Thayer Consultancy

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Background Briefing: Vietnam: Conflict of Interest Private Entrepreneurs in the National Assembly? Carlyle A. Thayer April 17, 2012

[clientnamedeleted] Are youawareof latestdevelopmentsconcerninglawmakerDangThiHoangYen?: http://www.thanhniennews.com/index/pages/20120409dangthihoangyen divorceverdictannulled.aspx; http://www.thanhniennews.com/index/pages/20111127vietnamlawmaker clearedoftreasonaccusations.aspx; http://www.thanhniennews.com/index/pages/20120412vietnamwealthy assemblywomanwithdrawsdivorcelawsuit.aspx ThereissomepublicsentimentinVietnamthatlawmakerslikeherwillstallprogress of the National Assembly. Given that 38 businessmen have been elected to the National Assembly, accounting for 7.6 percent of the 500 deputies, are you sympathetic to the concern that their vested interests will trump the national interests?Therehavebeenseveralothercasesinwhichthevestedinterestsofthe lawmakers seemed to raise public eyebrows on their performance at the National Assembly. Hereisanotherexample: http://www.thanhniennews.com/index/pages/20110820152918.aspx Business people serve in parliaments all over the world. The issue is not whether business people are allowed to serve in parliament, but the extent to which all members of parliament are transparent and accountable. In other countries, members of parliament, judges, civil servants, and politicians must report their business interests to the public in an open and transparent manner. If there is a conflict of interest, they must surrender the interest in question (for example, sell their shares in a company that does business with the government, or remove themselves from decisions relating to that company).The main point is that we cannotremoveallprivateinterestsfrompubliclife,butwemustcreateinstitutions tomaketheseintereststransparent,andtoholdpublicofficialsaccountablefortheir actions.Thisappliestobusinesspeopleandeveryoneelse. IsthatsomethingVietnamshouldfollowandisiteasyforittodoso?

2 ANSWER:ThequestionofelectingindividualsfromtheprivatesectorintoVietnam's National Assemblyistobeapplauded.Vietnam needstheiradvice asitproactively integrates into the global economy. There is always a possibility of a conflict of interest between an individual deputy's private commercial interests and the national interest especially when the private interest is subject of pending legislation. There are many ways advanced democracies deal with this problem, includingtransparency.Anothermeansistheblindtrustwherebysharesheldbythe deputyaremanagedindependentlybyathirdparty. Westernparliamentarydemocracieshavenotalwaysbeensuccessfulinpreventing individual deputies for using their elected position for private gain. In many parliamentary democracies a newly elected prime minister issues his own ethical standardsofbehaviorthathe/sheexpectsallmembersofhisgovernmenttofollow. Theseusuallyexceedtherequirementofthelaw. IfwetakethecaseofdeputyMrs.DangThiHoangYentwopointsshouldbemade. First, it is impossible for someone like her to rise to become the richest or second richestwomenbusinesspersoninVietnamwithoutsteppingonsomeone'stoes.She hasbeentheobjectofcontinuedsnipinginthepressonanumberofissuesranging fromgivingstatesecretstoforeignbusinessinterests,falsifyingherbiographywhen sheappliedasacandidatetotheNationalAssemblyanddiscrepanciesinherdivorce case.Second,Vietnamhasalongwaytogobeforeitbecomesacountrygovernedby law. In 1992, Vietnam began virtually at year zero and has made major strides in passing legislation. The point here is that probably any businessperson could be foundguiltyofaninfractionofthelawbecausethesystemofcontrolisstillweak.If wecombinethesetwopointsinthecaseofMrs.DangThiHoangYensheis"damned ifshedoes,anddamnedifshedoesn't"asanEnglishexpressiongoes. InordertotreatMrs.DangThiHoangYenfairlyeachandeveryallegationneedsto be independently investigated by an appropriate body. Several allegations have provedunfounded.Herdivorceproceedingarestillunderconsideration. QUESTION: Some have argued that there was no need to make a fuss over the falsification of the record of lawmaker Dang Thi Hoang Yen [in her application to becomeacandidateforelectiontotheNationalAssembly],sayingitwasjustminor. Butotherscounteredthatitcannotbeminor,giventheoneofthemostimportant criterionsetoutforanaspiringlawmakeristhathe/shehonesttotheirconstituents. Fallingshortofthis,theynolongerdeservetorepresentthepeople.Thecriticsalso saidthattherecordofalegislatorisextremelyimportantandwehavetoconsider how detrimental [the falsification of her application] is to the country and the constituents.Whatisyourreactiontothis? ANSWER:Vietnamisreputedtohaveaverystringentprocessofselectingcandidates forelectiontotheNationalAssembly.Theyhavetopassthrough"fivegates"(from memory). They must win a majority vote where they reside and where they work. HowwasitpossibleforDangThiHoangYentoomithercurrentmarriagetoJimmy Tranandnothavethisnoticed?Second,isthisomissionsufficienttodisqualifyheras a candidate? This question must be reviewed by a higher authority and include a personalexplanationfromher.Arethereprecedentstoguidethisdecision?Inother wordswereanyothercandidatesdisqualifiedonsimilargrounds?

3 Finally,DangThiHoangYenappearstobeanexceptionalperson.Itishardformeto believe she is not being victimized by parties who are jealous of her wealth and success.Vietnam'spressissubjecttocontrol,andonlysomeoneinauthoritycould approvethesteamofarticlescriticizingher.Thisappearstobeapoliticalcampaign.