US embassy cable - 05HOCHIMINHCITY162

UNCLAS SECTION 01 OF 02 HO CHI MINH CITY 000162 
 
SIPDIS 
 
SENSITIVE 
 
DEPARTMENT PLEASE PASS USTR, ELENA BRYAN 
USDOC FOR 6500 AND 4431/MAC/AP/OPB/VLC/HPPHO 
 
E.O. 12958: N/A 
TAGS: ECON, PGOV, EINV, PREL, SOCI, ETRD, PHUM, EAGR, SNAR, VM 
SUBJECT: DEVELOPMENT AND BORDER ISSUES IN THE NORTHERN MEKONG 
DELTA 
 
1. (SBU) Summary: A recent visit by the Deputy Chief of Mission 
(DCM) to the Mekong Delta provinces of Dong Thap and Vinh Long 
revealed that, like much of the rest of the Mekong Delta, these 
provinces rely heavily on agri- and aquaculture to fuel their 
economic growth.   Plentiful harvests of rice, fruit and seafood 
have not been matched with development of the industrial sector. 
Senior officials in both provinces requested help to increase U.S. 
direct foreign investment (FDI) and humanitarian aid.  End 
Summary. 
 
 
DEVELOPMENT AND BORDER ISSUES IN DONG THAP 
------------------------------------------ 
 
2. (U) The DCM traveled to the Mekong Delta January 20-22.  He 
called on provincial officials in Dong Thap and Vinh Long and 
visited various American non-governmental organization (NGO) 
projects in the region.  In Dong Thap, the DCM met with Mr. Truong 
Ngoc Han, Chairman of the Dong Thap People's Committee, and twelve 
other department directors and representatives of industry and 
agriculture within the province.  Chairman Han stressed Dong 
Thap's success in agriculture and aquaculture (catfish, shrimp, 
and other aqua products).  Currently, Dong Thap produces 2.4 
million tons of rice per year and has 25,000 hectares of fruit 
gardens.  The province is famous for its mangos, longans, mandarin 
oranges, carnations and orchids.  Most fruit exports go to China 
and Japan, rice is exported to Europe, and aqua-products are 
shipped to the U.S.   Dong Thap is the third largest producer of 
foodstuffs in Vietnam.  The province's greatest challenge is 
developing a food processing industry.  There are plans for 
developing three industrial parks and 11 small-scale industry 
zones.  Dong Thap's GDP grew by 10.16 percent in 2004, driven 
mainly by the largest sector of agri- and aquaculture, which makes 
up 56.9 percent of the province's GDP. 
 
3. (SBU) Provincial leaders in Dong Thap are proud of their 
success in reducing poverty from 14 percent in 2000 to 4.8 percent 
in 2004. Chairman Han visited the U.S. with Deputy Prime Minister 
Vu Khoan in 2004 and was favorably impressed with the 
infrastructure and governance in the U.S.  He made a point of 
mentioning the importance of human rights and democracy, and 
expressed his desire to help Dong Thap in these areas.  Dong Thap 
leaders requested USG assistance in improving the environment, 
preventing the spread of HIV/AIDS, creating infrastructure and 
educational facilities, and increasing foreign direct investment 
(FDI).  The Chairman noted that Dong Thap has the fifth highest 
HIV/AIDS infection rate in the Mekong Delta. 
 
4. (SBU) Dong Thap leaders are also concerned about their 48-km 
border with Cambodia.  Currently the province is working with the 
Cambodian Government and the Vietnamese Ministry of Public 
Security (MPS) to prevent border crimes such as drug smuggling, 
human trafficking, and contraband.  In the past five years, these 
joint efforts have intercepted 17 cases of child trafficking. 
 
5. (U) The DCM visited two American NGO projects in the province. 
USDA and Land O'Lakes sell or trade surplus American commodities 
to fund a nutrition and health program in two local schools. 
Studies have shown that the program has increased student 
performance and attendance.  As the U.S. funding for the project 
ends this summer, the DCM encouraged the local Department of 
Health and Department of Agriculture to pick up the program in the 
future.   The NGO Heifer International provides small loans 
(usually of one or two animals such as cows or pigs) to local 
farmers to start an animal breeding program.  Each farm passes the 
first healthy offspring to another member in the community and 
then keeps the rest.  The program is looking for $40,000 to set up 
similar projects helping the Khmer people. 
 
DEVELOPMENT AND EDUCATION ISSUES IN VINH LONG 
--------------------------------------------- 
 
6. (SBU) In Vinh Long, the DCM called upon Mr. Truong Van Sau, 
Chairman of the provincial People's Committee.  According to 
Chairman Sau, Vinh Long leaders hope to move the province from 
agriculture (currently 54.76 percent of the province's GDP) to 
services and industry (currently 30.62 percent of GDP).  While 75 
percent of the population is involved in agriculture, the local 
government is keen to attract more investment and is developing 
its first industrial park to facilitate investment.   Vinh Long's 
GDP grew by 9.63 percent in 2004. 
 
7. (U) Vinh Long leaders are actively developing the province's 
educational facilities, particularly its Mekong University. 
Established in 2000, Mekong University focuses on training in agri- 
and aquaculture and is the first self-funded university in the 
Mekong Delta.  In a meeting with the DCM, University directors 
expressed their desire to receive USG funding for facilities, 
equipment, and books.  They also hope to establish links to other 
U.S. universities for professor and student exchanges.  The 
school, which has a student body of 5,500, moved to its new campus 
in 2002 and hopes to take advantage of the new industrial park 
across the street to provide job opportunities for its graduates. 
 
8. (U) There are a variety of American NGOs involved in the 
province, with programs running from literacy to caring for 
orphans to housing assistance.  The DCM visited two housing 
projects sponsored by Catholic Relief Services (CRS), which 
receives USG assistance.  Many homes in Vinh Long were destroyed 
in 2000 by flooding.  The provincial government has assisted with 
the construction of approximately 7,000 houses, but further 
assistance is needed for about 5000 homes.  CRS has chosen to help 
some of the poorest families by placing their homes on raised 
cement platforms, building better roofs, and providing loans to 
help the families get back on their feet.  The families are then 
responsible for the walls and any other improvements to the house. 
 
COMMENT 
------- 
 
9. (SBU) Leaders in both provinces are looking forward 
economically and developmentally.  Dong Thap appears to have a 
more serious crime problem because of the border it shares with 
Cambodia, but is taking action to solve it.  Leadership in Dong 
Thap also seems to have a better grasp of the legal, social, and 
economic changes that will have to happen to encourage more FDI 
from the U.S.  The next logical step for industry in these 
provinces is to develop food processing plants to package and add 
value to the multitude of agricultural and aqua-products. 
 
WINNICK