Washington Indochina Update January 2006

In early December Hoang Van Dung, Vice Chairman of the Vietnam Chamber of Commerce and Industry acknowledged that Vietnam did not expect to enter the World Trade Organization at the group's meeting in Hong Kong later in the month. Dung cited the complexities of the WTO's China experience, and pointed out that entrance rules have been much stiffer since Beijing's accession in 2001. In this context, the most challenging bilateral negotiations for Vietnam's WTO admission are those with the United States.

However, both sides are hopeful that talks can be concluded in early 2006 and Permanent Normal Trade Relations granted to Vietnam in the summer. In December, a seven-member delegation from the US Senate visited Vietnam, led by Senator Gordon Smith of Oregon. Meeting with Vietnamese President Tran Duc Luong and Deputy Prime Minister Nguyen Tan Dzung, the delegation expressed support for the country's accession to WTO. They also remarked on Vietnam's continued economic growth, which reached 8.45% in 2005

American Airlines, the largest airline carrier in the United States, has applied to the US Department of Transportation for approval to sign a cooperative agreement with Vietnam Air to sell seats on one another's international flights, and on selected domestic flights. This code-sharing arrangement will enable either airline to sell one ticket which enables a traveler to fly between the two countries over various routes. If approval is granted, the arrangement is expect to go into effect in early 2006.

On November 17 LPDR Prime Minister Bounnhang Vorachit and Thai Prime Minister Thaksin Shinawatra broke ground on the Nam Theun II dam, a $1.25 billion project that is expected to supply power to 17 Thai provinces. The dam - to be constructed by 4000 workers from 30 countries - is scheduled to be operational by 2009. Laos expects to reap revenues from the dam of approximately $150 million per year.

In December the Fund for Reconciliation and Development organized a landmark three-day meeting, "Laos-US Business Opportunities: Making NTR A Reality" to help deepen and accelerate bilateral trade in the start-up period following the 2004 decision to grant Normal Trade Relations to Laos. Held in Vientiane, the workshop was co-sponsored by the Lao Ministry of Commerce and the Lao Chamber of Commerce, with support from the Rockefeller Foundation and a variety of American and Asian business councils. The 200 participants included 70 Laotian-Americans from eight states. Over 100 Lao businesses were represented, as were US businesses based in Laos and Thailand.

Following the formal meeting, participants had the opportunity to visit several provinces and meet with local officials and businesses. Beyond the inherent value of the exchanges, the meeting also explored several avenues for follow-up. Apart from the obvious boost to trade created by NTR, a slate of large-scale infrastructure projects on mainland Southeast Asia that involve Laos will create opportunities for US business, in both equipment and expertise. Further information about the Vientiane workshop can be obtained from FRD Deputy Director Susan Hammond.

In November the State Department released the 7th annual Report on Religious Freedom, and announced the re-designation of eight countries as "Countries of Particular Concern," one of which was Vietnam. However, in the press briefing that released the report, both Secretary of State Condoleezza Rice and Ambassador-at-Large for International Religious Freedom John Hanford noted that religious freedom conditions in Vietnam have improved noticeably, and that continued progress could lead to the designation's removal. The report's Vietnam chapter echoed this view and noted that significant progress had been made, but that legal improvements relating to Vietnam's religious environment are in the early stages of implementation.

Representative Christopher Smith, Chair of the Global Human Rights Subcommittee of the House International Relations Committee visited Vietnam December 1-3, in part to meet with Vietnamese government and religious leaders to discuss human rights and religious freedom issues. Smith reported that he met with over 60 religious leaders of numerous faiths and noted improvements, such as the registration and re-opening of several churches, and an increase in faith-based charitable work. However, he remains critical of Vietnam's overall religious environment and supports its continued CPC designation. Moreover, in a statement released upon his return to Washington, Smith announced that he would seek to link Permanent Normal Trade Relations designation for Vietnam to human rights and religious freedom conditions when PNTR comes up for debate, presumably this summer.

The general impression in the US policy community of the strengthening of personal rights in Vietnam was reinforced by the Freedom House 2006 Survey, released on December 19. Although Freedom House maintained Vietnam's designation as a "Not Free" country, it indicated improvements in civil rights by moving the country from a "6" rating to a "5." Ratings for Laos remained at previous levels, also with a "Not Free" ranking; Laos received a "7" for political rights and "6" for civil rights. Cambodia too was ranked "Not Free," with a "6" for political rights and "5" for civil rights. Vietnam was one of the few Southeast Asian countries with an upward trend in the Freedom House rankings. The Philippines was downgraded from "Free" to "Partly Free" this year; in recent years, the FH ratings also noted backsliding in Thailand.

