US embassy cable - 03HANOI2654

UNCLAS SECTION 01 OF 05 HANOI 002654 
 
SIPDIS 
 
USDA FOR USDA/FAS/OA/BSimmons 
USDA FOR USDA/APHIS/BRS/JTurner 
 
STATE FOR STATE/EB/DMalac 
STATE FOR STATE/OES/HLee 
 
PASS USAID FOR JLewis 
 
PASS FDA FOR RLake 
 
PASS EPA FOR JAndersen 
 
E.O. 12958: N/A 
TAGS: EAGR, ECON, SENV, TBIO, TSPL 
SUBJECT:  Vietnam -- BIOTECH REGs 
 
REF:SECSTATE 263456 
 
1. Summary:  Vietnam does not have a biotech framework 
law, but one is being developed. Vietnam does have 
several biotech labeling laws. However, they have not 
been implemented. There have not been any problems 
with biotech commodity trade, but Post will have to 
monitor the development of the new biotech framework 
law and the labeling regulations. End Summary. 
 
2. No Problem:  Without any real biotech laws or 
guidelines, Vietnam imports biotech commodities (e.g., 
corn, soybeans, soybean meal, cotton) from various 
trading partners without any apparent concerns. 
 
3. However:  A recent (July 2003) Food Safety 
Ordinance, approved by the National Assembly's 
Standing Committee, notes: 
 
(Article 8)... that it is strictly prohibited to 
produce or trade in genetically modified foods, which 
have not been approved by a competent State authority. 
 
(Article 20) Genetically modified food or materials 
must be labeled, and the government shall stipulate in 
detail the management and use of genetically modified 
food. 
 
4. No Guidelines:  Despite the Food Safety Ordinance 
(and earlier laws), the Government of Vietnam has not 
yet decided which Vietnamese agencies will issue 
guidelines or standards for biotech foods. Post will 
continue to monitor developments. 
 
========== 
BACKGROUND 
========== 
 
5. Embassy Science Fellow:  During August-September 
2003, Post hosted Dr. Phil Schwab, from USDA/CSREES, 
as an Embassy Science Fellow to work with Vietnamese 
authorities drafting biotech legislation. The 
following information is based on his exit report. 
 
6. The Vietnamese government has identified the 
development of biotechnology as a major priority and 
is dedicating significant funding to equip 
laboratories and train scientists for work in 
genotyping, genetic engineering and biosafety.  The 
government is currently drafting legislation to 
regulate the import, field-testing and commercial 
release of genetically engineered organisms.  Although 
the technology to create transgenic plants is rapidly 
being adopted, experience with genetically modified 
organisms and biosafety regulation is limited 
 
=============================== 
CURRENT BIOSAFETY POLICY STATUS 
=============================== 
 
7. Currently a legal framework for the regulation of 
agricultural biotechnology does not exist in Vietnam. 
The government is currently undertaking a multi-agency 
effort to draft an official policy. This effort has 
been underway for nearly five years. Currently the 
responsibility for drafting the biosafety framework is 
under the responsibility of the Ministry of Natural 
Resources and Environment (MONRE). Other ministries 
involved in the drafting process include Agriculture 
and Rural Development (MARD), Science and Technology, 
and Trade and these ministries are quite deferential 
to MONRE when discussing issues related to the 
biosafety regulation. MONRE reports that a final draft 
of the regulation is scheduled to be presented to the 
government as a Prime Minister's Decree by the end of 
the year. MONRE is also responsible for activities in 
Vietnam related to the Cartagena Biosafety Protocol 
and the principles of the protocol appears to be 
driving the effort to develop the Vietnamese biosafety 
regulation. Vietnam expects to become a party to the 
protocol, perhaps in early 2004. 
 
