Cablegate: Scenesetter for Visit by Oes Assistant Secretary Jones To

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RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEHC/DEPT OF AGRICULTURE WASHINGTON DC
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RUEHHM/AMCONSUL HO CHI MINH CITY 0533
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UNCLAS SECTION 01 OF 07 HANOI 000218

SENSITIVE
SIPDIS
SIPDIS
STATE FOR OES, EAP/MLS

E.O. 12958: N/A
TAGS: SENV TBIO SOCI PREL ECON KGHG KHIV VM
SUBJECT: SCENESETTER FOR VISIT BY OES ASSISTANT SECRETARY JONES TO
VIETNAM

REF: A. 09 HANOI 330; B. 09 HANOI 899; C. HANOI 7; D. 09 HANOI 672
E. HANOI 11; F. HANOI 198; G. 09 HANOI 925; H. 09 HANOI 1300
I. HANOI 202; J. 09 HANOI 1418; K. 09 HANOI 1300; L. 09 HANOI 558
M. 09 HANOI 722; N. 09 HANOI 578; O. 08 HANOI 1293; P. 08 HANOI 406
Q. 08 HANOI 370; R. HANOI 58; S. 08 HANOI 1370; T. 08 HANOI 1100
U. 08 HANOI 1088; V. 09 HANOI 1020; W. 08 HANOI 981; X. 08 HANOI 119
Y. 09 HCMC 595; Z. 08 HANOI 1261; AA. 09 HANOI 639; BB. 09 HCMC 573
CC. 09 HANOI 1274; DD. 09 HCMC 674; EE. HANOI 32

Introduction

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1. (SBU) Mission Vietnam looks forward to welcoming you to Hanoi.
Your visit will be an important signal to the Vietnamese of
continued U.S. engagement on health and environmental issues. Your
meetings with the Government of Vietnam (GVN), the United Nations
(UN), and the European Union will allow us to finalize preparations
for the April International Ministerial Conference on Animal and
Pandemic Influenza. You will meet with high-ranking GVN officials
and scientists to discuss opportunities to build U.S.-Vietnamese
Science and Technology cooperation. The GVN considers climate
change to be the second most important issue that it faces, behind
economic growth and poverty reduction. In turn, you will have the
opportunity to advocate for Vietnamese support in international
climate change negotiations. You should be prepared for questions
regarding the Lower Mekong Initiative and your interlocutors may
seek increased U.S. assistance for responses to Agent Orange, and
its contaminant, dioxin.

United States-Vietnam Relations

-------------------------------

2. (SBU) Our bilateral relationship with Vietnam is arguably at its
most productive since relations were normalized in 1995, in large
part due to Vietnam and the United States seeing the mutual
strategic value of expanding their partnership. Vietnam is the
13th most populous country in the world and a critical
geo-strategic partner for the United States in Asia, while the
United States is one of Vietnam's largest economic and trading
partners, as well as the key balancing force in maintaining a
stable geopolitical environment, assured independence and freedom
of action. We are Vietnam's largest export market, its
third-largest trading partner, and one of its largest foreign
investors. We have broadened our cooperation in public health,
education, mine clearance, and WTO and BTA compliance.
Strategically, Vietnam views the U.S. presence in the region as a
force for stability, and security cooperation has expanded as our
two militaries explore opportunities to cooperate effectively.
Powerful conservative voices in Vietnam's Communist Party and

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security services, including the military, remain wary of U.S.
intentions, but their influence will wane over time as the
country's young population -- the first generation in memory to
live without war -- increasingly looks to the West(Refs A and B).
Profound differences remain, however, particularly in our approach
to human rights. Vietnam has made strides in religious freedom
(Ref C), but political rights and press freedoms trends have
worsened as the Party clamps down on dissent in advance of the
January 2011 Party Congress (Ref D).

