US embassy cable - 00HANOI2614

UNCLAS SECTION 01 OF 02 HANOI 002614 
 
SIPDIS 
 
AIDAC 
 
STATE PASS TO AID FOR A/A BOB RANDOLPH AND ANE/ 
ANTOINNETTE FERRARA 
PHNOM PENH FOR AID: LCHILES 
STATE FOR EB/IFD/ODF AND EAP/BCLTV 
 
E.O. 12958: N/A 
TAGS: EAID, ECON, EFIN, PREL, VM 
SUBJECT: VIETNAM:  PREPARING FOR THE ANNUAL CONSULTATIVE GROUP MEETING, DECEMBER 14-15 
 
REF:  A) SPECHT/LANGLAND/HICKS/FERRARA EMAIL 
 
                       UNCLASSIFIED 
 
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11/29/00; B) SPECHT/LANGLAND FAX 11/30/00; C) 
FERRARA/SPECHT EMAIL 11/23/00; D) HICKS/SPECHT EMAIL 
11/21/00 
 
1.  THIS IS AN ACTION REQUEST.  SEE PARAGRAPH 11. 
 
2.  SUMMARY:  THE WORLD BANK RECENTLY HOSTED A DONOR 
REPRESENTATIVES' MEETING TO PRESENT THE DONOR'S 
DEVELOPMENT REPORT "ENTERING THE 21ST CENTURY" AND TO 
DISCUSS THE DRAFT AGENDA FOR THE UPCOMING ANNUAL 
CONSULTATIVE GROUP (CG) MEETING. THIS YEAR'S DONOR'S 
REPORT ENTITLED "ENTERING THE 21ST CENTURY," IS 
ITSELF BASED ON THE DRAFT SOCIO-ECONOMIC DEVELOPMENT 
STRATEGY FOR 2001-2010 BEING PREPARED FOR THE 
UPCOMING 9TH PARTY CONGRESS AND WILL SERVE AS THE 
BASIS FOR DISCUSSION AT THE CG.  IN INTRODUCING THE 
DRAFT AGENDA FOR THE MEETING, THE CG ORGANIZER'S 
NOTED THAT THEY WISH TO CONDUCT MEETINGS PRIMARILY AS 
DIALOGUES, AVOIDING LENGTHY SPEECHES.  THEY INTEND TO 
POSE 3-4 LEADING QUESTIONS AS A WAY OF KICKING OFF 
DISCUSSION IN EACH OF THE SUBSTANTIVE SESSIONS. 
DONOR REPRESENTATIVES WERE ASKED TO INFORM THEIR 
DELEGATIONS THAT THEY SHOULD REFRAIN FROM DELIVERING 
LENGTHY PREPARED STATEMENTS AS HAS BEEN DONE IN THE 
PAST.  IF WASHINGTON AGENCIES DESIRE, A WRITTEN 
STATEMENT CAN BE SUBMITTED TO THE SECRETARIAT FOR 
DISTRIBUTION.  END SUMMARY. 
 
3.  AMBASSADOR PETERSON AND EMBOFFS ATTENDED MEETING 
NOVEMBER 28 HOSTED BY THE WORLD BANK OFFICE IN HANOI 
TO PREPARE FOR THE ANNUAL CONSULTATIVE GROUP (CG) 
                       UNCLASSIFIED 
 
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MEETING WHICH WILL BE HELD THIS YEAR IN HANOI 
DECEMBER 14-15.  A PRIVATE SECTOR FORUM WILL BE HELD 
IN CONJUNCTION WITH THE CG DECEMBER 13. CG ORGANIZERS 
NOTED THAT THIS CG WILL FOCUS ON THE LONG-TERM 
MARKING A SIGNIFICANT DEPARTURE FROM CG'S OF THE PAST 
THAT HAD A MUCH SHORTER TERM FOCUS. 
 
4.  THE PURPOSE OF THE CG MEETING THIS YEAR IS TO 
ASSIST VIETNAM TO DEVELOP FEASIBLE, EFFECTIVE 
POLICIES TO IMPLEMENT THE SOCIO-ECONOMIC DEVELOPMENT 
STRATEGY FOR THE FIRST DECADE OF THE 21ST CENTURY 
WHICH IS CURRENTLY BEING PREPARED BY THE COMMUNIST 
PARTY OF VIETNAM (CPV) FOR THE 9TH PARTY CONGRESS, 
SCHEDULED TO BE HELD SPRING 2001. 
 