8. The current lack of a regulation has several 
implications.  Many other Southeast Asian nations are 
parties to the Cartagena Biosafety Protocol and will 
soon implement the requirements for regulation of 
trade in living modified organisms. Scientists who are 
working on the development of transgenic plants are 
not able to officially conduct field tests. Scientists 
are not able to acquire transgenic crop varieties 
developed in other countries. Companies are not 
officially able to test, nor market transgenic crop 
varieties in Vietnam. Many people report that insect- 
resistant, transgenic cotton of Chinese origin is 
being grown under field trial or commercial production 
in Vietnam, although the size or scope of the effort 
cannot be confirmed. 
 
9. Recent drafts of the Prime Minister's Decree 
contain provisions for notification of import, 
laboratory, field-testing and use of genetically 
modified organisms. In general, the most recent draft 
contains many of the common elements of existing 
agricultural biotechnology regulations and are much 
improved over earlier drafts and is based on 
principles of scientific risk assessment. However, 
some concerns still remain, including multiple layers 
of approval, the breadth of the role of provincial 
authorities, and regulation of the "products" of GMOs. 
It is not clear to what extent local authorities will 
have the ability to approve or deny the field-testing 
or production of transgenic crops. It is not clear to 
what level products derived from transgenic plants 
will be submitted to regulation. For instance the 
draft does not differentiate between products like 
oils refined from transgenic crops and clothing 
derived from transgenic cotton. A new draft is 
circulating among concerned agencies at the time of 
writing this report. 
 
================ 
BIOSAFETY ISSUES 
================ 
 
10. The overriding concern discussed regarding 
transgenic organisms in Vietnam is the implications 
for export markets. Vietnam is a major exporter of 
rice and, many people expressed concern over about the 
introduction of transgenic rice varieties due to the 
potential for export disruption. The fisheries sector 
is also concerned about the trade implications of 
products like soybean oil made from transgenic 
soybeans and the possible labeling requirements 
associated with its use in seafood processing. 
Several people discussed the possibility of a nation 
exporting a transgenic organism to Vietnam that is not 
approved in the country of origin that could cause 
subsequent problems for Vietnamese exports. 
 
11. A secondary concern revolves around the impact of 
transgenic technology on the diversity of the 
agricultural landscape, both in terms of the crops and 
the number of varieties grown. Due to the dominant 
smallholder nature of Vietnamese agriculture, 
diversity is currently quite high although a small 
number of varieties of major crops like rice dominate 
the market and rice is by far and away the dominant 
crop planted in the most productive agricultural 
regions. The related concern of corporate control of 
transgenic seeds and related costs were also 
mentioned, especially by the press. Intellectual 
property is a current issue as the government attempts 
to implement Plant Variety Protection (PVP/UPOV) 
procedures. There is very little control of 
intellectual property in Vietnam and many scientists 
see this as a barrier to the development of new 
advanced crop varieties. 
 
12. Most scientists in fields related to crop science 
voice few concerns over the safety of transgenic 
organisms and are eager to move forward with the 
development of the technology. The only major 
hesitation detected was in the already mentioned case 
of rice, however there was a general consensus among 
many scientists that a non-food crop species, such as 
cotton, should be the initial test case.  Despite this 
concern several research institutes have transgenic 
versions of many food crops, including rice, and the 
Cuu Long Rice Research Institute has a substantial 
program to develop efficient rice transformation 
systems. 
 
13. Among food processing and technology researchers 
there was more concern about the long-term impact of 
consumption of transgenic food products. This may have 
something to do with where many of these individuals 
were trained (Europe, Japan, etc). This concern was 
echoed in questions received from press who are 
clearly aware of the objections to transgenic crop 
technology raised in Europe and other nations. At this 
time, however, there does not appear to be an active 
anti-biotech campaign or effort underway in Vietnam to 
attempt to sway public opinion away from adoption of 
biotechnology. 
 