Foreign Policy Priorities: China and the United States

--------------------------------------------- ---------

3. (SBU) Vietnam's overriding strategic concern remains China.
Mistrust of China runs deep, fed by historical animosities and
simmering resentment over South China Sea territorial disputes
(Refs E and F). However, Hanoi is realistic about the power
imbalance and is wary of antagonizing China. Hanoi is also under
no illusions that it can somehow "balance" China with the United
States, Russia, or Japan individually. Nor is a more
confrontational approach toward China something the Party tolerates
domestically: once unleashed, nationalistic sentiment, though
initially directed at China, could easily turn toward the Party
itself. Instead, Vietnam seeks to maintain as cordial and stable a
relationship with China as possible, while also cautiously
cultivating a diverse range of bilateral friendships and enmeshing
these in a framework of multilateral engagement. In this context,
Vietnam's bilateral relationship with the United States enjoys
pride of place; however, Vietnam is wary of pushing the agenda with
the United States too far, too fast, lest it antagonize China.
Vietnam puts great store in ASEAN and has suggested repeatedly that
it would like to facilitate better contact between ASEAN and its
"plus one" dialogue partners, the United States in particular (Ref
G). Vietnam's chairmanship this year gives it an opportunity to
lead on regional economic integration and tougher issues like Burma
and a collective ASEAN policy in the South China Sea. Vietnam has
lobbied hard to host a U.S.-ASEAN summit in Hanoi in 2010.

Economic Successes and Challenges

---------------------------------

4. (U) (SBU) Vietnam's "doi moi" (renovation) program of economic
reform, begun in 1986, has set the country on a successful market
economy path, with an average growth rate of 7.5 percent over the
past decade. A recent World Bank study described Vietnam's poverty
reduction rate as the most significant in such a short period of
time of any nation in history. The GVN focuses on exports and
foreign direct investment in its drive to achieve middle-income
status in the near future.

5. (U) In 2009, the U.S. was Vietnam's second largest trade partner
overall, after China. Since the 2001 U.S.-Vietnam Bilateral Trade
Agreement (BTA), bilateral trade has increased from $2.91 billion
to $14 billion in 2009. Despite the global financial downturn,
U.S. exports to Vietnam actually stayed level at approximately $2.8
billion. Agriculture trade was particularly strong. The U.S. was
the largest foreign investor in Vietnam in 2009, with total new and
additional FDI of $9.8 billion.

6. (SBU) While the great majority of experts consider Vietnam's
long-term economic prospects to be bright, short-term macroeconomic
imbalances are worrying investors (Ref H). As Vietnam winds down
the stimulus measures it took in response to the financial crisis,
it will have to navigate a difficult path between reaching
ambitious economic growth targets and controlling inflation and
significant budget and trade deficits (Refs I, J and K). To

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maintain high growth over the long term, Vietnam needs to overhaul
its infrastructure, reduce widespread corruption, and reform its
educational system to provide an adequately skilled workforce.

Seventh International Ministerial Conference

on Animal and Pandemic Influenza

--------------------------------------------

7. (U) Health diplomacy is a pillar of the bilateral relationship.
Approximately seventy-five percent of all U.S. official development
assistance to Vietnam focuses on health issues, and our cooperative
efforts to prevent and treat HIV/AIDS and combat pandemic and avian
influenza are the hallmarks of our bilateral health relationship.
At meetings with the Minister of Agriculture and Rural Development,
the UN and other partners, you will have the opportunity to
finalize preparations for the upcoming International Ministerial
Conference on Animal and Pandemic Influenza (IMCAPI) hosted by the
GVN on April 19-21 in Hanoi. We are pleased with the preparations
for the event, but still need to ensure an effective and
appropriate joint statement and high level USG representation.

