2006-2007 INCSR PART I -- VIETNAM

UNCLAS SECTION 01 OF 05 HANOI 002800



SIPDIS



SIPDIS



DEPT FOR EAP/MLS, EAP/RSP AND INL



E.O. 12958: N/A

TAGS: SNAR, PGOV, KCRM, VM

SUBJ: 2006-2007 INCSR PART I -- VIETNAM



REF: STATE 155088



HANOI 00002800 001.2 OF 005





1. The following is Embassy Hanoi's submission for the narcotics

section of the 2006-2007 INCSR.



2. Begin INCSR text:



Vietnam



I. Summary



The Government of Vietnam (GVN) continued to make progress in its

counternarcotics efforts during 2006. 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; continued public awareness activities;

and, additional bilateral cooperation on HIV/AIDS. The United States

and Vietnam continued to implement training and assistance projects

under the counternarcotics Letter of Agreement (LOA),and signed an

amendment to the LOA in April to provide additional training

assistance to the GVN. Operational cooperation with DEA's Hanoi

Country Office (HCO) continued to lag behind expectations. DEA and

the GVN's Ministry of Public Security (MPS) continue to negotiate a

memorandum of understanding intended to facilitate operational

cooperation between the two agencies on counternarcotics matters.

Vietnam is a party to the 1988 UN Drug Convention. In 2005, Vietnam

was removed from the list of major drug-producing countries because

actual drug cultivation clearly fell below the 1,000-hectare

threshold for Majors.



II. Status of Country



This year, the GVN claims about 170 hectares of opium under

cultivation nationwide and official UNODC statistical tables no

longer list Vietnam separately in drug production analyses.

Cultivation in Vietnam probably accounts for about one percent of

the total 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.

Vietnam has not been considered a confirmed source or transit

country for precursors. However, one precursor of concern to DEA

that has historically been produced in large quantities in Vietnam

is sassafras oil. This precursor to MDMA production continues to be

imported into Vietnam for re-export to third countries. The

potential for diversion of sassafras oil into clandestine MDMA

production remains an area of concern for DEA. In an effort to

support Vietnam's efforts to enhance its precursor control capacity,

the GVN and UNODC are cooperating on a project titled "Interdiction

and Seizure Capacity Building with Special Emphasis on ATS and

Precursors." Implementation of that project continued successfully

into 2006 with the deployment of counternarcotics interagency task

forces in six "hotspot" provinces.



In 2006, the GVN continued to view the Golden Triangle as the source

for most of the heroin supplied to Vietnam. The GVN also perceives

close connections between Vietnamese and foreign traffickers. GVN

authorities are particularly concerned about rising ATS use among

urban youth. During the reporting period, the GVN increased the

tempo of enforcement and awareness programs that they hope will

avoid a youth synthetic drug epidemic. Despite some high-profile

successes in 2006, lack of training, resources, special-purpose

counternarcotics staff and experience, both among law enforcement

and judicial officials, continues to plague Vietnamese

counternarcotics efforts. Resource constraints are pervasive, and

GVN counternarcotics officials note that Vietnam, a developing

country, will face resource constraints for the foreseeable future.

Drug laws remain very tough in Vietnam. For possession or

trafficking of 600 grams or more of heroin, or 20 kilograms of opium

gum or cannabis resin, the death penalty is mandatory. Foreign law

enforcement sources do not believe that major trafficking groups

have moved into Vietnam. Relatively small groups comprised of

between 5 to 15 individuals (who are often related to each other)

usually do most narcotics trafficking.



With the exception of the recently amended counternarcotics LOA, the

USG has no extradition, mutual legal assistance or precursor

chemical agreements with Vietnam. The original LOA included three

specific counternarcotics training projects. The amendment to the

LOA, signed in April, provided funding for additional training

projects.



III. Country Actions Against Drugs in 2006



Policy Initiatives. The structure of the GVN's counternarcotics

efforts is built around the National Committee on AIDS, Drugs and

Prostitution Control (NCADP),which includes 18 GVN ministries and

people's organizations as members. In addition, MPS, as NCADP's



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standing member, has a specialized unit to combat and suppress drug

crimes. The GVN continued to intensify its attention to the drug

issue in 2006, including increased attention from the

State-controlled media and additional GVN-funded training courses.