5.  PART I OF THE DONOR REPORT, ENTITLED "PILLARS OF 
DEVELOPMENT," USES THE DRAFT CPV STRATEGY AS A 
STARTING POINT.  IT OUTLINES ADDITIONAL TARGETS AND 
POLICY CHANGES THAT WILL BE NECESSARY IF VIETNAM IS 
TO SUCCEED IN MEETING THE STRATEGY'S AMBITIOUS GOALS 
WHICH AIM TO DRAMATICALLY IMPROVE THE QUALITY OF LIFE 
OF ALL VIETNAMESE CITIZENS BY ATTAINING SUSTAINED 
RAPID ECONOMIC GROWTH AND CHANGING THE STRUCTURE OF 
THE ECONOMY TO A MORE MODERN, INDUSTRIAL AND URBAN 
ONE THAT CAN CREATE BETTER-PAYING JOBS, THUS ENABLING 
VIETNAM TO MOVE CLOSER TO ITS STATED GOAL OF BEING AN 
"INDUSTRIALIZED COUNTRY" BY 2020.  ONE MAJOR THEME 
WILL BE ENCOURAGING VIETNAM TO PAY ATTENTION TO 
ACHIEVING HIGH "QUALITY" GROWTH AS WELL AS A HIGH 
"QUANTITY" OF GROWTH.  THE REPORT ITSELF IS ORGANIZED 
AROUND 6 THEMES OR "DEVELOPMENTAL PILLARS" WHICH, 
                       UNCLASSIFIED 
 
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ACCORDING TO THE DONOR REPORT, THE GVN HAS DETERMINED 
ARE NECESSARY TO ACHIEVE THE VIETNAM'S GOALS.  THEY 
ARE: 
 
- CREATING AN SUPPORTIVE CLIMATE FOR ENTERPRISE; 
- TRANSFORMING THE RURAL ECONOMY; 
- ENHANCING HUMAN CAPACITY; 
- PROVIDING EFFICIENT INFRASTRUCTURE SERVICES; 
- IMPROVING ENVIRONMENTAL QUALITY; AND 
- BUILDING MODERN GOVERNANCE. 
 
6.  A COMPANION REPORT ON THE "PARTNERSHIPS FOR 
DEVELOPMENT" FORMS PART II OF THE DONOR REPORT.  IT 
CONTAINS THE REPORTS OF SOME OF THE 25 GOVERNMENT- 
DONOR-NGO PARTNERSHIP WORKING GROUPS COMPLETED IN 
ACCORDANCE WITH THE RECOMMENDATIONS OF THE 1999 CG 
AND THE 2000 MID-YEAR REVIEW.  (COPIES OF THESE 
REPORTS WERE SENT ELECTRONICALLY TO STATE, USAID AND 
AID PHNOM PENH REF A.) 
 
7.  A DRAFT AGENDA WAS ALSO CIRCULATED AND DISCUSSED 
AT THIS MEETING. (SEE REF B.) THIS AGENDA IS NOT YET 
FINAL AND COULD CHANGE ALTHOUGH NO SIGNIFICANT 
                       UNCLASSIFIED 
 
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CHANGES WERE SUGGESTED BY PARTICIPANTS OF THE 
PREPARATORY MEETING. IT ENVISIONS THE FOLLOWING 
SUBSTANTIVE SESSIONS: 
 
SESSION I: VIETNAM 2010 -- THE ECONOMIC AND 
INSTITUTIONAL FRAMEWORK FOR EQUITABLE GROWTH 
 
NOTE:  THE GOVERNMENT AND THE DONOR'S REPORTS WILL BE 
BRIEFLY PRESENTED AT THE OUTSET OF THIS SESSION. 
 
SESSION II: KEY IMPERATIVES: HUMAN DEVELOPMENT 
 
SESSION III: KEY IMPERATIVES: QUALITY OF ENVIRONMENT 
 
SESSION IV: KEY IMPERATIVES: RURAL DEVELOPMENT 
 
SESSION V: KEY IMPERATIVES: INFRASTRUCTURE 
DEVELOPMENT 
 
SESSION IV: ODA NEEDS AND INDICATIONS 
 
NOTE:  DONORS WILL ANNOUNCE THEIR PLEDGES AT THIS 
SESSION. 
 
