VIETNAM: PREPARING FOR THE ANNUAL CONSULTATIVE GROUP MEETING, DECEMBER 14-15

UNCLAS SECTION 01 OF 02 HANOI 002614 SIPDIS AIDAC STATE PASS TO AID FOR A/A BOB RANDOLPH AND ANE/ ANTOINNETTE FERRARA PHNOM PENH FOR AID: LCHILES STATE FOR EB/IFD/ODF AND EAP/BCLTV E.O. 12958: N/A TAGS: EAID ECON EFIN PREL VM SUBJECT: VIETNAM: PREPARING FOR THE ANNUAL CONSULTATIVE GROUP MEETING, DECEMBER 14-15 REF: A) SPECHT/LANGLAND/HICKS/FERRARA EMAIL UNCLASSIFIED PAGE 02 HANOI 02614 01 OF 02 010611Z 11/29/00; B) SPECHT/LANGLAND FAX 11/30/00; C) FERRARA/SPECHT EMAIL 11/23/00; D) HICKS/SPECHT EMAIL 11/21/00 ¶1. THIS IS AN ACTION REQUEST. SEE PARAGRAPH 11. ¶2. SUMMARY: THE WORLD BANK RECENTLY HOSTED A DONOR REPRESENTATIVES' MEETING TO PRESENT THE DONOR'S DEVELOPMENT REPORT "ENTERING THE 21ST CENTURY" AND TO DISCUSS THE DRAFT AGENDA FOR THE UPCOMING ANNUAL CONSULTATIVE GROUP (CG) MEETING. THIS YEAR'S DONOR'S REPORT ENTITLED "ENTERING THE 21ST CENTURY," IS ITSELF BASED ON THE DRAFT SOCIO-ECONOMIC DEVELOPMENT STRATEGY FOR 2001-2010 BEING PREPARED FOR THE UPCOMING 9TH PARTY CONGRESS AND WILL SERVE AS THE BASIS FOR DISCUSSION AT THE CG. IN INTRODUCING THE DRAFT AGENDA FOR THE MEETING, THE CG ORGANIZER'S NOTED THAT THEY WISH TO CONDUCT MEETINGS PRIMARILY AS DIALOGUES, AVOIDING LENGTHY SPEECHES. THEY INTEND TO POSE 3-4 LEADING QUESTIONS AS A WAY OF KICKING OFF DISCUSSION IN EACH OF THE SUBSTANTIVE SESSIONS. DONOR REPRESENTATIVES WERE ASKED TO INFORM THEIR DELEGATIONS THAT THEY SHOULD REFRAIN FROM DELIVERING LENGTHY PREPARED STATEMENTS AS HAS BEEN DONE IN THE PAST. IF WASHINGTON AGENCIES DESIRE, A WRITTEN STATEMENT CAN BE SUBMITTED TO THE SECRETARIAT FOR DISTRIBUTION. END SUMMARY. ¶3. AMBASSADOR PETERSON AND EMBOFFS ATTENDED MEETING NOVEMBER 28 HOSTED BY THE WORLD BANK OFFICE IN HANOI TO PREPARE FOR THE ANNUAL CONSULTATIVE GROUP (CG) UNCLASSIFIED PAGE 03 HANOI 02614 01 OF 02 010611Z MEETING WHICH WILL BE HELD THIS YEAR IN HANOI DECEMBER 14-15. A PRIVATE SECTOR FORUM WILL BE HELD IN CONJUNCTION WITH THE CG DECEMBER 13. CG ORGANIZERS NOTED THAT THIS CG WILL FOCUS ON THE LONG-TERM MARKING A SIGNIFICANT DEPARTURE FROM CG'S OF THE PAST THAT HAD A MUCH SHORTER TERM FOCUS. ¶4. THE PURPOSE OF THE CG MEETING THIS YEAR IS TO ASSIST VIETNAM TO DEVELOP FEASIBLE, EFFECTIVE POLICIES TO IMPLEMENT THE SOCIO-ECONOMIC DEVELOPMENT STRATEGY FOR THE FIRST DECADE OF THE 21ST CENTURY WHICH IS CURRENTLY BEING PREPARED BY THE COMMUNIST