VIETNAM SUPPORTS CAPITAL INCREASE FOR ADB

UNCLAS HANOI 000408 DEPT FOR EAP/MLS, EAP/EP KHADDA, EB/IFD/OMA RLEATHAM, MSIEMER SINGAPORE FOR TREASURY S BAKER TREASURY FOR SCHUN SENSITIVE SIPDIS E.O. 12958: N/A TAGS: EFIN EAID ECON PREL VM SUBJECT: VIETNAM SUPPORTS CAPITAL INCREASE FOR ADB Ref: State 41663 ¶1. This is in response to State 41663. ¶2. Post delivered the points contained in reftel on April 29, 2009 to the General Economics Department of the Ministry of Foreign Affairs (MOFA). MOFA informed us that the State Bank of Vietnam (SBV),as the lead agency on this matter, had just delivered a report to the Prime Minister detailing the ADB's requested capital increase and that a decision from the Prime Minister supporting the increase will likely be forthcoming in the next day or two. The MOFA representative added that the Prime Minister believes that corruption is a threat to economic development and is therefore strongly committed to anti-corruption measures, including those that need to be undertaken by the ADB. Finally, the GVN is encouraged by the positive results of the latest G-20 meeting, including capital increases for the ADB and IMF to help countries cope with the impact of the global economic crisis. ¶3. Post has also sent the talking points in reftel to the SBV and the Ministry of Finance as a non-paper. MICHALAK