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Viewing cable 08HANOI471, VIETNAM TAKES ON OVERSEAS EMPLOYMENT BROKERS

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Reference ID Created Released Classification Origin
08HANOI471 2008-04-23 09:52 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Hanoi
VZCZCXRO9510
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHHI #0471 1140952
ZNR UUUUU ZZH
R 230952Z APR 08 ZDK
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 7686
INFO RUEHHM/AMCONSUL HO CHI MINH 4634
RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHAM/AMEMBASSY AMMAN 0041
RUEHUL/AMEMBASSY SEOUL 3322
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