VIETNAM AND THE EUROPEAN UNION

UNCLAS SECTION 01 OF 04 HANOI 002209 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: PREL ETRD SOCI EAID ECON XG XH VM HUMANR SUBJECT: VIETNAM AND THE EUROPEAN UNION UNCLASSIFIED PAGE 02 HANOI 02209 01 OF 04 100948Z ¶1. (U) SUMMARY. THE EUROPEAN UNION (EU) IS ONE OF VIETNAM'S KEY DONORS AND AN IMPORTANT POLITICAL AND ECONOMIC PARTNER. HUMAN RIGHTS IS AT THE TOP OF THE EU'S POLITICAL AGENDA, WHILE VIETNAM IS FOCUSED MORE ON INCREASING EXPORTS TO EU MEMBERS AND ENCOURAGING MORE INVESTMENT AND AID FROM THE EU AND ITS INDIVIDUAL MEMBERS. THE GVN PROFESSES TO WELCOME EU ENLARGEMENT, NOTING ITS TRADITIONAL TIES WITH THOSE FORMERLY COMMUNIST EAST EUROPEAN NATIONS. END SUMMARY. -------------- VIETNAM LOOKING OUTWARD -------------- ¶2. (U) IN ACCORDANCE WITH A POLICY ADOPTED IN 1991 AT THE SEVENTH PARTY CONGRESS, VIETNAM HAS MOVED STEADILY TO ADOPT A MORE OUTWARD-LOOKING FOREIGN POLICY. AS FOREIGN MINISTER NGUYEN DY NIEN REAFFIRMED IN A JANUARY 11 SPEECH, "VIETNAM IS PREPARED TO BE A FRIEND AND RELIABLE PARTNER OF ALL COUNTRIES IN THE INTERNATIONAL COMMUNITY." MORE SPECIFICALLY, NIEN TOLD HIS DANISH COUNTERPART ON JUNE 3 THAT "VIETNAM CONSIDERS THE EU AS AN IMPORTANT PARTNER." PRIME MINISTER PHAM VAN KHAI TOLD SPAIN'S AMBASSADOR TO VIETNAM ON MAY 2 THAT, "VIETNAM REGARDS RELATIONS WITH THE EU AS VITALLY IMPORTANT," ACCORDING TO PRESS REPORTS. ¶3. (U) SIX MONTHS PRIOR TO THE SEVENTH PARTY CONGRESS, IN NOVEMBER 1990, THE EU AND VIETNAM HAD NORMALIZED DIPLOMATIC RELATIONS. THE INITIAL FOCUS OF COOPERATION WAS ON SUPPORT UNCLASSIFIED PAGE 03 HANOI 02209 01 OF 04 100948Z FOR THE RETURN AND REINTEGRATION OF VIETNAM WAR REFUGEES. BETWEEN 1989 AND 1996, THE EU PROVIDED ALMOST USD 106.5 MILLION FOR THIS PROGRAM. IN DECEMBER 1992, THE EUROPEAN COMMISSION (EC) AND VIETNAM SIGNED A TEXTILE AND CLOTHING AGREEMENT, SUBSEQUENTLY RENEWED IN NOVEMBER 1997 AND OCTOBER 2000, TO ALLOW INCREASED ACCESS TO THE EU MARKET FOR VIETNAMESE PRODUCTS. IN ADDITION, VIETNAM AND THE EU SIGNED A FRAMEWORK COOPERATION AGREEMENT IN JULY 1995, WHICH PROVIDED BOTH FOR HUMAN RIGHTS DIALOGUES AS WELL AS MOST FAVORED NATION STATUS FOR VIETNAM'S EXPORTS. VIETNAM FORMALLY ACCEDED TO THE EC-ASEAN COOPERATION AGREEMENT ON MAY 1, 1999. -------------- "IMPORTANT" RELATIONSHIP FOR VIETNAM -------------- ¶4. (U) ELEVEN OF 15 EU MEMBER STATES