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Viewing cable 08HANOI145, VIETNAM SHRUGS OFF CUBAN AND VENEZUELAN ECONOMIC TIES

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Reference ID Created Released Classification Origin
08HANOI145 2008-02-05 08:02 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Hanoi
VZCZCXRO9551
PP RUEHCHI RUEHFK RUEHHM RUEHKSO RUEHNAG RUEHPB
DE RUEHHI #0145/01 0360802
ZNR UUUUU ZZH
P 050802Z FEB 08
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC PRIORITY 7142
INFO RUEHHM/AMCONSUL HO CHI MINH 4269
RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION
RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
UNCLAS SECTION 01 OF 02 HANOI 000145 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD ECON PREL VM
SUBJECT:  VIETNAM SHRUGS OFF CUBAN AND VENEZUELAN ECONOMIC TIES 
 
 
HANOI 00000145  001.3 OF 002 
 
 
1. (U) This cable is sensitive but unclassified.  For official use 
only, not for dissemination outside USG channels or posting on the 
internet. 
 
2. (SBU) Summary:  Cuba does not appear to be in a rush to learn 
about Vietnam's successful free market experiments, according to 
officials from Vietnam's Foreign Ministry Latin America division. 
The Cubans have not made approaches to Vietnam on economic reform, 
they added.  The senior diplomats did not see much room to grow or 
much in common with Venezuela, either.  They are disappointed by the 
low trade numbers throughout the region, especially Mexico's and 
Brazil's, but are hopeful for free trade negotiations with Chile. 
End summary. 
 
3. (SBU) Econoff met with Ministry of Foreign Affairs (MOFA) 
Americas Department Deputy Director for Latin America, Le Thanh 
Tung, and Chief of the Latin American Division, Do Doinh Truong, on 
an informal introductory meeting on January 25.  Truong and Tung are 
the Government of Vietnam's (GVN) highest-ranking Latin American 
specialists. 
 
TRADE GROWING BUT VIETNAM RUNS DEFICITS 
--------------------------------------- 
 
4. (U) Two-way trade with Vietnam's largest Latin American trading 
partners (Argentina, Brazil, Chile, Colombia, Mexico, Cuba, Panama 
and Peru) was one billion dollars in 2005, according to the GVN's 
most recent numbers, of which $539.9 million were Vietnamese exports 
and $464.3 million imports from these countries, representing 55% 
growth in exports and 47% in imports from the previous year. 
Vietnam had trade deficits with Brazil ($43. million), Chile ($46.6 
million), Argentina ($253 million) and Peru ($23.8 million). 
 
CUBA: IF THEY WANT TO LEARN, THE DOORS ARE OPEN 
--------------------------------------------- -- 
 
5.  (SBU) The MOFA officials dismissed reports that Cuba has reached 
out to Vietnam for advice on economic reform, in particular making 
the transition from a command to a market economy.  "No, they have 
not approached us," Tung said, shrugging, "Vietnam is a market 
economy and they are not, there is not much that can be done about 
that."  He added that the "doors are always open" to Cuba's 
leadership, "if they want to learn from us," but that Vietnam would 
not offer unsolicited advice.  The diplomats said that, these days, 
most of the Cuba - Vietnam relations are carried out between each 
other's Communist parties, and that they expected this relationship 
to remain close but largely symbolic. 
 
6. (U) Trade between Cuba and Vietnam heavily favors Vietnam, and 
Cuban exports to Vietnam have been in steady decline for the last 
decade.  In 2004, the most recent numbers released by the GVN, 
Vietnam exports amounted to $10.5 million, while imports from Cuba 
totaled $137,000 (down from $689,000 in 2001).  During an official 
visit by Cuba's Minister of Light Industry in October 2007, the GVN 
announced that Vietnam would invest in a light bulb plant in Cuba, 
although few details were provided and the plan has not resurfaced 
since. 
 
VENEZUELA: DIFFERENT POLITICAL SYSTEMS 
-------------------------------------- 
 
7. (SBU) Tung and Truong also minimized the potential for closer 
relations with Venezuela.  "They have a political program that is 
different to ours," the former said.  He explained that economic 
relations between the two would not amount to more that "a few joint 
agreements for [oil] exploration."  Vietnam exports to Venezuela 
amounted to $4.7 million while imports from Venezuela were $727,000, 
the most recent figures available. 
 
MEXICO AND BRAZIL: DISAPPOINTING NUMBERS 
---------------------------------------- 
 
8. (SBU) The diplomats also said that the balance of trade with 
Mexico and Brazil exemplified the low intensity of Vietnam's 
commercial relations with Latin America.  Mexico, Truong said, was 
overly focused on trade north of the border and did not seem too 
interested in furthering ties with Vietnam.  Mexico has a trade 
deficit with Vietnam, which stood at $96 million for the first 
quarter of 2006.  Tung saw great potential in two-way trade with 
Brazil ($208.4 million in 2006), but complained that Vietnam had not 
been able to penetrate their markets effectively.  In 2006, Vietnam 
had an $84.7 million trade deficit with Brazil, mostly caused by 
imports of pulp, plastics and cotton, while its exports to Brazil 
were mostly in shoes. 
 
HIGH HOPES ON CHILE 
------------------- 
 
9. (SBU) The MOFA officials had high hopes on Chile, especially for 
negotiations for a free trade agreement that were officially 
 
HANOI 00000145  002.3 OF 002 
 
 
announced in late January.  Prime Minister said at the announcement 
that he hoped Chile would be the "gateway for Vietnamese goods to 
enter the Latin American market."  Trade volume between Vietnam and 
Chile has increased in recent years, reaching over $200 million in 
2007. 
 
NICARAGUA SILENT, PERU SUPPORTIVE 
--------------------------------- 
 
10. (SBU) Rounding up the discussion, Tung said that his office had 
not had much contact with Nicaragua, since the Sandinistas won back 
the Presidency in 2006.  In Peru, he noted with interest President 
Alan Garcia's newfound faith in free trade and open markets, but did 
not draw comparisons with Vietnam's own conversion.  He said that 
Vietnam was very grateful to Garcia for having recognized Vietnam as 
a "market economy" in 2006. 
 
MICHALAK 
 
 
 
3