Cablegate: Vietnam: Dip Note From the Ministry of Planning

This record is a partial extract of the original cable. The full text of the original cable is not available.

131017Z Jun 05

ACTION EAP-00

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/001W
------------------012A01 131035Z /38
FM AMEMBASSY HANOI
TO SECSTATE WASHDC 8020
INFO AMCONSUL HO CHI MINH CITY
USDOC WASHDC

UNCLAS HANOI 001404

SIPDIS

DEPARTMENT FOR EAP/BCLTV ELLEN DUNLAP
DEPARTMENT PASS USTR FOR ELENA BRYAN
USDOC FOR 4430/MAC/ASIA/OPB/VLC/HPPHO

E.O. 12958: N/A
TAGS: ECON ETRD VM
SUBJECT: VIETNAM: DIP NOTE FROM THE MINISTRY OF PLANNING
AND INVESTMENT

1. (U) On June 8, Post received a dip note from the Ministry
of Planning and Investment Vice Minister Nguyen Bich Dat of
the Socialist Republic of Vietnam (SRV). The dip note
relates to the implementation of the U.S. - Vietnam
Bilateral Trade Agreement (BTA). It was sent in preparation
for the BTA Joint Committee Meeting scheduled for June 17 in
Washington DC. An unofficial translation of the dipnote
follows:

2. (U) Begin note:

Ministry of Planning and Investment

No 3831/BKH-PC
Hanoi 8 June 2005

The Ministry of Planning and Investment (MPI) of the
Socialist Republic of Vietnam (SRV) presents its compliment
to the Embassy of the United States of America in Vietnam
and has the honor to inform the following contents related
to the implementation of the Trade Agreement between the SRV
and the United States (hereinafter referred to as "the
Agreement"):

(1) Vietnam has removed the mandatory requirement for
exporting at least 80 percent for industrial products
specified in the list attached to Decision 718/BKH-QD dated
7 December 2001 of the Minister of Planning and Investment.

(2) Taking into account the provisions of Chapter IV on
Development of Investment Relations and Annex H of the
Agreement, Vietnam has reflected the following commitments
in the draft common Investment Law and the unified
Enterprise Law, which are expected to be adopted in late
2005:

- Remove the requirement of minimum contribution of 30
percent of the legal capital for U.S. investors in a joint
venture, and the requirement of minimum legal capital of 30
percent of the investment capital of a U.S.-owned enterprise
(Annex H, Point 4.1.b.(i), (ii));

- Allow U.S. investors to establish joint stock companies with
foreign investment capital (Annex H, Point 4.1.b.(iv));

- Remove the requirement that the General Director or First
Deputy General Director of joint venture enterprises must be
a Vietnamese citizen (Annex H, Point 4.2.a);

- Remove the requirement to apply the principle of consensus
to a number of the most important matters relating to the
organization and operation of a joint venture enterprise
(Annex H, Point 4.2.b);

While the above-mentioned laws have not taken effect,
Vietnam shall implement its commitments in accordance with
specific requirements of U.S. investors.

(3) Following the principle presented in item 2, Vietnam
guarantees that, for projects invested in the service
sector, the licensing shall be implemented exactly according
to the schedule and conditions specified in Annex G and
Annex H of the Agreement.

The Ministry of Planning and Investment avails itself of
this opportunity to renew to the Embassy of the United
States of America the assurance of its highest
consideration.

For the Minister of Planning and Investment
Vice Minister

(signed)

Nguyen Bich Dat

End note.

MARINE

NNNN

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