14. Complicating matters related to transgenic 
regulation is the lack of capacity for monitoring or 
testing for the presence of transgenic plants. Recent 
food safety legislation required that foods derived 
from genetically modified organisms must be labeled. 
However, experts from universities, government 
ministries and even private firms admit that there is 
no current capacity for effective enforcement of this 
requirement. Some universities and institutes, 
including the Pasteur Institute in Ho Chi Minh City 
are beginning to experiment with protocols to test for 
the presence of genetically modified organisms. 
Private food safety testing firms admit that there are 
more serious problems, such as microbial and chemical 
contamination that need to be addressed before much 
attention can be turned to the issue of genetically 
modified organisms. 
 
============================================= ==== 
SCIENTIFIC CAPACITY IN AGRICULTURAL BIOTECHNOLOGY 
============================================= ==== 
 
15. The development of biotechnology is one of the top 
priorities of the Vietnamese government, second only 
after information technology. In nearly any news 
report on science and technology, biotechnology is 
mentioned as a priority. In discussions over 
technology cooperation with other nations, 
biotechnology is also emphasized. At least from the 
level of vice-minister and on down in the Ministry of 
Agriculture and the Ministry of Science and 
Technology, the government is committed to moving 
ahead with new investment and activities in 
biotechnology. The development of the biosafety law is 
one example of this commitment. 
 
16. Agriculture is one of the areas receiving 
substantial government investment in biotechnology, 
and this investment appears to be targeted to specific 
institutions. The definition of biotechnology depends 
on the institution. In general, biotechnology 
currently is limited to tissue culture, anther 
culture, RFLP and PCR-based genotyping of pathogens 
and germplasm, and some marker assisted selection. 
However, several institutions are forging ahead with 
the development of transgenic and advanced genomic 
technologies - including the Institute for 
Biotechnology (Hanoi), the Cuu Long Rice Research 
Institute (Can Tho), the Agricultural Genetics 
Institute (Hanoi) and the Institute of Tropical 
Biology in Ho Chi Minh City.  Scientists are using 
both agrobacterium-mediated and "gene gun" technology 
to create transgenic plants. Transgenic plants of 
rice, cotton, banana, Paulownia, and papaya were 
observed growing under laboratory or greenhouse 
conditions. The Institute for Tropical Biology and the 
Institute for Biotechnology both have greenhouses 
dedicated for transgenic plants. The Cuu Long Rice 
Research Institute is currently constructing a 
dedicated greenhouse for transgenic plants. There are 
reports of transgenic, insect-resistant cotton plants 
being tested in Vietnam, but it is difficult to find a 
consistent report on the size or scope of the trial. 
 
17. Biotechnology is viewed as a means to both 
increase the productivity and profitability of 
Vietnamese agriculture.  Animal biotechnology is 
significantly behind plant technology and all 
transgenic work is currently being done in plants. A 
great deal of effort is being focused on the 
development in insect resistant (Bt) crop varieties - 
not only to control the many insect pests inherent in 
a tropical environment, but also in an effort to 
reduce reliance on expensive imported pesticides. 
Recently, however, the focus of agricultural research 
is moving from a focus on quantity of production to 
product quality. One example is the project at the Cuu 
Long Rice Research Institute to discover genes 
associated with aromatic traits in rice and other 
high-value quality characteristics.  Golden Rice 
appears to be mainly a scientific curiosity rather 
than a research priority - this may be to known 
limitations of the technology as well as the overall 
hesitancy to introduce transgenic rice varieties in 
general. 
 
18. The main challenges facing the Vietnamese 
agricultural research system are the sheer number of 
agricultural research institutes, the extraordinarily 
broad, overlapping missions of the individual 
institutes, and the lack of coordination between 
institutes and universities. Commonly two or more 
institutes have programs addressing the same or 
similar issues in the same cropping environment. This 
appears to be a greater problem in the north where the 
many MARD research institutes often have similar plant 
breeding, management and disease control programs. 
What limited collaboration among institutions that 
does exist appears to be mainly based on personal 
association rather than any particular standard 
procedure to encourage collaboration.   There seems to 
be little communication and collaboration between 
research institutions in the north and their southern 
counterparts. Both regions appear to have programs 
addressing the central areas of the country. 
 
