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Viewing cable 06HANOI2315, TREASURY SECRETARY PAULSON MEETS WITH VIETNAMESE PRIME

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Reference ID Created Released Classification Origin
06HANOI2315 2006-09-11 03:51 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Hanoi
VZCZCXRO6300
OO RUEHCHI RUEHFK RUEHHM RUEHKSO RUEHPB
DE RUEHHI #2315/01 2540351
ZNR UUUUU ZZH
O 110351Z SEP 06 ZDK
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3336
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE
RUEHHM/AMCONSUL HO CHI MINH 1774
RUEHGV/USMISSION GENEVA 1113
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RHEHNSC/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION
UNCLAS SECTION 01 OF 02 HANOI 002315 
 
SIPDIS 
 
STATE FOR EAP/MLS AND EB/TPP/BTA/ANA 
STATE PASS USTR DAVID BISBEE 
COMMERCE FOR 4431/MAC/AP/OPB/VLC/HPPHO 
TREASURY FOR OASIA 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ECON ETRD OVIP VM
SUBJECT: TREASURY SECRETARY PAULSON MEETS WITH VIETNAMESE PRIME 
MINISTER NGUYEN TAN DZUNG 
 
 
HANOI 00002315  001.2 OF 002 
 
 
SENSITIVE - DO NOT POST ON INTERNET 
 
1. (SBU) Summary:  On September 7, Secretary Paulson met with 
Vietnamese Prime Minister Nguyen Tan Dzung, who was accompanied by 
Vice Minister of Finance Tran Xuan Ha.  Ambassador Michael Marine 
accompanied the Secretary.  Secretary Paulson emphasized Treasury's 
support for deeper bilateral cooperation and economic relations with 
Vietnam, Vietnam's WTO accession, Congressional passage of PNTR, 
action by Vietnam to combat abuse of its financial system for 
illicit uses including proliferation of WMD, and continued progress 
towards a market economy and openness.  Dzung emphasized Vietnam's 
desire for further development of bilateral relations as well as WTO 
accession and PNTR.  He agreed about the importance of combating 
money laundering, terrorist financing, and organized crime and asked 
for U.S. assistance in those areas.  He noted that Vietnam's 
economic priorities were further economic reform, international 
integration, poverty reduction, improved education and efforts at 
fighting corruption.  End Summary. 
 
2. (SBU) Bilateral relationship:  Dzung underscored that a good 
bilateral relationship would benefit both sides and bring greater 
regional and global stability.  He said he had been happy to see the 
bilateral relationship expand following the Bilateral Trade 
Agreement in 2001 and looked forward to further growth in investment 
and trade.  He also cited bilateral cooperation in the sciences and 
education/training and said he wanted relations between the Ministry 
of Finance and Treasury to move forward.  Paulson said he couldn't 
agree more.  Dzung then alluded to the Vietnam War, saying Paulson 
needed to understand why per capita income was USD 640.  The 
Vietnamese people and government want the support of the American 
people and USG for a new, bright chapter of cooperation.  He 
appreciated Paulson's comment that Vietnam is progressing in the 
right direction. 
 
3. (SBU) WTO Accession and PNTR - A Treasury and Bush Administration 
priority:  Dzung placed very strong emphasis on Vietnam's desire for 
WTO accession and achieving Permanent Normal Trade Relations (PNTR) 
status.  He said he was very pleased with prospects for WTO 
accession and welcomed the Bush administration's outstanding 
support.  Secretary Paulson affirmed the Administration's support 
for WTO accession and said Congressional passage of PNTR is a high 
priority for him and President Bush.  Paulson said he would work 
hard in Washington to advance passage in Congress as soon as 
possible.  He noted, however, that conditions in Congress are less 
easy than normal because it is election season.  Dzung responded 
that he understood the situation and wanted to send the message to 
Paulson and through Paulson to President Bush that Vietnam would do 
any necessary work to advance PNTR. 
 
4. (SBU) Money Laundering/Terrorist Financing:  Paulson noted his 
strong appreciation for actions Vietnam took to protect its 
financial system from illicit use following Treasury U/S Levey's 
visit in July, noting in particular actions to counter the 
proliferation of weapons of mass destruction. He urged continued 
action.  Dzung agreed on the importance of combating money 
laundering, terrorist financing, and organized crime.  He said 
Vietnam had shown its commitment to the international community.  He 
invited U.S. assistance in combating terrorism against Vietnam, 
which stands in the way of Vietnam's development.  Paulson agreed, 
noting it was a two-way street. 
 
5. (SBU) Economic reform:  Paulson referenced his experience 
visiting developing countries where he saw the power of reforms for 
a market-driven approach.  Opening the economy and privatization of 
state-owned enterprises are important.  Opening up the financial 
system to competition has a multiplier effect for the whole economy. 
 Paulson encouraged maintaining momentum for reforms favoring 
competition and market mechanisms, while noting that such reforms 
always face domestic resistance from those who do not want 
competition.  He commended Dzung on Vietnam's progress to date, but 
noted that progress only becomes more difficult.  Dzung agreed that 
Vietnam needed to boost reform and move forward quickly towards a 
market economy. Dzung listed several priorities: 1) movement toward 
a market economy, which depended on further development of the legal 
system, greater economic cooperation, and improvement in the 
business environment; 2) integration of Vietnam in the global 
economy, for which WTO accession would be a bright milestone; 3) 
balancing market development, equality, and poverty reduction; 4) 
 
HANOI 00002315  002.2 OF 002 
 
 
improved training and education; and 5) fighting corruption. 
 
6. (U) This cable has been cleared by Treasury staff. 
 
MARINE