Identifier
Created
Classification
Origin
05HANOI1052
2005-05-05 22:11:00
UNCLASSIFIED
Embassy Hanoi
Cable title:  

Ambassador Views Development in NW Highlands

Tags:  PREL PGOV VM HUMANR ETMIN CVR 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 HANOI 001052 

SIPDIS

STATE FOR EAP/BCLTV

E.O. 12958: N/A
TAGS: PREL PGOV VM HUMANR ETMIN CVR
SUBJECT: Ambassador Views Development in NW Highlands

UNCLAS SECTION 01 OF 02 HANOI 001052

SIPDIS

STATE FOR EAP/BCLTV

E.O. 12958: N/A
TAGS: PREL PGOV VM HUMANR ETMIN CVR
SUBJECT: Ambassador Views Development in NW Highlands


1. (U) Summary: Vietnam's Northwest Highlands region
remains among the country's poorest, and is faced with
challenging and inaccessible terrain, a majority population
of Vietnam's ethnic minorities, few natural resources or
arable land, and low population density. Leaders of Dien
Bien, Lai Chau and Lao Cai Provinces described development
plans to the Ambassador during his visit to the region April
20 to 23. The provinces are mostly focused on providing
basic infrastructure, such as road access, education,
electricity, health clinics and drinking water, to all of
their communes. Industrial development largely consists of
hydroelectric plants and a handful of mining projects. The
region is also seeking to develop links with western China,
both for trade in goods and also as a transportation link
along the Red River valley and to Haiphong. Religion and
narcotics issues in the Northwest Highlands will be
addressed septel. End Summary.

The Northwest Highlands
--------------


2. (U) Vietnam's Northwest Highlands are a less clearly
defined area than the Central Highlands. Northern Vietnam
is circled by mountains from Son La Province due west of
Hanoi to Quang Ninh on the east coast. All these provinces
are similar in that they are mountainous, have a large
population of ethnic minorities and are economically
underdeveloped. The Northwest Highlands generally refer to
the provinces of Dien Bien, Lai Chau, Lao Cai and Ha Giang,
which are further from the Red River delta and suffer from
particularly severe poverty. These provinces consist
largely of mountains and steeply sloping valleys with little
arable land. They also contain a preponderance of ethnic
minorities in almost all areas aside from the Red River
valley, which cuts through Lao Cai Province before widening
into the delta further downstream.


3. (U) Dien Bien People's Committee Vice Chairman Bui Viet
Binh told the Ambassador that Dien Bien Province has a
population of 450,000 and is composed of 21 different ethnic
groups. The province is 40 percent Thai, 28 percent Hmong
and 20 percent Kinh. Binh claimed the province enjoys ten
percent annual GDP growth, which it aims to raise to 12-15
percent in 2005. Dien Bien was created through the division

of Lai Chau Province in November 2003.


4. (U) Lai Chau People' Committee Chairman Nguyen Minh Quang
described his province as the "most distant" and facing the
"most difficulties" in Vietnam. Most of the province's 90
communes are included in the GVN's Program 135 poverty
alleviation plan. The province's 230,000 inhabitants are
largely Thai, with Hmong and Dzao ethnic groups also
prominent. The Kinh Vietnamese constitute only ten percent
of the population. Quang described the ethnic minorities as
being poor and poorly educated, but also "slow to adopt new
technologies and techniques."


5. (U) Lao Cai People's Committee Chairman Bui Quang Vinh
marked his province as "among the six poorest in Northern
Vietnam." Of the province's 164 communes, 125 are "in
difficulty" and 80 percent of the province's population of
640,000 lives in these areas. Poverty alleviation programs
have lowered the number of residents below the poverty line
from 30 percent to 8.4 percent, but this will likely rise
again if Vietnam reassesses its poverty line, as it is soon
expected to do.