Many provinces and cities implemented their own drug awareness and

prevention programs, as well as demand reduction and drug treatment.

The GVN continues to view drug awareness and prevention as vital

tools and significant objectives in its fight against drugs, as well

as integral parts of its effort to comply fully with the 1988 UN

Drug Convention. The GVN has continued to rely heavily on

counternarcotics propaganda, culminating in the annual drug

awareness month in June 2006, as well as other intensified law

enforcement campaigns throughout the year. Officially sponsored

activities cover every aspect of society, from schools to unions to

civic organizations and government offices. In 2006, the GVN

extended its ongoing effort to de-stigmatize drug addicts in order

to increase their odds of successful treatment, and to help control

the spread of HIV/AIDS. Since the national law on drug suppression

took effect in 2001, the GVN has issued 12 decrees, seven decisions

and six circulars to regulate implementation of the law. According

to the GVN Standing Office on Drug Control (SODC),these measures do

not address the use of investigative techniques, such as controlled

deliveries, informants or undercover officers by law enforcement

authorities. However, in practice, these techniques have been used

by GVN officials.



According to MOLISA (Ministry of Labor and Social Affairs),the drug

addiction recidivism rate after treatment is still high, between 70

and 80 percent. By the end of June, there were 159,305 officially

registered drug users nationwide, with 84 provincial-level treatment

centers providing treatment to between 55,000 and 60,000 drug

addicts annually. The number of "unofficial" (i.e., not acknowledged

officially) drug users is at least 1.5 times higher. Heroin accounts

for 83 percent of drug use, followed by opium (13.9 percent),

cannabis (one percent),ATS (1.5 percent) and other types of drugs

(0.6 percent). MOLISA reports 80 percent of drug addicts are

intravenous users.



In March 2005, then-Prime Minister Phan Van Khai approved the

national drug control master plan through 2010. Under the master

plan, there are six areas of priority technical assistance,

including law enforcement, treatment, demand reduction, supply

reduction, legislation and capacity enhancement, as well as building

the legal framework on money laundering and precursor control. The

GVN continues to look for assistance from foreign donors in these

areas. As in past years, observers agreed that overall lack of

resources and staff continued to be a major constraint in

counternarcotics activities. According to the MPS Counternarcotics

Department, less than half of the country's district and

commune-level counternarcotics offices are fully staffed.



Foreign law enforcement representatives in Vietnam acknowledge that

real operational cooperation on counternarcotics cases is minimal

due to legal prohibitions and policy restrictions that preclude

Vietnam's drug enforcement authorities from sharing information and

supporting bilateral investigations with foreign police agencies.

Without changes in Vietnamese law to allow the establishment of a

legal and procedural basis for Vietnam's cooperation with foreign

law enforcement agencies, operational "cooperation" will remain

limited and largely determined on a case-by-case basis. USG law

enforcement agencies hold out some hope that the development of

agency-to-agency agreements will slightly improve the cooperation

climate. During 2006, cooperation between GVN law enforcement

authorities and DEA's HCO continued to improve marginally, although

DEA agents have not been officially permitted to work with GVN

counternarcotics investigators. Cooperation was limited to receiving

information and investigative requests from DEA, holding occasional

meetings and providing limited responses to DEA's requests. Thus

far, counternarcotics police have declined to share detailed

information with DEA or cooperate operationally. During the

reporting period, DEA did receive cooperation on one undercover

money laundering operation in which MPS provided an undercover

officer to pick up alleged drug money that was remitted to Vietnam

through a money laundering organization in the United States.

However, despite requests made by DEA, MPS provided no investigation

information on the organizations or businesses that facilitated the

illegal money remittance in Vietnam.



Law Enforcement Efforts. According to GVN statistics, during the

first six months of 2006, there were 5,362 drug cases involving

8,259 traffickers. Total seizures include 104.2 kilograms of heroin,

47.55 kilograms of opium, 549.2 kilograms of cannabis, 35,068 ATS

tablets and 1,185 ampoules of addictive pharmaceuticals, and 5,188

kilograms of precursor chemicals. The number of cases and

traffickers represents increases of 3.7 and 6.5 percent,

respectively, compared with the same period of 2005. During the

reporting period, law enforcement authorities nationwide raided and

closed-down 507 locations related to illegal drug transactions.