8.  CG ORGANIZERS ALSO WISH TO CHANGE THE FORMAT OF 
THE MEETING THIS YEAR.  RATHER THAN HAVE SESSIONS 
WHICH ARE DOMINATED BY FORMAL SPEECHES AND LENGTHY 
INTERVENTIONS, AS IN THE PAST, THEY WANT THE FOCUS TO 
BE ON DIALOGUE.  THEY PLAN TO POSIT 3-4 LEADING 
QUESTIONS AT THE OUTSET OF EACH SESSION WHICH WILL 
FORM THE BASIS FOR THE ENSUING DISCUSSION.  THESE 
                       UNCLASSIFIED 
 
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QUESTIONS ARE TO BE REFINED AND RELEASED AT 
PREPARATORY MEETING EARLY THE WEEK OF DEC. 4.  WE 
WILL FORWARD THEM TO INTERESTED AGENCIES AS SOON AS 
THEY ARE AVAILABLE.  THIS APPROACH WILL REQUIRE THAT 
PARTICIPANTS CLOSELY READ THE DONOR AND GOVERNMENT 
REPORTS AS NO DETAILED PRESENTATION WILL BE MADE 
BEYOND A GENERAL OVERVIEW.  DONORS ARE WELCOME TO 
PREPARE WRITTEN STATEMENTS WHICH MUST BE SUBMITTED TO 
THE CG SECRETARIAT IN HANOI AS SOON AS POSSIBLE.  THE 
SECRETARIAT WILL TAKE RESPONSIBILITY FOR MAKING THESE 
 
SIPDIS 
STATEMENTS AVAILABLE TO PARTICIPANTS. 
 
9. THE WORLD BANK HAS PROVIDED THE EMBASSY AN 
ASSISTANCE INDICATIONS FORM AND ASKED THAT IT BE 
COMPLETED AND RETURNED BY NOV. 30.  THIS FORM 
REQUIRES DETAILED INFORMATION ON 2000 COMMITMENTS, 
2000 DISBURSEMENTS AND 2001 PLEDGES FOR PROJECT, NON- 
PROJECT AND TECHNICAL ASSISTANCE FOR ALL U.S. 
AGENCIES. 
 
10. THIS YEAR'S DELEGATION LIST IS DUE NOW TO THE 
WORLD BANK OFFICE IN HANOI.  ON THE BASIS OF THE 
INFORMATION PROVIDED REF D, WE WILL SUBMIT THE 
FOLLOWING LIST: 
 
ROBERT RANDOLPH, ASSISTANT ADMINISTRATOR, USAID, HEAD 
OF DELEGATION 
 
AMBASSADOR PETE PETERSON 
LISA CHILES, MISSION DIRECTOR, USAID REGIONAL MISSION 
ROBERT DRY, ECONOMIC COUNSELOR 
                       UNCLASSIFIED 
 
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JEAN GILSON, DIRECTOR, USAID OFFICE IN VIETNAM 
LINDA STUART SPECHT, ECONOMIC OFFICER. 
 
11.  ACTION REQUEST: WASHINGTON AGENCIES ARE 
REQUESTED TO PREPARE PLEDGING INFORMATION AND WRITTEN 
STATEMENT(S).  POST WAS PLEASED TO LEARN THAT USAID 
AND STATE HAD ALREADY BEGUN TO PREPARE THIS 
DOCUMENTATION (REF B AND D). WE STAND READY TO 
PROVIDE INPUT OR FACTUAL INFORMATION YOU MIGHT 
REQUIRE AS WELL AS CLEARANCE.  WE ARE ALSO READY TO 
ASSIST IN TALKING POINTS PREPARATION ADDRESSING THE 
KEY QUESTIONS TO BE POSED AT SUBSTANTIVE SESSIONS 
WHEN THESE QUESTIONS COME AVAILABLE.  WE WOULD 
APPRECIATE WASHINGTON AGENCIES PROVIDING US WITH 
DRAFT PAPERS FOR OUR COMMENT AS SOON AS POSSIBLE. END 
ACTION REQUEST. 
 
                       UNCLASSIFIED