Pandemic Influenza

------------------

8. (SBU) U.S. efforts have made a difference in Vietnam's fight to
contain highly pathogenic avian influenza (HPAI) and have
contributed to Vietnam's overall efforts to improve health systems
capacity. USG influenza-related assistance has focused on
controlling the H5N1 strain in animals and humans, preventing a
pandemic, including strengthening emergency preparedness, building
veterinary laboratory capacity, animal vaccination campaigns,
animal surveillance and response, and public awareness. In 2008,
the USG became the largest bilateral donor, surpassing investment
by the Government of Japan. Since 2005, the USG has provided USD
50 million to counter the threat of influenza to Vietnam. With
international assistance, the GVN took quick action to contain
HPAI, and has been rewarded with a notable drop in the number and
intensity of animal outbreaks and human infections. With USG
support, Vietnam is steadily building is independent capacity to
produce and market human vaccines against influenza. (Ref L)
Vietnam has moved from an emergency response phase into a more
sustained approach. This increased capacity clearly contributed to
an effective national response as H1N1 influenza swept across Asia
(Ref M). However, Vietnam now needs to develop a sustainable
long-term strategy focusing on improved poultry management
practices to minimize the risk of a pandemic, emergent from
Vietnam. Though internal GVN communications difficulties sometimes
delay notification to the international health community, and
bureaucratic friction may slow sample sharing, our Vietnamese
counterparts remain committed to the campaign.

HIV/AIDS and Other Health Issues

--------------------------------

9. (SBU) In 2005, Vietnam became the fifteenth and last focus
country under the President's Emergency Plan for AIDS Relief. Led
by the Ambassador and jointly planned and implemented by USAID,
HHS/CDC, DOD and HHS/SAMHSA, the program focuses on prevention,
care and treatment for those infected and strengthening of the
health system in Vietnam (Ref N). The program continues to
successfully build local capacity to prevent the spread of HIV/AIDS
and to provide care, treatment and support for an increasing

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proportion of the estimated 243,000 Vietnamese infected with HIV.
From September 2008 through September 2009, 178,635 individuals
received PEPFAR-supported counseling and testing for HIV/AIDS,
while 124,992 individuals had been provided with HIV/AIDS
palliative care, and over 33,000 initiated on anti-retroviral
therapy. From an initial budget of USD 18 million, PEPFAR funding
has grown to USD 87.8 million for FY 2010 with a cumulative total
of 410.8 million since 2004. About 25 percent has gone directly to
the GVN. The USG is in the process of developing a Partnership
Framework Agreement with Vietnam for a comprehensive and
evidence-based, five-year strategy in line with GVN's five-year
strategy focusing on sustainability, capacity building, health
systems strengthening, and tuberculosis (Ref O). Our health
diplomacy program extends into many other areas, including
assistance to combat other infectious diseases (including cholera,
tuberculosis, malaria and dengue fever), road safety, tobacco
control, and food safety. U.S. assistance, largely focused on
targeted, disease-specific programs, has provided tangible benefits
to the people of Vietnam, but be most effective and sustainable
must be focused in health systems strengthening. (Refs P and Q)
Increasingly, we try to focus on two principal challenges to health
sector reform: insufficient human resource capacity and an
inadequate regulatory regime.

Climate Change

--------------

10. (U) The GVN understands that climate change threatens could
erode its poverty reduction gains, limit economic growth, and
endanger food security. In response, the government is looking for
international partners to support its climate change responses,
particularly those focused on adaptation (Ref R). During Prime
Minister Dung's 2008 visit to Washington, our two nations agreed to
set up a new joint subcommittee under the existing bilateral
Science and Technology Agreement to advance specific areas of
cooperation on climate change adaptation and mitigation. We are
preparing for the first meeting of the subcommittee in Hanoi at the
end of March. Also during the Prime Minister's visit, the United
States and Vietnam announced the creation of the Delta Research and
Global Observation Network (DRAGON) Institute at Can Tho
University. Supported by the U.S. Geological Survey, the DRAGON
Institute is facilitating cooperation among scientists and policy
makers to address environmental issues, especially climate change,
threatening the Mekong Delta (Ref S). Various other U.S. agencies,
including USAID, the U.S. Forest Service, EPA, and NOAA participate
in projects that directly or indirectly support Vietnam's climate
change response. While the Ministry of Natural Resources and
Environment (MONRE) will coordinate GVN climate change policy,
several other ministries, particularly MARD, will play important
roles in developing GVN adaptation and mitigation responses. We
expect the MONRE Minister to raise climate change cooperation
during your meeting.