19. The missions of many of the Ministry of 
Agriculture and Rural Development Institutes encompass 
basic research, variety development, seed production 
and extension for the particular commodity of 
responsibility. In several instances, research 
institutes must rely on income generated from the sale 
of seed, micro-propagated plants or other services in 
order to fund their basic research activities. 
 
20. Equipment and facility resources vary widely 
between institutions, but are improving overall. The 
Institute of Biotechnology and the Institute for 
Tropical Biology both recently received large grants 
specifically for work related to transgenic 
technology. Most of the MARD institutes received 
equipment funding within the last year.  A commonly 
quoted figure was $2 million. In most institutes this 
means PCR machines and gel reading equipment. A few 
institutes have automated genetic sequencer machines. 
Several institutes are planning to purchase equipment 
for micro-array technology within the next year. 
Training in the use of the new equipment also varies 
widely between institutions. In some cases it appeared 
that the PCR machines had never been used in others 
staff admitted having difficulty using the equipment. 
There is also substantial foreign investment, 
especially from European, Japanese and Australian aid 
agencies in several government institutes and 
universities. 
 
21. Human capacity remains a concern and a limitation. 
Most research institutes and universities have a small 
number of PhD trained scientists and a growing number 
of MS level faculty. A majority of senior scientists 
in the north were trained in the former Soviet Union 
and Eastern Europe. In the south many senior faculty 
have degrees from U.S. Institutions. A growing number 
of young scientists in the institutes have been 
trained in Japan, Australia and Western. In the South, 
at Can Tho University in particular, several faculty 
members have received PhD degrees from U.S. land grant 
schools. Nearly every institution highlighted student 
and scientist training as a higher priority than more 
new equipment. 
 
22. Technology transfer is an important mission of the 
MARD institutes and the universities; however, little 
attention appears to have been devoted to the 
education or outreach needs specific to transgenic 
crop varieties. For example, reports of Bt cotton use 
report that farmers like the varieties and are likely 
to want to grow Bt varieties on as many acres as 
possible with little understanding of the need for 
resistance management schemes. Identity preservation 
technology necessary for maintaining GMO and GMO-free 
commodities is at a very low state of development. 
Public education programs have yet to be designed, but 
there is an understanding that these are necessary for 
acceptance of this technology. 
 
=================== 
UNIVERSITY PROGRAMS 
===================== 
 
23. In general universities are under the management 
of the Ministry of Training and Education (MOET) 
appear to have limited interaction with MARD 
institutes. However, universities are following the 
direction of the overall government in the development 
of programs in biotechnology. Most of the universities 
have recently developed a new "biotechnology" program 
and are beginning to admit students. What exactly the 
course of study will be and what industries will 
employ the graduates is not clear at this point. 
However, there are more students applying for 
admission to these programs than can be accommodated - 
a problem of university programs overall. 
 
24. The universities in Can Tho and An Giang as well 
as Cuu Long Rice Research Institute appear to break 
the mold in terms of collaboration. They have close 
contact with the University of Agriculture and 
Forestry in HCMC and exchange research ideas, faculty 
and students among the institutions. For instance, An 
Giang University is planning to appoint one of Cuu 
Long's scientists as the head of its new Department of 
Biotechnology. The provincial governments also heavily 
support these institutions. As a result the provincial 
authorities have a great deal of influence over the 
research agendas of these institutions and provide 
substantial direct funding. For Instance, An Giang 
University is mainly a creation of the An Giang 
People's Committee and has a very locally focused 
mission. 
 
25. All universities are eager to develop new 
collaborative efforts with foreign institutions. In 
general they are looking for opportunities for their 
students to pursue masters and doctorate programs in 
the US. They are also looking for U.S. researchers to 
visit Vietnam as guest lecturers and visiting faculty. 
 
26. COMMENT: Post strongly supports continued 
collaboration between USDA and the Vietnamese research 
facilities and universities as the biotech and 
labeling regulations are developed. 
 
BURGHARDT