NEW CZARS IN THE MAKING? THE NEW DPM PORTFOLIOS

UNCLAS SECTION 01 OF 02 HANOI 001550 SIPDIS STATE FOR EAP/MLS AND INR/B STATE PASS TO USTR DAVID BISBEE SENSITIVE BUT UNCLASSIFIED SIPDIS E.O. 12958: N/A TAGS: PGOV PREL ECON ETRD EFIN VM SUBJECT: NEW CZARS IN THE MAKING? THE NEW DPM PORTFOLIOS REF: HANOI 1360 (U) This cable is sensitive but unclassified. Not for Internet. ¶1. (SBU) Summary. Prime Minister Nguyen Tan Dzung signed a Decision this week assigning duties and portfolios to himself and his five Deputy Prime Ministers (DPMs),two of which are newly-created positions. Broadly defined, the Prime Minister will oversee all Government of Vietnam (GVN) operations, while assigning one DPM each to cover banking and finance; international relations; anti-corruption and judicial reform efforts; economic affairs; and education and training. While expectations are high for new DPM and Minister of Education and Training Nguyen Thien Nhan, the new DPM in charge of economic affairs, Hoang Trung Hai, has elicited mixed reviews. End Summary. THE PRIME MINISTER'S DOMAIN -------------- ¶2. (U) Prime Minister Nguyen Tan Dzung announced on August 27 Decision 1120, assigning duties and portfolios to himself and his five DPMs, two of which are positions created after the August 2 cabinet reshuffle (Reftel). Dzung reserved for himself responsibility for "all operations of the government" and oversight of the Central Anti-Corruption Steering Committee. He will also directly supervise the functions of the ministries of Planning and Investment, Defense, Public Security, and Internal Affairs and Health, the Office of the Government (OOG),the National Political and Administrative Institute, and major media outlets such as the Vietnam News Agency, Vietnam Television and Voice of Vietnam Radio. FINANCE AND BANKING -------------- ¶3. (U) DPM Nguyen Sinh Hung, the highest ranking of the DPMs, has been assigned as the finance and banking czar, with responsibilities for monetary policy, finance, customs, securities and the "equitization" of state-owned enterprises (SOEs). Under his direct supervision will be the Ministries of Finance and Labor, Invalids and Social Affairs, as well as the State Bank, the State Capital Investment Corporation (SCIC),the Committee of Ethnic Minorities, Vietnam Social Insurance and the Vietnam Development Bank. Contacts in the Ministry of Finance commented to the Embassy that his prior experience as Vice Minister and Minister of Finance made him an obvious choice for this portfolio. INTERNATIONAL RELATIONS -------------- ¶4. (SBU) Deputy Prime Minister Pham Gia Khiem, who will continue to retain dual responsibilities as Foreign Minister (as he did under the old Cabinet),is in charge of international relations, border issues and, significantly, "international economic relations." The media reports that he will be responsible for overseeing Vietnam's integration into the world economy and ensuring that Vietnam meets its bilateral, multilateral and World Trade Organization (WTO) trade commitments. The PM has also assigned DPM Khiem responsibilities for human rights and "related" issues. Notwithstanding Khiem's new duties, a contact at the Ministry of Industry and Trade (MOIT) thought that trade obligation issues would still be resolved at the Ministerial level, or if necessary, go directly to the Prime Minister for action, bypassing Khiem. ANTI-CORRUPTION AND JUDICIAL REFORM -------------- ¶5. (U) DPM Truong Vinh Trong, the oldest of the five DPMs, will serve as the "judicial czar." Trong will continue as Deputy Chairman of the Central Anti-Corruption Steering Committee and manage its day-to-day activities. He is also responsible for overseeing the Government Inspectorate and judicial reform, among other things. ECONOMIC AFFAIRS -------------- ¶6. (SBU) The first and youngest of the two new DPMs, Hoang Trung Hai, has been tasked with "economic affairs," including industry, agriculture, fisheries, trade and services (domestic and export/import activities),construction, transportation, natural resources and the environment. DPM Hai will oversee the Ministries of Industry and Trade, Agriculture and Rural Development, and Natural Resources and the Environment. The fact that Hai, who was expected to handle all the economic ministries, did not get Finance and international economic issues, was surprising, and we are told by an MOIT contact that his lack of experience (at the state power company and the Ministry of Industry) did not help. ¶7. (SBU) A contact who worked under Hai at Industry described the new DPM as a skilled technocrat with great competency in the HANOI 00001550 002 OF 002 industrial sector, as well as a savvy but cautious political operator. The contact commented that Hai's careful approach may limit his influence over the ministries under his portfolio. Others were harsher in their assessment. National Assembly Vice Chairman Nguyen Sy Dzung, for instance, said that Hai had a lackluster record as Minister of Industry, and quoted former Prime Minister Vo Van Khiet as saying that Hai, "did not have a good vision as Minister." Despite this, Hai is seen as a rising star within the GVN and someone whose power could continue to rise as he grows into his new role. EDUCATION AND TRAINING -------------- ¶8. (SBU) Nguyen Thien Nhan, the second new Deputy Prime Minister, will serve concurrently as Minister of Education and Training. In addition, Nhan will oversee the Ministries of Information and Communication, Science and Technology, Culture, Sports and Tourism and the Vietnamese Institutes of Science and Technology and Social Sciences. DPM Nhan is viewed as hard-charging and tough - a reputation earned through his personal involvement in a successful campaign to crack down on cheating on Vietnam's national exams, and other similar efforts. ¶9. (SBU) Nhan's promotion to the position of DPM would seem a good fit not only in terms of his working style - which he shares with the PM - but also well-timed because the GVN is placing great focus and effort into reforming its education system, including through outreach to the U.S. Government, U.S. universities and other international organizations. (Note: Nhan is a former Fulbright Scholar with an MA from the University of Oregon. End note.) According to Nguyen Chi Dzung, former Editor-in-Chief of the Office of the National Assembly's Legislative Affairs Journal, DPM Nhan is said to be a protege of President Nguyen Minh Triet, who believes that large U.S. companies and organizations have a significant role to play in helping Vietnam's development and growing global profile. The Prime Minister is said to also share this view. MICHALAK