HAVE EMBASSIES IN VIETNAM: AUSTRIA, BELGIUM, DENMARK, FINLAND, FRANCE, GERMANY, ITALY, THE NETHERLANDS, SPAIN, SWEDEN, AND THE UNITED KINGDOM. DR. BUI HUY KHOAT, DIRECTOR OF THE INSTITUTE OF EUROPEAN STUDIES OF THE NATIONAL CENTRE FOR SOCIAL SCIENCES AND HUMANITIES, DESCRIBED THE RELATIONSHIP WITH THE EU IS "ONE OF THE MOST IMPORTANT" FOR VIETNAM. HE OPINED THAT, AS ECONOMIC RELATIONS HAVE GROWN, THIS HAS ALSO LED TO A STRONGER POLITICAL RELATIONSHIP WITH THE EU IN GENERAL AND INDIVIDUAL MEMBER STATES. DR. KHOAT NOTED THAT ONE WELCOME DEVELOPMENT MORE RECENTLY WAS THE EU'S DESIGNATION OF VIETNAM AS AN "EMERGING MARKET ECONOMY" AND NEW EU LEGISLATION TO ALLOW VIETNAM BETTER MARKET ACCESS. UNCLASSIFIED PAGE 04 HANOI 02209 01 OF 04 100948Z ¶5. (U) SUPPORTED BY THE EU, A "EUROPEAN STUDIES PROGRAM-- VIETNAM" PROJECT BEGAN OPERATION LOCALLY IN MAY 2002 IN COOPERATION WITH THE INSTITUTE OF EUROPEAN STUDIES. STEFAN HELL, HEAD OF PROJECT IMPLEMENTATION, SAID PROJECT GOALS INCLUDE ENHANCING KNOWLEDGE AND AWARENESS OF THE EU AND PROMOTING EUROPEAN STUDIES IN VIETNAM. THE PROJECT WILL ALSO SUPPORT EXCHANGES OF VIETNAMESE AND EUROPEAN ACADEMICS IN HOPES OF PROVIDING THE VIETNAMESE A BROADER EXPOSURE TO EUROPE, HELL ADDED. -------------- THE POLITICAL FRONT -------------- ¶6. (SBU) THE EU-VIETNAM POLITICAL RELATIONSHIP HAS ADVANCED STEADILY, ACCORDING TO NGUYEN VIET ANH, SENIOR EXPERT IN THE MINISTRY OF FOREIGN AFFAIRS' (MFA) EUROPE II DIVISION. THERE ARE REGULAR HIGH-LEVEL VISITS AND EXCHANGES. SHE POINTED SPECIFICALLY TO PRIME MINISTER PHAN VAN KHAI'S "SUCCESSFUL" 2001 TRIP TO GERMANY, THE NETHERLANDS, AND SPAIN. IN SEPTEMBER 2002, KHAI IS SCHEDULED TO TRAVEL TO BRUSSELS TO MEET ROMANO PRADI, THE EU PRESIDENT. IN ADDITION, VIETNAM HAS "VERY GOOD" POLITICAL RELATIONS WITH THE INDIVIDUAL MEMBER STATES, ANH NOTED. MAURICIO CALDARONE, COUNSELOR OF THE DELEGATION OF THE EUROPEAN COMMISSION TO VIETNAM, DESCRIBED THE POLITICAL UNCLASSIFIED UNCLASSIFIED PTQ1907 PAGE 01 HANOI 02209 02 OF 04 100948Z ACTION EAP-00 INFO LOG-00 NP-00 AID-00 ACQ-00 CEA-01 CIAE-00 COME-00 CTME-00 INL-00 DOEE-00 ITCE-00 DOTE-00 SRPP-00 DS-00 EB-00 ED-01 EXME-00 EUR-00 E-00 FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 HHS-01 H-01 TEDE-00 INR-00 ITC-01 L-00 VCE-00 MOFM-05 MOF-01 AC-01 NSAE-00 NSCE-00 OES-01 OMB-01 OPIC-01 PA-00 PM-00 PRS-00 ACE-00 P-00 SP-00 SSO-00 