2004 INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT (INCSR) - VIETNAM

UNCLAS SECTION 01 OF 32 HANOI 003356



SIPDIS



SENSITIVE



STATE FOR INL/AAE, EAP/BCLTV, L/LEI

JUSTICE FOR OIA, AFMLS, NDDS

TREASURY FOR FINCEN



E.O. 12958: N/A

TAGS: SNAR, PREL, PGOV, ASEC, EFIN, KCRM, SOCI, VM, CNARC, HIV/AIDS

SUBJECT: 2004 INTERNATIONAL NARCOTICS CONTROL STRATEGY

REPORT (INCSR) - VIETNAM



REFS: A. HANOI 663; B. HANOI 1584; C. HANOI 1587; D. HANOI

2284



I. SUMMARY



1. (SBU) The Government of Vietnam (GVN) continued to make

progress in its counternarcotics efforts during 2004.

Specific actions included: sustained efforts of

counternarcotics law enforcement authorities to pursue drug

traffickers; increased attention to interagency

coordination; continued cooperation with the United Nations

Office on Drugs and Crime (UNODC); increased attention to

both drug treatment and harm reduction and new programs to

support recovered drug addicts and reduce the relapse rate;

an increased tempo of public awareness activities; and

additional bilateral cooperation on HIV/AIDS, an issue

closely related to intravenous drug use in Vietnam.

Additionally, in March, the counternarcotics Letter of

Agreement (LOA) between the GVN and the USG entered into

force, and the two sides initiated and completed the first

of the planned LOA projects. However, real operational

cooperation with DEA's Hanoi Country Office (HCO) was

minimal. Bilateral interaction is increasing as more LOA

projects come online, but the GVN's operational cooperation

with U.S. law enforcement, the DEA Hanoi Country Office

(HCO) in particular, remains minimal. Drug use in Vietnam,

including both heroin and amphetamine type stimulants (ATS)

continues to be a problem. Money-laundering issues will be

addressed septel.



2. (U) Vietnam is a party to the 1988 UN Drug Convention,

the 1961 UN Single Convention as amended by the 1972

Protocol and the 1971 UN Convention on Psychotropic

Substances. End Summary.



II. STATUS OF COUNTRY



3. (SBU) By USG definition, Vietnam meets the legislative

criteria as a "major drug-producing" country (at least 1,000

hectares of poppy cultivation). However, GVN, UNODC and law

enforcement officials do not consider cultivation a major

problem. The official USG estimate that 2,300 hectares of

poppy are cultivated in the northern and western provinces

of Lai Chau, Son La and Nghe An is based on a year 2000 USG

imagery-based survey. The USG has not updated the 2000

survey and we cannot independently verify whether the year

2000 figure is still accurate. The GVN claims a much lower

figure (32.5 hectares). Due to the small amount of poppy

cultivation, since year 2000 official UNODC statistical

tables for illicit cultivation ceased to list Vietnam

separately; rather, the table considers Vietnam within the

category of "other Asian countries." Cultivation in Vietnam

probably accounts for about one percent of cultivation in

Southeast Asia, according to a law enforcement estimate; DEA

has no evidence of any Vietnamese-produced narcotics

reaching the United States. There appear to be small

amounts of cannabis grown in remote regions of southern

Vietnam. Anecdotal evidence also suggests that there may be

larger commercial crops of hemp in remote regions in the

south.



4. (SBU) Vietnam has not been considered a source or

transit country for precursors. According to DEA, Vietnam

is exporting relatively large quantities of sassafras oil, a

substance which has legitimate uses (for insecticides, soap

and perfume) but which can also be used as a precursor for

the hallucinogen methylenedioxy-methamphetamine (MDMA). DEA

has in the past received reports that Vietnam-sourced

sassafras oil has been connected to European MDMA

production. Overall, the GVN is concerned in general about

precursors and has begun to take action. On May 29, 2003,

the GVN issued Decree 58, which deals with the control of,

import, export and transit of drug substances, precursors,

addictive drugs, and psychotropic substances. According to

the decree, only businesses authorized by the Ministries of

Health (MOH),Industry and Public Security (MPS) can

import/export drug substances, precursors, addictive drugs

and psychotropic substances for specific legal purposes.

The GVN has tasked MPS to coordinate with other concerned

ministries and agencies to manage and control the

import/export of these narcotic substances. In an effort to

support Vietnam's efforts to enhance its precursor control

capacity, the GVN and UNODC signed on December 1, 2003, a

project document titled "Interdiction and Seizure Capacity

Building with Special Emphasis on ATS and Precursors."

Implementation of that project began in 2004 and is

continuing successfully.



5. (SBU) Heroin from the Golden Triangle and China transits

Vietnam en route to Taiwan, Hong Kong and, increasingly,

Australia. While UNODC views China more as a source of

heroin and, increasingly, of tranquilizers used to cut

heroin for domestic use in Vietnam, China is probably also a

destination for some Golden Triangle heroin transiting

Vietnam. DEA has not yet tied any drug seizures in the

United States directly to Vietnam, but reports that some may

be entering the United States via Canada. Concerning

Australia, there were several courier seizures of heroin

destined for Australia, demonstrating that Australia may be

the preferred destination for heroin transiting Vietnam.

(Note: See Drug Flow/Transit section below for more details.

End note.)



6. (SBU) During 2004, large amounts of cannabis, heroin and

synthetic drugs entered Vietnam from Cambodia. Regarding

ATS, GVN authorities are particularly concerned about rising

use among urban youth and, during 2004, increased the tempo

of enforcement and awareness programs that they hope will

avoid a youth epidemic situation similar to what has

occurred in Thailand. According to the Standing Office of

Drug Control (SODC),ATS and ecstasy (MDMA) are still

popular among the youth addict population, in addition to

the ever-rising demand for heroin. (Note: According to

DEA, these drugs may be methamphetamines rather than MDMA.

End Note.)



III. COUNTRY ACTIONS AGAINST DRUGS IN 2004



Policy initiatives

--------------



7. (U) The structure of the GVN's counternarcotics efforts

is built around the National Committee on AIDS, Drugs and

Prostitution Control (NCADP). Deputy Prime Minister Pham

Gia Khiem chairs NCADP, which includes a broad spectrum of

GVN ministries and mass organizations. Key officials

include four deputy chairpersons: Minister of Public

Security Le Hong Anh; Minister of Labor, War Invalids and

Social Affairs (MOLISA) Nguyen Thi Hang; Minister of Health

Tran Thi Trung Chien; and Ha Thi Lien, Standing Member of

the Presidium of the Fatherland Front. In addition, MPS has

a specialized unit to combat and suppress drug crimes.

During the year, MPS established a medico-biology testing

center in the Institute for Forensics Sciences in Hanoi.



8. (SBU) According to UNODC, during 2004 the GVN continued

to focus on the drug issue, which included an increase in

attention from the state-controlled media. SODC reported

that in accordance with GVN strategic plans, GVN officials,

without foreign donor support, initiated 17 training courses

for 400 counternarcotics-related personnel. During the

year, the GVN organized study missions overseas and sent 26

drug delegations to international seminars and conferences.

In addition, Vietnam hosted 32 international delegations.



9. (U) General Le The Tiem, Vice Minister of Public

Security, said at a review conference in March that, in

addition to national programs and projects, provinces and

cities have implemented their own programs. Some examples

are Tuyen Quang with its effective "three stages" treatment

model, Nghe An with the goal of "demand reduction," Ho Chi

Minh City with its "three reductions" program, Hanoi with

its "Enter each lane and knock each door for drug addicts"

program, Danang with its "five nos" program and Yen Bai, Son

La, Lao Cai and Ha Giang with their "three nos" programs.



10. (U) Increasing efforts to support drug awareness and

prevention, demand reduction, and treatment of drug users

and addicts are reflected in the following:



-- The GVN views drug awareness and prevention as a

significant objective in its fight against drugs as well as

an integral part of its effort to comply fully with the 1988

UN Drug Convention. The GVN has continued to rely heavily

on anti-drug propaganda, culminating in the annual drug

awareness week in June. This year, youth and mass

organizations engaged in various activities to spread the

anti-drug message. These included art contests and

performances, speeches, street parades, displays of

posters/slogans and the signing of "drug free" commitments

and meetings/gatherings. Recently, state-controlled

television (VTV) and radio (the Voice of Vietnam) have begun

regular programs called "SOS Drugs" and have been airing a

series of anti-heroin spots.



-- Authorities also strengthened implementation of the

community effort called "Search in each lane and knock on

each door drug addicts" by volunteers in Hanoi. In a

December 2003 event, Vietnam Radio Corporation and SODC

organized a ceremony to award prizes to the winners of the

"anti-drug soap opera writing competition" for transmission

on the Voice of Vietnam's radio program. During the year,

SODC has also helped with another contest titled "The Entire

Nation Unites to Prevent and Combat Drug Crimes." In June

2001, Prime Minister Khai declared June 26 to be Drug

Awareness Day, and June to be Anti-drug Month.



-- On the occasion of 2004 Drug Awareness Day, various

activities took place across the country:

In Hanoi, Deputy Prime Minister Pham Gia Khiem, along with

the Minister of Health, the Vice Minister of Public

Security, the Vice Minister of Education and Training and

representatives from mass organizations, civil associations

and the UNODC Country Office attended a large rally on June

26. Around 5,000 students from 29 universities and colleges

in Hanoi, with the message "say no to drugs," attended the

meeting. Deputy Prime Minister Khiem stressed that the

Government would "mobilize the entire political system and

nation to prevent and combat the scourge of drugs."

Meanwhile, in Thai Nguyen Province, about 1,000 government

workers took part in a street parade. Mr. Do Duc Ngo, Vice

President of the General Labor Confederation, Major General

Pham Van Duc, Deputy Director General of the General

Department of Police and Mr. Nguyen Thanh Kinh, Vice

Chairman of the Thai Nguyen Party Committee and Chairman of

the Thai Nguyen Provincial People's Council, attended the

event. The leaders called on authorities at all levels to

pay more attention to the drug fight among government

workers. On this occasion, the leaders sent the

participants the message: "Do not discriminate against

addicts, be with them and educate and help them to stabilize

their lives, quit drugs and return to normal life."

Simultaneously, in Ha Tay Province, more than 1,000 youth

union members gathered at a large awareness meeting in Son

Tay town. During the day, all union members signed anti-

drug commitments and distributed leaflets. The province now

has 86 anti-drug clubs, 400 anti-criminal mailboxes (for

residents to report crimes such as drug use) and 20 "friends

help friends" clubs. In Danang, the city youth union held a

festival with the message: "Danang youth together push back

drug crimes and social evils." According to Mr. Nguyen

Thanh Quang, president of Danang youth union, 800 members

attended the event. Similar events are carried out in other

provinces and cities each year during "Anti-drug Month."



-- Working together, two famous photographers opened an

exhibition of 500 photos featuring drug addiction and

treatment. Separately, the Voice of Vietnam launched a

competition for short stories about drug abuse. To

highlight the "humanity" of drug users, VTV transmitted an

exclusive program of addicts' music and dance festivals,

sports and games in several drug treatment centers. To

facilitate the nation's propaganda campaign, the Youth Union

dispatched volunteers on a five-day mission to different

drug treatment centers to disseminate anti-drug information

and support recovering drug addicts. Also, directors from

education and training departments in Hanoi, neighboring

provinces and five universities signed a resolution on drug

abuse prevention in all educational institutions.

Additionally, all of Danang University's youth union members

and students signed non-drug use commitments.



-- This year, according to Bui Xuan Hieu, Director of the

International Cooperation and Project Management Division in

the Standing Office for Drug Control (SODC) of the National

Committee for HIV/AIDS, Drugs Control and Social Evils

Prevention, SODC coordinated various counternarcotics

activities throughout the country. Hieu claimed that Anti-

drug Month draws the attention of the public and community

leaders and "brings about big law enforcement results."



Ho Chi Minh City:



According to the "People's Police" newspaper, on June 3 Ho

Chi Minh City counternarcotics police arrested twenty

members of a drug ring. The police seized 20.3 kilograms of

heroin, USD 57,770, 14 motorbikes, 16 mobile phones, one car

and six houses. The ring trafficked heroin from Nghe An

Province to Ho Chi Minh City for distribution to "sales

agents." According to Colonel Le Thanh Liem, Ho Chi Minh

City Police Department, this is a "big ring" that has

trafficked heroin from border provinces to the city for

consumption. The bust had such an effect on supply that the

retail price doubled, noted Colonel Liem.



In another case, on June 16 Ho Chi Minh City Supreme

People's Court handed down nine death sentences, one life

sentence and other lengthy sentences to drug organization

head Ngo Duc Minh and his accomplices. The defendants were

convicted of trafficking about 36 kilograms of heroin, 50

kilograms of cannabis, 6,000 Ecstasy tablets and 15

kilograms of synthetic drugs between 1993 and 2002.

According to press reports, this was a transnational case

connecting Vietnam, Cambodia, Japan and the Netherlands.



