GVN'S ANTI-CORRUPTION CZAR SAYS HANOI WANTS INCREASED

UNCLAS SECTION 01 OF 02 HANOI 000296 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PHUM ECON PGOV KCOR KPAO SOCI PREL VM SUBJECT: GVN'S ANTI-CORRUPTION CZAR SAYS HANOI WANTS INCREASED COOPERATION WITH USG Ref: 07 HANOI 702 HANOI 00000296 001.2 OF 002 ¶1. (SBU) Summary: On March 6, the Ambassador met the head of Vietnam's Government Inspectorate (GI) Tran Van Truyen, a key player in the Government of Vietnam's (GVN) fight against corruption and an ally of Prime Minister Nguyen Tan Dung. Truyen said he welcomed cooperation with the USG, and added that functional GI departments would work with the Embassy in devising specific anti-corruption programs and that he would report to PM Dung the results of his meeting with the Ambassador. Hanoi also wants to do more with the USG on legal reform through USAID's Support for Trade Acceleration (STAR) program. The GVN wants to reform its laws so that transparency and accountability are enshrined, and needs help reforming its cumbersome administrative apparatus. He proposed that the GVN and USG sign a specific cooperative agreement. Post will follow up with Truyen's subordinates on this initiative. End Summary. ¶2. (SBU) On March 6, the Ambassador met Tran Van Truyen, the head of the Government Inspectorate (GI),to discuss the GVN's anti-corruption efforts and how the USG might help Hanoi fight malfeasance. Truyen said the GVN remains resolute in carrying out its anti-corruption fight. As evidence, he cited the anti-corruption decrees the GVN has passed and anti-corruption bodies the GVN has created over the past two years. Corruption hurts everyone, constrains Vietnam's economic development and places strains on the country's legal system, he said. Decrees on the media, asset declaration and rotation of public officials in graft-prone sectors show that the GVN views prevention as one of its main tasks, he added. ¶3. (SBU) The GVN is focused on the tasks of developing the economy, accelerating administrative reform and fighting corruption, Truyen continued. The central government has sought to raise awareness within the GVN and among the Vietnamese people about the negative impact corruption has on the country's socioeconomic development. People are seizing the opportunity to report on alleged corruption, although the GI found last year that only about 50 percent of the cases reported to it had any merit. To supplement the central government's action plans for fighting corruption, Truyen said it has also encouraged local governments to come up with their own plans. The National Assembly (NA) recently voted to allow local governments to set up their own anti-corruption bodies, Truyen noted. ¶4. (SBU) According to a 2007 Asset Declaration Decree, GVN and Party officials above a certain rank had to declare their assets by last November (Ref A). Truyen said that the GI is now in the process of analyzing "who has been truthful in their declarations." If the GI discovers hidden assets, it will make this publicly known and will forward its findings to the courts, he asserted. Challenges Remain...But the USG Can Help -------------- ¶5. (SBU) Truyen said that, despite GVN success in preventing and fighting corruption, it still faces many hurdles. Corruption in the health and education fields, for example, has become problematic over the last few years. Hanoi needs to upgrade its legal system so that transparency and accountability are enshrined, Truyen declared. The GVN also must do more to reform its large and cumbersome administrative apparatus. The government is trying to devolve social security responsibilities to "societal organizations." It is also looking at reforming salary structures so that law enforcement officers receive higher salaries, because their current monthly income is not sufficient for "normal living." ¶6. (SBU) The Ambassador agreed that economic development, administrative reform and anti-corruption work are inter-related. The USG looks forward to working with the GVN as it undertakes its ambitious administrative reform effort, he said. The Ambassador pointed out that streamlining decision-making processes and eliminating layers of bureaucracy are effective ways of eliminating corruption. ¶7. (SBU) Truyen responded that the GVN is determined to integrate its economy with those of the rest of the world, but that it will chart its own path in this regard to reflect its own unique history. He said that all GVN economic development plans are complemented by legal reform strategies. The National Assembly has a huge task in formulating new laws and the GVN highly values the support it has received from international partners in the legislative reform area. ¶8. (SBU) The GVN is close to ratifying the UN Covenant on Anti-Corruption, Truyen said, and anti-corruption has figured prominently in Vietnam's international relations. The subject is discussed during APEC and Hanoi has signed Memoranda of Understanding (MOU) on anti-corruption with several ASEAN countries. HANOI 00000296 002.2 OF 002 In addition, Hanoi values the technical assistance it receives from Sweden, the Netherlands, Denmark, Norway and Canada to help the GVN strengthen capacity in detecting and prosecuting corruption. In this context, the GVN also appreciates USG support through the Support for Trade Acceleration (STAR) Program and wants to advance cooperation with the USG on legal reform through the STAR program. ¶9. (SBU) Truyen said he would report to PM Dung the results of his meeting with the Ambassador and would request that functional GI departments work with the Embassy in devising specific anti-corruption programs. He proposed that the GVN and USG sign a specific cooperative agreement. Comment: Holding Truyen to His Word -------------- ¶10. (SBU) Truyen is a member of the 181-member Central Committee and sits on the GVN's Anti-Corruption Steering Committee, which meets monthly and is headed by Prime Minister Dung. He is a key player in the GVN fight against corruption and is known to be close to PM Dung. All in Vietnam agree that the corruption fight will be years long, and even Vietnamese officials concede that tough talk has rarely been matched with tough action to date. Hopes lie in incremental, but cumulatively significant, changes in the structure and nature of governance. The GVN's desire to devolve social insurance responsibilities to societal organizations presents the USG an opportunity to strengthen Vietnam's civil society. We also can do more in the legislative reform area. Post will follow up with Truyen's subordinates to test his offer to collaborate more closely with the USG. MICHALAK