US embassy cable - 03HANOI1422

UNCLAS SECTION 01 OF 04 HANOI 001422 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EAP/BCLTV, AF/S, AF/E, AF/PD, AF/W, NEA/ENA 
 
E.O. 12958: N/A 
TAGS: PREL, ETRD, EAID, IV, NI, MA, GV, PU, BN, SG, ZI, RW, AO, SF, MO, WA, CM, VM, --     MZ 
SUBJECT: VIETNAM REACHING OUT TO AFRICA 
 
REF:  01 Hanoi 2637 
 
1.  (SBU) SUMMARY.  As another symbol of how Vietnam prizes 
the diversity of its diplomatic contacts and seeks to 
maintain its third world credentials, the GVN hosted the 
first Vietnam - Africa Forum in Hanoi May 28-30. 
Delegations from 18 African countries discussed trade and 
investment and "opportunities for the 21st century." 
Vietnam undertakes some developmental activities in Africa, 
albeit financed mainly by the United Nations.  Two-way trade 
remains modest at under USD 250 million, but GVN officials 
claim that there is "much potential for growth."  With trade 
levels at about USD 50 million in 2002, South Africa is the 
most important African trading partner, opening its Embassy 
in Hanoi only in 2002.  END SUMMARY. 
 
------------------- 
TRADITIONAL FRIENDS 
------------------- 
 
2. (SBU)  According to Nguyen Manh Cuong, Ministry of 
Foreign Affairs (MFA) senior expert for West Asia and 
Africa, Vietnam and many African countries have "traditional 
friendships" based upon historical mutual support to 
"overcome colonial powers."  Cuong noted that, while Vietnam 
only has embassies in Libya, Algeria, Egypt, and South 
Africa, "traditional" diplomatic partners in Africa also 
include Sudan, Tanzania, Zimbabwe, and Angola.  Cuong 
highlighted the importance of the forum, which brought 
representatives from many African countries to Hanoi for the 
time to discuss issues of mutual concern.  In a working 
luncheon on June 5, Xuan Hieu (who attended parts of the 
forum), International Affairs Department Deputy Director of 
the Communist Party of Vietnam's flagstaff "People's Daily," 
boasted to poloff that Vietnam was "proud to host this first 
event of its kind."  He predicted that the forum will lead 
to "greater mutual understanding and cooperation between 
Vietnam and Africa." 
 
3.  (U)  Despite the traditional friendships, there have 
been few high level visits in recent years.  Namibian 
President Sam Nujoma visited Vietnam in 2001.  Robert 
Mugabe, President of Zimbabwe, also visited in 2001 
(reftel).  Vietnam's President, Tran Duc Luong, visited 
Angola, Namibia, and Congo in October 2002, after attending 
the Francophone summit in Beirut.  Cuong said that he did 
not know of any upcoming senior visits; however, he 
expressed confidence that there would "undoubtedly be some 
"ministerial level" visits over the next year. 
 
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THE FORUM 
--------- 
 
4.  (SBU)  Over 80 delegates attended the forum, including 
four ministers and four deputy ministers.  Representatives 
from eighteen African countries attended:  Egypt, Libya, 
Morocco, Algeria, Angola, Benin, Burundi, Congo, Guinea, 
Mali, Namibia, Nigeria, Rwanda, Sierra Leone, South Africa, 
Sudan, Tanzania, and Zambia.  In addition, representatives 
of several Hanoi-based UN agencies, non-governmental 
organizations, and international organizations also 
participated.  Japan sent a representative and several local 
embassies, including France, Italy, and the U.S., sent 
observers.  While Cuong declined to provide exact numbers, 
he admitted that a "sizeable number" of the African 
delegates actually came from regional embassies accredited 
to Vietnam, mostly either in Beijing and Bangkok.  (Note: 
While Vietnam's MFA provided hotel accommodations, the 
delegations had to pay their own airfares.  End note). 
Cuong said that concerns about SARS might have had some 
impact, but that only two delegations had actually canceled 
their participation. 
 
5.  (SBU)  Forum attendees heard about 30 presentations from 
various African delegations, other international 
participants, and GVN officials.  Many of the speeches 
reiterated the common desire for realizing "the great trade 
potential" between Vietnam and Africa.  In his keynote 
address, Prime Minister Phan Van Khai emphasized the need to 
move beyond the currently "limited cooperation" and develop 
a "multifaceted approach."  Several speeches commended 
Vietnam for its "south - south" cooperative activities. 
H.K. Angula, Namibia's Minister of Agriculture, Water, and 
Rural Development, told the forum that Namibian farmers 
"have a great deal to learn from Vietnam," noting Vietnam's 
transformation from a rice importer to one of the world's 
leading rice exporters in a relatively short period.  He 
said that Vietnam's "comparative advantage" in rice "sets 
the stage" for further bilateral cooperation. 
 
6.  (U)  At the conclusion of the forum, Vietnam signed 
several cooperative agreements, including: 
--on agricultural cooperation and fisheries cooperation with 
Sudan; 
--on economic, trade, cultural, and technical cooperation 
with Sierra Leone; and, 
--on trade and investment protection with Namibia. 
 