Additionally, the Ho Chi Minh City People's Court tried an

ATS case in early May. Chung Quoc Minh was sentenced to

death, and 20 other accomplices also stood trial. According

to police investigation records, between 1999 and 2001,

Chung's organization trafficked 14,200 ATS tablets. The

Labor newspaper reported that this was Vietnam's largest

ever ATS case.



Tay Ninh:



During a "first instance" trial (i.e., subject to appeal),

Tay Ninh's People's Court handed down six death and three

life sentences on June 18 in a transnational drug case,

according to press reports. The offenders were convicted of

trafficking drugs across the border with Cambodia. The

initial seizure on May 28 was 3.3 kilograms of heroin.

Between June 2001 and May 2004, the syndicate trafficked

103.5 kilograms of heroin and 606 ecstasy tablets.

According to press reports, this was the biggest drug case

in the province. Tay Ninh is considered one of Vietnam's

drug "hotspots" due to its location on the border with

Cambodia and the relative ease with which goods, including

narcotics, are smuggled there.



Quang Binh



Police said that they arrested eight people for trafficking

79.6 kilograms of heroin into the country from Laos. The

seizure was made on June 26 after the police stopped two

trucks at Cha Lo international border gate in Quang Binh

Province, said a local counternarcotics policeman. Two

drivers, Hoang Van Tinh and Nguyen Van Duyet, and six

passengers were arrested. The drugs were hidden among

smuggled automobile spare parts, fabric, toys and scrap

metal. Police also seized a large amount of cash in US

dollars, Vietnamese dong, Lao kip and Thai baht, in addition

to a loaded handgun. This was the biggest seizure ever in

Quang Binh, according to SODC.



Nghe An



Colonel Vo Trong Thanh, Deputy Director of Nghe An Police

Department, revealed on June 12 that the provincial

counternarcotics police arrested 11 drug traffickers,

including four foreigners, and seized seven kilograms of

heroin in a transnational network headquartered in Laos.

According to Colonel Thanh, the offenders had trafficked

approximately 88 kilograms before they were caught. The

"People's Police" Newspaper ranks this transnational drug

case as the most important in Vietnam because of the

cumulative volume of trafficked narcotics. In the first six

months of 2004, Nghe An provincial counternarcotics police

detected 290 cases with 349 offenders and seized 23.892

kilograms of heroin, 12.556 kilograms of opium and about

5,000 ATS tablets.



Son La



According to Vietnam News Agency (VNA),on June 7 the

provincial police cracked a major drug case in the

Northwestern province of Son La. This is the biggest haul

in the province since early this year. Police arrested two

offenders and seized about 3.1 kilograms of heroin in Tan

Phong commune, Phu Yen district. The two traffickers are

Tran Van Kien, 29, and Tran Quang Thang, 35, from Hanoi.

Provincial police and the Ministry of Public Security are

further investigating the case. Earlier, provincial police

seized two kilograms of heroin in two separate smaller

cases. In the first two months of 2004, Son La provincial

police arrested 215 drug traffickers in 85 cases, seized 3.7

kilograms of heroin, 6.6 kilograms of opium and 1,677 ATS

tablets and confiscated other equipment. According to SODC,

Son La is another of Vietnam's hotspots. Drugs come in

through the border with Laos and travel down Highway 6 (AKA

"the Heroin Highway") to Hanoi and other destinations for

consumption.



Haiphong



Between July 12 and 20, the Haiphong People's Court tried

the city's biggest ever drug case, according to the

"People's Police" newspaper. The newspaper reported that 20

out of 23 suspects standing trial could be sentenced to

death. The first member of the gang was arrested on April

30, 2003, in Le Chan district, Haiphong City. Before their

arrest, the suspects had trafficked about 30 kilograms of

heroin, newspaper reports said.



Phu Tho



Recently, Phu Tho police, in coordination with their

counterparts in Son La province, uncovered a huge drug case.

According to press reports, Phu Tho police arrested Kim Van

Phuong in November 2003 on his way from Son La to Hanoi and

seized 1.3 kilograms of heroin and 1.3 kilograms of opium.

Using information from this first suspect, in July 2004 the

police made 23 more arrests. The suspects confessed to

trafficking about 30 kilograms of heroin through seven

provinces and cities, press reports said. In addition, the

police confiscated seven cars, USD 45,000 and nine mobile

phones. Currently, Phu Tho police are coordinating with the

counternarcotics police of the Ministry of Public Security

to expand the case.



11. (U) In December 2000, the National Assembly passed a

national law on drug suppression and prevention. The law

came into effect June 1, 2001. As of March 2004, there were

11 implementing decrees. The Ministry of Justice (MOJ) was

tasked with working with the MPS and other relevant agencies

to review existing counternarcotics legal documents and make

appropriate amendments to facilitate implementation of the

new law. The UNODC is assisting the GVN to develop these

implementing regulations for the new law, which will allow

law enforcement authorities to use techniques such as

controlled deliveries, informants and undercover officers.

The 11 implementing decrees:



-- list the narcotic substances and precursors;

-- guide the control of lawful drug-related activities in

Vietnam;

-- stipulate the rehabilitation order, procedures and

regimes for drug addicts consigned to compulsory

rehabilitation centers;

-- designate family organization and community-based

rehabilitation; and,

-- prescribe the regime of compensation and allowances for

individuals, families, agencies and organizations suffering

life, health and property damage while participating in drug

prevention activities.

-- stipulate the rewards and commendations for individuals,

families, agencies and organizations recording achievements

in drug prevention;

-- assign responsibility on international cooperation in the

field of drug prevention;

-- add a number of substances to the list of narcotics and

precursors; and,

-- regulate the control of import, export and transit

transportation of illicit drugs, precursors, narcotic drugs

and psychotropic substances.



Another key decree, concerning law enforcement, has

apparently been issued, but according to an MPS official, it

has not been made public due to its "sensitivity." During

2004, the GVN also issued one more decree to extend the

duration for treatment stay (Note: This decree serves as a

legal instrument for implementing the pilot program

initiated by Ho Chi Minh City. End Note.)



12. (SBU) However, a preliminary analysis by a UNODC legal

official concluded that the decrees are "insufficient in

terms of establishing a proper drug control legal system,"

however. The decrees tend to focus on drug control areas,

which are "generally less complex and controversial," the

official added. There is still a need for "new and proper"

legal instruments in areas such as procedures, conditions,

systems for investigations, international cooperation,

extradition, controlled delivery and maritime cooperation,

according to the analysis. According to a senior drug

treatment policy maker, on December 2 the Prime Minister

issued a decree on the conditions for the private sector to

run treatment centers, and by June 10, 2004, the GVN issued

decree 135 to replace Decree 34, in line with the Ordinance

on Administration.



13. (U) NCADP organized a conference to review the three-

year implementation of the national drug control action plan

for the years 2001 - 2005 in Hanoi March 22 - 23.

Participants at the conference stated that drug crimes are

on the rise. 39,866 drug cases were discovered (an increase

of 9,500 cases compared to 1998 - 2000) and 64,743 suspects

were arrested. Drug seizure data showed a large increase in

both case-number and quantity. The drug addiction relapse

rate is still high, at about 70 percent. According to

official numbers released at the conference, there are

160,670 drug users nationwide with 80 treatment centers

providing treatment to over 40,000 drug addicts. Over the

past three years, almost 2,000 "complicated hotspots" were

destroyed such Thanh Nhan, Cong Vi in Hanoi, Cau Kho, Nguyen

Cu Trinh in HCMC, Thom Mon in Son La, Hung Long in Nghe An

and Na U in Dien Bien. Deputy Prime Minister Khiem

reaffirmed at the conference that it is the Politburo's

policy that Vietnam "mobilize the strength of the entire

political system in the drug fight."

14. (U) The GVN continued to move forward in developing its

long-term counternarcotics master plan, with the assistance

of several foreign donors, including the U.S. and UNODC.

The current 2001 - 2005 plan of action includes the

following 13 projects:



-- building the national master plan for drug control

through 2010;

-- strengthening the capacity of the national coordinating

counternarcotics agency;

-- implementing crop substitution programs in Ky Son

District, Nghe An Province;

-- strengthening the capacity to collect and use drug

information;

-- strengthening the capacity to prevent and arrest drug

criminals;

-- building and completing a counternarcotics legal system;

-- educating students on drug awareness and prevention;

-- strengthening drug prevention activities in Vietnam;

-- preventing drug abuse among workers;

-- strengthening the capacity to treat and rehabilitate

addicts;

-- preventing drug use among street children;

-- reducing the demand among ethnic people; and,

-- preventing the spread of HIV/AIDS among addicts through

demand reduction intervention.



15. (U) According to SODC, almost all of the projects are

ongoing with either foreign or domestic funding. SODC

officials claimed that the master plan until 2010 is

awaiting the Prime Minister's approval. However, while they

had expected the plan to be finalized by late 2003 or early

2004, it did not happen. SODC has also received support in

the form of computers and a network from the British

Government. SODC also expressed satisfaction with the

effective implementation of the (partially USG funded) Ky

Son project (Phase II) and the initial implementation of the

U.S.-funded "G-55" project titled "Interdiction and Seizure

Capacity Building with Special Emphasis and ATS and

Precursors" between MPS and UNODC. One of the main outcomes

of the project is the establishment of six interagency

counter-drug enforcement task force units in six border

"hotspot" areas. The establishment of these task forces

represented a high mark in the (normally weak) interagency

cooperation process among Vietnamese security forces.



16. (U) During the G55 launching ceremony, Colonel Vuong,

Director of MPS unit C-17 (the main counternarcotics unit)

said that the implementing agencies include: the MPS' C-17;

the Anti-smuggling Department of the General Department of

Customs; and the Surveillance Department of the Vietnam

Border Army. Each task force unit has ten officers, who

started work on June 1, the Colonel said. Out of that

number, six are expected to come from the police, two from

Customs and two from the Border Army. The police, however,

will take the lead in running the program and will keep

these units working after the project ends, Colonel Vuong

promised. Colonel Vuong said separately that Vietnam and

UNODC chose these six provinces because they are areas where

drug trafficking has escalated and where there is a high

flow of ATS trafficked across the border.



17. (U) On this occasion, Colonel Vuong provided a 15-item

checklist for the joint task force units' first year,

including:



-- Employment of a national technical officer and an

administrative assistant for the national project office;

-- Establishment of the project office and the steering

board;

-- Equipment needs assessment;

-- Seminar on the establishment of six task force units,

including procedures and policy for the implementing

agencies;

-- Building of a mechanism to give instructions by C-17,

Anti-smuggling Department and the Surveillance Department;

-- Setting up a reporting system for the units;

-- Seminar on procedures/cooperation mechanism between the

units and the drug testing laboratories;

-- Building up contact and coordination between the units

and the drug testing laboratories;

-- Procurement of equipment for the units;

-- Training on the use of equipment;

-- Training and equipment needs assessment for the testing

laboratories;

-- Procurement of equipment for the laboratories;

-- Training on the use of equipment;

-- Setting up an information gathering system for the

units; and,

-- Preparation of training materials



UNODC officials confirmed that all of the goals and

objectives on the list, with the exception of the

preparation of training materials, have been completed.

Mission officers visited G55 task force units in An Giang

and Lang Son Provinces, and confirmed that they are

operational. Some of the units elsewhere have had major

successes:



According to press reports, The G55 task force unit in Son

La province discovered five major drug cases, arrested nine

traffickers and seized eight kilograms of heroin on July 16,

17 and 18, 2004.





18. (U) According to reports during the March NCADP

conference, over the past three years, the state budget for

drug control reached around USD 16 million. In addition,

USD 50 million was taken from local budgets, out of which Ho

Chi Minh City allocated USD 37 million for its drug

treatment program. As in past years, observers agreed that

overall lack of resources continued to be a major constraint

in counternarcotics activities.



19. (U) In 2004, Vietnam continued its efforts in regional

and multilateral law enforcement coordination, a key element

towards full compliance with the 1988 UN Drug Convention.

Vietnam has existing agreements and MOUs with China, Burma,

Thailand, Cambodia, Laos, Hungary and Russia. On November

16 - 19, Vietnam, Laos and Cambodia met in Phnom Penh to

review their cooperation in 2004 and work out cooperative

measures for the coming year. Police General Le The Tiem,

Vietnamese Vice Minister of Public Security, said during the

meeting that drug trafficking across the border has come

"complicated." General Tiem urged the participating

countries to consider signing "many more" counternarcotics

agreements at the sub-regional and global levels. Tiem also

wished for closer working ties and support among the three

nations.



20. (U) Vietnam continued to cooperate with INTERPOL during

2004. Much of this cooperation involved assisting

authorities from Canada, Germany and Australia to

investigate drug trafficking cases between overseas

Vietnamese and criminal organizations located in Vietnam.

All international law enforcement representatives in

Vietnam, however, acknowledged that real operational

cooperation on counternarcotics cases is minimal or

nonexistent due to legal prohibitions against foreign

security personnel operating on Vietnamese soil. Without

changes in Vietnamese law to permit foreign law enforcement

officers to work on drug cases in Vietnam, "cooperation"

will remain a function of information exchange and

Vietnamese police carrying out law enforcement activities on

behalf of foreign agencies on a case by case basis.



