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

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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.

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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

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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