Regional Development: Focusing on the Basics
--------------


6. (U) Overseeing development in the Northwest Highlands is
a Central Government Steering Committee, led by the head of
the Economic Commission of the Communist Party's Central
Committee. Dien Bien, Lai Chau and Lao Cai often band
together to make requests for development assistance from
the GVN, and provincial development programs are focused
largely on extending basic infrastructure and services to
all citizens. Lai Chau hopes to provide access to
electricity to 80 percent of households by 2010 (up from 40
percent today) and Dien Bien has extended electricity to 60
of its 88 communes. Lao Cai is trying to provide small
hydroelectric generators to those communes not linked to the
national electric grid, and the province is currently able
to provide access to 70 percent of villages by car. For its
part, Dien Bien hopes to provide road access to all of its
88 communes by 2005. Dien Bien and Lai Chau each have three
hospitals, fewer than one for each administrative district.
Dien Bien claims to have followed GVN instructions and
programs to spread awareness of the threat of HIV/AIDS and
to control for avian influenza. Lai Chau has a growing
HIV/AIDS problem "connected to tourism," and the province
has 393 registered HIV positive patients, up from six in

1996.


7. (U) All three provinces have placed a particular focus on
education. Dien Bien has built at least one primary school
in all of its communes and has 16 secondary schools, a
teacher's college and a nursing school. In addition, each
district has a boarding school for ethnic minority students.
Lai Chau is focusing on the construction of schools and the
assignment of teachers to remote areas and hopes to have
primary education available to all children by 2009. The
province also benefits from a special GVN program for the
construction of schools for ethnic minorities.


8. (U) At Dien Bien's premier provincial-level boarding
school for ethnic minority students, the school Director
explained that students previously had been referred by
district People's Committees. In 2004, an exam system was
introduced to select entering students, but the school still
undertakes to ensure that different ethnic groups and
regions are represented. Some of the arriving students need
"Vietnamese language improvement courses" in addition to
their regular classes. Graduates largely go on to positions
in the provincial government. In the most recent graduating
class of 100 students, 46 went on to further study, many of
them in special Government programs reserved for ethnic
minority students. Approximately 33 percent of the school's
students are female.

Economic Opportunities: Tourism, Mining and China
-------------- --------------


9. (U) Industry in the Northwest Highlands largely consists
of hydroelectric dams and some mining projects. Dien Bien
contains three hydroelectric power stations as well as some
coal mining. Lai Chau has one hydroelectric station and is
planning two more. Lai Chau is hoping to develop its mining
sector through a joint venture slate quarry already in
place; the possibility of developing a gold mine with
foreign investors is also being explored. The Lao Cai
People's Committee Chairman told the Ambassador that he
hopes to develop mining and hydroelectric projects, although
he did not point to specific examples. Lai Chau authorities
noted that the construction of new dams will displace a
number of individuals, as will the reservoir of the Son La
Dam in neighboring Son La Province. However, this is being
done in accordance with national policies on compensation
for displaced individuals, they promised.


10. (U) Lao Cai sees opportunities for development of
tourism thanks to its border gate with China's Yunnan
Province, the old French hill station resort of Sapa and
opportunities for tourists to visit ethnic minorities.
Ethnic minorities have also begun producing handicrafts
specifically for sale to tourists in Sapa and Hanoi, helping
to reduce poverty levels. Lao Cai hopes to develop the "Red
River economic corridor" running from Haiphong through Hanoi
and Lao Cai to Kunming in China. The province is developing
a horticulture project in partnership with an American
investor and focused on developing flowers for export north
to China, or down to Haiphong for transport to Japan.


11. (U) Lai Chau also looks to China for economic
opportunities. Lai Chau had 300 billion dong (19 million
USD) in exports through its border gate in 2004, largely
cashews, rubber and frozen seafood transported from other
areas in Vietnam. The province is also encouraging
districts to cooperate with their counterparts across the
border on issues of regional concern.

Village Life Slowly Improving
--------------


12. (U) In two ethnic Thai minority villages, local leaders
told the Ambassador that their populations are growing
rapidly. Both villages have Party cells in addition to an
elected village chief: in one village, the chief has served
twenty years, while the second village's leader is newly
elected. The State provided healthcare, electricity and
primary education to children of both villages, which are
relatively accessible by car. Economic growth in one
village had allowed many families to acquire a bicycle and
television. Despite these improvements, both villages
largely exist on substance farming, and leaders cited
maintenance of irrigation water supply as their key concern.

MARINE