STR-00 TEST-00 TRSE-00 USIE-00 EPAE-00 PMB-00 DSCC-00 DRL-02 G-00 NFAT-00 SAS-00 /017W -------------- E4FFB4 100951Z /38 R 100942Z SEP 02 FM AMEMBASSY HANOI TO SECSTATE WASHDC 7518 INFO AMCONSUL HO CHI MINH CITY ALL EUROPEAN UNION POST COLLECTIVE USEU BRUSSELS AMEMBASSY PHNOM PENH AMEMBASSY VIENTIANE SECDEF WASHDC//ISA/ACHAO// USCINCPAC HONOLULU HI UNCLAS SECTION 02 OF 04 HANOI 002209 SIPDIS SENSITIVE UNCLASSIFIED PAGE 02 HANOI 02209 02 OF 04 100948Z SUBJECT: VIETNAM AND THE EUROPEAN UNION RELATIONSHIP AS "STRONG AND GETTING STRONGER." AT THE INSTITUTE OF INTERNATIONAL RELATIONS (IIR) (ROUGHLY EQUIVALENT TO THE DEPARTMENT'S NFTAC),SENIOR RESEARCHER PHAN NGHO UYEN CALLED VIETNAM'S RELATIONS WITH THE EU AND WITH THE INDIVIDUAL MEMBER STATES "VERY GOOD," WHILE ADMITTING THEY WERE "PERHAPS NOT AS DEVELOPED AS THE ECONOMIC RELATIONS." -------------- HUMAN RIGHTS FOCUS -------------- ¶7. (U) DESPITE THE GENERALLY POSITIVE TREND IN THE EU- VIETNAM RELATIONSHIP, HUMAN RIGHTS REMAIN A KEY ISSUE OF CONCERN TO THE EU. THE MFA'S ANH NOTED THAT "WE TALK ABOUT HUMAN RIGHTS WHEN THE EU WANTS TO," ADDING THAT THE "TWO SIDES SHOULD BE MORE UNDERSTANDING OF EACH OTHER." SHE ADDED THAT THE GVN IS SOMETIMES "UPSET" OVER HUMAN RIGHTS ISSUES RAISED BY EUROPEAN PARLIAMENTARY VISITS (ONE IS ONGOING SEPTEMBER 9-14),SINCE SOME EU PARLIAMENTARIANS "DO NOT UNDERSTAND THE HUMAN RIGHTS SITUATION IN VIETNAM AND MAKE INACCURATE STATEMENTS." ¶8. (SBU) TO COUNTER WHAT ANH TERMED "DISTORTION" FROM EU PARLIAMENTARIANS, THE MFA ORGANIZED A TRIP TO THE CENTRAL HIGHLANDS IN MARCH 2002 TO PROVIDE AN "ACCURATE PICTURE" OF THE HUMAN RIGHTS SITUATION IN THAT AREA. ONE EU PARTICIPANT SUBSEQUENTLY COMPLAINED PRIVATELY TO US THAT THE TRIP HAD BEEN "CAREFULLY MANAGED" BY THE GVN, LEAVING "ALMOST NO" UNCLASSIFIED PAGE 03 HANOI 02209 02 OF 04 100948Z INTERACTION BETWEEN THE EU REPRESENTATIVES AND THE LOCAL POPULATION. ANOTHER PARTICIPANT COMPLAINED THAT THE TRIP HAD TAKEN A "LONG TIME" TO GET ORGANIZED. THE DIPLOMATS WERE ACCOMPANIED BY A LARGE GROUP OF ESCORTS INCLUDING MANY "REPORTERS," HE ADDED; LOCAL PEOPLE WERE PROBABLY INTIMIDATED BY THE ESCORT, HE LAMENTED. ¶9. (SBU) THE EU'S CALDARONE INSISTED THAT THE EU CONTINUES "TO PUSH THE GVN ON HUMAN RIGHTS," BUT "PERHAPS NOT AS STRONGLY AS THE U.S." HE POINTED TO THE EU'S VIETNAM FIVE- YEAR COUNTRY STRATEGY, RELEASED IN MAY 