21. (U) Multilaterally, Vietnam continued to work closely

with UNODC. In 2002, the GVN assumed management

responsibility for the second phase of the crop substitution

project in Ky Son, Nghe An Province, which will be due by

December 21, 2004. In addition, Vietnam continued to

participate in a UNODC sub-regional project for

strengthening cross border coordination with its neighbors,

as part of the action plan mentioned in Paragraph 14.



22. (SBU) During 2004, DEA's Hanoi Country office and

Embassy Hanoi reported that, despite repeated statements

affirming that law enforcement cooperation is a key

component of the drug war, GVN law enforcement authorities,

especially the counternarcotics police, did not provide

meaningful cooperation to DEA's Hanoi country office. In

addition, DEA reported that, due to existing MPS policies,

DEA agents have not been permitted officially to work with

GVN counternarcotics investigators. Generally, cooperation

was limited to receiving information from DEA and holding

occasional meetings. Thus far, the counternarcotics police

have declined to share information with DEA or cooperate

operationally. GVN officials generally classify drug

information as "sec-ret," subject to national security

regulations, and explain this as the main reason for their

inability to cooperate more fully with DEA. Even with new

"implementing regulations" to buttress the 2001 law,

Counternarcotics Department (CND) and other drug enforcement

agencies remain limited in what they can achieve in their

investigations and the impact they can make on the drug

trade in Vietnam. CND officers target mostly low-level drug

distributors who remain within the narrow grasp of their

authority and investigative capability. Unfortunately, even

well-intentioned CND officers may not act independently when

conducting investigations and utilizing their authority.

According to the DEA, the GVN needs to update and relax its

restrictive polices regarding the exchange of drug related

information with foreign agencies, so that real law

enforcement cooperation can occur in Vietnam. To date,

there has been nothing concrete to indicate that the GVN has

any intention of taking the necessary administrative or

legislative steps to permit DEA to expand beyond its current

liaison role.



23. (SBU) More positively, in March the GVN made some final

changes that allowed the entry into force of the letter of

agreement on counternarcotics activities between the United

States and Vietnam. The first project under the LOA, a

training course for counternarcotics police and customs

officers from all over Vietnam, occurred in Hanoi in August.

U.S. Customs and Border Patrol agents who taught the course

reported that it had an effect immediately; one of the

inspectors who received the training discovered an Australia-

bound heroin courier using the new search techniques he had

learned in the training the week before. In 2004, the

Embassy and SODC cooperated on advance work for DEA and U.S.

Department of Justice training courses under the LOA.



Accomplishments

--------------





24. (U) At an event during the June Drug Awareness Month,

Deputy Prime Minister Khiem stressed that the Government

would "mobilize the entire political system and nation to

prevent and combat the scourge of drugs."



25. (U) SODC and other international interlocutors highly

assessed the importance in 2004 of the establishment of the

Department of Crime Statistics in the Supreme People's

Procuracy in the fight against drugs (as well as towards

Vietnam's full compliance with the 1988 UN Drug Convention).

The Department, while still finding its appropriate role,

has improved the collection and sharing of crime statistics.



Law enforcement efforts

--------------



26. (U) The GVN continued a policy of strict punishment for

drug offenses. Seizures of opium, heroin, and amphetamine-

type stimulants (ATS) increased during the reporting period.

The GVN has continued to arrest and prosecute drug

traffickers in 2004. According to GVN statistics, during

the first six months of calendar year 2004, there were 5,376

drug cases involving 8,484 traffickers with larger amounts

of heroin and synthetic drugs seized. Total seizures

include 100.3 kilograms of heroin, 53.3 kilograms of opium,

622.7 kilograms of cannabis, 23,902 methamphetamine tablets

and 4,128 ampoules of addictive pharmaceuticals and other

substances. 30 percent of the suspects and 34 percent of

the cases were reported in border provinces. Ho Chi Minh

City and Hanoi remain the country's major hotspots for drug

trafficking and consumption. According to one press report,

between January and April, Vietnam executed 14 prisoners,

handed down 25 death sentences and upheld 22 death penalties

in appeals courts, mostly for narcotics crimes and murders.



27. (U) Drug laws remain very tough in Vietnam. Possession

of 100 grams of heroin or five kilograms of opium gum or

cannabis resin or 75 kilograms of cannabis or opium plants

may result in the death penalty. For possession or

trafficking of 600 grams or more of heroin, death by a seven-

man firing squad is "mandatory," according to another press

report. Despite the tough laws, SODC reported again in

2004, "drug trafficking continues to rise."



28. (SBU) During the year, Embassy Hanoi reported several

large drug cases.



-- One major case occurred in the northwest "drug hotspot"

of Lai Chau Province. According to the "People's Police"

newspaper, Lai Chau counternarcotics police first detected

the case in September 2001. Several suspects, in an attempt

to escape arrest, murdered an undercover police lieutenant.

Three suspects were eventually arrested; two received death

sentences in June 2002 for the police officer's murder.

Subsequently, 27 accomplices were arrested; 24 stood trial

in Lai Chau in March 2003. On March 14, Lai Chau People's

Court handed down four additional death sentences, eleven

life sentences and seven other long prison sentences. These

defendants were convicted of trafficking about 90 kilograms

of heroin over the past seven years from Laos via the Tay

Trang border area, through Lai Chau Province, and on to

Hanoi and Thanh Hoa Province (about 100 miles south of

Hanoi).



-- In another case, police in Tien Giang Province in

coordination with the Ministry of Public Security (MPS)

arrested Ngo Xuan Phuong, Ngo Duc Minh and 9 other members

of a drug trafficking ring in May 2002. On February 23, 11

stood trial in Ho Chi Minh City. The Ho Chi Minh City

People's Court handed down four death sentences, four life

sentences, and three other long prison sentences. These

eleven defendants were convicted of trafficking about 39

kilograms of heroin, 50 kilograms of cannabis, 15 kilograms

of synthetic drugs and 6,000 ATS tablets over the past ten

years between Laos and Cambodia and on to Vietnam and Japan

for consumption. They also bought ecstasy tablets in the

Netherlands to sell in Ho Chi Minh City, according to press

reporting.



-- According to SODC, because of the trans-national

activities of the syndicate, the case was "very serious."

They noted that while the trial was underway in Ho Chi Minh

City, police in the provinces of Nghe An and Danang had made

additional large seizures and arrests. In Nghe An, a

province that sits astride a trade route to Laos, the police

arrested ten suspects and seized approximately seven

kilograms of heroin. According to the traffickers' initial

confessions, the offenders had already trafficked about 87.5

kilograms of heroin. This was described as the largest

cross-border case ever. Simultaneously, Danang witnessed an

arrest in the "biggest case ever recorded in Danang",

according to police. Searching the home of offender Nguyen

Quoc Viet, the police seized six kilograms of heroin. These

two cases are still under investigation, according to press

reports.



-- Also, in the first two months of 2004, Son La provincial

police arrested 215 suspects in 85 separate narcotics cases,

and seized 3.7 kilograms of heroin, 6.6 kilograms of opium

and a large quantity of ATS. (Note: The large number of

cases and the relatively small amounts of heroin and opium

indicates that many of these arrests were of users and low-

level dealers rather than large traffickers. UNODC has

identified Son La as a province with a severe drug use

problem, especially in the ethnic Hmong community. End

note.)



Despite these high-profile cases, lack of training,

resources and experience both among law enforcement and

judicial officials continues to plague Vietnamese counter

drug efforts, according to law enforcement sources and

UNODC.



29. (SBU) Foreign law enforcement sources do not believe

that major trafficking groups have moved into Vietnam.

Relatively small groups -- perhaps five to 15 individuals,

who are often related to each other -- usually do most

narcotics trafficking. As Vietnam becomes a more

"attractive" transit country, larger trafficking groups

could become more prominent, according to DEA.



30. (U) Resource constraints among GVN counternarcotics

police continued to be a major problem during 2004,

especially among provincial counternarcotics police. Even

SODC -- the national office for coordinating all

counternarcotics activities -- lacked a database computer

system until December 2002, when the British Government

provided this assistance. Embassy visits to Dien Bien, Lai

Chau, Long An and An Giang Provinces revealed that

counternarcotics police (and all local police) work with a

significant lack of resources, especially specialized

equipment. Officials in the Cambodian border province of An

Giang told emboffs that, in the rainy season, when the

border area floods enough to permit boat traffic over a

large body of water that forms over rice paddies along the

border, policing the border is nearly impossible because the

customs and border police have only a single boat.

Officials in these and other provinces have consistently

told emboffs that they would welcome additional equipment

and training.



31. (U) Vietnam also recorded some achievements in anti-drug

awareness campaigns in 2004. At a meeting to review the two

year implementation of Coordination Plan No. 969 between

Vietnam General Confederation of Labor (VGCL) and MPS, Vice

Minister of Public Security Le The Tiem said that 90 percent

of the provinces and cities had signed coordination plans to

assist the drug fight among government employees and

workers. As a result, 75 percent of the government

employees and workers had signed commitments to stay away

from drug and social evils. According to Vice Minister

Tiem, during the two-year period, hundreds of key personnel

from VGCL at central and local levels had received training

on awareness methods. The number of addicts who are

government employees and workers had reduced significantly

such as Hanoi from 634 to 55, Son La from 274 to 191, Cao

Bang from 106 to 45, Quang Ninh from 270 to 180, Tuyen Quang

from 109 to 29 and Yen Bai from 104 to 83. According to Mr.

Do Duc Ngo, VGCL's Vice Chairman and a member of NCADP, for

the 2004 - 2005 period, areas of concentration include:



-- Working on surveys and assessing the addiction

situation;

-- Establishing the inter-agency coordination plan;

-- Organizing seminars on treatment for employees and

workers;

-- Strengthening awareness activities;

-- Setting up counternarcotics units in business

establishments; and,

-- Investigating drug crimes and addiction among government

employees and workers.



Corruption

--------------

32. (SBU) The GVN continued to focus on narcotics-related

corruption, making policy statements that made it clear that

corruption would not be tolerated and would be severely

punished, including the removal and prosecution of corrupt

officials. However, the UN, law enforcement agencies, and

even the GVN continue to view corruption in Vietnam as an

endemic problem that exists at all levels and in all

sectors. According to the World Economic Forum's growth

competitive index, Vietnam's corruption index ranks 97 out

of 104 countries in the world. Corruption is considered one

of the biggest problems impeding business in the country,

besides the inefficient administration system. The Vietnam

News Agency reported on February 26 that government

inspectors estimate that approximately USD 80 million, or

19.1 percent of the investment in 14 major infrastructure

projects, has been lost due to poor management and

corruption. About 515 government employees have been

disciplined by the GVN in various ways, and the police

continue to investigate seven others. According to the

"Phap Luat" (Legal) newspaper, the State Inspection Board

conducted 3,165 inspections in the first six months of 2004

leading to the discovery of economic offenses causing around

USD 25 million in losses to the State budget. 257

government cadres and public officials were subject to

administrative punishment and 29 were prosecuted. General

Cao Ngoc Oanh, Deputy General Director of the General Police

Department also reported in an interview by the Lao Dong

(Labor newspaper) that over the past ten years, 176,534

cases of economic crimes have been discovered, including

9,454 cases of embezzlement and corruption causing losses to

the State of approximately USD 800 million.



33. (U) In public statements, the GVN and CPV take a strong

stand against corruption in general, but have not singled

out narcotics-related corruption for specific attention.

Colonel Bui Xuan Bien, the director of SODC, has confirmed

that "any GVN official who violates laws about corruption"

would be prosecuted. In addition to the Nam Cam case in

2003 (ref A),there have recently been a number of other

corruption cases that brought down senior officials,

including the Minister of Agriculture and Rural Development.



-- In a March 2004 case, 26 Lang Son provincial customs

officials were sentenced to between two and 18 years in

prison for taking bribes at Tan Thanh international border

gate in Lang Son Province. The offenders were charged with

extorting more than USD 280,000 between June 2000 and June

2001 by falsifying customs documents claiming VAT refunds on

non-existent exported goods.



-- In a separate case, Tay Ninh police concluded the

investigation of a drug trafficking case at the Moc Bai

border checkpoint. 29 people will be prosecuted, including

six drug-runners for trafficking ATS concealed in a fruit-

box imported from Thailand and 23 customs officials for

"dereliction of duty causing serious consequences."



-- In another example, Nguyen Quang Thuong, Deputy Director

General of the state-owned oil and gas corporation

(PetroVietnam) was arrested on June 1 his for involvement in

falsifying documents for the purchase of equipment and

supplies that resulted in millions of dollars in losses to

the State budget. Police also arrested Duong Quoc Ha,

deputy director of Vietnam-Soviet Oil and Gas Joint Stock

Company (Vietsovpetro) on June 9. Ha was charged with

embezzlement of the company property and use of fake

contracts to build apartments worth USD 17 million.



