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Viewing cable 07HANOI1451, DUE DILIGENCE: MICROSOFT 2007 AWARD FOR CORPORATE

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Reference ID Created Released Classification Origin
07HANOI1451 2007-08-13 17:34 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Hanoi
VZCZCXRO8620
RR RUEHHM
DE RUEHHI #1451 2251734
ZNR UUUUU ZZH
R 131734Z AUG 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 6089
INFO RUEHHM/AMCONSUL HO CHI MINH 3526
UNCLAS HANOI 001451 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EAP/MLS AND EEB/EPPD NSMITH-NISSLEY 
USDOC FOR 4431/MAC/AP/OPB/VLC/HPPHO 
 
E.O. 12958: N/A 
TAGS: AMGT BEXP ECON ELAB ETRD KSEP SENV
SUBJECT:  DUE DILIGENCE: MICROSOFT 2007 AWARD FOR CORPORATE 
EXCELLENCE 
 
REF: STATE 109403 
 
1. (SBU) Could there possibly be any downside or embarrassment 
caused by the selection of your post's nominee? 
 
Embassy Vietnam is not aware of any information that might prove 
embarrassing to Post, to the U.S. Department of State, or to the USG 
with regard to the nomination of Microsoft for this award. 
 
2. (SBU) Do you have any information concerning job creation in the 
United States resulting from the operations of the company you 
nominated? 
 
Microsoft had 20,561 employees in 1996.  In 2007, the company 
employs over 76,000 employees worldwide with 46,700 employees in the 
United States.  Microsoft is a leading software developer whose 
bread and butter is its intellectual property.  By expanding its 
activities in Vietnam, it is promoting the export of U.S.-origin 
product, which creates jobs, directly and indirectly, in the United 
States.  Just recently, Microsoft concluded an agreement with the 
Government of Vietnam (GVN) under which government offices will buy 
legitimate software from Microsoft for hundreds of thousands of 
computers.  While this means a direct increase in sales for the 
company, Microsoft's success has wider implications for all U.S. IPR 
interests because it shows the GVN can improve the situation for IPR 
when there is political will. 
 
3. (SBU) What is your assessment of the company's trade and 
investment activities with regard to helping stimulate economic 
growth in the U.S. and increasing American exports 
(what is the U.S. content of its products)? 
 
In 2006, Microsoft earned $12.6 billion on global revenues of $44.28 
billion.  Microsoft is the world's leading software developer with 
products such as Microsoft Office, Windows XP, and Windows Vista. 
Founded in 1975, Microsoft has played a major role in establishing 
the global dominance of the U.S. software and information technology 
sectors. 
 
4. (SBU) What is the state of labor conditions in the company's 
facilities and are workers unionized? 
 
Labor conditions are generally excellent for Microsoft Asia Pacific 
employees.  Microsoft Vietnam employees are nonunion.  The company 
has low employee turnover, pays high wages (typically $1000-$1500 
per month for a mid-level manager), and has employee benefits that 
include health insurance, education reimbursement, and work/life 
balance considerations. 
 
5. (SBU) Are you aware of any litigation pending in local courts 
involving the company? 
 
Post is not aware of any Microsoft-related litigation pending in 
local courts. 
 
6. (SBU) Please confirm that the Chief of Mission and others 
involved in the nominating process do not hold shares of stock or 
have other financial interests in the company. 
 
Neither the Chief of Mission nor others involved in the nominating 
process hold shares of Microsoft stock or have other financial 
interests in the company. 
 
MARINE