US embassy cable - 05HANOI1310

UNCLAS HANOI 001310 
 
SIPDIS 
 
 
STATE FOR EAP/BCLTV AND EB/TPP/BTA/ANA 
STATE PASS USTR FOR EBRYAN 
STATE ALSO PASS USAID ANE 
TREASURY FOR OASIA 
USDOC FOR 4431/MAC/IFP/OKSA/HPPHO 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON, VM 
SUBJECT: VIETNAM: HANOI'S ECONOMIC RESEARCH FORUM 
 
 
Sensitive. Do not post on the internet. 
 
1. (SBU) Among the biggest challenges in Vietnam's 
transition to a market economy is the lack of Western 
trained economists capable of analyzing policy choices for 
the Government.  One attempt to address this challenge is 
the year-old Vietnam Economic Research Consortium (VERCON) 
which held its first annual research conference on May 24 in 
Hanoi.  A total of twelve papers, half of which Vietnamese 
economists wrote, were presented.  Over 70 people attended 
the conference.  Topics included monetary policy and 
financial market development, capital account issues, the 
political economy of Vietnam's transition, the micro- 
foundations of development, factor productivity and 
mobility, and trade and integration into the world economy. 
Papers will be published later this fall. 
 
2. (SBU) Vietnamese participants included economists from 
leading think tanks such as Vietnam Academy of Social 
Sciences (VASS), the Central Institute for Economic 
Management, the National Economics University, the Fulbright 
Economics Program in Ho Chi Minh City, the State Bank of 
Vietnam and the Ministry of Finance.  Vice Minister of 
Finance Le Thi Bang Tam, who chaired one of the sessions, 
told the conference that she was very pleased with this 
opportunity for open discussion to exchange ideas on topics 
that form the basis for policy making in Vietnam.  The key 
conclusion of the conference was that Vietnam needs to 
improve the standard for collecting economic data so that 
research conclusions can be more reliable.  The IMF, VASS 
and the German Technical Cooperation Group (GTZ) sponsored 
the conference with most of the funding from GTZ. 
 
3.  (SBU) Vercon was founded a year ago by IMF 
Representative Susan Adams, VASS Researcher Dan Nhu Van and 
ECON/C in order to provide Vietnam's Western-trained 
economists (holding at least a master's degree) with a way 
to maintain and hone their skills by discussing their 
ongoing research in a neutral forum.  Initially topics 
avoided discussing Vietnam given concern that the Government 
would deem this criticism of its policies.   Over the past 
year, topics have gradually shifted to focus on Vietnam. 
 
4. (SBU) Comment:  In most other countries, such a 
conference would not be noteworthy.  In Vietnam, it was a 
step towards a more open society where discussion and frank 
critiques of Government policies are possible. 
Nevertheless, Susan Adams said that many government 
participants nearly withdrew at the last minute.  End 
Comment. 
 
MARINE 
 
 
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