2002, WHICH LISTS HUMAN RIGHTS AS ONE OF THE "CROSS-CUTTING THEMES" AND AS AN "INTEGRAL PART" OF THE EU'S ASSISTANCE. WITH "LESS HISTORICAL BAGGAGE" THAN THE U.S., THE EU PROBABLY DOES NOT FIND AS MUCH HOSTILITY TOWARDS HUMAN RIGHTS ISSUES AS DOES THE U.S., HE OPINED. ¶10. (U) AT THE EU HEADQUARTERS LEVEL, EU COMMISSIONER FOR EXTERNAL RELATIONS CHRIS PATTEN EXPRESSED "CONCERN" ABOUT THE HUMAN RIGHTS SITUATION IN VIETNAM IN JULY 2001. THE EU FOLLOWED WITH A STRONGER STATEMENT AT THE NOVEMBER JOINT COMMISSION MEETING, EXPLICITLY CITING PROBLEMS WITH FREEDOM OF OPINION AND RELIGION, THE SITUATION OF ETHNIC MINORITIES, AND CONTINUED APPLICATION OF THE DEATH PENALTY. THE GVN RESPONDED FORCEFULLY TO THIS STATEMENT, PUBLICLY CLAIMING IT DID "NOT REFLECT REALITY." MORE RECENTLY, THE MAY STRATEGY PAPER NOTED THAT THE GVN'S PROGRESS IN HUMAN RIGHTS HAS BEEN "LIMITED" AND THAT "NUMEROUS INSTITUTIONS OUTSIDE VIETNAM, INCLUDING THE EUROPEAN PARLIAMENT, HAVE CRITICIZED THE GVN'S HUMAN RIGHTS RECORD, PARTICULARLY CONCERNING THE DETENTION AND IMPRISONMENT OF RELIGIOUS LEADERS. . ." UNCLASSIFIED PAGE 04 HANOI 02209 02 OF 04 100948Z ¶11. (SBU) EUROPEAN EMBOFFS IN HANOI VARIOUSLY NOTED THE IMPORTANCE THEIR INDIVIDUAL COUNTRIES PLACE ON HUMAN RIGHTS PROBLEMS IN VIETNAM. MIKAEL WINTHER, DANISH EMBASSY COUNSELOR, SAID THAT HIS GOVERNMENT IS A "STRONG ADVOCATE" OF HUMAN RIGHTS ISSUES AND "FULLY SUPPORTS" THE EU'S DIALOGUE WITH THE GVN. THE NETHERLANDS' POLITICAL COUNSELOR MICHIEL VAN DER VEN SAID HIS GOVERNMENT "STRONGLY SUPPORTS" THE EU'S DIALOGUE AND ALSO BRINGS UP HUMAN RIGHTS ISSUES BILATERALLY WITH THE GVN. SWEDISH EMBASSY COUNSELOR FOR DEVELOPMENT COOPERATION PER LUNDELL SAID THAT HIS EMBASSY DISCUSSES HUMAN RIGHTS "FORCEFULLY" WITH VIETNAM. HE ALSO NOTED SWEDEN'S "CONTINUED" SUPPORT FOR THE EU HUMAN RIGHTS DIALOGUE. -------------- - DEVELOPMENT ASSISTANCE: EU'S HELP APPRECIATED -------------- - ¶12. (SBU) IN 2001, THE TOTAL DISBURSEMENTS OF EU MEMBER STATES AND EU PROJECTS AND PROGRAMS IN VIETNAM AMOUNTED TO USD 292 MILLION, ABOUT 20 PERCENT HIGHER THAN 2000 AND 40 PERCENT HIGHER THAN 1998, ACCORDING TO THE "EU DEVELOPMENT COOPERATION ACTIVITIES IN VIETNAM" 2001 REPORT. THIS REPRESENTS APPROXIMATELY 20 PCT OF ALL ODA FOR VIETNAM ON AN ANNUAL BASIS. EU PROJECT ASSISTANCE ALONE AMOUNTED TO UNCLASSIFIED UNCLASSIFIED PTQ1910 PAGE 01 HANOI 02209 03 