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Viewing cable 08HANOI1270, VIETNAM'S PRIVATE SECTOR PUSHES PM TO MAKE IMPORT-EXPORT

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Reference ID Created Released Classification Origin
08HANOI1270 2008-11-18 04:02 2011-08-25 00:00 UNCLASSIFIED Embassy Hanoi
VZCZCXRO3223
PP RUEHCHI RUEHDT RUEHFK RUEHHM RUEHKSO RUEHNAG RUEHNH RUEHPB
DE RUEHHI #1270 3230402
ZNR UUUUU ZZH
P 180402Z NOV 08
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC PRIORITY 8738
INFO RUEHHM/AMCONSUL HO CHI MINH 5303
RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
UNCLAS HANOI 001270 
 
SIPDIS 
 
STATE FOR EAP/MLS MBROWN 
SINGAPORE FOR TREASURY 
TREASURY FOR SCHUN 
USTR FOR DBISBEE 
 
E.O. 12958: N/A 
TAGS: ECON ENRG EAGR PINR VM
SUBJECT:  VIETNAM'S PRIVATE SECTOR PUSHES PM TO MAKE IMPORT-EXPORT 
PROCEDURES MORE EFFICIENT 
 
REF: HCMC 921 (East-West Corridor) 
 
1. (U) Summary:  Leaders and representatives from Vietnam's private 
sector urged the Prime Minister at a November 7 regional summit to 
reduce import-export red tape, or lose competitiveness to other 
regional players.  Specific recommendations included implementation 
of single-window customs and e-clearances to speed up import-export 
processing.  Others suggestions included easing immigration 
procedures for frequent travelers, such as business people and cargo 
truck drivers, an "Open Skies" aviation agreement, and improving 
infrastructure.  End Summary. 
 
KEY DEMANDS FROM VIETNAM'S BUSINESSES 
------------------------------------ 
 
2. (U) In their address to a November 7 regional summit between 
Vietnam, Laos, Burma, Cambodia and Thailand, called the 
Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) 
Business Forum, and before an audience that included Prime Minister 
Dung, executives from the Vietnam Chamber of Commerce and Industry 
(VCCI) urged that Vietnam speed up customs processing and flow of 
imports and exports.  Complaining that "in Singapore a container can 
clear customs in ten minutes, but in Vietnam it takes seven days," 
the VCCI representatives pointed to e-customs and single window 
initiatives as ways to increase competitive advantage. 
 
3. (U) The private sector representatives also urged PM Dung and 
prime ministers from other ACMEC countries in attendance to expedite 
regional customs integration to speed regional trade flows.  Customs 
information could be passed digitally from one country to the other, 
giving Customs officials and vendors an accurate estimated time of 
arrival and list of contents.  The private sector stated that an 
e-logistics system would allow Vietnam and its regional partners to 
know the contents of containers entering and exiting their countries 
before the container leaves the country of origin. 
 
4. (U) Other private sector suggestions included an "Open Skies" 
aviation agreement between ACMECS members and mutual investment in 
regional infrastructure projects.  Specific infrastructure 
recommendations called for continuation of the East-West corridor 
project (REF), completion of a highway between Thailand and 
Cambodia, and the establishment of more border crossing points with 
joint customs inspection. 
 
5. (U) The Vietnamese private sector representatives also talked 
about the need for new visa and country clearance procedures.  The 
representatives urged the PM and the other four ACMEC leaders to 
approve the use of a business travel card for inter-ACMEC travel, 
single visas for third country tourists to visit all five ACMEC 
countries, and duty free imports for all capital goods used for 
development and infrastructure projects. 
 
6. (U) PM Dung did not address any of the private sector's specific 
proposals when Dung opened the afternoon's discussions and closed 
them at the end with remarks.  PM Dung focused his remarks on the 
current state of the Vietnamese economy.  The PM stated that the 
Vietnamese economy grew seven to eight percent a year for the last 
several years and 8.5% in 2007.  PM Dung reported that Vietnam 
currently has over 11,000 projects from 80 different countries with 
commitments of over $57 billion in the first nine months of the 
year.  He also stated that Vietnam has over 196 projects with other 
ACMECs member nations totaling over $1.5 billion.  The PM proclaimed 
that Vietnam would focus on macro-economic stability, sustaining 
growth, and leveling the playing field for foreign investment. 
 
COMMENT 
-------- 
 
7. (SBU) Although many in the audience were taken aback at the 
directness of the Vietnamese private sector's remarks, numerous 
members of the audience applauded their suggestions.  Most people 
laughed when one participant shared the Vietnamese example of a 
container taking seven days to clear customs and clapped when he 
called for single inspection.  While the ACMEC leaders indicated 
agreement in principle to some of the recommendations, there is no 
concrete plan at this point for streamlining export-import 
procedures or simplifying burdensome customs red tape. 
 
MICHALAK