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### Viewing cable 00HANOI1615, AVERAGE VIETNAMESE COMMENT ON ECONOMIC CHANGE IN TWO POOR HANOI NEIGHBORHOODS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
00HANOI1615 | 2000-07-27 10:08 | 2011-08-25 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Hanoi

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

    2000HANOI01615 - UNCLASSIFIED

                               UNCLASSIFIED     PTO5784

    PAGE 01        HANOI  01615  272040Z
    ACTION EAP-00

    INFO  LOG-00   NP-00    AID-00   ACQ-00   CEA-01   CIAE-00  CTME-00
          ITCE-00  DOTE-00  SRPP-00  DS-00    EB-00    ED-01    EXME-00
          E-00     FAAE-00  FBIE-00  UTED-00  VC-00    FRB-00   HHS-01
          H-01     SSA-01   TEDE-00  INR-00   ITC-01   L-00     VCE-00
          MOFM-04  MOF-03   AC-01    NSAE-00  NSCE-00  OMB-01   OPIC-01
          PA-00    PM-00    PRS-00   ACE-00   P-00     SP-00    SSO-00
          STR-00   USIE-00  PMB-00   DSCC-00  DRL-02   G-00     NFAT-00
          SAS-00     /018W
                      ------------------7354D6  272041Z /75
    FM AMEMBASSY HANOI
    TO SECSTATE WASHDC PRIORITY 0447
    INFO ASEAN COLLECTIVE
    AMCONSUL HONG KONG
    AMCONSUL HO CHI MINH CITY
    DIA WASHDC
    SECDEF WASHDC
    USDOC WASHDC
    USDA FAS WASHDC
    USCINCPAC HONOLULU HI
    DEPTTREAS WASHDC

` `

    UNCLAS HANOI 001615

    SIPDIS

    SENSITIVE

    STATE ALSO FOR EAP/BCLTV, EB, INR, EAP/CM, DRL
                           UNCLASSIFIED

    PAGE 02        HANOI  01615  272040Z
    STATE ALSO FOR USAID
    BANGKOK ALSO FOR RMA/ODP
    MANILA FOR USAID/DAVIS
    SECDEF ALSO FOR ISA/EA/LSTERN
    USDOC ALSO FOR 4431/MAC/IEP/OKSA/HPPHO
    CINCPAC ALSO FOR FPA

    E.O. 12958: N/A
    TAGS: SOCI PGOV PREL ECON VM
    SUBJECT: AVERAGE VIETNAMESE COMMENT ON ECONOMIC CHANGE IN TWO POOR HANOI NEIGHBORHOODS

    ¶1.  (SBU) SUMMARY.  OUTLYING DISTRICTS OF HANOI ARE
    ATTRACTING LARGE NUMBERS OF "IMMIGRANTS" FROM DEPRESSED
    RURAL AREAS SEEKING EMPLOYMENT.  MANUFACTURING JOBS
    HERE, THOUGH MISERABLY PAID BY U.S. STANDARDS,
    NEVERTHELESS PAY FAR MORE THAN THE PEASANT FARMS THEY
    LEAVE BEHIND.  TO GET A FIRST HAND LOOK AT THIS
    PHENOMENON, POLOFF SPENT MOST OF A DAY MEETING
    RESIDENTS OF TWO SUCH DISTRICTS, DONG ANH AND SOC SON.
    THEY SPOKE OF PROBLEMS WITH YOUTH UNEMPLOYMENT, THE
    DIFFICULTY OF OBTAINING GOVERNMENT JOBS, INSUFFICIENT
    BENEFITS, AND LONG WORK HOURS.  POLOFF ALSO VISITED A
    SHOP DOING BRISK SALES OF CHEAP "COUNTERFEIT" CHINESE
    MOTORBIKES TO THESE LOW-INCOME OUTSIDERS.  DESPITE
    THEIR ECONOMIC PROBLEMS, MANY RESIDENTS SAID THEY LIVE
    BETTER TODAY THAN FORMERLY BECAUSE OF VIETNAM'S MORE
    OPEN ECONOMY.  POLOFF WAS IMPRESSED TO LEARN THAT
    SEEMINGLY PENNILESS RESIDENTS HAVE NEVERTHELESS MANAGED
    TO SAVE ENOUGH FROM MEAGER INCOMES TO SEND CHILDREN TO
                           UNCLASSIFIED