OF 04 100949Z ACTION EAP-00 INFO LOG-00 NP-00 AID-00 ACQ-00 CEA-01 CIAE-00 COME-00 CTME-00 INL-00 DOEE-00 ITCE-00 DOTE-00 SRPP-00 DS-00 MEDE-00 EB-00 ED-01 EXME-00 EUR-00 OIGO-00 E-00 FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 HHS-01 H-01 TEDE-00 INR-00 ITC-01 JUSE-00 L-00 VCE-00 MOFM-05 MOF-01 AC-01 NSAE-00 NSCE-00 OES-01 OMB-01 OPIC-01 PA-00 PM-00 PRS-00 ACE-00 P-00 SP-00 SSO-00 STR-00 TEST-00 TRSE-00 USIE-00 EPAE-00 PMB-00 DSCC-00 DRL-02 G-00 NFAT-00 SAS-00 /017W -------------- E4FFD0 100952Z /38 R 100942Z SEP 02 FM AMEMBASSY HANOI TO SECSTATE WASHDC 7519 INFO AMCONSUL HO CHI MINH CITY ALL EUROPEAN UNION POST COLLECTIVE USEU BRUSSELS AMEMBASSY PHNOM PENH AMEMBASSY VIENTIANE SECDEF WASHDC//ISA/ACHAO// USCINCPAC HONOLULU HI UNCLAS SECTION 03 OF 04 HANOI 002209 SIPDIS SENSITIVE UNCLASSIFIED PAGE 02 HANOI 02209 03 OF 04 100949Z SUBJECT: VIETNAM AND THE EUROPEAN UNION ALMOST USD 26.4 MILLION. WHILE THE EU'S ASSISTANCE IS DIVIDED AMONG 19 SECTORS, ABOUT 40 PERCENT GOES TO THREE MAIN AREAS: (1) AGRICULTURE, FORESTRY, AND FISHERIES (16 PERCENT); (2) SOCIAL DEVELOPMENT (13 PERCENT); AND, (3) HEALTH (11 PERCENT),ACCORDING TO THE REPORT. THE EU DELEGATION'S FIRST SECRETARY FOR DEVELOPMENT, ANDREW JACOBS, NOTED THAT THE EU SEEKS TO ENSURE THAT ITS PROJECTS AGREE WITH THE GVN'S DEVELOPMENT GOALS, PARTICULARLY POVERTY ALLEVIATION. ¶13. (SBU) INDIVIDUAL MEMBER STATES -- MOST SIGNIFICANTLY FRANCE, DENMARK, GERMANY, AND SWEDEN -- ALSO ADMINISTER EXTENSIVE BILATERAL DEVELOPMENT ASSISTANCE PROGRAMS IN VIETNAM, ACCORDING TO THE EU REPORT. FRENCH ASSISTANCE, WHICH AMOUNTED TO ABOUT USD 70 MILLION IN 2001, SUPPORTS PROJECTS IN: (1) LEGAL AND POLITICAL TRANSITION; (2) RESEARCH FOR EDUCATION MODERNIZATION; (3) RURAL DEVELOPMENT; AND, (4) POVERTY ALLEVIATION AND MEDICAL ASSISTANCE. DENMARK OUTSTRIPS ALL OTHER EU DONORS IN VIETNAM ON A PER CAPITA BASIS, WITH ABOUT USD 48 MILLION IN 2001, FOCUSED ON FISHERIES, WATER RESOURCES, AND AGRICULTURE. GERMANY CONTRIBUTED ABOUT USD 25 MILLION IN 2001, MOSTLY FOR: (1) REFORM OF STATE ENTERPRISES AND PROMOTION OF PRIVATE ENTERPRISE; (2) VOCATIONAL TRAINING; (3) SUSTAINABLE USE OF NATURAL RESOURCES; AND, (4) HEALTH CARE. CONTINUING A LONG HISTORY OF ASSISTANCE TO VIETNAM, SWEDEN IN 2001 DISBURSED ABOUT USD 33 MILLION IN ODA, FOCUSED ON: (1) TRANSFORMATION TO A MARKET ECONOMY; (2) ETHNIC MINORITY