PARTY OF VIETNAM (CPV) FOR THE 9TH PARTY CONGRESS, SCHEDULED TO BE HELD SPRING 2001. ¶5. PART I OF THE DONOR REPORT, ENTITLED "PILLARS OF DEVELOPMENT," USES THE DRAFT CPV STRATEGY AS A STARTING POINT. IT OUTLINES ADDITIONAL TARGETS AND POLICY CHANGES THAT WILL BE NECESSARY IF VIETNAM IS TO SUCCEED IN MEETING THE STRATEGY'S AMBITIOUS GOALS WHICH AIM TO DRAMATICALLY IMPROVE THE QUALITY OF LIFE OF ALL VIETNAMESE CITIZENS BY ATTAINING SUSTAINED RAPID ECONOMIC GROWTH AND CHANGING THE STRUCTURE OF THE ECONOMY TO A MORE MODERN, INDUSTRIAL AND URBAN ONE THAT CAN CREATE BETTER-PAYING JOBS, THUS ENABLING VIETNAM TO MOVE CLOSER TO ITS STATED GOAL OF BEING AN "INDUSTRIALIZED COUNTRY" BY 2020. ONE MAJOR THEME WILL BE ENCOURAGING VIETNAM TO PAY ATTENTION TO ACHIEVING HIGH "QUALITY" GROWTH AS WELL AS A HIGH "QUANTITY" OF GROWTH. THE REPORT ITSELF IS ORGANIZED AROUND 6 THEMES OR "DEVELOPMENTAL PILLARS" WHICH, UNCLASSIFIED PAGE 04 HANOI 02614 01 OF 02 010611Z ACCORDING TO THE DONOR REPORT, THE GVN HAS DETERMINED ARE NECESSARY TO ACHIEVE THE VIETNAM'S GOALS. THEY ARE: - CREATING AN SUPPORTIVE CLIMATE FOR ENTERPRISE; - TRANSFORMING THE RURAL ECONOMY; - ENHANCING HUMAN CAPACITY; - PROVIDING EFFICIENT INFRASTRUCTURE SERVICES; - IMPROVING ENVIRONMENTAL QUALITY; AND - BUILDING MODERN GOVERNANCE. ¶6. A COMPANION REPORT ON THE "PARTNERSHIPS FOR DEVELOPMENT" FORMS PART II OF THE DONOR REPORT. IT CONTAINS THE REPORTS OF SOME OF THE 25 GOVERNMENT- DONOR-NGO PARTNERSHIP WORKING GROUPS COMPLETED IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE 1999 CG AND THE 2000 MID-YEAR REVIEW. (COPIES OF THESE REPORTS WERE SENT ELECTRONICALLY TO STATE, USAID AND AID PHNOM PENH REF A.) ¶7. A DRAFT AGENDA WAS ALSO CIRCULATED AND DISCUSSED AT THIS MEETING. (SEE REF B.) THIS AGENDA IS NOT YET FINAL AND COULD CHANGE ALTHOUGH NO SIGNIFICANT UNCLASSIFIED PAGE 02 HANOI 02614 02 OF 02 010612Z CHANGES WERE SUGGESTED BY PARTICIPANTS OF THE PREPARATORY MEETING. IT ENVISIONS THE FOLLOWING SUBSTANTIVE SESSIONS: SESSION I: VIETNAM 2010 -- THE ECONOMIC AND INSTITUTIONAL FRAMEWORK FOR EQUITABLE GROWTH NOTE: THE GOVERNMENT AND THE DONOR'S REPORTS WILL BE BRIEFLY PRESENTED AT THE OUTSET OF THIS SESSION. SESSION II: KEY IMPERATIVES: HUMAN DEVELOPMENT SESSION III: KEY IMPERATIVES: QUALITY OF ENVIRONMENT SESSION IV: KEY IMPERATIVES: RURAL DEVELOPMENT SESSION V: KEY IMPERATIVES: INFRASTRUCTURE DEVELOPMENT SESSION IV: ODA NEEDS AND