 
 
HANOI 00000218  002 OF 007 
 
 
security services, including the military, remain wary of U.S. 
intentions, but their influence will wane over time as the 
country's young population -- the first generation in memory to 
live without war -- increasingly looks to the West(Refs A and B). 
Profound differences remain, however, particularly in our approach 
to human rights.  Vietnam has made strides in religious freedom 
(Ref C), but political rights and press freedoms trends have 
worsened as the Party clamps down on dissent in advance of the 
January 2011 Party Congress (Ref D). 
 
 
 
Foreign Policy Priorities: China and the United States 
 
--------------------------------------------- --------- 
 
 
 
¶3.  (SBU) Vietnam's overriding strategic concern remains China. 
Mistrust of China runs deep, fed by historical animosities and 
simmering resentment over South China Sea territorial disputes 
(Refs E and F).  However, Hanoi is realistic about the power 
imbalance and is wary of antagonizing China.  Hanoi is also under 
no illusions that it can somehow "balance" China with the United 
States, Russia, or Japan individually.  Nor is a more 
confrontational approach toward China something the Party tolerates 
domestically: once unleashed, nationalistic sentiment, though 
initially directed at China, could easily turn toward the Party 
itself.  Instead, Vietnam seeks to maintain as cordial and stable a 
relationship with China as possible, while also cautiously 
cultivating a diverse range of bilateral friendships and enmeshing 
these in a framework of multilateral engagement.  In this context, 
Vietnam's bilateral relationship with the United States enjoys 
pride of place; however, Vietnam is wary of pushing the agenda with 
the United States too far, too fast, lest it antagonize China. 
Vietnam puts great store in ASEAN and has suggested repeatedly that 
it would like to facilitate better contact between ASEAN and its 
"plus one" dialogue partners, the United States in particular (Ref 
G).  Vietnam's chairmanship this year gives it an opportunity to 
lead on regional economic integration and tougher issues like Burma 
and a collective ASEAN policy in the South China Sea.  Vietnam has 
lobbied hard to host a U.S.-ASEAN summit in Hanoi in 2010. 
 
 
 
Economic Successes and Challenges 
 
--------------------------------- 
 
 
 
¶4. (U) (SBU) Vietnam's "doi moi" (renovation) program of economic 
reform, begun in 1986, has set the country on a successful market 
economy path, with an average growth rate of 7.5 percent over the 
past decade.  A recent World Bank study described Vietnam's poverty 
reduction rate as the most significant in such a short period of 
time of any nation in history.  The GVN focuses on exports and 
foreign direct investment in its drive to achieve middle-income 
status in the near future. 
 
 
 
¶5. (U) In 2009, the U.S. was Vietnam's second largest trade partner 
overall, after China.  Since the 2001 U.S.-Vietnam Bilateral Trade 
Agreement (BTA), bilateral trade has increased from $2.91 billion 
to $14 billion in 2009.  Despite the global financial downturn, 
U.S. exports to Vietnam actually stayed level at approximately $2.8 
billion.  Agriculture trade was particularly strong.  The U.S. was 
the largest foreign investor in Vietnam in 2009, with total new and 
additional FDI of $9.8 billion. 
 
 
 
¶6. (SBU) While the great majority of experts consider Vietnam's 
long-term economic prospects to be bright, short-term macroeconomic 
imbalances are worrying investors (Ref H).  As Vietnam winds down 
the stimulus measures it took in response to the financial crisis, 
it will have to navigate a difficult path between reaching 
ambitious economic growth targets and controlling inflation and 
significant budget and trade deficits (Refs I, J and K).  To 
 
HANOI 00000218  003 OF 007 
 
 
maintain high growth over the long term, Vietnam needs to overhaul 
its infrastructure, reduce widespread corruption, and reform its 
educational system to provide an adequately skilled workforce. 
 
 
 
 
 
Seventh International Ministerial Conference 
 
on Animal and Pandemic Influenza 
 
-------------------------------------------- 
 
 
 
¶7. (U) Health diplomacy is a pillar of the bilateral relationship. 
Approximately seventy-five percent of all U.S. official development 
assistance to Vietnam focuses on health issues, and our cooperative 
efforts to prevent and treat HIV/AIDS and combat pandemic and avian 
influenza are the hallmarks of our bilateral health relationship. 
At meetings with the Minister of Agriculture and Rural Development, 
the UN and other partners, you will have the opportunity to 
finalize preparations for the upcoming International Ministerial 
Conference on Animal and Pandemic Influenza (IMCAPI) hosted by the 
GVN on April 19-21 in Hanoi.  We are pleased with the preparations 
for the event, but still need to ensure an effective and 
appropriate joint statement and high level USG representation. 
 
