VIETNAM: EFFECTING CHANGE WITH THE BTA AND

C O N F I D E N T I A L SECTION 01 OF 02 HANOI 001384 SIPDIS STATE FOR DEPSEC ARMITAGE STATE PASS USTR FOR HUNTSMAN/IVES/BRYAN STATE PASS USAID FOR BALLANTYNE JUSTICE FOR AAG VIET DINH E.O. 12958: DECL: 05/30/12 TAGS: ECON ECIN ETRD EAID PREL KJUS VM BTA SUBJECT: VIETNAM: EFFECTING CHANGE WITH THE BTA AND TECHNICAL ASSISTANCE - THE CASE OF THE JUSTICE MINISTRY ¶1. CLASSIFIED BY ECON/C CLAIRE PIERANGELO, REASONS 1.5 (D) ¶2. (C) INTRODUCTION AND SUMMARY: DURING RECENT MEETINGS AND CONVERSATIONS WITH VIETNAMESE OFFICIALS, U.S. TECHNICAL CONFIDENTIAL PAGE 02 HANOI 01384 01 OF 02 301039Z ASSISTANCE PROVIDERS, AND OTHER LEGAL AND ECONOMIC EXPERTS, WE HAVE BEEN STRUCK BY THE FUNDAMENTAL CHANGES WE SEE UNDERWAY THAT CAN BE DIRECTLY CREDITED TO THE NEED TO FULFILL COMMITMENTS UNDER THE BILATERAL TRADE AGREEMENT (BTA) AND WHICH ARE BEING MADE POSSIBLE WITH THE HELP USG TECHNICAL ASSISTANCE PROGRAMS. THESE CHANGES ARE BUILDING ON THE CHANGES UNDERWAY IN VIETNAM'S OVERALL ECONOMIC REFORM EFFORTS. IT IS CLEAR THAT THE MISSION'S AND WASHINGTON AGENCIES' WORK IS BEGINNING TO PAY OFF, SOMETIMES IN OBVIOUS WAYS BUT ALSO IN MORE SUBTLE WAYS. THIS CABLE FOCUSES ON THE LEGAL REFORM EFFORT AND THE MINISTRY OF JUSTICE, IN PARTICULAR, HOW THE BTA HAS BECOME A TOOL FOR THE MOJ TO EFFECT CHANGE WITHIN THE MINISTRY AS WELL AS WITHIN THE GOVERNMENT. MINISTER OF JUSTICE NGUYEN DINH LOC IS TRAVELING TO THE U.S. JUNE 1-8 FOR MEETINGS WITH USG AND PRIVATE SECTOR OFFICIALS AS PART OF A JOINT U.S.-VIETNAM TRADE COUNCIL-UNDP SPONSORED TRIP. A SEPARATE CABLE WILL REPORT ON CHANGES UNDERWAY IN THE STATE BANK OF VIETNAM. END INTRODUCTION AND SUMMARY. THE BTA AS A TOOL OF CHANGE ¶3. (C) THE MINISTRY OF JUSTICE IS A NEW BODY, HAVING BEEN ABOLISHED BY THE COMMUNIST GOVERNMENT IN THE LATE 1970'S AND WAS ONLY RE-ESTABLISHED 10 YEARS AGO. MINISTER LOC HAS BEEN AT THE HELM THROUGHOUT. MOJ'S POWER BASE AND POSITION WITHIN THE GOVERNMENT STRUCTURE ARE SLOWLY EVOLVING. AT THE RECENT MEETING OF THE U.S.-VIETNAM BILATERAL TRADE AGREEMENT JOINT COMMITTEE IN HANOI, DELEGATION MEMBERS WERE CLEARLY IMPRESSED BY THE WELL-PREPARED, PROFESSIONAL AND FRANK PARTICIPATION BY MOJ OFFICIALS. EVEN MORE STRIKING CONFIDENTIAL PAGE 03 HANOI 01384 01 OF 02 301039Z WAS THE CLEAR LINK THAT MOJ AND OTHER MINISTRIES' OFFICIALS MADE BETWEEN THEIR WORK ON IMPLEMENTING THE LEGAL AND OTHER COMMITMENTS IN THE BTA, THE HELP OF THE ONGOING USG TECHNICAL ASSISTANCE PROGRAMS IN THESE AREAS, AND THE MORE GENERAL LEGAL AND ECONOMIC REFORM EFFORTS UNDERWAY IN VIETNAM TODAY. ¶4. (C) THE BTA, BY VIRTUE OF THE LEGAL COMMITMENTS IT CONTAINS, IS BEING USED BY THE MOJ (AND OTHER MINISTRIES) TO PROMOTE CHANGE WITHIN THEIR OWN ORGANIZATIONS. IT IS NO COINCIDENCE THAT MOJ, PREVIOUSLY A MORIBUND AGENCY WITH