VIETNAM TAKES ON OVERSEAS EMPLOYMENT BROKERS

UNCLAS HANOI 000471 SENSITIVE SIPDIS STATE FOR EAP/MLS, DRL/AWH, PRM/PIM, AND G/TIP BANGKOK FOR REFCOORD E.O. 12958: N/A TAGS: PHUM PGOV TIP ELAB KWMN KCRM SMIG PREL VM SUBJECT: VIETNAM TAKES ON OVERSEAS EMPLOYMENT BROKERS REFS: A) HANOI 0309; B) HANOI 0356; C) HANOI 0400; D) HANOI 0435 ¶1. (SBU) Summary: The GVN is completing investigation of a recent series of export-labor fraud cases, 80 percent of which involved Vietnamese laborers recruited to work in South Korea. Over 100 individuals, involved in the 2006-2007 labor brokerage fee scam, have been prosecuted for taking advantage of would-be laborers in a case involving 3,000 victims and USD 5.6 million over two years. Prison sentences doled out have ranged from three to eleven years, and USD 1.3 million has been recovered. The prosecutions are a positive sign that the GVN takes this problem seriously. End summary. ¶2. (U) In August 2004, Vietnam and the Republic of Korea (ROK) signed an agreement to send Vietnamese employees abroad through the ROK's Employment Permit System, a non-profit program providing employees with attractive working conditions at a low cost. But under the program, the number of workers allowed to be sent to the ROK is limited and demand exceeds allotment, leading to export-labor fraud. Illegal brokerages have offered Korean classes and organized exams with promises that workers will be sent to the ROK pending the results of the exams. For these services, many workers knowingly paid illegal Vietnamese brokerages far more than the regulated fees. ¶3. (U) According to press reports, the Hanoi police said that from the beginning of 2006 to June 2007, there were 71 cases of fraud totaling USD 3.3 million and involving 119 perpetrators and 2,118 alleged victims. Reliable GVN sources put the amount at USD 5.6 million, involving 198 perpetrators and 3,000 victims from January 2006 to December 2007. The increasing number of branches and centers for labor export enterprises are said to be worsening the situation. Of the 160 labor export businesses in Vietnam, 100 have now been qualified for re-licensing by the Ministry of Labor, Invalids and Social Affairs (MOLISA) while 20 companies are under review. ¶4. (U) The regulated fee for Vietnamese workers going to Korea is USD 654 and pays for selection, training, visa procedures and airline tickets. An additional VND 280,000 (USD 17.5) is required for uniforms and name cards. Dao Cong Hai, Deputy Head of the Overseas Labor Division of MOLISA, was reported as saying that "local authorities' labor-export management has not been strict enough to discover and prevent cases of fraud in time." Hai stressed in a statement that workers absolutely did not need to pay money to brokerages. ¶5. (SBU) Reliable GVN sources tell us that 80 cases involving well over 100 individuals have been brought to trial in total nationwide. Over 100 individuals were convicted, with sentences ranging from three to eleven years. In Vietnam, cases are only brought to trial by the GVN if a conviction is likely. ¶6. (SBU) Comment: As Vietnam sends increasing numbers of laborers overseas, illegal brokerages are cropping up to take advantage of those seeking better employment opportunities in other countries. The cases the GVN has brought against over 100 of the perpetrators indicate that the GVN takes this problem seriously. End comment. ¶7. (U) This cable was coordinated with ConGen Ho Chi Minh City. MICHALAK