US embassy cable - 05HANOI1404

UNCLAS HANOI 001404 
 
SIPDIS 
 
 
DEPARTMENT FOR EAP/BCLTV ELLEN DUNLAP 
DEPARTMENT PASS USTR FOR ELENA BRYAN 
USDOC FOR 4430/MAC/ASIA/OPB/VLC/HPPHO 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, VM 
SUBJECT:  VIETNAM: DIP NOTE FROM THE MINISTRY OF PLANNING 
AND INVESTMENT 
 
 
1. (U) On June 8, Post received a dip note from the Ministry 
of Planning and Investment Vice Minister Nguyen Bich Dat of 
the Socialist Republic of Vietnam (SRV).  The dip note 
relates to the implementation of the U.S. - Vietnam 
Bilateral Trade Agreement (BTA).  It was sent in preparation 
for the BTA Joint Committee Meeting scheduled for June 17 in 
Washington DC.  An unofficial translation of the dipnote 
follows: 
 
2. (U) Begin note: 
 
Ministry of Planning and Investment 
 
No 3831/BKH-PC 
Hanoi 8 June 2005 
 
The Ministry of Planning and Investment (MPI) of the 
Socialist Republic of Vietnam (SRV) presents its compliment 
to the Embassy of the United States of America in Vietnam 
and has the honor to inform the following contents related 
to the implementation of the Trade Agreement between the SRV 
and the United States (hereinafter referred to as "the 
Agreement"): 
 
(1) Vietnam has removed the mandatory requirement for 
exporting at least 80 percent for industrial products 
specified in the list attached to Decision 718/BKH-QD dated 
7 December 2001 of the Minister of Planning and Investment. 
 
(2) Taking into account the provisions of Chapter IV on 
Development of Investment Relations and Annex H of the 
Agreement, Vietnam has reflected the following commitments 
in the draft common Investment Law and the unified 
Enterprise Law, which are expected to be adopted in late 
2005: 
 
- Remove the requirement of minimum contribution of 30 
percent of the legal capital for U.S. investors in a joint 
venture, and the requirement of minimum legal capital of 30 
percent of the investment capital of a U.S.-owned enterprise 
(Annex H, Point 4.1.b.(i), (ii)); 
 
- Allow U.S. investors to establish joint stock companies with 
foreign investment capital (Annex H, Point 4.1.b.(iv)); 
 
- Remove the requirement that the General Director or First 
Deputy General Director of joint venture enterprises must be 
a Vietnamese citizen (Annex H, Point 4.2.a); 
 
- Remove the requirement to apply the principle of consensus 
to a number of the most important matters relating to the 
organization and operation of a joint venture enterprise 
(Annex H, Point 4.2.b); 
 
While the above-mentioned laws have not taken effect, 
Vietnam shall implement its commitments in accordance with 
specific requirements of U.S. investors. 
 
(3) Following the principle presented in item 2, Vietnam 
guarantees that, for projects invested in the service 
sector, the licensing shall be implemented exactly according 
to the schedule and conditions specified in Annex G and 
Annex H of the Agreement. 
 
The Ministry of Planning and Investment avails itself of 
this opportunity to renew to the Embassy of the United 
States of America the assurance of its highest 
consideration. 
 
For the Minister of Planning and Investment 
Vice Minister 
 
(signed) 
 
Nguyen Bich Dat 
 
End note. 
 
MARINE 
 
 
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