LIMITED AUTHORITY AND A LIMITED MANDATE, IS NOW IN THE CENTER OF THE BTA IMPLEMENTATION EFFORT. CLEARLY THE IMPLEMENTATION OF THE BTA AND THE INCREASED TECHNICAL ASSISTANCE PROVIDED BY THE U.S. AND OTHER DONORS ARE CONTRIBUTING TO THE GREATER ENTHUSIASM, COMPETENCE, AUTHORITY, AND IMPORTANCE OF THE MOJ. THIS IS A POSITIVE MOVE TOWARD THE RULE BY LAW IN VIETNAM. NEW RESPONSIBILITIES FOR MOJ LEADING TO GREATER INFLUENCE ¶5. (SBU) DURING THE NEGOTIATIONS OF THE BTA, THE MOJ HAD ONLY LIMITED INPUT. HOWEVER, AFTER THE BTA WAS SIGNED (JULY 2000),THE PRIME MINISTER INSTRUCTED MOJ TO BEGIN A REVIEW OF ALL LEGAL DOCUMENTS (LAWS, DECREES, ORDINANCES, ETC.) IN ORDER TO IDENTIFY WHICH ONES NEEDED TO BE REVISED IN ORDER TO MEET THE REQUIREMENTS OF THE BTA. AFTER THE REVIEW, WHICH INCLUDED 148 LEGAL DOCUMENTS, MOJ SUGGESTED REVISIONS TO 24, PROPOSED 39 NEW DOCUMENTS, AND RECOMMENDED 9 TO BE CANCELLED. MOJ HAS NOW BEEN ASKED TO REVIEW LOCAL LEVEL LEGAL DOCUMENTS IN THE SAME MANNER. ALTHOUGH A CONFIDENTIAL PAGE 04 HANOI 01384 01 OF 02 301039Z SIMPLE SOUNDING OPERATION, PRIOR TO THAT TIME MOJ HAD NOT BEEN GIVEN AUTHORITY TO REVIEW LEGAL DOCUMENTS PROMULGATED BY OTHER MINISTRIES AND HAD NO MANDATE TO REVIEW LEGAL DOCUMENTS AT THE LOCAL LEVEL, EVEN IF JUST TO ENSURE CONSISTENCY WITH NATIONAL LAW. MINISTRIES, AGENCIES, PROVINCES, AND COMMUNES TRADITIONALLY CAN PROPOSE LAWS TO THE NATIONAL ASSEMBLY AND ISSUE DECREES, ORDINANCES, ETC. ON THEIR OWN AUTHORITY. SOME MINISTERIAL OR PROVINCIAL DECREES AND ORDINANCES NEED THE PRIME MINISTER'S APPROVAL BUT NOT NECESSARILY THE CLEARANCE OR CONCURRENCE OF OTHER MINISTRIES OR AGENCIES. AT THE LOCAL LEVEL, OFTEN THERE IS NO REVIEW OR APPROVAL PROCESS AT ALL. THIS LACK OF REVIEW CONTRIBUTES TO OVERLAPPING, CONTRADICTORY, AND INCONSISTENT LEGAL DOCUMENTS. THIS YEAR, MOJ WAS ALSO PUT IN CHARGE OF A MAJOR EFFORT CALLED THE "LEGAL NEEDS ASSESSMENT", A 10- YEAR PLAN ON THE FULL RANGE OF LEGAL REFORMS NEEDED IF VIETNAM INTENDS TO INTEGRATE SUCCESSFULLY INTO THE REGIONAL AND WORLD ECONOMY, INCLUDING POSSIBLE WTO ACCESSION. THIS ASSESSMENT GOES BEYOND JUST BTA IMPLEMENTATION AND ADDRESSES A WIDE RANGE OF LEGAL ISSUES IN VIETNAM. CONFIDENTIAL CONFIDENTIAL PTQ9249 PAGE 01 HANOI 01384 02 OF 02 301039Z ACTION SS-00 INFO LOG-00 AID-00 ANHR-00 TEDE-00 JUSE-00 STR-00 SAS-00 /000W -------------- B59E1D 301040Z /38 O 301026Z MAY 02 FM AMEMBASSY HANOI TO SECSTATE WASHDC IMMEDIATE 6624 INFO ASEAN COLLECTIVE DEPT OF JUSTICE WASHDC USDOC WASHDC DEPTTREAS WASHDC C O N F I D E N T I A L SECTION 02 OF 02 HANOI 001384 SIPDIS STATE FOR DEPSEC ARMITAGE STATE PASS USTR FOR HUNTSMAN/IVES/BRYAN STATE PASS USAID FOR BALLANTYNE JUSTICE FOR AAG VIET DINH THE VALUE-ADDED FROM USG TECHNICAL ASSISTANCE ¶6. (C) THE USG'S DAY TO DAY WORK ON LEGAL REFORM EFFORTS CONFIDENTIAL PAGE 02 