US embassy cable - 03HANOI1063

UNCLAS SECTION 01 OF 02 HANOI 001063 
 
SIPDIS 
 
STATE FOR INL/AAE; EAP/BCLTV 
 
E.O. 12958:  N/A 
TAGS: PREL, SNAR, SOCI, PGOV, ETRD, ECON, EAID, LA, VM, CNARC 
SUBJECT:  NAM CAN BORDER OPEN FOR BUSINESS 
 
REF:  A.  Hanoi 1043   B.  02 Hanoi 2889 
 
1.  (U)  SUMMARY.  The Vietnam - Laos Nam Can border 
crossing in Nghe An province opened to foreigners  in 
January 2003.  There appears to be a frenzy of building 
activity in and around the border, but cross border traffic 
remains modest.  Smuggling of drugs and other contraband in 
the border area remains a chronic problem.  Vietnamese and 
Lao border forces coordinate regularly and there have been 
small drug seizures based on cross border cooperation.  With 
the border crossing internationalized, tourist development 
will be more possible.  Ref a covered the United Nations 
Office of Drugs and Crime (UNODC) Ky Son project.  END 
SUMMARY. 
 
2.  (U)  During a monitoring trip to UNODC's Ky Son project 
April 21 - 24, poloff and pol FSN visited the Nam Can border 
crossing at the end of National Highway 7 in Ky Son 
district.  From Mung Xem, the district capital, it is about 
15 miles to the border over a winding, hilly, but reasonably 
well-paved road. 
 
 
 
-------------------- 
FOREIGNERS CAN CROSS 
-------------------- 
 
3.  (U)  Nguyen Cong Dong, head of the Nam Can border unit, 
confirmed that the Nam Can border crossing is now open to 
foreigners.  Dong said that this plan had been in the works 
"for a couple years" and that it is part of the GVN's 
overall plan to upgrade border crossings between Vietnam and 
Laos. (Note:  ref b reported on the Cau Treo border crossing 
on Highway 9 in Ha Tinh province and the Lao Bao crossing on 
Highway 8 in Quang Tri province.  End note.)  The crossing 
at Nam Can is relatively far from any significant population 
center; Vinh, a large city along the main north-south 
Highway 1, and its companion port at Cua Lo, are about a six- 
hour drive to the east. 
 
4.  (U)  The Nam Can crossing remains little known and there 
has been little, if any, official coverage of this decision 
to internationalize it.  Dong estimated that, since Nam 
Can's opening to foreigners, "about 100 people from 15 to 20 
different countries" have crossed, using various modes of 
transportation.  He recalled a small group of foreigners 
even crossing on bicycles.  He predicted that, once the 
border crossing is better known, the numbers will "increase 
substantially." 
 
--------------------------------- 
MUCH CONSTRUCTION, MODEST TRAFFIC 
--------------------------------- 
 
5.  (U)  There appears to be a large amount of construction 
activity around the border area, mostly in initial stages. 
The last section of the main road is being upgraded and a 
large area adjacent to the road is being leveled.  Dong 
claimed that he was not sure what the construction plans 
are, but he guessed that "most likely" there would be 
trading center, post office, bank, and hotel built "within 
the next five to ten years."  Dong said that as far as he 
knew, the GVN had not yet declared the area a "border 
economic zone" as it has in other Vietnam - Lao crossings 
(ref b), but he predicted the area would be so designated 
"in the near future." 
 
6.  (U)  Locals from both sides of the border may cross 
freely with permits from the relevant authorities.  They may 
even stay on the other side for up to 10 days, but must 
report to the local police, Dong added.  He noted that many 
residents (mostly Hmong) have relatives on both sides of the 
border and that villages and towns on the Lao side are 
"quite similar" to those in Vietnam. 
 
7.  (U)  Cross border traffic is still modest, according to 
Dong.  He estimated that about 70 - 100 vehicles cross 
daily, but the traffic is not steady.  During the two hours 
poloffs were in the area, there was little activity on 
either side and no vehicles crossed.  Dong predicted that 
tourist development in Ky Son would now be more possible 
with an international border and that more tourist 
guesthouses would go up in Mung Xen "within the next couple 
years."  (There are currently only two.)  He also noted that 
the UN project is helping to raise living standards in the 
area and "should lead to more trade." 
 
----------------------------- 
SMUGGLING - A CHRONIC PROBLEM 
----------------------------- 
 
8.  (U)  Smuggling of drugs and other contraband remains a 
major problem along the Lao - Vietnam border, including at 
Nam Can.  Dong admitted that "significant amounts" of 
narcotics are entering Vietnam from the Lao side, not just 
through the border, but also via the heavily wooded and 
steep hills that surround the area.  The drugs, which also 
include lesser amounts of amphetamine type stimulants (ATS), 
mostly originate from the Golden Triangle.  While domestic 
consumption is growing, even in Ky Son, the bulk of the 
narcotics likely continue to be transshipped to other 
countries, including the PRC and Australia, he added. 
 
9.  (U)  Dong admitted that drug smuggling is a "difficult 
and complicated" problem.  To get at the problem, Dong said 
that his forces have taken a number of initiatives, 
including information campaigns, using informants, and, 
cooperating with the local Customs office as well as the Lao 
counterparts.  Despite these efforts, results appear rather 
meager.  In 2002, according to Dong, his forces made only 15 
drug arrests and confiscated 37.5 kilograms of opium, 1,112 
vials of ATS, and about one kilogram of heroin. 
 
10. (U)  In addition to drugs, Dong said that other 
contraband make their way down Highway 7.  Most of the 
smuggled goods originate from Thailand and include small 
electronics and appliances, motorbike parts, and cigarettes. 
In some cases, drivers drop off goods along the road for 
distribution to more remote areas. 
 
11.  (U)  Dong said that his equipment is "basic, but 
generally sufficient."  He has drug-testing kits to make 
basic tests, but for further analyses, he sends suspected 
drugs to a testing lab in Hanoi.  Most of his force has 
undergone Ministry of Public Security basic drug training, 
which he termed "very helpful." 
 
12.  (U)  Dong claimed that cross border coordination is 
"good" and he and his Lao counterparts have "excellent 
relations."  They meet at least once a quarter, but more 
often if necessary.  He said cross border information 
exchanges have been "helpful" in making drug-related 
arrests.  Specifically, Dong recounted that in October 2002, 
he received a tip from his Lao counterpart about an opium 
smuggler crossing into Vietnam via a nearby forest path. 
The Lao counterpart provided information regarding timing 
and routing that enabled his forces to ambush the 
individual. 
BURGHARDT