For the first time in two years the conference bill for the Foreign Operations Act, agreed upon by Congress in November, did not contain a prohibition against US funding for the Khmer Rouge Tribunal in Cambodia. Although obviously not an affirmative commitment of US funds, it appears to remove one obstacle for potential US support in Fiscal Year 2006, which ends on September 30. However, other measures are available to the legislature if opposition to funding the tribunal arises. Some observers think it likely that opposition would appear, especially after arrests of three Cambodian human rights activists for defamation in late December. Withholding US support for the tribunal has long been held as a sign of Congressional disapproval of Prime Minister Hun Sen.

In September the Bush administration released its annual list of countries designated as major transit points or major sources of illicit drug production. Vietnam was removed from the list, as was China. The administration's designation noted, in the oblique language that often characterizes rankings, that there was "insufficient evidence to refute claims from the Government of Vietnam of total poppy eradication." Laos remained on the list; the State Department's 2005 annual report on counter- narcotics strategy noted that drug control was gradually improving, but that corruption was severe. Cambodia is not on the list, and the 2005 report indicated that counter-narcotics efforts had increased.

In a separate and subsequent action, cooperation between the Vietnamese Ministry of Public Security and the US Drug Enforcement Agency produced the first major group of arrests in pursuit of an international drug cartel. On November 17, the arrest of over 300 international drug gang members involved the work of US agents and an undercover Vietnamese police officer. The probe focused on a drug network that stretched from North America to Vietnam

Prior to the arrival of Hurricane Katrina in late August, Louisiana was home to more than 25,000 Vietnamese-Americans, while southern Mississippi had approximately 7,000 Asian-American residents, most of them Vietnamese. An estimated 10,000 Vietnamese-Americans from New Orleans were relocated to Houston. The Government of Vietnam responded to the tragedy with financial contributions, as did the Vietnam Red Cross. Vietnamese-American organizations rallied to provide material support, interpretation services and a variety of other forms of assistance. In December, a concert of popular singers from Vietnam, sponsored by the Embassy of Vietnam in Washington, donated a portion of the proceedings to help both the victims of Hurricane Katrina and victims of the typhoon in Vietnam that struck in late 2005.

In November the first-ever formal meeting between Vietnamese government officials and representatives from Vietnamese-American philanthropic groups took place in northern California. Convened by the Pacific Links Foundation with support from the Ford, Gerbode and Asia Foundations, the conference brought together more than 130 Vietnamese-American groups that operate in Vietnam. In the course of the meeting, 24 NGO's formed the Vietnamese-American Non-Governmental Organization Network; as one activity, the Network agreed to identify one Vietnamese city to which all members would contribute programs next year. In response to criticism from hardline elements of the Vietnamese- American community who opposed meeting with Vietnamese government officials, conference organizers pointed out that such dialogues are the best means to encourage greater Vietnamese government transparency with the non-governmental community.

On September 30 lawyers for the Vietnam Association for the Victims of Agent Orange /Dioxin (VAVA) and other plaintiffs appealed the decision rendered on their class action suit against 30 US chemical companies. In March 2005, all counts of the lawsuit were dismissed in the United States District Court. In early September a team of US lawyers visited Vietnam to meet with the plaintiffs. According to attorney Jonathan Moore, the appeal alleges that the District Court misconstrued the facts of the case, by focusing on the use of Agent Orange as a herbicide. Moore said, "This herbicide was not simply a weed killer. It was a chemical laced with poisons that did not have to be there---and therefore we conclude that the chemical companies intentionally left that poison there." Oral arguments will take place in April at the Second Circuit Court of Appeals in New York.

[Photo by Don North of Agent Orange exposed father with his disabled son in A Luoi valley.]

In November a delegation of Vietnamese Agent Orange victims embarked upon a month-long speaking tour of the United States, to raise awareness of the continuing impact of Agent Orange, urge support for the class action lawsuit, and encourage financial contributions for victims. The group visited ten cities, including New York, Washington and San Francisco. The delegation included Professor Nguyen Trang Nhan, Vice President of the Vietnam Association for Victims of Agent Orange/Dioxin (and former President of the Vietnam Red Cross); two Agent Orange victims: Ho Sy Hai from northern Thai Binh province and Dang Thi Hong Nhut from Ho Chi Minh City; and Vu Binh of the Vietnam-USA Society. The tour was facilitated by the Vietnam Agent Orange Relief and Responsibility Campaign. During the Washington leg, the group were hosted at a policy forum co-sponsored by FRD and the Asian Studies Program of Georgetown University.