HANOI 01384 02 OF 02 301039Z IN VIETNAM IS NOT ALWAYS OBVIOUS TO OTHER DONORS OR THE GVN BUT FROM WHAT WE ARE SEEING, WE BELIEVE THAT THE EFFECT IS REAL AND GOES BEYOND THE MERE ECONOMIC. THE ISSUE OF TRANSPARENCY IS A CASE IN POINT. THE GVN IS IN THE PROCESS OF AMENDING ITS "LAW ON LAWS" ("THE LAW ON PROMULGATION OF LEGAL DOCUMENTS") WHICH GUIDES THE OVERALL PROCESS FOR LEGISLATION AND RULEMAKING IN ALL AREAS FOR VIETNAM. THIS EFFORT HAS BEEN UNDERTAKEN AS A DIRECT RESPONSE TO THE TRANSPARENCY REQUIREMENTS IN THE BTA. THE USG AT SEVERAL LEVELS - EMBASSY, WASHINGTON AGENCIES AND USG-FUNDED TECHNICAL ASSISTANCE - IS ACTIVELY PARTICIPATING IN THIS EFFORT THROUGH CONSULTATION AND GUIDANCE. WHILE THE EMBASSY'S AND WASHINGTON AGENCIES' EFFORTS ARE SIGNIFICANT, PERHAPS THE BIGGEST BANG FOR THE BUCK COMES FROM THE TECHNICAL ASSISTANCE PROVIDED THROUGH TWO USAID-FUNDED PROGRAMS - THE STAR PROJECT AND U.S.-VIETNAM TRADE COUNCIL PROGRAM. THESE PROGRAMS HAVE GIVEN US ADDITIONAL ACCESS ROUTES TO THE GVN, ESPECIALLY IN SOME SENSITIVE AREAS. FOR EXAMPLE, WE WERE ABLE TO OFFER ONLY GENERAL COMMENTS TO THE GVN REGARDING OUR EXPECTATIONS FOR TRANSPARENCY PROVISIONS IN THE AMENDED LAW ON LAWS, BUT WE WERE NOT ALLOWED TO SEE THE DRAFT IN PROGRESS. HOWEVER, THE LEGAL DEPARTMENT OF THE NATIONAL ASSEMBLY TURNED TO THE STAR PROJECT FOR COMMENTS ON THE DRAFT AND GAVE STAR A COPY. THUS STAR WAS ABLE TO COMMENT ON SPECIFICS OF THE LAW, IN PARTICULAR, WHETHER THE PROPOSED AMENDMENTS GO FAR ENOUGH TOWARD MEETING VIETNAM'S COMMITMENTS ON TRANSPARENCY UNDER THE BTA. WHILE THAT LAW IS STILL A WORK IN PROGRESS, WE FEEL CONFIDENT THAT ALL THESE EFFORTS WILL HAVE A POSITIVE IMPACT ON THE FINAL LAW AND ON GREATER TRANSPARENCY IN VIETNAM. CONFIDENTIAL PAGE 03 HANOI 01384 02 OF 02 301039Z ¶7. (C) ANOTHER IMPORTANT ASPECT OF OUR TECHNICAL ASSISTANCE ON LEGAL REFORM ISSUES IS EXPOSING VIETNAMESE OFFICIALS TO THE U.S. AND U.S. OFFICIALS. THE U.S.-VIETNAM TRADE COUNCIL AND THE UNDP ARE JOINTLY SPONSORING THE U.S. VISIT OF JUSTICE MINISTER LOC JUNE 1-8. LOC WILL BE ACCOMPANIED BY SOME OF HIS BEST STAFF AND WILL BE LOOKING AT LOCAL ENFORCEMENT ISSUES AS WELL AS DIVISION OF RESPONSIBILITIES BETWEEN FEDERAL, STATE, AND LOCAL AUTHORITIES. THE LACK OF CLEAR JURISDICTION AND DIVISION OF AUTHORITY IS A MAJOR OBSTACLE TO LEGAL REFORM IN VIETNAM AND THIS VISIT WILL HELP PROVIDE SOME NEW IDEAS ON HOW TO APPROACH THIS DIFFICULT AND POLITICALLY SENSITIVE ISSUE. CONCLUSION ¶8. (C) LEGAL REFORM IN VIETNAM IS AN ONGOING EFFORT, BUT ONE IN WHICH THE BTA AND USG TECHNICAL ASSISTANCE ARE PLAYING A POSITIVE AND IMPORTANT ROLE. THE MORE WE CAN DO TO ASSIST VIETNAM IN THIS AREA, THE MORE WE WILL BE ABLE TO INFLUENCE THE PACE AND DIRECTION OF REFORM, WHICH WILL HAVE POSITIVE EFFECTS ACROSS THE LEGAL SPECTRUM. PORTER CONFIDENTIAL