INDICATIONS NOTE: DONORS WILL ANNOUNCE THEIR PLEDGES AT THIS SESSION. ¶8. CG ORGANIZERS ALSO WISH TO CHANGE THE FORMAT OF THE MEETING THIS YEAR. RATHER THAN HAVE SESSIONS WHICH ARE DOMINATED BY FORMAL SPEECHES AND LENGTHY INTERVENTIONS, AS IN THE PAST, THEY WANT THE FOCUS TO BE ON DIALOGUE. THEY PLAN TO POSIT 3-4 LEADING QUESTIONS AT THE OUTSET OF EACH SESSION WHICH WILL FORM THE BASIS FOR THE ENSUING DISCUSSION. THESE UNCLASSIFIED PAGE 03 HANOI 02614 02 OF 02 010612Z QUESTIONS ARE TO BE REFINED AND RELEASED AT PREPARATORY MEETING EARLY THE WEEK OF DEC. 4. WE WILL FORWARD THEM TO INTERESTED AGENCIES AS SOON AS THEY ARE AVAILABLE. THIS APPROACH WILL REQUIRE THAT PARTICIPANTS CLOSELY READ THE DONOR AND GOVERNMENT REPORTS AS NO DETAILED PRESENTATION WILL BE MADE BEYOND A GENERAL OVERVIEW. DONORS ARE WELCOME TO PREPARE WRITTEN STATEMENTS WHICH MUST BE SUBMITTED TO THE CG SECRETARIAT IN HANOI AS SOON AS POSSIBLE. THE SECRETARIAT WILL TAKE RESPONSIBILITY FOR MAKING THESE SIPDIS STATEMENTS AVAILABLE TO PARTICIPANTS. ¶9. THE WORLD BANK HAS PROVIDED THE EMBASSY AN ASSISTANCE INDICATIONS FORM AND ASKED THAT IT BE COMPLETED AND RETURNED BY NOV. 30. THIS FORM REQUIRES DETAILED INFORMATION ON 2000 COMMITMENTS, 2000 DISBURSEMENTS AND 2001 PLEDGES FOR PROJECT, NON- PROJECT AND TECHNICAL ASSISTANCE FOR ALL U.S. AGENCIES. ¶10. THIS YEAR'S DELEGATION LIST IS DUE NOW TO THE WORLD BANK OFFICE IN HANOI. ON THE BASIS OF THE INFORMATION PROVIDED REF D, WE WILL SUBMIT THE FOLLOWING LIST: ROBERT RANDOLPH, ASSISTANT ADMINISTRATOR, USAID, HEAD OF DELEGATION AMBASSADOR PETE PETERSON LISA CHILES, MISSION DIRECTOR, USAID REGIONAL MISSION ROBERT DRY, ECONOMIC COUNSELOR UNCLASSIFIED PAGE 04 HANOI 02614 02 OF 02 010612Z JEAN GILSON, DIRECTOR, USAID OFFICE IN VIETNAM LINDA STUART SPECHT, ECONOMIC OFFICER. ¶11. ACTION REQUEST: WASHINGTON AGENCIES ARE REQUESTED TO PREPARE PLEDGING INFORMATION AND WRITTEN STATEMENT(S). POST WAS PLEASED TO LEARN THAT USAID AND STATE HAD ALREADY BEGUN TO PREPARE THIS DOCUMENTATION (REF B AND D). WE STAND READY TO PROVIDE INPUT OR FACTUAL INFORMATION YOU MIGHT REQUIRE AS WELL AS CLEARANCE. WE ARE ALSO READY TO ASSIST IN TALKING POINTS PREPARATION ADDRESSING THE KEY QUESTIONS TO BE POSED AT SUBSTANTIVE SESSIONS WHEN THESE QUESTIONS COME AVAILABLE. WE WOULD APPRECIATE WASHINGTON AGENCIES PROVIDING US WITH DRAFT PAPERS FOR OUR COMMENT AS SOON AS POSSIBLE. END ACTION REQUEST. UNCLASSIFIED