    PAGE 03        HANOI  01615  272040Z
    COLLEGE.  INDICATIONS ARE THAT THE BRIGHT LIGHTS OF
    HANOI WILL CONTINUE TO ATUT THE SOCIO-
    ECONOMIC CONSIDITIONS IN WHICH THEY LIVE.  WHILE NOT
    INTENDING TO BE SCIENTIFIC OR EXHAUSTIVE, WE HOPE TO
    GIVE READERS A CLEARER IMPRESSION OF HOW RESIDENTS OF
    VIETNAM'S CAPITAL AND SECOND LARGEST CITY FEEL ABOUT
    THEIR LIVES IN A COUNTRY UNDERGOING RAPID CHANGE.  THIS
    CABLE REPORTS CONVERSATIONS OF POLOFF AND FSN POLITICAL
    ASSISTANT WITH RESIDENTS OF TWO ADJACENT SEMI-RURAL,
    SEMI-INDUSTRIAL DISTRICTS, DONG ANH AND SOC SON,
    LOCATED AT THE EDGE OF HANOI ALONG ROUTE 3 LINKING
    HANOI TO THE PROVINCE OF THAI NGUYEN.

    A NOTE ON DONG ANH
    ------------------

    ¶3.  (U) THE DISTRICT OF DONG ANH, POPULATION 258,400,
    IS LOCATED 23 KILOMETERS NORTH OF THE CITY OF HANOI.
    IT IS DIVIDED INTO 23 COMMUNES, WITH AN OVERALL
    POPULATION DENSITY OF 1,346 PERSONS PER SQUARE
    KILOMETER.  WITH SEVERAL LARGE ENTERPRISES AND FOREIGN
    JOINT VENTURES, IT OFFERS JOBS IN THE MANUFACTURING
    SECTOR WHICH HAVE ATTRACTED MANY OUTSIDERS.  ACCORDING
    TO GVN STATISTICS, ANNUAL PER CAPITA INCOME IS VND
    2,760,000 (USD 197.)

    GVN RETIREE: "TODAY, PRIVATE SECTRS. HANG, AT THE TEA STAND THEY
    OWN.  MR. HANG, 52, IS A RETIRED GOVERNMENT MECHANIC.
    MRS. HANG DOES MOST OF THE WORK RUNNING THE STAND. THEY
    COMMENTED ON ECONOMIC CHANGES THAT HAVE BEEN OCCURRING
    IN THEIR NEIGHBORHOOD.
                           UNCLASSIFIED

    PAGE 04        HANOI  01615  272040Z

    ¶5.  (SBU) THE HANGS SAID THE BEST-OFF EMPLOYEES IN
    THEIR AREA ARE THOSE WHO WORK AT THE LOCAL HANEL PLANT.
    ORION-HANEL IS A SOUTH KOREA-VIETNAM JOINT VENTURE
    WHICH MANUFACTURES TELEVISION PICTURE TUBES.  WORKERS
    AT THE HANEL FACTORY EARN VND 1 MILLION PER MONTH (USD
    71), ENOUGH TO BUILD INDIVIDUAL HOMES FOR THEIR
    FAMILIES.  THESE WORKERS ENJOY REAL JOB SECURITY, THE
    HANGS SAID, AND WITH LOCAL CONSUMERQRICES LOW, THEY
    LIVE RATHER WELL.