 
 
Pandemic Influenza 
 
------------------ 
 
 
 
¶8. (SBU) U.S. efforts have made a difference in Vietnam's fight to 
contain highly pathogenic avian influenza (HPAI) and have 
contributed to Vietnam's overall efforts to improve health systems 
capacity.  USG influenza-related assistance has focused on 
controlling the H5N1 strain in animals and humans, preventing a 
pandemic, including strengthening emergency preparedness, building 
veterinary laboratory capacity, animal vaccination campaigns, 
animal surveillance and response, and public awareness.  In 2008, 
the USG became the largest bilateral donor, surpassing investment 
by the Government of Japan.  Since 2005, the USG has provided USD 
50 million to counter the threat of influenza to Vietnam.  With 
international assistance, the GVN took quick action to contain 
HPAI, and has been rewarded with a notable drop in the number and 
intensity of animal outbreaks and human infections.  With USG 
support, Vietnam is steadily building is independent capacity to 
produce and market human vaccines against influenza. (Ref L) 
Vietnam has moved from an emergency response phase into a more 
sustained approach.  This increased capacity clearly contributed to 
an effective national response as H1N1 influenza swept across Asia 
(Ref M).  However, Vietnam now needs to develop a sustainable 
long-term strategy focusing on improved poultry management 
practices to minimize the risk of a pandemic, emergent from 
Vietnam.  Though internal GVN communications difficulties sometimes 
delay notification to the international health community, and 
bureaucratic friction may slow sample sharing, our Vietnamese 
counterparts remain committed to the campaign. 
 
 
 
HIV/AIDS and Other Health Issues 
 
-------------------------------- 
 
 
 
¶9. (SBU) In 2005, Vietnam became the fifteenth and last focus 
country under the President's Emergency Plan for AIDS Relief.  Led 
by the Ambassador and jointly planned and implemented by USAID, 
HHS/CDC, DOD and HHS/SAMHSA, the program focuses on prevention, 
care and treatment for those infected and strengthening of the 
health system in Vietnam (Ref N).  The program continues to 
successfully build local capacity to prevent the spread of HIV/AIDS 
and to provide care, treatment and support for an increasing 
 
HANOI 00000218  004 OF 007 
 
 
proportion of the estimated 243,000 Vietnamese infected with HIV. 
From September 2008 through September 2009, 178,635 individuals 
received PEPFAR-supported counseling and testing for HIV/AIDS, 
while 124,992 individuals had been provided with HIV/AIDS 
palliative care, and over 33,000 initiated on anti-retroviral 
therapy. From an initial budget of USD 18 million, PEPFAR funding 
has grown to USD 87.8 million for FY 2010 with a cumulative total 
of 410.8 million since 2004.  About 25 percent has gone directly to 
the GVN.  The USG is in the process of developing a Partnership 
Framework Agreement with Vietnam for a comprehensive and 
evidence-based, five-year strategy in line with GVN's five-year 
strategy focusing on sustainability, capacity building, health 
systems strengthening, and tuberculosis (Ref O).  Our health 
diplomacy program extends into many other areas, including 
assistance to combat other infectious diseases (including cholera, 
tuberculosis, malaria and dengue fever), road safety, tobacco 
control, and food safety. U.S. assistance, largely focused on 
targeted, disease-specific programs, has provided tangible benefits 
to the people of Vietnam, but be most effective and sustainable 
must be focused in health systems strengthening.  (Refs P and Q) 
Increasingly, we try to focus on two principal challenges to health 
sector reform: insufficient human resource capacity and an 
inadequate regulatory regime. 
 
 
 
Climate Change 
 
-------------- 
 
 
 
¶10. (U) The GVN understands that climate change threatens could 
erode its poverty reduction gains, limit economic growth, and 
endanger food security.  In response, the government is looking for 
international partners to support its climate change responses, 
particularly those focused on adaptation (Ref R).  During Prime 
Minister Dung's 2008 visit to Washington, our two nations agreed to 
set up a new joint subcommittee under the existing bilateral 
Science and Technology Agreement to advance specific areas of 
cooperation on climate change adaptation and mitigation.  We are 
preparing for the first meeting of the subcommittee in Hanoi at the 
end of March.  Also during the Prime Minister's visit, the United 
States and Vietnam announced the creation of the Delta Research and 
Global Observation Network (DRAGON) Institute at Can Tho 
University.  Supported by the U.S. Geological Survey, the DRAGON 
Institute is facilitating cooperation among scientists and policy 
makers to address environmental issues, especially climate change, 
threatening the Mekong Delta (Ref S).  Various other U.S. agencies, 
including USAID, the U.S. Forest Service, EPA, and NOAA participate 
in projects that directly or indirectly support Vietnam's climate 
change response.  While the Ministry of Natural Resources and 
Environment (MONRE) will coordinate GVN climate change policy, 
several other ministries, particularly MARD, will play important 
roles in developing GVN adaptation and mitigation responses.  We 
expect the MONRE Minister to raise climate change cooperation 
during your meeting. 
 