During the first six months of 2006, courts throughout the country

tried 6,205 traffickers in 4,595 cases, and handed down 46 death



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sentences, 73 life sentences and numerous other lengthy sentences.

During the five years since the Anti-Drug Law took effect in June

2001, the country's law enforcement forces have investigated 64,660

cases involving 102,660 traffickers, representing 34 and 18 percent

increases, respectively, compared with the preceding five-year

period. Also during this five-year period, law enforcement officials

seized 1,005.23 kilograms of heroin, 1,584.45 kilograms of opium,

6,411.35 kilograms of cannabis, and 737,731 ATS tablets, and raided

3,000 locations related to narcotics trafficking.



Corruption. During 2006, the GVN demonstrated an increased

determination to combat corruption. In Prime Minister Nguyen Tan

Dzung's inaugural address, he said that Vietnam is "determined in

our fight against corruption, waste, and bureaucracy - the very top

priority in the Government's agenda in the months and years ahead."

In early October, the GVN debuted its Anti-Corruption Committee

headed by the Prime Minister. At the Committee's inaugural meeting,

the Prime Minster said its anti-corruption mission is backed by "the

entire political system" and gave instructions to resolve

high-profile corruption cases such as those involving Project

Management Unit 18 (PMU-18),the Vietnam Oil and Gas Corporation and

the Coal and Minerals Corporation. In connection with the PMU-18

case, General Cao Ngoc Oanh, Deputy Director, MPS General Department

of Police and a primary point of contact for DEA and other foreign

law enforcement agencies in Vietnam, was implicated in the ongoing

corruption scandal involving the embezzlement of millions of dollars

by high-ranking officials within Vietnam's Ministry of

Transportation. While General Oanh has yet to be charged with

criminal wrongdoing as the result of his involvement in the

corruption scandal, in May 2006 his sponsorship for membership in

the Communist Central Party Committee was cancelled, and his

possible promotion to Vice Minister of Public Security has been

derailed. The Prime Minister stressed the role of the press in

building a strong country and healthy society, and asked the

committee to work closely with the press to combat corruption.

According to a government report, authorities have uncovered 1,728

corruption cases during the first nine months of 2006. As a matter

of GVN policy, 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. No information specifically links any

senior GVN official with engaging in, encouraging or facilitating

the illicit production or distribution of drugs or substances, or

the laundering of proceeds from illegal drug transactions.

Nonetheless, a certain level of corruption, both among lower-level

enforcement personnel and higher-level officials, is consonant with

fairly large-scale movement of narcotics into and out of Vietnam.

The GVN did demonstrate a willingness in 2006 to prosecute

officials, although the targets were relatively low-level. In late

2005, six Hanoi policemen were arrested for their alleged role in

protecting a drug trafficking ring. The director of the police

department issued a decision to expel the officers from the force.

In February 2006, the chief police investigator in Hanoi's Hai Ba

Trung District was arrested for allegedly taking a bribe in exchange

for the release of a drug trafficker. The outcome of that case is

pending. Vietnam has signed, but not yet ratified, the UN Convention

against Corruption.



Agreements/Treaties. 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.

Vietnam has signed, but has not yet ratified, the UN Convention

Against Corruption.



Cultivation/Production. Despite eradication efforts, the GVN

reported small amounts of opium regrown during 2005-2006 growing

season in hard-to-reach upland and mountainous regions of some

northern, northwestern and central provinces, especially Son La

(26.9 ha),Dien Bien (7,905 m2),Yen Bai (137.2 ha),Lao Cai (0.2

ha) and Nghe An (5.4 ha). There were also minimal, scattered amounts

regrown in the southern provinces of Binh Thuan, Binh Phuoc, Dak

Lak, Khanh Hoa, Tay Ninh and Kien Giang. Poppy recultivation in 2006

showed a significant increase over the previous year, 170.8 hectares

versus 19 hectares, most likely due to more accurate reporting in

2006. The total number of hectares under opium poppy cultivation

remains sharply reduced from an estimated 12,900 hectares in 1993,

when the GVN began opium poppy eradication. UNODC and law

enforcement sources do not view production as a significant problem

in Vietnam. There have been recent confirmed reports that ATS and

heroin have been produced in Vietnam. GVN law enforcement forces

have seized some ATS-related equipment (i.e., pill presses). As part

of its efforts to comply fully with the 1988 UN Drug Convention, the

GVN continued in 2006 to eradicate poppies when found and to

implement crop substitution. 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. The GVN's Ministry of Agriculture and Rural Development

(MARD) continues to support crop substitution projects in various

provinces.