    ¶6.  (SBU) THE SITUATION IS MORE PROBLEMATIC FOR THOSE
    EMPLOYED IN THE GOVERNMENT SECTOR.  MR. HANG RECEIVES A
    PENSION OF VND 400,000 PER MONTH (USD 28) FOR HIS YEARS
    OF SERVICE, "ENOUGH TO LIVE WELL AND LET MY KIDS TAKE
    CARE OF ME," HE SAID.  TODAY, HOWEVER, THE GOVERNMENT
    SO,BASIS RATHER THAN AS PERMANENT EMPLOYEES.  CONTRACT SALARIES, HE
    SAID, ARE NO BETTER THAN THOSE EARNED BY PERMANENT
    EMPLOYEES, BUT CONTRACTORS DON'T RECEIVE COMPARABLE
    BENEFITS.  FOR EXAMPLE, HE SAID, A CONTRACTOR WOULD NOT
    RECEIVE HIS SECURE PENSION.

    ¶7.  (SBU) MRS. HANG ADDED THAT IT IS BECOMING EXTREMELY
    DIFFICULT TO GET A GOVERNMENT JOB.  INCREASINGLY, SHE
    SAID, YOUNG PEOPLE IN THE AREA "LAZE AROUND THE HOUSE"
    BECAUSE THEY HAVE NO JOBS.  IN MANY CASES, SHE SAID,
    THEY LACK BOTH THE CREDENTIALS TO OBTAIN JOBS AND THE
    WHEREWITHAL TO OFFER THE BRIBES NECESSARY TO OBTAIN
    THEM.  SHE EXPLAINED THAT OBTAINING A GOVERNMENT JOB
    USUALLY MEANT PROVIDING THE RELEVANT OFFICIAL A SUM OF
    MONEY OR A SUBSTANTIAL GIFT.
                           UNCLASSIFIED

    PAGE 05        HANOI  01615  272040Z

    ¶8.  (SBU) MRS. HANG SAID SHE ENJOYS GOOD RELATIONS WITH
    LOCAL OFFICIALS.  SHE BOASTED THAT BECAUSE HER TEA
    STAND EARNS ONLY A MODEST INCOME, THEY ALLOW HER TO RUN
    THE STAND WITHOUT PAYING TAXES, WHILE OTHERS MUST PAY.

    SUCCESSFUL YOUTH WORK SEVENTY HOURS A WEEK IN WORKSHOPS
    --------------------------------------------- ----------

    ¶9.  (SBU) IN THE NEIGHBORING DONG ANH VILLAGE OF DUC
    TU, POLOFF CHATTED WITH A GROUP OF MEN AT A MAKESHIFT
    OUTDOOR TEA GARDEN.  MOST WERE IN THEIR EARLY TWENTIES,
    ALTHOUGH TWO WERE IN THEIR FORTIES.  THE LEADER OF THE
    GROUP SEEMED TO BE MR. LAP, AGE 23.

    ¶10.   (SBU) THE YOUNG MEN WORK AT A NEARBY STEEL
    FABRICATING WORKSHOP.  THESE WORKSHOPS HAVE BECOME A
    SPECIALTY OF THE VILLAGE, AND ONE SEES THEM ALMOST
    EVERYWHERE.  MR. LAP SAID THAT HE AND HIS COLLEAGUES,
    ALL OF WHOM HAVE EIGHTH GRADE EDUCATIONS, ARE HAPPY TO
    HAVE WELL-PAYING JOBS THERE (THEY EARN ABOUT VND 2
    MILLION A MONTH, ABOUT USD 142), BUT WORK VERY LONG
    HOURS FOR THEIR SALARIES: TEN HOURS A DAY, SEVEN DAYS A
    WEEK.  STILL, THEY CONSIDER THEMSELVES PARTICULARLY
    SUCCESSFUL BECAUSE MOST OF THEIR PARENTS ARE RURAL
    PEASANTS WHO EARN LESS IN ONE YEAR THAN THEY EARN IN A
    MONTH.  MR. LAP, LIKE MOST OF HIS COHORTS, IS SINGLE
    SINCE HE HAS NOT YET REACHED THE AGE OF 25, CONSIDERED
    THE IDEAL MARRIAGE AGE FOR A MAN IN SEMI-RURAL DUC TU.
    (NOTE: THE IDEAL MARRIAGE AGE FOR A WOMAN IN THIS AREA
    IS CONSIDERED TO BE ABOUT 18.  END NOTE.)
                           UNCLASSIFIED