 
 
Agent Orange and Dioxin 
----------------------- 
 
¶11. (SBU) While debate continues over the possible human effects of 
exposure to dioxin, a contaminant in the wartime defoliant Agent 
Orange, recent environmental studies show that dioxin contamination 
is concentrated in approximately 20 "hotspots," mostly areas within 
former U.S. airbases where Agent Orange was stored, loaded and 
transferred.   Areas subjected to heavy aerial spraying do not 
currently have soil concentrations considered hazardous.  The 
United States and Vietnam have not reached agreement on the scope 
of possible health effects, with Vietnam continuing to argue that 
over three million handicapped can trace their disabilities to 
dioxin exposure.  We do not believe that this figure can be 
supported by scientifically-sound data and analysis.  Statements 
that describe every child born with a birth defect anywhere in 
Vietnam as a "victim of agent orange" are common and remain a 
favorite propaganda tool for persons opposed to closer U.S.-Vietnam 
relations.  However, our engagement on this issue  has accomplished 
much, in both transforming the tone of the dialogue and capacity 
 
HANOI 00000218  005 OF 007 
 
 
building to address environmental issues and provide assistance for 
the disabled (Ref T). 
 
¶12. (SBU) We continue to work with the GVN, UNDP, Ford Foundation 
and other donors in a multilateral coalition to support 
environmental remediation of three priority hotspots in Danang, Hoa 
Binh and Phu Cat airfields (Ref U).  From 2001 to 2007, the USG 
spent over USD 2 million to initiate technical dialogues, 
scientific conferences on the effects of AO/dioxin, and fund a 
4-year project to build the capacity of Vietnamese scientists to 
analyze soil samples collected from the Danang airport.  The Joint 
Advisory Committee (JAC) for Agent Orange/dioxin, which brings 
together scientists and researchers from both governments to 
provide science-based advice to policy makers for potential 
environmental and health cooperation, held its fourth annual 
meeting in September, during which Vietnamese and U.S. members 
reviewed ongoing health and remediation projects (Ref V).  In 2007, 
Congress appropriated USD 3 million for "dioxin mitigation and 
health activities" in Vietnam.  After completing an interagency 
process to refine USG-wide policy to support AO/dioxin-related 
efforts, USAID was selected to implement the USD 3 million. 
Subsequently, in both 2009 and 2010, Congress appropriated an 
additional USD 3 million for a total of USD 9 million.  In 2008 and 
2009, with GVN participation, USAID provided USD 2 million to fund 
medical services for the disabled in Danang and will provide an 
additional USD 1 million this year.  In 2009, USAID, again with GVN 
participation, selected CDM International to prepare an 
environmental assessment and engineering plans and designs for 
remediation at the Danang airport.  Results of the environmental 
assessment will drive selection of the technology option for 
remediation.  EPA is partnering with the Vietnam Academy of Science 
and Technology to pilot bioremediation technology at the airport. 
The USG hopes to support actual containment and remediation work in 
¶2011. 
 
Balancing Environment and Economic Growth 
----------------------------------------- 
 
¶13. (SBU) Vietnam's rapid economic growth has strained its ability 
to protect the environment.  In particular, the GVN has not been 
able to control growing pollution, particularly from booming Export 
Processing Zones and Industrial Parks (Refs W and X).  Recently, 
local media has turned its focus onto this issue, highlighting 
several cases of egregious violations of Vietnamese pollution 
control laws (Refs Y and Z).  We have also seen growing concern 
about the environment from average Vietnamese, particularly the 
wealthier urbanized population, which now concerns itself with 
quality of life issues as well as economic well being.  While the 
GVN has drafted an array of environmental laws, it lacks the 
ability (and perhaps the will) to enforce these provisions and 
lacks sufficient penalties to deter illegal behavior.  Our 
counterparts in the Environmental Police Department and the Vietnam 
Environment Administration frequently request assistance on issues 
ranging from legislative drafting to technical training to 
financial assistance.  To date, U.S. support for these "brown" 
issues has been modest (Ref AA).  We have identified the need to 
balance economic growth with environmental protection as perhaps 
the most important future ESTH issue in Vietnam and strive to 
document many of the areas in which U.S. assistance could make a 
difference.  At the same time, Vietnam's attempts to respond to 
environmental strains provide potential trade opportunities for 
U.S. environmental technology, equipment and services firms. 
 
