VIETNAM: AMBASSADOR'S CALL ON THE MINISTER OF

UNCLAS HANOI 000234

SIPDIS

STATE FOR EAP/BCLTV AND EB
STATE PASS USTR FOR EBRYAN

E.O. 12958: N/A
TAGS: ETRD EFIS ECON VM CVR
SUBJECT: VIETNAM: AMBASSADOR'S CALL ON THE MINISTER OF
FISHERIES



1. Summary. On January 26, the Ambassador paid his initial
call on Minister of Fisheries Ta Quang Ngoc. The meeting
focused largely on the benefits of trade and cooperation
between Vietnam and the United States and the growing
importance of Vietnam's fish and seafood sector. Minister
Ngoc expressed his belief that the United States will not
only continue to be a strong market for shrimp (despite
additional import duties imposed on Vietnamese frozen shrimp
imports stemming from the antidumping case),but that
Vietnamese shrimp exports to the United States will increase
in CY 2005 and beyond. Given the complex laws governing
U.S. trade, it would be beneficial for both Vietnamese
public officials and private traders to learn more about the
U.S. legal system, Ngoc noted. Commenting on the January 8
incident between Vietnamese fishing boats and Chinese sea
police that left nine Vietnamese dead and seven arrested,
Ngoc said that it is in the best interest of both China and
Vietnam to come up with a peaceful solution based on a
fishing rights agreement ratified between the two countries
last year. End Summary


2. On January 26, the Ambassador paid his initial call on
Minister of Fisheries Ta Quang Ngoc. The meeting focused
largely on the benefits of trade and cooperation between
Vietnam and the United States and the growing importance of
Vietnam's fish and seafood sector.

U.S.-Vietnam Trade in Fish and Seafood
--------------


3. Minister Ngoc said that the basa (catfish) and shrimp
antidumping cases brought against Vietnam have prompted the
Vietnamese to learn more about the complex laws that govern
U.S. trade. He predicted that bilateral trade would grow,
so it would be beneficial for both Vietnamese public
officials and private traders to learn more about the U.S.
legal system. Ngoc readily acknowledged that the import
duties imposed on Vietnamese shrimp imports by the United
States were significantly lower than those imposed on China,
noting that this was due to the fact that Vietnamese
companies provided the U.S. government with good cost-of-
production data and were able to demonstrate that Vietnam's
fish sector does not benefit from government subsidies.
Currently, the United States is Vietnam's second largest
market for fish and seafood, after Japan. Shrimp and
seafood exports to the United States will recover quickly
from the dip in this sector experienced in 2004 and will
increase in 2005 and beyond, Ngoc declared. The Minister
stressed the importance of the fish and seafood sector to
Vietnam's economy, especially the revenue it generates to
poor fish farmers in the Mekong Delta and to fishermen along
the coasts of Vietnam.

China-Vietnam Fishing Incident
--------------


4. The Ambassador expressed his condolences to the families
of the Vietnamese fishermen killed in the January 8 incident
between Vietnamese fishing boats and the Chinese sea police.
The Minister commented that the incident is quite serious
and regrettable, but added that China and Vietnam are
working together to understand clearly what transpired. He
added that a solution to this incident should be based on an
agreement signed between Vietnam and China in July 2004 that
clearly stated fishing boundaries and rights.

Bilateral and Multilateral Relations
--------------


5. The Ambassador urged Minister Ngoc to contact U.S.
Embassy staff in Hanoi and Ho Chi Minh City regarding issues
of concern to his Ministry. The Minister said that
cooperation between the U.S. Embassy/USG and his Ministry
has been very fruitful over the years, noting the beneficial
exchange of information between his Ministry and the
National Oceanic and Atmospheric Administration (NOAA),for
example.


6. At 60, Minister Ngoc has a broad background in
fisheries. He was a teacher at the Nha Trang Fisheries
University from 1966-84, rising to the rank of Minister of
Fisheries in 1996. Minister Ngoc is a cogent and practical
individual, who appeared to understand the U.S.
justification for filing antidumping suits against
Vietnamese shrimp and "catfish" and who made clear his
desire to continue to forge closer relations on fisheries
issues between the United States and Vietnam.

MARINE