-- Vietnam's state-controlled media also gave prominent

coverage to the La Thi Kim Oanh Case Oanh, a former official

of the Ministry of Agriculture and Rural Development, was

sentenced to death for misappropriating USD 4.9 million and

causing a loss of USD 2.2 million to the state budget; two

vice Ministers were found guilty of related charges,

although their sentences were suspended upon appeal.

Minister Le Huy Ngo, found partially responsible for the

Oanh case, was also dismissed.



-- In a drug-related corruption case, during a court trial

in Ho Chi Minh City in January, former police major Nguyen

Cong Trieu of the Ho Chi Minh City Police's Investigation

Division was given an eight year sentence for taking bribes

and fined USD 2,500, while former lawyer Phan Van Hai was

sentenced to three years in prison for acting as a middleman

for bribes and fined USD 2,000.



-- Most recently, former Vice Minister of Trade Mai Van Dau

was arrested for further investigation into claims over his

related corruption acts in connection with a scandal of

quota allocation for garment exports. Dau was relieved of

his post by a decision from the Prime Minister.



34. (U) Senior GVN officials continue to speak out against

corruption.



-- In January, Communist Party of Vietnam (CPV) General

Secretary Nong Duc Manh said during the opening of the Party



SIPDIS

Central Committee's ninth Plenum that the CPV would "clarify

the causes of success and failure through specific reviews

while seeking ways to intensify the combat against

corruption, wasteful spending and bureaucracy."



-- After the May 2004 National Assembly Session, CPV General

Secretary Nong Duc Manh and NA Chairman Nguyen Van An



SIPDIS

reaffirmed the determination of the Communist Party and GVN

to tackle graft and corruption from the grass-roots level.



-- At a meeting in Hanoi on April 14, 2004 to review the

execution of the Politburo's resolution on key judicial

tasks, President Tran Duc Luong called for further judicial

reform to bolster the fight against criminal corruption.



-- In December 2003, Prime Minister Phan Van Khai confirmed

during the closing session of a ministerial meeting in Ho

Chi Minh City that administrative reform and the fight

against corruption were crucial issues that must be

addressed in 2004.



-- During a meeting in Hanoi in March, Phan Dien, Member of

the CPV's Politburo and Standing member of its Secretariat,

claimed that Vietnam had "deterred corruption although not

completely stopped it." Phan Dien admitted that combating

corruption is key to economic renovation.



-- Before the People's Council elections took place in

April, Pham The Duyet, President of the Vietnam Fatherland

Front, said that Vietnam planned to use the election to find

"new blood" to combat corruption and that the election

"should help develop a better state management system to

fight corruption."



-- At a seminar titled "Vietnam and the UN Convention on

Corruption" held November 11 in Hanoi, Chief State Inspector

Quach Quang Thanh stressed that Vietnam needs a national

anti-corruption strategy. According to Mr. Thanh,

corruption has negative impact on the country's political

system and trust from the people.



35. (U) At the international level, in December 2003 Vietnam

joined 94 other countries in signing the UN Convention

against Corruption at the international conference in

Merida, Mexico. Also, Vietnam became the 23rd country in

the region to endorse a regional anti-corruption action plan

at a meeting in Manila on July 5. The action plan,

initiated by the Asian Development Bank (ADB) and the

Organization for Economic Cooperation and Development (OECD)

in December 2000, is the region's forum for policy dialogue

and cooperation in the fight against corruption. Most

recently, voters throughout the nation have asked the

National Assembly to set up an anti-corruption agency to

help combat crime. The petitions came after the discovery

of numerous corruption cases that aroused public concern.

Citizens also asked the NA to pass and issue an anti-

corruption law as soon as possible, given the rising number

of corruption cases throughout the country. Arguments and

debates concerning corruption ignited among members of the

National Assembly during the most recent session.



36. (U) On May 21, Ho Chi Minh City's Municipal Court handed

down a 14 year prison sentence to Khuc Van Du, former staff

of Nhi Xuan drug treatment and rehabilitation center on

charges of trading illicit drugs and drug implements. Eight

drug addicts received jail terms between nine and 18 months

for illicit drug use.



37. (U) Vietnam does not encourage or facilitate illicit

production or distribution of narcotic or psychotropic drugs

or other controlled substances, or the laundering of

proceeds from illegal drug transactions. Recognizing the

need for more anti-corruption assistance, the GVN signed an

agreement with Sweden in September 2002 for research on

socio-economic policy and anti-corruption measures. Under

the USD 2.7 million project, scheduled to run from the end

of 2002 through 2005, Sweden will provide resources to

assist Vietnam in developing appropriate anti-corruption

policies. While the official agreement is with the Ministry

of Planning and Investment, the actual partner is the CPV

and, according to an official of the Swedish Development

Corporation, the program is "quite sensitive." A diagnostic

study on how to implement the program "should be started by

the end of the year."



38. (SBU) Embassy has no information linking any senior

official of the GVN with engaging in, encouraging or

facilitating the illicit production or distribution of such

drugs or substances, or the laundering of proceeds from

illegal drug transactions. Concerning narcotics-related

corruption, the GVN did demonstrate a willingness in 2004 to

prosecute officials, though the targets were relatively low-

level.



39. (U) According to UNODC, "narcotics-related corruption is

only a very small part of overall corruption." However,

significant levels of official corruption exist in Vietnam.

Both the GVN and the Communist Party have made combating

corruption one of their top priorities, and senior officials

have made unambiguous statements that not only must

officials not engage in corruption but also that they will

be held personally responsible for such wrongdoing by their

relatives and subordinates as well.



Agreements and treaties

--------------



40. (U) With the exception of the recently-signed

Counternarcotics LOA, the USG has no extradition, mutual

legal assistance or precursor chemical agreements with

Vietnam. The LOA includes three specific counternarcotics

training projects.



41. (U) Vietnam is a party to three UN Drug Control

Conventions, including the 1961 Single Convention on

Narcotic Drugs, the 1971 Convention on Psychotropic

Substances and the 1988 Convention Against Illicit

Trafficking in Narcotics Drugs and Psychotropic Substances.



42. (U) To further its compliance with the 1988 UN Drug

Convention, Vietnam moved ahead in 2004 to increase both

operational and formal cooperation with neighboring

countries, countries in the region and the world.



43. (U) Police General Le The Tiem, Vice Minister of Public

Security, led Vietnam's delegation to the first ASEAN

Ministerial Meeting on Transnational Crime with three

dialogue partners including China, Japan and Korea in

Bangkok on January 10. Vice Minister Tiem called for China,

Japan and Korea to support ASEAN member countries in the

fight against transnational crime. ASEAN and China also

signed an MOU on cooperation against non-conventional crimes

including drugs. Medium- and long-term objectives were set

forth for the cooperation action plan. Bilaterally,

according to Lao Cai Province's C17, between 1999 and 2004,

Lao Cai customs have entered into two anti-crime MOUs with

their Chinese counterparts.



44. (U) According to a December "People's Police" press

report, during a December 22 - 23 trilateral Meeting on Drug

Control Cooperation among Cambodia, Laos and Vietnam in

Hanoi under the chairmanship of General Le Hong Anh,

Vietnamese Minister of Public Security and Vice Chair of

NCADP, Vietnam said that it was willing to "share

experiences and exchange visits and training programs with

the two neighbors." At Vietnam's initiative, a project

proposal (for UNODC funding) that is to be endorsed at the

next meeting in Phnom Penh will be designed to strengthen

cross-border cooperation on drug control between the three

countries. Delegates also agreed that the borders still

remain hotspots for drug trafficking, drug abuse, and drug-

related crimes. They called for stepping up information

exchange to aid the fight.



45. (U) In February, during a joint cabinet meeting held in

Danang city between Vietnam and Thailand, Deputy Prime

Minister Vu Khoan and his Thai counterpart Chavalit

Yongchaiyudh discussed, among other security issues, drug

cooperation. They agreed to set up a joint working

committee to monitor security cooperation, including drug

crimes. And on 29 April, Deputy Prime Minister Nguyen Tan

Dung signed the decision to ratify the agreement on crime

prevention cooperation between Vietnam and Thailand, which

was signed in Nakhon Phanom (Thailand) on February 21, 2004.



46. (U) In April, for the first time, Vietnam and China held

a conference on bilateral cooperation for security and

fighting crime at the border. In addition to the border and

security issues, the participants discussed measures to

combat drugs. Vietnam has also taken steps in the fight

against the use of drugs in sports; Vietnamese Minister and

Chairman of the Sports Committee Nguyen Danh Thai and Danish

Ambassador to Vietnam Bjarne Sorensen signed the Copenhagen

Declaration on Anti-Doping on April 22 in Hanoi.



47. (U) At the May 6-9 meeting of the ASEAN Inter-Parliament

Organization (AIPO) Drugs Investigation Board, Ms. Nguyen

Thi Hong Xinh, member of the National Assembly's Commission

on Social Affairs, presented Vietnam's achievements in its

fight against drugs. Representatives of eight member-

states, including Cambodia, Indonesia, Laos, Malaysia,

Thailand, Vietnam and Singapore participated in the meeting,

which was organized in Phnom Penh, Cambodia. The delegates

from Brunei and Myanmar attended the meeting as special

observers.



48. (U) The Republic of Korea has pledged USD 534,000 to

help Vietnam's anti-drug effort. A two-year project was

signed on July 27 by representatives of SODC and the Korean

International Cooperation Agency (KOICA). The project will

develop an intranet system linking the three major cities of

Hanoi, Danang and Ho Chi Minh City to modernize their

administrative network and provide training to Vietnamese

officials. This is the first international cooperation

program between the two countries in the field of drug

control.



49. (U) During the official visit by Burmese Prime Minister

Khin Nyunt to Vietnam on August 9, Vietnamese Public

Security Minister Le Hong Anh and Burmese Interior Minister

Tin Lang signed an agreement on cooperation in crime

prevention.



50. (U) Police Colonel Pham Ho, Chief of Interpol Vietnam,

led the Vietnamese delegation to the 24th meeting of the

ASEAN Police Chiefs on August 16 in Chiang Mai, Thailand.

Representatives of ten ASEAN member countries, the

International Police General Secretary and observers of

police services from Australia, New Zealand and East Timor

discussed the establishment of an ASEAN police information

center, fighting economic, cyber and hi-tech crimes and drug

trafficking.



51. (U) Vietnamese and Thai security forces plan to set up a

hotline to exchange information about regional drug

trafficking. An agreement on the hotline was reached on

September 13 during the first Vietnam - Thailand Bilateral

Meeting on Drug Control Cooperation in Ho Chi Minh City.



52. (U) During the September 27 - October 2 visit to Vietnam

by Mr. Kideng Thamavong, Vice Chairman of the Lao Commission

of Drug Control, Police General Le The Tiem, Vice Minister

of Public Security, had a meeting with the commission to

discuss the implementation of the bilateral agreement on

drug control cooperation signed in July 1998.



53. (SBU) In January, police in Taiwan informed their

Vietnamese counterparts of a seizure of 44 kilograms of

heroin in Kaohsiung port. The illegal shipment was reported

as coming from Nha Trang in Vietnam. Despite the urging of

and assistance offered by both the Taiwan authorities and

DEA, the Vietnamese did not conduct any follow-up

investigation into the activities of the trafficking

organization in Vietnam.



54. (U) In addition to the U.S. agreement, Vietnam has

counternarcotics agreements and MOUs with seven other

countries: Burma (March 1995),Thailand (November 1998),

Russia (October 1998),Hungary (June 1998),Cambodia (June

1998),Laos (July 1998) and China (July 2001). In 1993,

with UNODC support, Vietnam signed regional counternarcotics

MOUs with China, Laos, Burma, Thailand and Cambodia. The

six "MOU states" agreed to cooperate on counternarcotics

activities and, with UNODC's help, better coordinate their

law-enforcement efforts, especially in border areas.

Vietnam is currently precluded by statute from extraditing

Vietnamese nationals, but the GVN is contemplating

legislative changes, according to an MFA official. However,

at the request of the USG (and in accordance with the 1988

UN Drug Convention),in 2003 Vietnam agreed to two rendition

requests (one each from the FBI and U.S. Customs) and

returned two non-citizens to the U.S., where they were

wanted for various white collar and money laundering.



Cultivation/production

--------------



55. (SBU) The GVN and UNODC confirm that opium is grown in

hard-to-reach upland and mountainous regions of some

northwestern provinces, especially Son La, Lai Chau and Nghe

An Provinces. According to USG sources, the total number of

hectares under opium poppy cultivation has been reduced

sharply from an estimated 12,900 hectares in 1993, when the

GVN began opium poppy eradication, to 2,300 hectares in

2000. (Note: The 2004 USG estimate is the same as 2000

because, to the best of Embassy Hanoi's knowledge, no

satellite survey has been performed since 2000. End Note.)

UNODC and law enforcement sources do not view production as

a significant problem in Vietnam. While the GVN does not

admit that drugs are produced in the country, Nguyen Ngoc

Tam was sentenced to death in Ho Chi Minh City on April 18

for involvement with a Taiwan-led drug ring that produced

hundreds of kilograms of methamphetamines in a clandestine

laboratory in Tan Thoi Hiep, Hoc Mon (Ho Chi Minh City).

