DANANG: WANNABE NUMBER ONE IN CENTRAL VIETNAM

C O N F I D E N T I A L SECTION 01 OF 03 HO CHI MINH CITY 000075 SIPDIS SIPDIS E.O. 12958: DECL: 12/25/2016 TAGS: PHUM SOCI PREL KIRF ECON KIPR ETRD VM SUBJECT: DANANG: WANNABE NUMBER ONE IN CENTRAL VIETNAM REF: 05 HCMC 1091 B) 06 HCMC 1276 C) 06 HANOI 2537 HO CHI MIN 00000075 001.3 OF 003 Classified by Consul General Seth Winnick for Reason 1.4 (d) ¶1. (C) Summary: Danang, a deep-water seaport and largest city in central Vietnam, has nonetheless failed to become the acknowledged leader in that region. In discussing Danang's status with the DCM during his recent visit, People's Committee Chairman Tran Van Minh apparently criticized the approach of his boss, Party Secretary Nguyen Ba Thanh, which relies heavily on extensive infrastructure projects to boost Danang's prospects. Chairman Minh acknowledged that reforms creating a more flexible and open government might be as important in winning the attention of investors and the respect of neighboring provinces. During the DCM's visit, we also discussed the slow improvements in religious freedom with the Catholic Bishop and education issues with Danang University officials. He also visited USAID-funded typhoon relief projects. End Summary. ¶2. (U) The DCM, supported by Consulate General Ho Chi Minh City personnel, visited Danang City (one of Vietnam's five provincial-level, centrally administered municipalities) on January 11-13. Government: More Open to Reform? -------------- ¶3. (C) Danang People's Committee Chairman Tran Van Minh - appointed Chairman six months ago - began his meeting with the DCM by rationalizing why Danang should be central Vietnam's economic, education, and transportation hub. He highlighted the completion of the North-South Ho Chi Minh Highway and the East-West Economic Corridor linking Vietnam with Laos and Thailand, the city's four modern industrial parks, expansion work on the Tien Sa deep water port, and the construction of a new international airport terminal, scheduled for later this year. He also noted that plans have been made for the building of a Vietnam-Korea Technology College in the province. (Note: Per ref A, Danang Party Secretary Nguyen Ba Thanh has staked his reputation - and the finances of the province - on rapid development of infrastructure as the key to promoting economic growth in the province. End Note.) ¶4. (C) While emphasizing Danang's promising future, Minh also admitted candidly that Danang has failed to achieve "hub" status. Minh acknowledged that Danang faces stiff competition for central government funding and for international and domestic investment from its neighboring provinces. Minh, the former head of the province's Department for Planning and Investment, underscored the significance of reducing government control over the economy and the importance of the private sector in catalyzing economic growth. In what appeared to be a subtle dig at his superior, Party boss Ba Thanh, Minh conceded that infrastructure improvements alone would not bring about economic growth. Unlike Ba Thanh, who was brusque and dismissive in a meeting with the Consul General, Minh was positive about partnership with the United States. He requested U.S. assistance to help promote Danang to U.S. investors and to provide economic models for development. New Bishop Seeks Property Return -------------- ¶5. (SBU) The DCM had earlier met with Catholic Bishop of Danang Chau Ngoc Tri. The energetic and charismatic prelate was appointed in August 2006. The Bishop assessed that the religious freedom situation had and continues to improve. He lodged no specific complaints. This does not mean that religious groups have no issues, however. Moves to create a faith-based community service tradition are nascent, although Catholics are participating in a "branded" effort to rebuild homes destroyed last year by typhoon Xangsane. Parochial education is also still just a dream, despite national calls to mobilize all elements of society to improve Vietnam's poor education system. The Danang diocese has a fairly long list of Church properties that were confiscated and that it would like to see returned. Church leaders are reluctant to press too firmly for quick restitution, however, citing the need for "caution" in a time of slow, positive reform. Key properties that he wishes to see returned include the former Bishop's residence, a seminary, a building for retired priests, a hospital, and schools. He acknowledged that the province had given the diocese 9,000 square meters of land, but said that the Danang government should keep its land and return what it had expropriated after 1975. HO CHI MIN 00000075 002.3 OF 003 ¶6. (SBU) In his subsequent meeting with Danang's People's Committee Chairman Minh, the DCM underscored the U.S. view that Vietnam and