 
 
Science and Technology Cooperation 
 
---------------------------------- 
 
 
 
¶14. (U) In the ten years since the United States and Vietnam signed 
our bilateral Agreement on Scientific and Technical Cooperation, 
such cooperation has steadily increased.  Your predecessor 
co-chaired the sixth U.S.-Vietnam Joint Commission Meeting (JCM), 
during which the two delegations reviewed the broad nature of 
ongoing collaborative efforts.  The Vietnamese brought over 40 
delegates to Washington, reflecting the importance which they 
attach to U.S.-Vietnamese efforts.  Since the JCM, the two 
governments have moved forward in several areas, including road 
 
HANOI 00000218  006 OF 007 
 
 
safety and nuclear cooperation.  Vietnam will host the seventh JCM, 
tentatively scheduled for November 2010, and would like this 
session to celebrate the tenth anniversary of our bilateral S&T 
Agreement and the fifteenth anniversary of the resumption of 
bilateral relations.  We have used the Embassy Science Fellow 
program to boost the breadth of our S&T engagement.  This year, Dr. 
David Roberts from the Department of Energy, has worked with the 
Vietnam National Science Foundation to set up a research Centers of 
Excellence initiative.  While Vietnam's scientific research and 
development capacities remain limited, the GVN actively seeks to 
promote the sector (Ref BB). However, at the same time, the GVN 
also tries to maintain a tight grip over subjects approved for 
research and how (and if) researchers can release certain research 
conclusions (Ref CC).  You will have the opportunity to meet with 
the Minister of Science and Technology and to visit the Vietnam 
Academy of Science and Technology (VAST), where you will tour the 
biotechnology institute and get to hold -scientist-to-scientist 
discussions with VAST researchers. 
 
 
 
Lower Mekong Initiative 
 
----------------------- 
 
 
 
¶15. (SBU) Vietnam has responded positively to the U.S. Lower Mekong 
Initiative (LMI), announced following the first U.S. Lower Mekong 
Ministerial meeting last July 23 in Thailand between Secretary 
Clinton and the foreign ministers of the Lower Mekong Countries - 
Cambodia, Laos, Thailand and Vietnam.  Our interlocutors look 
forward to cooperating with the United States and their neighbors 
on regional health concerns, management of the Mekong River and 
developing responses to climate change (Ref DD).  The GVN has 
agreed to co-host this June a U.S.-funded LMI Infectious Disease 
Conference.  We are working with our Vietnamese partners to 
finalize the agenda, which we expect will focus on transnational, 
action-oriented cooperative responses to infectious diseases and 
will build upon discussions from the April IMCAPI meeting.  While 
welcoming greater U.S. engagement in the region, Vietnamese 
officials will look for more concrete signs of U.S. interest, 
particularly in light of Japan's recent announcement of its own USD 
1.5 billion Mekong initiative.  In your meetings, you may be asked 
to describe how the upcoming conference fits into long-term U.S. 
regional health programs and how to assure that the LMI is a real 
partnership - with adequate opportunities for input from the Lower 
Mekong Countries. 
 
 
Education 
--------- 
 
¶16.  Education remains a major issue in the relationship, with the 
Mission actively seeking to promote the adoption of American 
educational practices at Vietnamese universities in order to 
influence the next generation of Vietnamese leaders, increase the 
number of graduates with the skills needed to work for American 
companies in Vietnam, and help the Ministry of Education and 
Training modernize what is widely regarded as a broken educational 
system.  The Ambassador hosted an Education Conference in Hanoi in 
mid January, 2010 that brought together more than 600 American and 
Vietnamese educators representing more than 250 schools and 
companies with educational programs in Vietnam, for discussions on 
how to reach a variety of key educational goals (Ref EE). The 
number of Vietnamese enrolling in the United States continues to 
grow rapidly, with 13,000 Vietnamese students now in the United 
States, three times the number there three years ago.  Funded by 
the USG, the Vietnam Education Foundation (VEF) has placed 306 
Fellows at 70 top U.S. graduate institutions, mostly for doctoral 
degrees in the sciences, while the VEF Visiting Scholar Program 
provides opportunities for Vietnamese to pursue post-doctoral 
programs at U.S. universities for up to 12 months. VEF Fellows and 
Visiting Scholars are required to return to Vietnam upon completion 
of their academic programs in the United States.  You will have 
opportunity to meet with VEF alumni at a reception hosted by Deputy 
Chief of Mission Palmer (Note: VEF legislation pending before 
Congress would put VEF more directly under the control of State/ECA 
and broaden the scope of VEF fellowships to include the social 
sciences.  End Note). 
 
HANOI 00000218  007 OF 007 
 
 
¶17. (SBU) We look forward to your visit and stand ready to do 
everything we can to make your time in Vietnam as productive as 
possible. 
Michalak