AREAS; (3) ENVIRONMENT; (4) HUMAN RIGHTS, DEMOCRACY, AND TRANSPARENCY; UNCLASSIFIED PAGE 03 HANOI 02209 03 OF 04 100949Z AND, (5) ENERGY, ACCORDING TO THE EU REPORT. ¶14. (SBU) THE MFA'S ANH SAID THAT THE GVN IS "VERY GRATEFUL" FOR THE ASSISTANCE FROM THE EU AND MEMBER STATES, NOTING THE PROJECTS "FIT WELL WITH OUR DEVELOPMENT PRIORITIES." THE EU'S JACOBS SAID THE EU "WORKS CLOSELY" WITH RELEVANT GVN MINISTRIES, ESPECIALLY THE MINISTRY OF PLANNING AND INVESTMENT AND THE MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT, TO ENSURE THE EU'S FOCUS STAYS ON TRACK WITH THE GVN'S DEVELOPMENT GOALS. SOME EUROPEAN DIPLOMATS ADMITTED PRIVATELY, HOWEVER, THAT THE EU HAS OCCASIONALLY BEEN "SOMEWHAT HEAVY HANDED" IN PUSHING PROJECTS WITHOUT GIVING THE GVN MUCH INPUT. -------------- A KEY TRADING PARTNER -------------- ¶15. (U) ACCORDING TO STATISTICS OF THE GVN'S MINISTRY OF TRADE (MOT),THE EU AS A WHOLE IS VIETNAM'S LARGEST EXPORT MARKET, RECEIVING OVER USD 3.2 BILLION OF GOODS, OR 21 PERCENT OF VIETNAM'S EXPORTS IN 2001. A SIGNIFICANT PORTION OF VIETNAM'S EXPORTS TRANSIT THIRD COUNTRIES, HOWEVER. IN 2001, VIETNAM HAD A TRADE SURPLUS OF AROUND USD 3 BILLION (THE EU'S FIGURE) OR ABOUT USD 2 BILLION (MOT'S FIGURE). VIETNAM'S EXPORTS INCLUDE TEXTILES, FOOTWEAR, SEAFOOD PRODUCTS, AND OTHER AGRICULTURAL PRODUCTS, MAINLY TO FRANCE, GERMANY, THE UNITED KINGDOM, ITALY, THE NETHERLANDS, SWEDEN, BELGIUM, AND SPAIN. VIETNAM'S IMPORTS FROM THE EU CONSIST MAINLY OF MACHINERY AND OTHER MANUFACTURED GOODS, ANH NOTED. UNCLASSIFIED PAGE 04 HANOI 02209 03 OF 04 100949Z ¶16. (U) HOWEVER, THE GVN OFTEN VIEWS EU QUALITY CONTROL REQUIREMENTS FOR AGRICULTURAL AND SEA PRODUCTS AS A WAY TO LIMIT MARKET ACCESS, ACCORDING TO COLONEL TRAN NHUNG, INTERNATIONAL DEPARTMENT DIRECTOR OF THE "PEOPLE'S ARMY" NEWSPAPER. EU MEMBER STATES' EMBOFFS AND THE MFA'S ANH SAID SEPARATELY THAT THE GVN SOMETIMES APPROACHES INDIVIDUAL MEMBER STATE EMBASSIES FOR RESOLUTION OF SUCH ISSUES. AS ANH NOTED, "WE VALUE THE MULTILATERAL RELATIONSHIP, BUT WE LOOK TO THE SINGLE (EUROPEAN) COUNTRIES FOR SUPPORT FOR OUR POSITIONS." UK EMBOFF DUNN SAID THE GVN "HAS DIFFICULTY" DEALING WITH THE EU AS A WHOLE AND MAY BE "MORE COMFORTABLE" APPEALING TO INDIVIDUAL MEMBER STATES FOR SUPPORT. -------------- NOT CONCERNED ABOUT BTA -------------- ¶17. (SBU) ACCORDING TO THE EU'S CALDARONE, THE GVN HAS