its people would greatly benefit from fundamental liberalization of regulations limiting the activities of faith-based organizations to contribute to society, including through a direct role in charitable and educational activities. Minh emphasized the province's commitment to implement Vietnam's legal framework on religion, noting that the province has given religious groups, such as the Catholic and Buddhist Churches, property on which to build new facilities. He acknowledged, however, that more could be done, especially in enhancing the role of religious groups in addressing social needs. Red Cross Emphasizes Transparency, U.S. Ties -------------- ¶7. (SBU) The DCM's visit to Danang was timed to allow him to participate in a hand-over ceremony closing out a USAID- funded, $100,000 project, implemented by the Red Cross, to provide humanitarian assistance after last year's typhoon Xangsane (ref C). Phan Nhu Nghia, Director of the Danang Chapter of the Red Cross, told the DCM that the organization made every effort to ensure fair, transparent and efficient distribution of USG relief funds to those with the greatest need. USG assistance helped an estimated 2,900 people by supplying 1,000 household kits to families in Thua Thien Hue province and Danang City. The funds also allowed the Red Cross to rehabilitate 60 homes in Danang and Quang Nam province. The Red Cross director asked the DCM for additional USG support to help the Red Cross promote disaster preparedness education and to develop a reliable, trained volunteer force. The DCM, Hanoi-based USAID officials, and Consulate General Ho Chi Minh City personnel visited three of the homes that were rehabilitated for rural residents. These were modest, but solid structures. Danang University Plans U.S.-linked Expansion -------------- ¶8. (SBU) In his presentation to the DCM, Danang University (DNU) President Bui Van Ga, said the University is focused on building strong ties to U.S. educational institutions. The University launched a joint business program with Maryland's Towson University for its undergraduates in ¶2005. The program is designed to allow students to study two years in Danang, then two years in Maryland, before returning to Danang for a final semester and graduation. The program is the result of the efforts of a Towson professor who spent six months at DNU as a Fulbright instructor. Separately, DNU recently signed an agreement with the University of Washington (Seattle),under which U.S. professors will train DNU faculty and teach courses in an undergraduate telecommunication/civil engineering program in Danang. The first groups of DNU teachers will depart in March 2007 for three months of training in Seattle. DNU will also implement an on-line Masters degree program in civil engineering in cooperation with the University of Washington. Additionally, DNU is discussing the development of a cooperative program on public health with the University of North Carolina. ¶9. (SBU) The University has an ambitious plan to build a new campus on three-hundred hectares (750 acres) of land pledged by Danang and Quang Nam provincial authorities. Under the plan, the University will retain its current campus, on which the U.S. NGO Atlantic Philanthropies recently built a multi-story English Language Institute. While land is not an issue, funding is: President Ga thinks that the cost will far exceed whatever the GVN might provide. The University is hoping to solicit funds from other sources, including international organizations and foreign governments. ¶10. (SBU) Emphasizing the University's U.S. links, President Ga asked for the Embassy's support in bringing more Fulbright instructors to Danang. He said that he would welcome Peace Corps volunteers to teach at the University, should the GVN approve that initiative. ¶11. (C) Comment: Likening Danang's development to Vietnam's chaotic traffic, Chairman Minh told the DCM that unlike in the West, where a driver can hit the accelerator and cruise down a straight highway, in Vietnam he must be "intelligent and slowly steer around many obstacles in the way" when seeking to make progress. Being a reform-minded government official is still not easy in Vietnam today, but we took Chairman Minh's remarks also as a not-so-subtle reference to Party Secretary Ba Thanh. This may be an HO CHI MIN 00000075 003.3 OF 003 indication that the power of the Party Secretary is ebbing. Ba Thanh, who has ruled Danang as a strongman since 2001, was passed over for a promotion in the April 2006 Party Congress, despite indications of intense behind-the-scenes lobbying. Bringing in fresh, more open-minded leadership, and one with which the USG can work, will go a long way in allowing Danang to deliver on its clear promise as a regional commercial and educational center. End comment. Winnick