There have been unconfirmed reports in past years concerning

probable indications of limited ATS production, as well as

some seizures of equipment (i.e., pill presses). DEA also

turned up information pointing to an extremely large

methamphetamine lab in Ho Chi Minh City in 2004.



Eradication/crop substitution

--------------

56. (U) As part of its efforts to comply fully with the 1988

UN Drug Convention, the GVN continued to eradicate poppy

when found, and to implement crop substitution, introducing

other crops such as mandarin oranges, tea, cinnamon, plums,

herbs, hybrid corn, potatoes and soybeans to replace opium

poppy cultivation. Concerning eradication, based on Embassy

provincial visits and the UNODC, the GVN appears sincere in

its poppy eradication efforts. However, GVN officials have

admitted that complete eradication is probably unrealistic,

given the remoteness of mountainous areas in the northwest

and extreme poverty among ethnic minority populations who

sometimes still use opium for medicinal purposes.



57. (U) There is a major UNODC crop substitution project

(with significant USG support) ongoing in the Ky Son

district of Nghe An Province, one of the drug "hotspots" in

northern Vietnam. This project, currently nearing the end

of its second phase, includes a crop

substitution/alternative development component, in which

various types of fruit trees and other enterprises, such as

beekeeping, have been implemented in areas formerly

dedicated to poppy. Former UNODC representative Doris

Buddenberg viewed the first phase as "successful," with an

increase in agricultural production and corresponding drop

in drug activity.



58. (U) In addition to Ky Son, the GVN's Ministry of

Agriculture and Rural Development (MARD) has continued to

support projects in various provinces. The GVN, through

MARD, independently supports crop substitution projects in

other provinces, including Hoa Binh, Yen Bai, Ha Giang, Cao

Bang and Lang Son. The GVN has tasked MARD with developing

a national crop substitution proposal to include in the

GVN's 2006-2010 Master Plan. To avoid indirectly

encouraging poppy cultivation through subsidies for

eradication, the GVN has placed all crop substitution

subsidies under national programs to alleviate poverty in

poor, mountainous regions.



59. (U) At a national conference to review the 2003 poppy

crop elimination program and discuss the 2004 action plan

held on June 4 by the Ministry of Agriculture and Rural

Development (MARD),Vice Minister Bui Ba Bong said that the

GVN had pumped over approximately USD 6.4 million in to the

alternative development and crop substitution program in the

former opium cultivating areas. 160 tons of high-yield

upland rice was supplied to local farmers under Program 135

supporting households in extremely difficult circumstances

in Vietnam's remote communes. A total of 32.47 hectares was

discovered under poppy cultivation and completely destroyed

in 2003. Son La is the largest area of poppy cultivation,

with 25.3 hectares in Bac Yen and Song Ma districts. Re-

cultivation of opium crops remains possible due to

inefficient control of opium seeds, according to Mr. Bong.

During another conference held in Son La on September 8,

representatives from the 14 mountainous northwestern

provinces, border stations and customs offices in the region

said that Son La accounts for 95 percent of the country's

entire opium cultivation area. Vice Minister of Public

Security Le The Tiem said separately that there were 428

hectares of poppy cultivation in 2001 in 153 communes in 30

districts of 10 provinces, but, in 2003, the area was only

102.061 hectares, reduced by 74 percent, in remote terrain

in Bac Kan, Cao Bang, Ha Giang, Lao Cai, Lang Son, Lai Chau,

Son La, Nghe An and Thanh Hoa.



60. (SBU) When well executed, crop substitution appears to

be a viable program that also assists ethnic minority people

in Vietnam's poorer, mountainous regions.



Drug flow/transit

--------------



61. (SBU) While law enforcement sources and UNODC believe

that significant amounts of drugs are transiting Vietnam,

DEA has not yet identified a firm case of heroin entering

the United States directly from Vietnam, although it appears

some may be entering via Australia. More commonly, drugs,

especially heroin and opium, enter Vietnam from Laos and

Cambodia, making their way to Hanoi or especially to Ho Chi

Minh City, where they are transshipped by air or sea to

other countries. The GVN attributes significant and

frequent seizures in 2004 to increased law enforcement along

Vietnam's borders with its neighbors. The number of drug

cases discovered by the Border Army in 2003 was six times

higher as compared to the year 2002. According to a

February press report, Tay Ninh police discovered a drug

ring led by Phan Nguyen Anh Thu who had trafficked a total

of 114.75 kilograms of heroin and 606 ecstasy pills from

Cambodia into Ho Chi Minh City. Separately, Tay Ninh police

concluded an investigation of a drug trafficking ring led by

Mout Sang Nang, a Cambodian, and proposed prosecution of 10

other suspects on February 9. Between June 2000 and May

2003, the ring had smuggled 103 kilograms of heroin and 606

tablets of ATS from Cambodia into Vietnam. In another case,

ten suspects, five of whom are Lao citizens, were arrested

by police in the city of Vinh for heroin trafficking. They

are allegedly members of a huge heroin trafficking gang, who

have admitted to transporting 93.75 kilograms of heroin from

Laos into Vietnam.



62. (U) Some other examples that show Vietnam as either a

transit country or a country of heavy consumption include:



-- Song A Gia and Gu A Song, Lao citizens, were captured in

Ban Ta Re, Long Luong Commune, Moc Chau District, Son La

Province on 14 January. Police seized 11.2 kilograms of

heroin, 800 methamphetamine pills and a Colt-brand handgun

with 13 bullets;



-- Hsu Minh Chuan, a 40 year-old man from Taiwan who was

once extradited on weapons trafficking charges, was

sentenced to two years in prison on February 23 after he was

found guilty of possessing 0.297 grams of heroin. Chuan,

who is a heroin user and was arrested by police in Hai Ba

Trung District last August, told the police that he bought

the drugs for his own use in Thanh Nhan ward, a notorious

drug area in Hanoi;



-- Two leaders of a major drug ring, Ngo Xuan Phuong and Ngo

Duc Minh, and 11 co-conspirators faced Ho Chi Minh City

People's Court in February. They were charged with

possession of 36kg of heroin, 50kg of marijuana, 15kg of

methamphetamine and 6,000 ecstasy tablets. Ngo Xuan Phuong,

who had settled in Japan, and Ngo Duc Minh, who was a

smuggler in Haiphong, began smuggling drugs from Vietnam

into Japan. In late 2000, Phuong worked with a Vietnamese-

American, John Nguyen, and a Vietnamese expatriate in

England, Vu Van Quang, to smuggle ecstasy tablets from the

Netherlands into Vietnam and then sold the drugs in Ho Chi

Minh City;



-- On April 22, Trang Thi Kim Chi, an overseas Vietnamese,

was arrested for illegally transporting 5,000 tablets of

narcotic drugs, including 3500 tranquilizers and 1500

ecstasy pills, from France into Vietnam;



-- Ho Chi Minh City Customs reported 27 cases of illegal

import of 596.5 kilograms of pharmaceutical drugs have been

cracked between January and May 2004. Many of these

shipments contained narcotic drugs and psychotropic

substances. Most traffickers arrested have been overseas

Vietnamese and foreigners arriving from France;



-- David Dang (Dang Van Tam),a Vietnamese citizen resident

in France, was arrested for transporting 383 tablets of ATS

via the Lao Bao border checkpoint in Quang Tri Province on

12 May 2004.



-- Tony Tran, an overseas Vietnamese, was arrested in Ho Chi

Minh City on May 29 on charges of trafficking illicit drugs

into Australia. Tran admitted to sending heroin by post 17

times before he was caught;



-- Tay Ninh Counternarcotics Police discovered a

transnational drug ring that smuggled cannabis from Cambodia

into Ho Chi Minh City. Ring leader Nguyen Quoc Phien was

arrested on May 30 in Bien Hoa, Dong Nai, while transporting

130 kilograms of cannabis;



-- Tran Van Hoi and Nguyen Van Tho from Nghe An, in

conjunction with traffickers in Laos, successfully smuggled

87.5kilograms of heroin into Vietnam. Police arrested 12

suspects, including five foreigners in that case;



-- HCM City Police have cracked down on two drug rings led

by Tran Xuan Ha, Hoang Trong Hung and Tran Huy Cong from

Nghe An Province. Heroin was smuggled from Laos to the

central provinces and further transported to Ho Chi Minh

City. The police arrested 20 suspects and seized 20

kilograms of heroin and other evidence. The rings had

allegedly shipped over 350 kilograms of heroin into HCMC and

earned about USD 3,000/kilo;



-- Border guards in the central province of Quang Binh

stopped two trucks carrying 79.6 kilograms of heroin at Cha

Lo international border checkpoint and arrested the drivers;



-- Hanoi People's Court on July 21 handed down prison

sentences between from 12 to 18 months to a seven-member

drug ring operating between Vietnam and Laos. The police

reported that the ring had successfully transported 3,700

boxes (each box containing 30 Lexomil (Bromazepam) pills) or

a total of 111,000 pills through Cau Treo border gate in Ha

Tinh Province;



-- On August 21, Hanoi Police proposed prosecution of Song A

Gia, Gu A Song and 16 other suspects for trafficking heroin

from Sam Nua, Laos, to Hanoi and Son La, Yen Bai and Ha Tay

Provinces since 2002;



-- Customs officials at HCMC's Tan Son Nhat Airport on

August 17 arrested a Vietnamese-Australian for carrying 440

grams of heroin. Tran Thi Hong Loan, 32, had reportedly

concealed the heroin in a hair spray bottle in her luggage.

This seizure was directly related to the previous week's USG-

funded Customs Enforcement Training program;



-- ABC Radio Australia reported that Vietnam's police have

arrested 48 suspects and broke up the country's biggest ever

drug trafficking network. The armed gang trafficked almost

900 kilograms of heroin from Cambodia for sale throughout

Vietnam between 1998 and 2003. Police are continuing the

hunt for 20 other gang members;



63. (U) According to "Phap Luat" (Law) newspaper, ketamine

has emerged this year in Hanoi and other major cities. Law

enforcement agencies gave warnings of the spreading use of

ketamine in nightclubs and discos and called for stricter

control of diversion from legal sources. According to a

press report, the owner of a restaurant in Haiphong was

arrested on August 1 on charges of using ketamine in

preparing bear-bile elixir (an expensive concoction made

from bile extracted from live bears, and is very popular

among Chinese and Vietnamese drinkers.) According to Decree

133/2003/ND-CP dated November 16, 2003, ketamine is a

controlled substance in Table III, which can be only used

for research and medical purposes. In addition, Tai Ma is

an herbal drug recently available in Hanoi in the form of

twigs of leaves with tiny seeds. It is smoked in a tobacco-

pipe and has cannabis-like effects. Another type that was

recently reported in Vietnam is a yellow-color, odorless

extract of opium called "hong bi." This new drug was

trafficked across the border between Vietnam and China.



64. (U) According to SODC, in 2004 many large-scale

trafficking cases were discovered. The ATS flow into the

country during 2004 continued to be serious and not limited

to border areas. According to Vice Minister of Public

Security Le The Tiem, in addition to opium or heroin, ATS

can now be found throughout the country. Recent ATS cases

include:



-- Nguyen To Loan and seven of her accomplices were captured

in a police raid while distributing 260 pills of ecstasy.

The alleged traffickers said they had successfully

transported three shipments of 300 - 500 pills from Ho Chi

Minh City to Hanoi.



-- In another case, Ho Chi Minh City police seized two

traffickers and 260 pills of ecstasy known as thuoc lac on

July 9 after arresting drug distributors and searching their

homes.



-- In Hanoi, the counternarcotics police caught seven

suspects in a drug trafficking ring from Ho Chi Minh City.

540 ecstasy pills and small amounts of methamphetamine were

seized. The police said the seven, including three bar

girls, admitted that they have trafficked drugs by air and

railway, usually carrying from 500 to 1,000 pills per

journey.



-- In a separate case, during a house search following the

arrest of ten drug runners on May 8, 700 grams of heroin and

135 tablets of methamphetamines were seized.



-- In Ho Chi Minh City alone, Customs reported 27 cases of

the illegal import of 596.5 kilograms of addictive

pharmaceuticals between January and May 2004. Many of these

shipments contained narcotic drugs and psychotropic

substances. Most of the traffickers arrested are overseas

Vietnamese and foreigners arriving from France.

-- Again, in Ho Chi Minh City, Police caught 20 year-old

Nguyen Thi My Huong selling over 500 ecstasy tablets at a

cafe in District 3 on March 17. The search of Huong's home

the next day resulted in seizure of 120 pills of ecstasy.

Huong confessed that she could sell about 1,000 ecstasy

tablets a day.



65. (U) 2004 also witnessed various trials for ATS

traffickers.



-- In Hanoi, the People's Court on July 21 handed down

sentences ranging from one to 18 years in prison to a seven-

member drug trafficking ring operating between Viet Nam and

Laos. The police reported that the ring had successfully

transported 3,700 boxes [each box containing 30 Lexomil

(Bromazepam) pills] or a total of 111,000 pills through Cau

Treo border-gate in Ha Tinh Province.