7.  (U)  The forum also included about 150 booths showcasing 
various Vietnamese exports, such as electronics, textiles, 
and agricultural products.  The rather elaborate exhibition 
invited speculation among some observers that export 
promotion might have been an underlying theme of the forum. 
Cuong admitted that Vietnam "would like to sell more 
products to more African countries."  He claimed that there 
is "especially good potential" for rice exports.  Cuong 
maintained, however, that the main purpose of the forum was 
to discuss Vietnam and Africa two-way cooperation, of which 
Vietnam's exports is "only one part." 
 
---------------------------- 
VIETNAM'S DEVELOPMENTAL ROLE 
---------------------------- 
 
8.  (U)  Cuong claimed that, while Vietnam is itself a large 
official development assistance (ODA) recipient, the GVN was 
"proud" to have a role in helping African countries.  Cuong 
noted that there are Vietnamese experts working in a number 
of African countries, citing agricultural experts in 
Madagascar, Benin, Congo, and Senegal.  (There are also 
Vietnamese medical doctors in Angola.)  Much of this 
assistance, he admitted, is actually financed through a "two 
plus one" program under the U.N., whereby Vietnam supplies 
the experts and the U.N. supports them and their programs. 
 
----- 
TRADE 
----- 
 
9.  (U)  Cuong lamented that, while Vietnam's trade with 
Africa had grown by a factor of 10 since 1990, it was still 
"far below potential."  Vietnam's 2002 exports to Africa 
totaled about USD 200 million (about one percent of 
Vietnam's total exports); its imports from Africa are about 
USD 43 million (about three tenths of one percent of 
Vietnam's imports), according to a press report. 
10.  (SBU)  While a number of officials stressed the theme 
of economic potential, others noted that there are serious 
impediments that Vietnam and African countries must overcome 
to realize that potential.  Cuong admitted that lack of 
payment mechanisms is a major factor.  Another is the lack 
of familiarity with culture and customs.  He said that many 
Vietnamese business people were reluctant to do business in 
Africa because "it is sometimes rather hard to get paid." 
Barter trade, while possible, is not going to raise trade 
volume significantly, he opined.  Joseph Bonesha, the 
Rwandan ambassador to the PRC, told poloff on the margin of 
the forum that distance to market was a major problem for 
both Vietnam and African countries.  He noted that Rwanda 
was "very poor" and at this point not able to import much of 
anything from any country.  Guinea's Ambassador to Beijing, 
Djigul Camara, predicted to poloff that Vietnam would be 
"hard pressed" to compete with the PRC in Guinea.  He 
estimated that Guinea and the PRC have about USD 100 million 
in two-way trade, with established links.  Camara said that 
the PRC is "similarly well established" in a number of other 
West African countries. 
 
-------------------------------- 
MOVING FORWARD WITH SOUTH AFRICA 
-------------------------------- 
 
11.  (U)  In October 2002, South Africa opened an embassy in 
Hanoi, headed by a Charge d'Affaires.  Vietnam had 
established its embassy in South Africa in 1999.  Two-way 
trade, while limited, has grown from USD 20 million in 1999 
to USD 50 million in 2002, according to a GVN press report, 
making South Africa Vietnam's most important African trading 
partner.  Vietnam's primary exports include footwear, 
textiles, artificial flowers, coffee, rice, and plastics. 
Its imports include machinery, steel, wood, chemical 
products, and paper.  The trade balance is in favor of South 
Africa by about a three to two ratio, according to South 
African government statistics.  The two countries signed a 
bilateral trade agreement in 2000. 
 
12.  (U)  In a speech at the forum, Charles Bailey, Ford 
Foundation representative in Vietnam, highlighted that South 
Africa and Vietnam shared a strong historical relationship 
stemming from their respective independence struggles.  In 
1978, a high-level delegation from the then-banned African 
National Congress (including now-President Mbeki) visited 
Vietnam and met with the top leadership.  According to 
Bailey, this visit made a strong impression on both sides. 
 
13.  (SBU)   South African Charge d'Affaires Elizabeth 
Erasmus told poloff in a sidebar conversation that one of 
South Africa's goals in opening an embassy in Hanoi was to 
demonstrate to Vietnam that South Africa can serve as a 
gateway for regional trade.  She noted that it will take 
"considerable effort" to realize this goal, but there are 
plans for further cultural and educational exchanges that 
will also improve mutual understanding.  Commenting on 
Vietnam's long-term goals in Africa, Charge Erasmus opined 
that Vietnam may be interested in counterbalancing the PRC's 
already strong economic position in a number of African 
countries. 
 
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COMMENT 
------- 
 
14.  (SBU)  This forum can be viewed as part of Vietnam's 
general diplomatic push over the past decade to diversify 
its relations globally.  There are still warm feelings in 
Vietnam for the many African countries that provided moral 
support during wartime, even though the tangible benefits 
nowadays remain minimal.  Lack of infrastructure, vast 
distances, questionable markets, and uncertain business 
practices all suggest that more meaningful Vietnam - Africa 
ties are unlikely in the foreseeable future, despite 
goodwill and good rhetoric. 
PORTER