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Drug Flow/Transit. While law enforcement sources and the UNODC

believe that significant amounts of drugs are transiting Vietnam,

DEA has not yet identified a case of heroin entering the United

States directly from Vietnam. More commonly, drugs, especially

heroin and opium, enter Vietnam from the Golden Triangle via Laos

and Cambodia by land, sea and air, making their way to Hanoi or Ho

Chi Minh City, either for local consumption or transshipment to

other countries such as Australia, Japan, China, Taiwan and

Malaysia. The ATS flow into the country during 2006 continued to be

serious and not limited to border areas. ATS can now be found

throughout the country, especially in places frequented by young

people. ATS such as amphetamine, diazepam, ecstasy, ketamine and

especially "ice" methamphetamine continue to worry the government.

Such drugs are most popular in Hanoi, Ho Chi Minh City and other

major cities. During 2006, numerous cases involving ATS trafficking

and consumption were reported in the media.



Domestic Programs/Demand Reduction. The GVN continues to view

increased public awareness as an important preventive measure and

strategic key to reduce the number of addicts. According to the

GVN's 2006 - 2010 Master Plan for Drug Control, the Ministry of

Culture and Information (MOCI) remains responsible for public drug

control information and education among the general population.

During 2006, MOCI continued to coordinate with other ministries and

organizations to conduct awareness campaigns on HIV/AIDS and drugs.

June was declared the "anti-drug month," during which hundreds of

large-scale awareness meetings were held in localities throughout

the country. In Hanoi, MPS, MOCI and MOET co-hosted awareness

meetings and exchanges with the participation of government leaders

and more than 3,000 city students. In addition, the ministries

distributed hundreds of thousands of anti-drug leaflets and videos,

and organized anti-drug painting contests for children. The Ministry

of Education and Training (MOET) carries out awareness activities in

schools. Counternarcotics material is available in all schools and

MOET sponsors various workshops and campaigns at all school levels.

The border forces continued to play an "active role" in raising

awareness of the risks of drug use and disseminating

counternarcotics information to border villages and communes. The

UNODC assesses GVN drug awareness efforts favorably, but considers

these efforts to have had minimal impact on the existing addict and

HIV/AIDS population.



Vietnam has a network of drug treatment centers. There are now 84

centers at the provincial level, including a new one designed for

post-treatment vocational training and employment in Hanoi. Vietnam

has also strived to integrate addiction treatment and vocational

training to facilitate the rehabilitation of drug addicts. Ho Chi

Minh City is the pioneer in this campaign, followed by Tay Ninh

Province. In 2006, the GVN approved the addition of five other

provinces under this campaign including Ba Ria-Vung Tau, Quang Ninh,

Long An, Binh Duong and Hanoi. These efforts include tax and other

economic incentives for businesses that hire recovered addicts.

Despite these efforts, only a small percentage of recovered addicts

find regular employment. Under instructions for the Ho Chi Minh City

municipal authorities, businesses in the Nhi Xuan industrial zone

are expected to employ between 5,000 and 10,000 recovered addicts

out of a total 17,000 workers.



HIV/AIDS is a serious and growing problem in Vietnam. The epidemic

is closely related to intravenous drug use and commercial sex work.

Injection drug users (IDUs),commercial sex workers (CSWs),CSWs who

are also IDUs, men who have sex with men and sex partners of IDU and

CSWs are the most-at-risk populations in Vietnam. At least 60

percent of known HIV cases are IDUs. The result from a 2004 national

sentinel surveillance indicated a 29 percent HIV prevalence among

IDUs. However, in some provinces, the HIV prevalence is reported at

higher than 70 percent among IDUs. The Vietnamese National Strategy

for HIV Prevention and Control, launched in March 2004, presents a

comprehensive response to the HIV situation. Based on a

"Information-Education-Communication" approach, major components of

the strategy include risk reduction, condom promotion, clean needle

and syringe programs, voluntary counseling and testing and HIV/AIDS

treatment and care. In September 2006, MPS and the Ministry of

Health adopted a counternarcotics and HIV/AIDS prevention

coordination plan to help reduce the country's HIV/AIDS contraction

rate through drug injection. As of September, the GVN reported a

total of 112,880 HIV cases in the country. Out of that number,

19,261 are AIDS patients. The actual figure is believed to be three

times higher.