Agent Orange and Dioxin
-----------------------

11. (SBU) While debate continues over the possible human effects of
exposure to dioxin, a contaminant in the wartime defoliant Agent
Orange, recent environmental studies show that dioxin contamination
is concentrated in approximately 20 "hotspots," mostly areas within
former U.S. airbases where Agent Orange was stored, loaded and
transferred. Areas subjected to heavy aerial spraying do not
currently have soil concentrations considered hazardous. The
United States and Vietnam have not reached agreement on the scope
of possible health effects, with Vietnam continuing to argue that
over three million handicapped can trace their disabilities to
dioxin exposure. We do not believe that this figure can be
supported by scientifically-sound data and analysis. Statements
that describe every child born with a birth defect anywhere in
Vietnam as a "victim of agent orange" are common and remain a
favorite propaganda tool for persons opposed to closer U.S.-Vietnam
relations. However, our engagement on this issue has accomplished
much, in both transforming the tone of the dialogue and capacity

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building to address environmental issues and provide assistance for
the disabled (Ref T).

12. (SBU) We continue to work with the GVN, UNDP, Ford Foundation
and other donors in a multilateral coalition to support
environmental remediation of three priority hotspots in Danang, Hoa
Binh and Phu Cat airfields (Ref U). From 2001 to 2007, the USG
spent over USD 2 million to initiate technical dialogues,
scientific conferences on the effects of AO/dioxin, and fund a
4-year project to build the capacity of Vietnamese scientists to
analyze soil samples collected from the Danang airport. The Joint
Advisory Committee (JAC) for Agent Orange/dioxin, which brings
together scientists and researchers from both governments to
provide science-based advice to policy makers for potential
environmental and health cooperation, held its fourth annual
meeting in September, during which Vietnamese and U.S. members
reviewed ongoing health and remediation projects (Ref V). In 2007,
Congress appropriated USD 3 million for "dioxin mitigation and
health activities" in Vietnam. After completing an interagency
process to refine USG-wide policy to support AO/dioxin-related
efforts, USAID was selected to implement the USD 3 million.
Subsequently, in both 2009 and 2010, Congress appropriated an
additional USD 3 million for a total of USD 9 million. In 2008 and
2009, with GVN participation, USAID provided USD 2 million to fund
medical services for the disabled in Danang and will provide an
additional USD 1 million this year. In 2009, USAID, again with GVN
participation, selected CDM International to prepare an
environmental assessment and engineering plans and designs for
remediation at the Danang airport. Results of the environmental
assessment will drive selection of the technology option for
remediation. EPA is partnering with the Vietnam Academy of Science
and Technology to pilot bioremediation technology at the airport.
The USG hopes to support actual containment and remediation work in
2011.

Balancing Environment and Economic Growth
-----------------------------------------

13. (SBU) Vietnam's rapid economic growth has strained its ability
to protect the environment. In particular, the GVN has not been
able to control growing pollution, particularly from booming Export
Processing Zones and Industrial Parks (Refs W and X). Recently,
local media has turned its focus onto this issue, highlighting
several cases of egregious violations of Vietnamese pollution
control laws (Refs Y and Z). We have also seen growing concern
about the environment from average Vietnamese, particularly the
wealthier urbanized population, which now concerns itself with
quality of life issues as well as economic well being. While the
GVN has drafted an array of environmental laws, it lacks the
ability (and perhaps the will) to enforce these provisions and
lacks sufficient penalties to deter illegal behavior. Our
counterparts in the Environmental Police Department and the Vietnam
Environment Administration frequently request assistance on issues
ranging from legislative drafting to technical training to
financial assistance. To date, U.S. support for these "brown"
issues has been modest (Ref AA). We have identified the need to
balance economic growth with environmental protection as perhaps
the most important future ESTH issue in Vietnam and strive to
document many of the areas in which U.S. assistance could make a
difference. At the same time, Vietnam's attempts to respond to
environmental strains provide potential trade opportunities for
U.S. environmental technology, equipment and services firms.