-- In Ho Chi Minh City, the Appeals Court confirmed death

sentences for six men involved in illegal drug trafficking.

Between 2001 and 2003, the ring had conducted 32 smuggling

trips, trafficking more than 103 kg of heroin and 606

ecstasy pills from Cambodia to Vietnam through border gates

in Tay Ninh.



-- On May 10, the Ho Chi Minh City People's Court sentenced,

during the biggest ever ecstasy trial, Chung Quoc Minh and

Nguyen Kim Oanh to life in prison for trafficking 14,200

tablets of ecstasy. Other defendants received a total of

237 years in prison and additional fines of USD 115,625.



-- Separately, Son La People's Court handed down a 20-year

sentence to Le Van Bay and Pham Van Son from Thuy Nguyen,

Haiphong for trafficking half a cake (175 grams) of heroin

and 196 tablets of methamphetamine from Moc Chau.



During the year, authorities discovered significant cases on

the border between Vietnam and neighboring countries.



66. (U) Vietnam - Laos: Song A Gia and Gu A Song, Laotian

citizens, were captured in Ban Ta Re, Long Luong Commune,

Moc Chau district, Son La Province on January 14. The

police seized 11.2 kilograms of heroin, 800 methamphetamine

pills and a Colt-brand handgun with 13 bullets. Separately,

Lao Bao border gate authorities arrested on May 12 Dang Van

Tam, a Vietnamese-French, for transporting 383 tablets of

ATS. In another case, Cau Treo border gate Customs in Ha

Tinh Province discovered 499 bottles of ketamine concealed

in a tool-kit in a truck driven by Cao Xuan Phuc. Another

man, Nguyen Ba Ngoc was caught while transporting 220 kg of

Terpin-Codine and 1,680 cigarette packs.



67. (U) Vietnam - Cambodia: Since 2003, drug trafficking has

increased along the Vietnam - Cambodia border, and the

number of drug cases discovered by the Border Army in 2003

was six times higher as compared to 2002. Tay Ninh police

discovered a drug ring led by Phan Nguyen Anh Thu, who had

trafficked a total of 114.75 kilograms of heroin and 606

ecstasy pills from Cambodia to Ho Chi Minh City. On

February 9, Tay Ninh police concluded investigation of

another drug ring led by Mout Sang Nang, a Cambodian

citizen. Between June 2000 and May 2003, the ring had

smuggled 103 kilograms of heroin and 606 tablets of ATS from

Cambodia into Vietnam.



Domestic programs/demand reduction

--------------



68. (U) The GVN views demand reduction as a key component of

the fight against drugs as well as an integral part of its

efforts fully to comply with the 1988 UN Drug Convention.

Within the GVN, the Ministry of Culture and Information

(MCI) is responsible for public drug control information and

education among the general population. The Ministry of

Education and Training (MOET) carries out awareness

activities in schools. Anti-drug material is available in

all schools and MOET sponsors various workshops and

campaigns at all school levels. MOET reported that drug

abuse remains a problem among the students in 51

universities, colleges and vocational schools in 50

provinces and cities. Vice Minister of Education and

Training Dang Huynh Mai observed the reduction of drug abuse

among students was not sustainable. In its 2004 drug

activity report, SODC reported that the border forces

continued to play an "active role" in disseminating anti-

drug information to border villages and communes.

Activities included sponsoring contests, such as art

projects, to demonstrate local commitment against drugs. On

several provincial trips, emboffs heard from local citizens

(not in the presence of GVN officials) that they are aware

of drug issues through media campaigns directed at the

general public as well as students, and also of the

connection between intravenous drugs and HIV/AIDS. Emboffs

have observed anti-drug billboards in virtually every town

visited.



69. (SBU) UNODC views GVN drug awareness efforts in 2004

"more or less the same" as in 2003, while assessing that

Vietnam has already done a "good job" in this endeavor.

According to UNODC, awareness efforts have mostly been on

the "formality" level, however, so these efforts have had

minimal impact on the addict and HIV/AIDS population.

Behavior modification is still a problematic issue for the

GVN. UNODC believes that the challenge for Vietnam is how

to implement awareness campaigns more regularly at the

grassroots level and better encourage the participation of

the youth population. According to UNAIDS and the GVN, just

under 70 percent of cumulative HIV/AIDS cases in Vietnam are

related to injection drug use. Furthermore, HIV

surveillance indicates that nationwide, more than 30 percent

of IDUs are HIV-infected; this percentage is much higher (60-

80 percent) in Ho Chi Minh City, (65-85 percent) in Quang

Ninh Province and other northeastern provinces. Recognizing

the close link between drug use and HIV/AIDS, the GVN in

2004 continued a public information campaign regarding

HIV/AIDS awareness and the connection between drugs and

HIV/AIDS. In March 2004, the Prime Minister approved the

"National Strategy on HIV/AIDS Prevention and Control in

Vietnam up to 2010 with a Vision to 2020." The GVN

continued a long-standing campaign of anti-drug posters all

around Vietnam, and Vietnamese television and radio have

increased the pace and volume of anti-drug and HIV/AIDS

warnings through a continuing series of advertisements

featuring popular singers and actors. However, the good

news, according to the National Committee on AIDS Control,

is that there has been a reduction of 33.2 percent in the

number of people living with HIV, 17.4 percent in full-blown

AIDS patients and 23 percent in AIDS-related deaths as

compared with the same period in 2003. By October 2004,

there were 84,925 people living with HIV countrywide, of

which 13,409 have developed AIDS.



70. (U) Vietnam has a network of drug treatment centers.

According to MOLISA, with three new facilities in Binh Phuoc

(2) and Hanoi (1),there are now 74 centers at the

provincial level and 7,100 treatment facilities at lower

levels. The provincial centers have a capacity of between

100 to 3,000 addicts each. According to Vice Minister of

Public Security Le The Tiem, the addiction growth rate has

been reduced but the absolute number of addicts keeps

increasing. The number increased by 26.2 percent in 2001

against 2000, 24.6 percent in 2002 against 2001 and 13.1

percent in 2003 against 2002. According to SODC, the

treatment goals for the 2004 - 2005 period include:



-- Providing treatment to 50,000 registered addicts;

-- Reducing the recidivism rate by ten percent on a yearly

basis;

-- Providing treatment to 100 percent of officially

recognized addicts by 2005;

-- Upgrading treatment centers to increase capacity.



71. (U) Thai Nguyen: Phap luat Newspaper reported that the

number of drug users in the city has decreased from 2,277 in

2001 to 2,166 in 2004. The city provided non-interest loans

to set up production units in the centers, such as block and

tunnel bricks manufacture, sand and gravel mining, livestock

development, wood processing and carpentry. The city also

ensured outlets for and consumption of the products, for

example, wooden furniture for schools and bricks and tiles

for construction and streets and sidewalks. Turnover in

2004 is expected to be USD 125,000. The recovering drug

users worked in these production units on a contractual

basis with an average income of USD 37 per month, slightly

below the per capita income in Vietnam.



72. (U) Hoa Binh: The center was set up in 1994 and has 35

officials and medical workers providing treatment to 300

drug users. Ten percent of them were prostitutes and 40

percent had contracted HIV. Provincial authorities provide

funds for the patients' food at the center, but it only

lasts for six months, while the duration of internment is a

minimum of 12 months. Most patients' families are incapable

of providing support to their relatives, according to press

reports and DSEP officials.



73. (U) Thai Binh: A 5.3 hectare center was built in Ha Loi,

Ky Ba at a cost of VND 25 billion. With a capacity of 300 -

350 people, the center is expected to provide treatment to

80 percent of the addict population in the province in the

2005 - 2006 period.



74. (U) Hanoi: "An Ninh Thu Do" (Capital Security) newspaper

reported there were 13,808 drug users in the capital city by

June 18, 2004. Of that number, 4,727 addicts are in

treatment centers; 2,006 in prisons; and 6,809 in the

community. 266 have moved to other provinces/cities. The

newspaper also quoted Mr. Le Van Nha, Director of the Social

Evils Prevention Department in MOLISA, as saying that the

existing drug centers could provide treatment to only 30

percent of total drug population nationwide.

75. (U) Ho Chi Minh City: The city suffers from

overpopulation in its treatment centers. Ho Chi Minh City

City Department of Labor, Invalids and Social Affairs

(DOLISA) reported that over 28,000 drug users are receiving

treatment in the city's centers. 10,000 have completed a

two-year treatment program and 6,000 have been transferred

to post-treatment management. The municipality continued to

implement 43 projects in collaboration with production

units, with a total investment of USD 2.5 million to create

sufficient jobs for 10,000 ex-addicts. The city planned to

provide treatment to 30,000 drug users and 3,000 female sex

workers in the second half of 2004. However, the target

number was overly ambitious: the current capacity of the

existing centers is only 23,000 beds.



76. (U) On August 10, Le Thanh Hai, Chairman of Ho Chi Minh

City's People's Committee, met with the City's Youth

Volunteers and the Management Board of Drug Center No. 4 to

discuss solutions to the staff shortage problem.



77. (U) According to reports during a national conference to

review the three-year implementation of the national drug

control action plan 2001-2005 organized by NCADP in Hanoi

March 22 - 23, there are 160,670 drug users nationwide with

80 drug treatment centers providing treatment to over 40,000

drug addicts. In 2004, Vietnam embarked on an aggressive

program to try to place recovered drug addicts in factories

and other employment as an incentive to stay clean.



78. (U) On March 16, the Youth Brigade held a ground

breaking ceremony at Nhi Xuan industrial park in Hoc Mon

District, Ho Chi Minh City. The park is 51.75 hectares with

total investment of VND 193 billion. The park is expected

to provide jobs for 10,000 workers, of whom between 5,000

and 6,000 are former drug addicts.



79. (U) Some 200 more former drug users who have completed

drug rehabilitation and vocational training started work at

a plastics production factory, which opened on April 20 in

Ho Chi Minh City's Cu Chi District. On May 9, Ms. Ha Ngoc,

Director of Thinh Phat Company, held a ceremony for the

admission of 350 recovering drug users to her garment

workshop in Ho Chi Minh City.



80. (U) Two workshops for garment manufacture, embroidery

and bamboo weaving were recently opened in Treatment Center

No. 4 for Education and Vocational Training of the Ho Chi

Minh City Youth Volunteers in Tan Uyen District of Binh

Duong province, providing jobs to 250 former drug addicts.



81. (U) About 500 recovered drug addicts would have the

opportunity to work in a sewing workshop, which was opened

in Ho Chi Minh City on June 11. The USD 95,500 workshop is

part of a project to help rehabilitated addicts to

reintegrate into society. More than 200 others have already

received training courses. They would be employed to work

in Kim An Company's other workshops around the city.



82. (U) Two other workshops were also set up at the center

for cashew nut and coffee processing, with a total of 600

laborers working regularly after the completion of their

treatment. Recently, the center has announced recognition

of successful treatment for 1,174 drug users.



83. (U) A dressmaking workshop comprising three production

lines with 150 industrial sewing machines was recently

commissioned in Drug Treatment Center No. 5 in Ho Chi Minh

City. This is an investment of USD 116,000 by Ben Thanh

Company.



84. (U) In a separate effort, Cardinal Pham Minh Man in Ho

Chi Minh City decided to send two priests and eight nuns to

Binh Phuoc drug treatment center to provide support to 100

drug addicts on a long-term basis.



85. (U) There are six drug treatment centers in Hanoi

providing treatment to a total of 5,000 drug addicts.

Nguyen Vi Hung, Director of Hanoi DOLISA's Department of

Social Evils Prevention (DSEP),said 70 percent of the drug

addicts in the centers are ex-convicts, and 30 percent are

infected with HIV. Duration for mandatory treatment is 24

months and annual treatment fees include USD 380 in the

first year and USD 366 in the second year. The GVN provides

one-third of the cost of compulsory treatment, about USD

6/person/month, while the family contributes two-thirds.

Treatment would be provided free of charge to drug addicts

from families entitled to social service benefits and/or

from poor households. Ms. Cao Minh Chau, Director of Hanoi

DOLISA, said Hanoi would build two new centers in 2004 to

provide treatment for more drug users. The city planned to

provide treatment to 6,000 drug addicts in 2004, 8,000 in

2005 and 10,000 in 2006.



86. (U) Hanoi authorities decided to put all drug users in

treatment centers (as opposed to permitting "community

treatment," a kind of outpatient drug treatment program) and

to launch a pilot compulsory treatment program in Gia Lam

and Dong Anh Districts. According to Mr. Nguyen Vi Hung, by

March 2003 there were 13,736 drug users. It is estimated

around 2,000 drug users in the capital city have yet to be

identified and registered.



87. (U) Drug treatment centers in Hanoi were temporarily

closed due to overcrowding in early 2004. While the centers

can provide treatment to 5,000 addicts, there are around

10,000 drug users requiring it. The Municipal People's

Committee approved a plan to develop treatment centers in

the city by 2010, which set targets to provide treatment to

8,000 drug addicts in 2005 and 13,000 by 2010. The average

capacity of each center ranges from 1,000 - 1,500 drug

addicts at the city level and 300 - 500 at the district

level. Each center needs around 10 - 20 hectares of land

for office and residence buildings, classrooms, workshops,

sports grounds and farms.



