DONOR/GOVERNMENT DISCUSSION OF VIETNAM'S 10 YEAR SOCIO-ECONOMIC DEVELOPMENT STRATEGY

UNCLAS SECTION 01 OF 03 HANOI 001497 SIPDIS STATE FOR EB/IFD/ODF, EB/IFD/OMA, EB/TPP, EAP/EP, EAP/BCLTV STATE PASS USAID/ANE AFERRERA AND DMCCLUSKEY STATE PASS USTR TREASURY FOR OASIA USDOC FOR 4431/MAC/OKSA/HPPHO USDA FOR FAS/ITP/SCHIKH/HUYNH PHNOM PENH FOR USAID LCHILES MANILA PASS USADB UNCLASSIFIED PAGE 02 HANOI 01497 01 OF 03 220450Z SENSITIVE E.O. 12958: N/A TAGS: EAID ECON EFIN ETRD EAGR PREL VM SOE FINREF CVR SUBJECT: DONOR/GOVERNMENT DISCUSSION OF VIETNAM'S 10 YEAR SOCIO-ECONOMIC DEVELOPMENT STRATEGY ¶1. (SBU) SUMMARY: ON JUNE 14, KICKING OFF A SERIES OF DONOR-GOVERNMENT CONSULTATIONS, UNDP SPONSORED A `HIGH- LEVEL' CONFERENCE TO DISCUSS ONE OF THE CENTRAL DOCUMENTS APPROVED BY VIETNAM'S COMMUNIST PARTY DURING THE NINTH PARTY CONGRESS CONCLUDED IN APRIL. THE DOCUMENT, `THE 10 YEAR SOCIO-ECONOMIC DEVELOPMENT STRATEGY', IN MANY WAYS MORE A POLITICAL STATEMENT THAN A MODERN ECONOMIC STRATEGY, NONETHELESS HELPS SET THE STAGE FOR THE COMING PERIOD. UNFORTUNATELY, WHILE IT ACKNOWLEDGES THE ROLE OF THE PRIVATE SECTOR - BOTH DOMESTIC AND FOREIGN-INVESTED - IT ALSO PANDERS TO THE STATE SECTOR. THE PAPER RATHER PERFUNCTORILY NOTES THE MANY COMMITMENTS TO INTERNATIONAL INTEGRATION THE GVN HAS IN RECENT YEARS SIGNED ONTO, INCLUDING AFTA AND THE U.S.-VIETNAM BILATERAL TRADE AGREEMENT. IT ALSO MENTIONS THE GOAL OF `EVENTUAL' ACCESSION TO THE WTO. DONORS APPRECIATED THE OPPORTUNITY TO DISCUSS THE DOCUMENT AND PROVIDE THE GOVERNMENT WITH SUGGESTIONS FOR CARRYING OUT THE MEANINGFUL ELEMENTS OF THE STRATEGY. ¶2. (SBU) SUMMARY CONT'D: AMBASSADOR PETERSON CRITICIZED THE VESTIGIAL PLANNING NATURE INHERENT IN THE DOCUMENT AND HIGHLIGHTED THE IMPORTANCE OF THE PRIVATE SECTOR IN JOB CREATION. HE ALSO URGED THE GVN TO REASSESS THE CONCEPT UNCLASSIFIED PAGE 03 HANOI 01497 01 OF 03 220450Z ARTICULATED IN THE STRATEGY OF THE STATE SECTOR `LEADING' OR `DOMINATING' A CONSIDERABLE NUMBER OF `STRATEGIC' INDUSTRIES. HIS COMMENTS TURNED THE STAID CONFERENCE INTO A SIGNIFICANT DEBATE REGARDING VIETNAM'S FUTURE. OTHER COMMENTS INCLUDED A SURPRISE INTERVENTION BY THE CHINESE AMBASSADOR ABOUT THE NEED FOR GREATER COMPETITION IN THE VIETNAMESE ECONOMY, INCLUDING ROBUST PARTICIPATION OF THE PRIVATE SECTOR IN TELECOMMUNICATIONS. SEVERAL DONORS HIGHLIGHTED THE NEED FOR DEVELOPING DEEPER LEGAL INSTITUTIONS AND PROMOTING TRANSPARENCY AND PROCESS IN DEVELOPING LAWS AND REGULATIONS, AS WELL AS THE PERVASIVE NEED FOR PUBLIC ADMINISTRATION REFORM. THE U.S. DELEGATION ALSO UNDERSCORED THE TRANSPARENCY REQUIREMENTS CONTAINED IN THE U.S.-VIETNAM BTA (NOW BEFORE CONGRESS) AND URGED ENFORCEMENT OF LAWS WHERE LAWS EXISTED AS IN THE AREA OF INTELLECTUAL PROPERTY RIGHTS PROTECTION. THE UNDP LEGAL REFORM ADVISER SUGGESTED THE GVN CONSIDER AMENDING ITS CONSTITUTION TO CREATE A `PROFESSIONAL' NATIONAL LEGISLATURE IN VIEW OF VIETNAM'S NEED TO INCREASE THE NUMBER AND QUALITY OF NATIONAL LAWS IN COMING YEARS. END SUMMARY. ¶3. (SBU) IN AN `OFF-THE-RECORD' MEETING ON JUNE 14, DONORS AND THE GOVERNMENT MET IN HANOI TO DISCUSS VIETNAM'S 10 YEAR SOCIO-ECONOMIC DEVELOPMENT STRATEGY (2001-2010),THE FIVE- YEAR SOCIO-ECONOMIC DEVELOPMENT PLAN (2001-2005),AND A STRATEGY FOR PUBLIC ADMINISTRATIVE REFORM FOR THE PERIOD 2001-2010. (COPIES OF THESE DOCUMENTS WILL BE POUCHED TO EAP/BCLTV.) FIRST DEPUTY PRIME MINISTER NGUYEN TAN DUNG AND MINISTER OF PLANNING AND INVESTMENT TRAN XUAN GIA CHAIRED THE SESSIONS FOR THE GOVERNMENT AND MANY OTHER SENIOR VIETNAMESE ECONOMIC OFFICIALS ALSO PARTICIPATED. UNCLASSIFIED PAGE 04 HANOI 01497 01 OF 03 220450Z AMBASSADORS OF DONOR COUNTRIES AND RESIDENT REPRESENTATIVES OF IFI'S WERE INVITED TO THIS `HIGH-LEVEL' EVENT. IN ADDITION TO AMBASSADOR PETERSON, ECONCOUNS DRY AND USAID- HANOI OFFICE DIRECTOR GILSON REPRESENTED THE U.S. ¶4. (SBU) THE GVN STATEMENTS ABOUT THE 10 YEAR SOCIO- ECONOMIC DEVELOPMENT STRATEGY