In June 2004, Vietnam was designated the 15th focus country under

the President's Emergency Plan for AIDS Relief (PEPFAR). USG FY06

funding, about 34 million dollars, is distributed through key PEPFAR

agencies such as USAID, HHS/CDC, and the US Department of Defense.

Through PEPFAR, the USG supports the Vietnam National HIV/AIDS

Strategy of Prevention, Care and Treatment for People Living with

HIV/AIDS (PLWHA). The majority of USG support targets six current

focus provinces (Hanoi, Hai Phong, Quang Ninh, Ho Chi Minh City, Can

Tho and An Giang) where the epidemic is most severe; however, PEPFAR



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also supports HIV counseling and testing and community outreach for

drug users and sex workers in nearly 40 provinces. At present, more

than 3,000 people receive lifesaving anti-retroviral drugs provided

by the USG and the PEPFAR team plans to provide ARV treatment for

22,000 people by the end of the 2008 fiscal year. Because the

majority of HIV infections in Vietnam are attributed to drug

injection, the PEPFAR team works closely with the Ministry of

Health, Ho Chi Minh City Provincial AIDS Committee (PAC) and others

to develop effective substance abuse treatment and HIV prevention

programs targeting drug users. In 2005 and 2006, USG-supported

programs have trained nearly 30 substance abuse counselors who work

in Hai Phong and HCMC. In cooperation with the HCMC PAC, the PEPFAR

team is piloting a comprehensive program to assist former

rehabilitation center residents prevent relapse, stabilize their

lives and access appropriate care for HIV disease. As this program

shows success, it will be expanded to assist drug users in provinces

beyond HCMC.



IV. U.S. Policy Initiatives and Programs



In 2003, Vietnam and the United States completed and signed a

bilateral counternarcotics agreement (LOA),which came into force in

2004. It represents the first direct bilateral counternarcotics

program assistance to Vietnam. In April, an amendment to the LOA was

signed to provide USD 500,000 in additional training assistance to

Vietnam. In June, USG trainers presented counternarcotics training

in Hanoi under the LOA. In September, a GVN drug law enforcement

delegation was sent to the U.S. for training under the amended LOA.

This will be followed by additional training in Ho Chi Minh City in

December. During 2006, the USG continued to fund training 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. Between January and October 2006, using State

Department law enforcement assistance, 51 Vietnamese law enforcement

officers attended the Academy for various types of training. DEA

sponsored mid- and high-level law enforcement officials from MPS to

attend three Regional International Drug Enforcement Conferences

and, using State Department law enforcement assistance, the main

International Drug Enforcement Conference. Additionally, DEA's

International Training Unit conducted in-country seminars titled

"Tactical Safety & Survival" and "Advanced Drug Enforcement." The

USG also contributed to counternarcotics efforts through the UNODC.

An ongoing example of the USG's contribution through UNODC is the

G55 project titled "Interdiction and Seizure Capacity Building with

Special Emphasis on ATS and Precursors," which established six

Vietnamese interagency task forces at key border "hotspots" around

the country. Effective operational cooperation between DEA and MPS

continued to be lacking. In early 2006, DEA submitted to MPS a draft

MOU, which is awaiting the GVN's response, to allow more-in-depth

cooperation.



The Road Ahead. 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. During 2006, 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 unlateral

action against drugs and drug traffickin. Vietnam still faces many

internal problems thatmake fighting drugs a challenge. With the

amendmnt to the counternarcotics LOA, the USG can look frward to

continued cooperation in the area of asistance to Vietnamese law

enforcement agencies. perational cooperation, however, remains on

hold ending the development of a legal framework in Vienam to

allow foreign law enforcement officers tocarry out operations on

Vietnamese soil, or the igning of a bilateral agreement between the

Unitd States and Vietnam that would create a mechanism or the

joint investigation and development of drg cases.



End text.



MARINE