EXPLICITLY PROMISED THAT THERE WILL BE "NO DISCRIMINATION" AGAINST THE EU DUE TO THE US-VIETNAM BILATERAL TRADE AGREEMENT (BTA). HE ADDED THAT THE EU HAS PROMISED TO SUPPORT VIETNAM'S ACCESSION TO THE WORLD TRADE ORGANIZATION, A GOAL THAT BTA IMPLEMENTATION WILL ADVANCE. THE 2001 "EU ECONOMIC AND COMMERCIAL COUNSELORS' REPORT" NOTED THAT THE GVN HAS CONFIRMED "BY AN EXCHANGE OF LETTERS" THE BTA "WILL NOT LEAD TO ANY DISCRIMINATION AGAINST EU COMPANIES." THE UNCLASSIFIED UNCLASSIFIED PTQ1911 PAGE 01 HANOI 02209 04 OF 04 100949Z ACTION EAP-00 INFO LOG-00 NP-00 AID-00 ACQ-00 CEA-01 CIAE-00 COME-00 CTME-00 DOEE-00 ITCE-00 DOTE-00 SRPP-00 DS-00 EB-00 ED-01 EXME-00 EUR-00 E-00 FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 HHS-01 H-01 TEDE-00 INR-00 ITC-01 JUSE-00 LAB-01 L-00 VCE-00 MOFM-05 MOF-01 AC-01 NSAE-00 NSCE-00 OES-01 OMB-01 OPIC-01 PA-00 PM-00 PRS-00 ACE-00 P-00 SP-00 SSO-00 STR-00 TEST-00 TRSE-00 USIE-00 EPAE-00 PMB-00 DSCC-00 DRL-02 G-00 NFAT-00 SAS-00 /018W -------------- E4FFD3 100952Z /38 R 100942Z SEP 02 FM AMEMBASSY HANOI TO SECSTATE WASHDC 7520 INFO AMCONSUL HO CHI MINH CITY ALL EUROPEAN UNION POST COLLECTIVE USEU BRUSSELS AMEMBASSY PHNOM PENH AMEMBASSY VIENTIANE SECDEF WASHDC//ISA/ACHAO// USCINCPAC HONOLULU HI UNCLAS SECTION 04 OF 04 HANOI 002209 SIPDIS SENSITIVE UNCLASSIFIED PAGE 02 HANOI 02209 04 OF 04 100949Z SUBJECT: VIETNAM AND THE EUROPEAN UNION MFA'S ANH NOTED THAT THE GVN "VALUES" THE EU AS A TRADING PARTNER AND EXPECTED THE BTA WOULD "BE HEALTHY FOR ALL SIDES." -------------- EU ENLARGEMENT POSITIVE -------------- ¶18. (U) THE MFA'S ANH EXPRESSED WELCOME FOR THE UPCOMING EU ENLARGEMENT, NOTING SPECIFICALLY THAT "MANY OF THE NEW MEMBER STATES ARE OUR TRADITIONAL FRIENDS." THE IIR'S UYEN SEPARATELY AGREED, CITING VIETNAM'S "EXTENSIVE EXPERIENCE AND GOOD MARKET ACCESS IN EASTERN EUROPE." HE ALSO NOTED THE ADVANTAGE OF SUBSTANTIAL VIETNAMESE MIGR COMMUNITIES IN SEVERAL NEW MEMBER STATES, ESPECIALLY POLAND, ROMANIA, AND THE CZECH REPUBLIC. UYEN ADMITTED THAT VIETNAM COULD FIND ITSELF COMPETING AGAINST SOME EASTERN AND SOUTHERN EUROPEAN COUNTRIES TO EXPORT CERTAIN TEXTILE PRODUCTS. . HOWEVER, HE ADDED THAT THIS WOULD BE A "MINOR PROBLEM, OUTWEIGHED BY THE OVERALL PLUSES OF MORE POLITICAL STABILITY, A STRONGER, MORE UNITED EUROPE, AND GENERAL ECONOMIC DEVELOP THAT WILL BENEFIT EVERYONE." PORTER UNCLASSIFIED