88. (U) Over the past two years, Ho Chi Minh City has

allocated VND 500 billion (USD 32.3 million) for its "Three

Reductions" campaign against drug abuse and trafficking,

prostitution and crime. The city revealed the figure at a

conference reviewing the program's first two years. Much of

the fund was used to build, repair and/or upgrade 18 centers

for 28,000 drug addicts and sex workers. Another 23,000

drug addicts received treatment at home under the

supervision of local authorities. According to Tuoi Tre

(Youth) newspaper, Ho Chi Minh City now has 37,423 addicts,

an increase of 7,423 over 2002. Out of that number, 33,577

are in treatment facilities.



89. (SBU) SODC officials have admitted that the centers are

often inadequate, and that the high recidivism rate is

"unacceptable." Based on a number of visits throughout the

year, Embassy agrees that drug center conditions range from

resort-like (in Ho Chi Minh City) to under construction

(Lang Son Province, Can Tho City). Community-based drug

treatment outside of centers is spotty; counselors are

expected to make visits to addicts being treated at home and

provide advice and some medicines, if needed, but services

are inconsistent.



90. (U) No escapes from drug treatment centers have been

officially reported in 2004, unlike in 2002. However,

according to a senior MOLISA official, the escape rate for

2004 in some provinces such as Ho Chi Minh City, Lao Cai,

Yen Bai and Thai Nguyen was very low, at about 0.2 percent.



91. (U) During its June 2003 session, the National Assembly

approved a five-year pilot project on post-treatment

vocational training developed by the Ho Chi Minh City

People's Committee. It was estimated in early 2004 that

about 14,000 recovered drug addicts in Ho Chi Minh City

would be employed by factories and enterprises under this

new scheme by the end of the year. City authorities have

invested USD 36 million to build new rehabilitation centers

and to upgrade existing centers for the city's program. Ho

Chi Minh City authorities have also approved a plan to

invest USD 12.5 million to develop the Nhi Xuan urban area.

More than 50 enterprises in Ho Chi Minh City have invested

about USD three million to provide vocational training and

jobs to over 10,000 drug addicts who have been undergoing

treatment at the city's detox centers. The job creation

program was launched by city authorities to help newly

rehabilitated addicts get stable jobs and reintegrate into

community life.



92. (U) On July 19, 2004, the Government issued Decree

No.146/ND-CP on stipulating procedures and authority to make

decisions on the admission of recovering drug addicts to

drug treatment centers for further rehabilitation and

vocational training.



-- Vice President Truong My Hoa asked the MOLISA to combine

their rehabilitation programs with vocational training and

employment generation for the effective rehabilitation of

drug addicts at a working session held with the Ministry in

Hanoi on September 14. The Vice President also agreed with

MOLISA's proposal to give preferential treatment to

businesses and enterprises which have employed former drug

addicts. According to MOLISA, Vietnam now has 161,000 drug

addicts. Out of that number, 67 percent are under 30 and

more than 66 percent are unemployed. The country now has 80

treatment centers, which can accommodate more than 40,000

addicts. About 70 - 80 percent of these centers provide

vocational training. However, only 10 - 18 percent of

addicts find employment.



-- The Ministry of Health approved new anti-drug medication,

CEDEMEX, after a nine-year study. On July 27, the MOH

issued a decision to allow its use in drug treatment

centers. Five million doses are scheduled to be produced by

mid-2005.



-- A research on the use of Naltrexone in drug treatment has

been carried out in the Mental Health Institute in Bach Mai

Hospital since 2002. The number of patients receiving

treatment on voluntary basis has increased from 46 to 200.



-- The National Assembly's Committee on Social Affairs had a

meeting on August 17 with the Ho Chi Minh City People's

Committee and 70 businessmen who have made investments to

support former drug addicts. Ms. Hoai Thu, Chairwoman of

the Commission, said the project would not wait for the

National Assembly session, but would immediately prepare

project reports and make proposals to facilitate the

implementation of Ho Chi Minh City's drug treatment program.



-- A workshop was organized on October 22 to review the

results of a pilot drug rehabilitation program launched in

Ho Chi Minh City last year. Ms. Nguyen Thi Hang, Minister

of Labor, Invalids and Social Affairs, said at the workshop

that the three-year program has achieved satisfactory

results after only one year of implementation. The most

remarkable result was the creation of jobs for recovering

drug addicts after their two-year treatment, she added. Ho

Chi Minh City has spent more than USD 47 million to upgrade

and build 18 drug centers capable of receiving around 30,000

addicts. It has also developed 30 production workshops and

farms at rehabilitation centers to provide employment for

recovering addicts. By August 2004, the city had provided

medical treatment to 29,138 drug users at the treatment

centers, jobs to 11,543 people who had received treatment

and job training to 8,700 recovering drug users.



-- The GVN asked other cities to replicate Ho Chi Minh

City's drug treatment model following the positive results

of the city's ongoing pilot drug program. The Government

asked leaders in Haiphong, Tay Ninh, Ba Ria-Vung Tau, Kien

Giang, Quang Ninh and Nghe An to develop a similar drug

rehabilitation and job creation scheme to help victims of

drug addiction.

93. (SBU) According to a senior MOLISA official, Nguyen

Minh Triet, Secretary of the Ho Chi Minh Municipal Party

Committee, said publicly that he "would bet his political

career on the success of the program," but the project has

not been completely successful. The MOLISA official pointed

out that keeping the recovering addicts in "employment

parks" is a way of applying administrative punishments

through "detention" in a way that fails to ensure the

detainees' human rights.



94. (SBU) Vocational training in the centers remains uneven,

ranging from fairly good to nonexistent. In Yen Bai

province, there is widespread participation in carpentry,

tailoring, tree planting and construction training. In

Quang Nam Province (central Vietnam),on the other hand,

there is no training available. Staff training at the

centers is generally limited to that which is on-the-job,

due to lack of resources. Neither of these problems is

likely to be resolved in the foreseeable future. Inadequate

funding plagues drug treatment centers, similar to many

other public institutions in Vietnam. This does not appear

to have changed during 2004. On a more positive note, Ho

Chi Minh City announced in September 2003 it would be adding

nearly USD 800,000 to its anti-drug campaign, much of it

aimed at drug awareness and treatment.



95. (U) HIV/AIDS is a serious and growing problem in Vietnam

and one that is closely related to intravenous drug use. At

least 60-70 percent of known HIV cases are related to

injection drug use, and in some intravenous drug user (IDU)

populations the HIV prevalence rate exceeds 80 percent,

according to GVN statistics. According to an October press

report, Son La's spiraling HIV/AIDS rate is linked to the

rise in drug use. Officials from the province's Department

of Health and Department of Social Evils Prevention said

that the number of people living with HIV/AIDS has gone up

rapidly in the province, with 101 of the total 201 communes

reporting HIV cases. According to the officials, the

province ranks at the top in both the number of people

living with HIV and drug addicts among northern mountainous

provinces, which have reported a total of 1,433 HIV cases.

By January 2004, there were 76,180 people living with HIV

and 11,659 AIDS patients in the entire country. Of the AIDS

cases, 6,550 have died. The cities and provinces which were

hardest hit by the epidemic include Haiphong, Ho Chi Minh

City, Quang Ninh, An Giang, Hanoi and Can Tho, accounting

for 62 percent of newly identified cases in 2003. (Note:

these are also among the wealthiest and most urban areas of

Vietnam. End Note.)



96. (U) During 2004, Vietnam continued its efforts to combat

the HIV/AIDS epidemic through the following activities:



-- On March 17, 2004, Prime Minister Phan Van Khai approved

the National Strategy on HIV/AIDS Prevention and Control in

Vietnam up to 2010 with a Vision to 2020. The strategy

gives a green light to harm reduction and supports expansion

of clean needle and syringe programs and condom promotion;



-- While Vietnam is calling for an increase in HIV/AIDS

prevention funds from international donors, as it is only

able now to meet 40 percent of its needs. A recent inter-

ministerial circular among the Ministries of Public

Security, Finance, Interior and Labor, War Invalids and

Social Affairs commits to a GVN allowance of USD 7.60 per

month per person for HIV caregivers, including public health

and education workers, prison wardens, policemen and guards.

The country's HIV/AIDS funding will only be able to meet

between 20 and 30 percent of its needs by 2010. According

to statistics released in March, Vietnam has a total of

79,154 HIV carriers. In addition, a recent decree by Prime

Minister Khai decided to give a special allowance to army

soldiers and national defense officials, who manage,

educate, care for or give medical check-ups to people with

HIV/AIDS. Soldiers and national defense officials infected

with HIV/AIDS on the job will get check-ups and treatment

and enjoy preferential policies as "sick soldiers." Part of

the decree specifies that they will be recognized as martyrs

when they die, which will entitle their families to extra

benefits;



-- On October 12 - 13 in Hanoi, the Ministry of Health (MOH)

organized a workshop on management and implementation of a

recent World Bank funded project to combat the HIV/AIDS

epidemic in the country. It was reported at the workshop

that all funding sources now only meet 30 percent of the

actual funding requirement;



-- The United State Pacific Command (USPACOM) and the

Vietnam People's Army co-organized a workshop on HIV

prevention in the military between September 30 and October

2, 2004, at Military Hospital 175 in Ho Chi Minh City. U.S.

Consul General Seth D. Winnick and more than 80 Vietnamese

military medical officers attended the workshop, which aimed

to increase education and awareness of the disease in the

military. Funding for the program came from the U.S.

Department of Defense HIV/AIDS Prevention Program. Earlier,

USPACOM and the Vietnamese Ministry of Defense also held on

April 12 a four-day training course on HIV/AIDS prevention

in Hanoi for army health workers. This was the first course

of its kind for Vietnamese soldiers. About 100 senior

Vietnamese officers participated in the workshop;



-- During "Innovation Day" on May 20, 51 ideas to fight

HIV/AIDS from all corners of the country were presented.

They were competing for start-up funds totaling USD 300,000.

The two day event was organized by the World Bank in

collaboration with the Ministry of Health and the United

Nations Program on HIV/AIDS;



-- There are currently over 50 peer groups participating in

drug and HIV prevention activities in Hanoi, including 21

`Friends Help Friends' groups, 19 `Brothers' groups and four

`Sisters' groups. The groups have encouraged and educated

drug users to practice safe injection and receive treatment.

Since 1998, over 684,000 disposable syringes and 500,000

condoms have been distributed to the drug users, sex

workers, bar girls and those who have multiple sex partners.



-- In addition, the USG announced on June 23 that Vietnam

had been selected as the 15th focus nation under the

President's Emergency Plan for AIDS Relief. (PEPFAR).



97. (U) Owing to efforts the GVN has made on the HIV/AIDS

prevention front in 2004, the country has made progress in

reducing the number of HIV/AIDS cases. Examples:



-- Dr. Le Truong Giang, Deputy Chairman of Ho Chi Minh

City's AIDS Committee, said during a meeting on April 10 to

set goals for HIV/AIDS prevention in 2004 that the initial

successes of the city's pilot drug rehabilitation program,

which aims to provide rehabilitation and vocational skills

for 30,000 drug victims at detoxification centers, has had

positive impact on HIV/AIDS control activities. The city's

AIDS Committee's statistics show the that proportion of drug

users and sex workers who contracted HIV dropped by 16

percent and nine percent, respectively, in 2003.



-- Simultaneously, according to NCADP, for 2004, it is

estimated that there are decreases of 33.2 percent in the

number of people living with HIV, 17.4 percent in full-blown

AIDS patients and 23 percent in AIDS-related deaths, as

compared to the same period in 2003. By October 2004, there

were 84,925 people living with HIV throughout the country,

of which 13,409 had developed full-blown AIDS and 7,677 have

died.



-- UNAIDS Deputy Executive Director Kathleen Cravero told

Vietnamese Deputy Prime Minister Pham Gia Khiem in Hanoi on

October 18 that Vietnam's national HIV prevention strategy,

which targets prostitutes and addicts, should be replicated

in other countries. The GVN has divided up the work of AIDS

prevention and treatment among several ministries, giving

specific duties to each, but naming one to lead their

collaboration in particular areas. The new strategy also

focuses on reaching sex workers and injecting drug users.



-- In an interview with a "Tin Tuc" (Information) newspaper

reporter at a seminar on HIV/AIDS situation in Vietnam to

mark World AIDS Day, Mr. Mitchell Wolfe, Country Director of

the U.S. Centers for Disease Control and Prevention (CDC) in

Vietnam, emphasized that the Government of Vietnam, donors

and NGOs need to focus on efforts to fight HIV/AIDS because

lessons in other countries show that the epidemic may become

worse in Vietnam in coming years. Mr. Wolfe said the U.S.

