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Viewing cable 08HOCHIMINHCITY10, HCMC BUSINESS LEADERS: UP THROUGH HARD WORK AND NEW IDEAS

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Reference ID Created Released Classification Origin
08HOCHIMINHCITY10 2008-01-04 01:17 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Ho Chi Minh City
VZCZCXRO4348
OO RUEHDT RUEHPB
DE RUEHHM #0010/01 0040117
ZNR UUUUU ZZH
O P 040117Z JAN 08
FM AMCONSUL HO CHI MINH CITY
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3514
INFO RUCPDOC/USDOC WASHDC PRIORITY 0059
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE
RUEHHI/AMEMBASSY HANOI PRIORITY 2394
RUEHHM/AMCONSUL HO CHI MINH CITY 3733
UNCLAS SECTION 01 OF 02 HO CHI MINH CITY 000010 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS, EEB/TPP/BTA/ANA 
STATE PASS TO USTR DBISBEE 
TREASURY FOR SCHUN 
COMMERCE FOR HHPHO 
USAID/ANE 
 
E.O. 12958: N/A 
TAGS: ECON PGOV EFIN ETRD BEXP VM
SUBJECT: HCMC BUSINESS LEADERS: UP THROUGH HARD WORK AND NEW IDEAS 
 
REF: HO CHI MINH CITY 1281 
 
HO CHI MIN 00000010  001.2 OF 002 
 
 
1. (SBU) SUMMARY: Vietnam is increasingly a land of opportunity 
for those with business skill and determination.  Over the last 
decade, enterprising HCMC businesspeople like Dang Thanh Tam and 
Le Thi Phuong Thuy have risen from obscurity to positions of 
national influence.  They succeeded by championing ideas new to 
Vietnam like collateralized financing and intellectual property 
rights and the timing of their ascent aligns their interests 
closely with the multinational companies they now partner with. 
As the product of Vietnam's process of economic reform, these 
emerging business leaders are articulate and often forceful 
advocates for more change, particularly increased transparency 
and a more level playing field.  End summary. 
 
2. (SBU) This is the second in a series of cables analyzing the 
role of HCMC's business community in shaping Vietnam's policies. 
 We assessed the politically-connected and will next examine 
those who were associated with the old regime but have overcome 
that stigma to make money and gain influence. 
 
Self-Made Business Leaders 
-------------------------- 
3. (SBU) Unlike the politically-connected described reftel, the 
"self-made businessmen" tend to be younger, generally were not 
involved in the war, have more formal education and have lifted 
themselves up to build strong companies without connections to 
government officials. 
 
4. (SBU) In little over ten years, Dang Thanh Tam has risen from 
obscurity to become one of the richest and most influential men 
in Vietnam.  Vietnam's "King of Industrial Parks," Tam owns more 
than 17 across the country and sees the current property boom as 
an opportunity to expand into residential areas, tourism, 
financial services, energy and telecommunication.  Tam rose to 
prominence in the business community after setting up Tan Tao 
Industrial Park in 1997.  Realizing that local companies did not 
have sufficient capital, Tam convinced the local government to 
issue land use rights certificates for tenants in his park that 
could be used as collateral for bank loans.  HCMC approved the 
proposal, Tan Tao piloted this program (later adopted as a 
national policy) and Tam soon had enough capital to begin buying 
new properties for new industrial zones. 
 
5. (SBU) As his businesses grew, Tam held increasingly senior 
positions in associations that provided platforms to express his 
opinions and influence policies.  As a member of the HCMC 
People's Council, Tam is now a vocal advocate for business 
interests and publicly attacks bad policies.  Tam took on HCMC's 
inefficient tax system, criticizing the spending of VND $80 
million to collect just VND $100 million tax on farm income each 
year; the tax was later removed.  Tam is the only private 
entrepreneur invited to sit in a 12-advisor board of the 
Government's WTO Action Plan which evaluates each province 
implementation of Vietnam's WTO accession commitments. 
 
6. (SBU) While Tam did not start with political connections, 
thanks to his success and wealth he certainly enjoys political 
influence today.  Tam claims close ties with ten out of 14 
Politburo members, including Prime Minister Dung and President 
Triet, through which he can give inputs and comments on many 
issues.  Soon after he was elected Prime Minister, Tam says he 
urged a skeptical Nguyen Tan Dung to visit Japan.  The trip 
resulted in large contracts, including Cannon, and after the 
trip Tam was appointed Chairman of Vietnam-Japan Business 
Association.  Unlike many business leaders, Tam is not camera 
shy.  Tam believes that talking with the media is one of the 
most effective ways for him to express opinions and make both 
critical and constructive comments. 
 
Pioneering New Ground 
--------------------- 
7. (SBU) In 2005, Le Thi Phuong Thuy stepped away from her 
successful company producing stainless steel water tanks and 
kitchen fixtures for export to become a media pioneer in 
Vietnam.  She pulled together a US$20 million investment to set 
up Tri Viet Media Corporation (TVM) and in October 2005 opened 
Dream Field Studio to produce television programs for domestic 
and foreign television stations.  TVM licenses and distributes 
foreign content from major media companies from the United 
States, Japan, South Korea and China.  Thuy was also 
instrumental in establishing in 1994 the Young Entrepreneurs' 
Association (YEA) of HCMC, one of the largest business 
associations in Vietnam; she is currently Vice President. 
 
HO CHI MIN 00000010  002.2 OF 002 
 
 
 
8. (SBU) Thuy consistently uses TVM and the Young Entrepreneurs' 
Association as platforms to make policy proposals to the 
government and her fingerprints can be found on Vietnam's 
publication laws, enterprise laws and competition laws.  As a 
producer of local media content, Thuy has been a vocal proponent 
of IPR and has helped create an environment where HCMC 
television stations are stakeholders in protecting content.  In 
contrast to other provinces, media contacts now tell us that 
signal piracy is not tolerated in HCMC.  As the association 
Vice-President's, Thuy voices members concerns on issues such as 
corporate income tax, customs issues, land issues and points 
discrepancies between the law on paper and the reality of 
implementation. 
 
Comment: 
-------- 
9. (SBU) Vietnam's fast growing economy is increasing 
opportunities for those who work hard and want to make a better 
life.  The greatest opportunities may be available for those 
previously hampered by lack of political connection.  As 
business associations like the Young Entrepreneurs' Association 
grow and become more influential, business people's concerns and 
recommendations to regulators and policy makers are better 
represented.  Interestingly, both Tam and Thuy believe that 
Vietnam's media is as becoming an effective means for business 
people to raise concerns and gain influence.  Their stories are 
a testament to the ability of individuals to rise far and fast 
in Vietnam while retaining perspective on the country's 
shortcomings still to be overcome.  End comment. 
 
10. (U) This cable was coordinated with Embassy Hanoi. 
FAIRFAX