Science and Technology Cooperation

----------------------------------

14. (U) In the ten years since the United States and Vietnam signed
our bilateral Agreement on Scientific and Technical Cooperation,
such cooperation has steadily increased. Your predecessor
co-chaired the sixth U.S.-Vietnam Joint Commission Meeting (JCM),
during which the two delegations reviewed the broad nature of
ongoing collaborative efforts. The Vietnamese brought over 40
delegates to Washington, reflecting the importance which they
attach to U.S.-Vietnamese efforts. Since the JCM, the two
governments have moved forward in several areas, including road

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safety and nuclear cooperation. Vietnam will host the seventh JCM,
tentatively scheduled for November 2010, and would like this
session to celebrate the tenth anniversary of our bilateral S&T
Agreement and the fifteenth anniversary of the resumption of
bilateral relations. We have used the Embassy Science Fellow
program to boost the breadth of our S&T engagement. This year, Dr.
David Roberts from the Department of Energy, has worked with the
Vietnam National Science Foundation to set up a research Centers of
Excellence initiative. While Vietnam's scientific research and
development capacities remain limited, the GVN actively seeks to
promote the sector (Ref BB). However, at the same time, the GVN
also tries to maintain a tight grip over subjects approved for
research and how (and if) researchers can release certain research
conclusions (Ref CC). You will have the opportunity to meet with
the Minister of Science and Technology and to visit the Vietnam
Academy of Science and Technology (VAST), where you will tour the
biotechnology institute and get to hold -scientist-to-scientist
discussions with VAST researchers.

Lower Mekong Initiative

-----------------------

15. (SBU) Vietnam has responded positively to the U.S. Lower Mekong
Initiative (LMI), announced following the first U.S. Lower Mekong
Ministerial meeting last July 23 in Thailand between Secretary
Clinton and the foreign ministers of the Lower Mekong Countries -
Cambodia, Laos, Thailand and Vietnam. Our interlocutors look
forward to cooperating with the United States and their neighbors
on regional health concerns, management of the Mekong River and
developing responses to climate change (Ref DD). The GVN has
agreed to co-host this June a U.S.-funded LMI Infectious Disease
Conference. We are working with our Vietnamese partners to
finalize the agenda, which we expect will focus on transnational,
action-oriented cooperative responses to infectious diseases and
will build upon discussions from the April IMCAPI meeting. While
welcoming greater U.S. engagement in the region, Vietnamese
officials will look for more concrete signs of U.S. interest,
particularly in light of Japan's recent announcement of its own USD
1.5 billion Mekong initiative. In your meetings, you may be asked
to describe how the upcoming conference fits into long-term U.S.
regional health programs and how to assure that the LMI is a real
partnership - with adequate opportunities for input from the Lower
Mekong Countries.

Education
---------

16. Education remains a major issue in the relationship, with the
Mission actively seeking to promote the adoption of American
educational practices at Vietnamese universities in order to
influence the next generation of Vietnamese leaders, increase the
number of graduates with the skills needed to work for American
companies in Vietnam, and help the Ministry of Education and
Training modernize what is widely regarded as a broken educational
system. The Ambassador hosted an Education Conference in Hanoi in
mid January, 2010 that brought together more than 600 American and
Vietnamese educators representing more than 250 schools and
companies with educational programs in Vietnam, for discussions on
how to reach a variety of key educational goals (Ref EE). The
number of Vietnamese enrolling in the United States continues to
grow rapidly, with 13,000 Vietnamese students now in the United
States, three times the number there three years ago. Funded by
the USG, the Vietnam Education Foundation (VEF) has placed 306
Fellows at 70 top U.S. graduate institutions, mostly for doctoral
degrees in the sciences, while the VEF Visiting Scholar Program
provides opportunities for Vietnamese to pursue post-doctoral
programs at U.S. universities for up to 12 months. VEF Fellows and
Visiting Scholars are required to return to Vietnam upon completion
of their academic programs in the United States. You will have
opportunity to meet with VEF alumni at a reception hosted by Deputy
Chief of Mission Palmer (Note: VEF legislation pending before
Congress would put VEF more directly under the control of State/ECA
and broaden the scope of VEF fellowships to include the social
sciences. End Note).

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17. (SBU) We look forward to your visit and stand ready to do
everything we can to make your time in Vietnam as productive as
possible.
Michalak

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