Government in FY 2005, from April 2005 to March 2006, will

provide USD 25 million under the President's Emergency Plan

For AIDS Relief (PEPFAR) to assist the fight against

HIV/AIDS in Vietnam. The assistance has risen significantly

from USD 18 million in FY04. He added that the assistance

may rise further if HIV/AIDS prevention activities in

Vietnam are implemented efficiently.



98. (U) The World Bank has funded a USD 35 million project

which aims to reduce HIV infection rate to less than 0.3

percent in 20 provinces and cities. According to an MOH

report, Vietnam's HIV/AIDS control program also received

another USD 5 million from the international community.



99. (U) Vietnam has received USD 12 million in assistance

from the United Nations Global Fund to fight HIV/AIDS and

provide training to health workers in the field. The

assistance will go toward increasing access to free

specialized medical treatment and health care and

information services. The number of patients receiving free

medicine for HIV/AIDS treatment is expected to increase ten

percent each year during the four-year program, said Dr.

Nguyen Tran Chinh, a member of the Global Fund Project

Managing Board. The 20 target areas include Ho Chi Minh

City, Hanoi, Haiphong and the provinces of Quang Ninh and An

Giang. Thanks to the funding, about 3,000 HIV patients from

20 provinces and cities may enjoy free medical treatment,

said an official for the Ministry of Public Health at a

seminar on August 28 in Can Tho City. The Chairman of the

National Assembly's Committee on Social Affairs reported

that there are some 81,000 people living with HIV across the

country. The Government has spent between VND 50 billion

and 70 billion to control the illness, meeting only one

percent of the demand for medical care. 5,000 HIV patients

are reportedly in need of medical treatment, the Health

Ministry reported;



100. (U) An important agreement on a USG-funded project to

help Ho Chi Minh City fight HIV/AIDS was signed on October

22 by HCMC Consul General Seth Winnick and Ho Chi Minh City

People's Committee Vice Chairman Nguyen Thanh Tai. This new

cooperative agreement between the USG and the Ho Chi Minh

City People's AIDS Committee will provide approximately USD

400,000 for increasing programs related to improving

HIV/AIDS prevention, care, treatment and support services

for vulnerable populations in Ho Chi Minh City from October

2004 to September 2009. This is the first cooperative

agreement on HIV/AIDS undertaken directly by the United

States and Ho Chi Minh City;



-- Vietnamese people living with HIV may have a chance to

buy retro-viral drugs at one tenth of the regular price, Dr.

Trinh Quan Huan from the Ministry of Health said. Under the

William J. Clinton Presidential Foundation's program, a

patient would pay USD 142 for one year of treatment

involving three drugs. Normally, the drug would cost USD

580 for a year's worth, or USD 2000 for a three-drug

cocktail. Health Ministry officials said they would comply

with the Foundation's restrictions.



101. (U) USAID has a USD 4.5 million HIV/AIDS program

(FY03),administered through several non-governmental

organizations. USAID's funding level will rise to USD nine

million in 2004. However, USAID has also recommended that

the GVN "dramatically increase its commitment to fighting

HIV/AIDS," including adopting additional national public

health policies and a multi-sectoral approach.



102. (U) CDC has a five-year USD ten million program with an

ongoing HIV/AIDS technical assistance bilateral program

through CDC/GAP. There will be 40 provinces, over five

years, receiving support to implement HIV interventions.

According to CDC, during 2004, the GVN continued stronger

support for HIV prevention programs, including voluntary

counseling and testing (VCT) and community outreach in

speeches and media. Thus far, CDC has funded 37 anonymous

MOH VCT programs in 32 provinces over the past two years,

with plans to expand to 40 provinces with a total of 53

sites by September 2005. With these programs, more than

26,500 persons have already been HIV-tested, of whom 22

percent are HIV-infected. CDC/GAP has also supported the

MOH in implementing community outreach programs for IDUs and

commercial sex workers (CSW) in provinces. As of November

2004, the program has been introduced and implemented in 28

provinces. Trained peer educators have made over 40,000

contacts with IDUs and CSWs, providing HIV prevention

education and referral to VCT or other services. The

demonstration PMTCT (prevention of mother-to-child

transmission) project has also been implemented in three

provinces (Quang Ninh, Haiphong and Ho Chi Minh City). In

addition, CDC has provided technical assistance to the GVN

to set up HIV outpatient clinics. 33 of 40 provinces have a

clinic located in the Infectious Diseases Departments of

provincial hospitals. This model will be the foundation for

anti-retroviral therapy once AIDS drugs are available for

persons living with AIDS in Vietnam. On the GVN's part, some

major cities (i.e., Ho Chi Minh City) have established

additional VCT sites at local levels, and one VCT center

supported by Family Health International (FHI) recently

opened in Hanoi at the national Bach Mai hospital.



103. (U) Since 1998, USAID funding totaling USD 17 million

has supported a large-scale prevention, mitigation and care

and support-focused HIV/AIDS program, predominantly through

its Global IMPACT Project, implemented by Family Health

International. This program focuses its comprehensive

interventions in three high-prevalence provinces, targeting

high-risk groups. Key partners include the MOH the

provincial AIDS Committees, as well as CDC. Additionally,

USAID is supporting national policy development through the

POLICY Project, including assistance to the GVN on its

National HIV/AIDS strategy and its ordinance review. USAID

programs also support advocacy for people living with

HIV/AIDS, a study on the impact of stigma and discrimination

and the development of Leadership Advisory Groups to raise

awareness and to reduce stigma and discrimination.



104. (U) Planned or ongoing GVN actions include:



-- Opening 20 VCT sites, with 15 more anticipated by the end

of 2004;

-- Three new peer education programs have been initiated, 13

more were opened during 2003 and five more are anticipated

by the end of 2004;

-- Two new outpatient clinics for HIV care and treatment

have been opened for diagnosis and management of

opportunistic infections;

-- 31 provinces currently support surveillance sites that

monitor the spread of HIV/AIDS among a cross-section of the

population; and,

-- The GVN is working with the USG and other foreign donors

in the areas of HIV management and care, diagnosis and

management of opportunistic infections, and assessing the

evidence for HIV prevention for injecting drug users. Also

included among this action are behavioral surveillance,

stigma reduction and policy development and enforcement at

the central level, as well as capacity building at the

central and provincial government levels.

U.S. POLICY INITIATIVES AND PROGRAMS

--------------



105. (U) In 2003, Vietnam and the U.S. completed and signed

a bilateral counternarcotics agreement, which came into

force in 2004. The agreement included counternarcotics and

law enforcement projects totaling USD 333,390. It

represents the first direct bilateral counternarcotics

program assistance to Vietnam. The USG currently funds

training annually for some GVN law enforcement officers and

other officials involved in the legal arena for courses at

the International Law Enforcement Academy (ILEA) in Bangkok.

During calendar year 2004, U.S. Embassy Hanoi sent 65 law

enforcement officers for training at the Academy. Between

August 5 - 12, a one-week training course for Vietnamese

counternarcotics officers by American officials, the first

ever under the U.S.- Vietnam Letter of Agreement, was held

in Hanoi. The trainers are officials from the Customs and

Border Protection, U.S. Department of Homeland Security.

The thirty Vietnamese participants were from the Department

of Customs; General Department of Police; anti-narcotics

units of Danang, Haiphong, Ho Chi Minh City and Hanoi under

the Ministry of Public Security; Immigration Department;

Airport Security Department; and Standing Office on Drug

Control. During the training course, experiences in anti-

narcotic activities on the sea and on airplanes were shared

with Vietnamese officers.



106. (U) The USG also contributes to counternarcotics

efforts through the UNODC. During 2003, the USG made

contributions to two projects: "Measures to Prevent and

Combat Trafficking in Persons in Vietnam," and "Interdiction

and Seizure Capacity Building with Special Emphasis on ATS

and Precursors." The ATS project achieved its main goals in

2004 with the signing of an interagency MOU and the

establishment of six interagency task forces at key border

"hotspots" around the country.



Other ongoing UNODC projects:



-- National Drug Control Masterplan (USG contribution of USD

100,000; Sweden and Italy are also donors). This ongoing

project is intended to assist the NCADP to develop a 2001-

2010 masterplan for controlling drugs. According to SODC,

the Plan is now ready for the Prime Minister's approval;



-- Ky Son Phase Two, a socio-economic development project to

replace opium poppy cultivation. (USG contribution of USD

635,000; Germany, Luxemburg, Sweden and Japan are also

donors.) This project began in 2002 and is intended to

build on the success of Phase One in establishing drug

demand reduction programs among ethnic minority people in a

remote area of Nghe An Province, adjacent to the Lao border.

The three project components include community development,

alternative development and infrastructure development.



-- Project Vie/B85 on the prevention of drug abuse among

ethnic minorities in northern Vietnam (Son La, Lai Chau and

Lao Cai);



-- Vie/03/G61 on strengthening the existing working models

and establishing a new innovative partnership with local

NGOs for community-based prevention of high-risk behavior

related to IDU (coordinated by UNAIDS);



-- Project R21 on Trafficking in Persons (the United States

is one of the donors).



The Road Ahead

--------------



107. (SBU) The GVN is acutely aware of the threat of drugs

and Vietnam's increasing domestic drug problem. However,

there is continued suspicion of foreign law enforcement

assistance and/or intervention, especially from the United

States, in the counternarcotics arena. This is one of the

factors impeding progress in counternarcotics law

enforcement. During 2004, as in previous years, the GVN

made progress with ongoing and new initiatives aimed at the

law enforcement and social problems that stem from the

illegal drug trade. Notwithstanding a lack of meaningful

operational cooperation with DEA, the GVN continued to show

a willingness to take unilateral action against drugs and

drug trafficking. Vietnam still faces many internal

problems that make fighting drugs a challenge. With the

conclusion of the counternarcotics LOA, the USG can look

forward to enhanced counternarcotics cooperation in the area

of assistance to Vietnamese law enforcement agencies.

Operational cooperation, however, remains on hold pending

the development of a legal framework in Vietnam to allow

foreign law enforcement officers to carry out operations on

Vietnamese soil, or the signing of a bilateral agreement

between the United States and Vietnam that would create a

mechanism for joint investigation and development of drug

cases. Neither the legal overhaul nor the bilateral

agreement seem likely to occur in the short term.



STATISTICS

--------------



108. (U) BELOW ARE OFFICIAL 2004 VIETNAM DRUG STATISTICS

PROVIDED BY SODC. THE FIGURES REPRESENT THE PERIOD BETWEEN

NOVEMBER 2003 AND NOVEMBER 2004.



109. (U) BEGIN TEXT, INCSR SUMMARY TABLES.



SUMMARY TABLES FOR THREE YEARS



-- 1. COCA. VIETNAM PRODUCED NO COCA IN 2003 OR PREVIOUS

YEARS.



-- 2. POTENTIAL COCA LEAF. NOT APPLICABLE TO VIETNAM.



-- 3. OPIUM.



STATISTICAL TABLE



DRUG CULTIVATION (HECTARES) 2004 2003 2002



HARVESTABLE CULTIVATION 32.5 94 315

ERADICATION 32.5 94 315

POPPY HARVESTED (SEEDS) 0 0 0



-- 4. POTENTIAL OPIUM GUM. NOT AVAILABLE.



-- 5. CANNABIS. SODC ADMITS CANNABIS CULTIVATION IN

VIETNAM'S SOUTHERN PROVINCES OF DONG NAI, AN GIANG AND DONG

THAP. HOWEVER, THE AREA IS RELATIVELY SMALL. SODC HAS NO

FIGURE AVAILABLE ON HOW MANY HECTARES OF CANNABIS PLANTS

WERE UPROOTED IN THESE PROVINCES. CANNABIS ALSO ENTERS

VIETNAM FROM CAMBODIA.



-- 6. POTENTIAL CANNABIS YIELD. NOT APPLICABLE.



-- 7. DRUG SEIZURES IN KILOGRAMS:



STATISTICAL TABLE



SEIZURES 2004 2003 2002



A. COCA LEAF N/A N/A N/A

B. COCAINE PASTE N/A N/A N/A

C. COCAINE BASE N/A N/A N/A

D. COCAINE HCL N/A N/A N/A

E/F.OPIUM 58.6 254.3 462.62

G. HEROIN 240 239.8 53.87

H. CANNABIS 1,021 329.3 234.6

I. OTHERS, BY UNITS

(TUBES OF ADDICTIVE DRUGS) 5,520

(DOSES OF HEROIN) 21,540

(ATS) 39,400



-- 8. ILLICIT LABS. DURING 2004, SODC REPORTED NO LABS

BEING DESTROYED.



-- 9. DOMESTIC CONSUMPTION OF ILLICIT DRUGS. NO AVAILABLE

STATISTICS.



-- 10. ARRESTS.



STATISTICAL TABLE



NUMBER OF ARRESTS BY NUMBER OF CASES/NUMBER OF PERSONS

ARRESTED.



2004 2003 2002



12,000/18,260 10,000/16,000 11,057/17,873



-- 11. USERS.



STATISTICAL TABLE



NUMBER OF REGISTERED DRUG ADDICTS



2004 2003 2002



161,000 152,900 131,000





BOARDMAN