    PAGE 06        HANOI  01615  272040Z

    ¶11.  (SBU) ABOUT HALF THE LOCAL WORKERS ARE FROM DUC TU
    ITSELF, BUT THE OTHER HALF HAIL FROM STILL POORER
    NEARBY VILLAGES, OR FROM THE NEIGHBORING PROVINCE OF
    THAI NGUYEN, SAID THE WORKERS. THERE ARE ALSO SOME
    TRAINED TECHNICIANS FROM SAIGON AT THE VARIOUS
    WORKSHOPS, THEY ADDED.  THESE OUTSIDERS ARE WELCOMED
    BECAUSE THE WORKSHOPS NEED LABOR.  SEVERAL OUTSIDERS
    HAVE MARRIED WOMEN FROM THE VILLAGE.  STILL, ALTHOUGH
    THEY ARE WELCOMED, THEY ARE STILL CONSIDERED OUTSIDERS
    WHO WERE NOT BORN IN DUC TU.

    ¶12. (SBU) THESE YOUNG MEN SEEMED HAPPY ABOUT THEIR
    CURRENT ECONOMIC CONDITIONS, FAR BETTER THAN THOSE OF
    THEIR PARENTS.  BUT AMONG THE GROUP WERE TWO OLDER MEN
    WHO WERE MORE CIRCUMSPECT, BOTH WAR VETERANS IN THEIR
    FORTIES WHO ARE TOO OLD OR WEAK TO WORK AT THE STEEL
    WORKSHOPS.  ONE OF THE VETS, IN HIS MID-FORTIES, HAD
    BEEN STATIONED WITH NORTH VIETNAMESE FORCES FOR FIVE
    YEARS IN THE AREA AROUND THE THEN-U.S. BASE AT BIEN HOA
    (FORMER SOUTH VIETNAM).  THE OTHER, IN HIS LATE
    FORTIES, HAD SERVED AS A NORTH VIETNAMESE SOLDIER
    PRIMARILY IN THE SOUTHERN PROVINCE OF TAY NINH.  THE
    SECOND VET CANNOT WORK IN THE STEEL WORKSHOPS BECAUSE
    HE HAS A BRAIN CONDITION STEMMING FROM THE WAR.  HE
    SAID A U.S. BULLET ENTERED HIS TEMPLE DURING COMBAT
    NEAR THE CAMBODIAN BORDER, SHOWING POLOFF THE STILL-
    VISIBLE SCAR.  HE CARRIES SHRAPNEL INSIDE HIS HEAD.
    CHANGES IN THE WEATHER, HE SAID, CAN CAUSE DEBILITATING
    PAIN.  THEREFORE, HE WORKS AS A MOTORBIKE DRIVER, AND
    EARNS NO MORE THAN VND 10,000 TO 15,000 (U.S. 70 CENTS
                           UNCLASSIFIED

    PAGE 07        HANOI  01615  272040Z
    TO ONE DOLLAR) PER DAY.

    WILL UNIVERSITY STUDENT SON GRADUATE TO UNEMPLOYMENT?
    --------------------------------------------- --------

    ¶13.  (SBU) DASHING INTO A TINY STAND FOR BEEF NOODLE
    SOUP, POLOFF MET THE OWNER, MR. DUY.  MR. DUY EARNS VND
    700,000-800,000 (USD 50-57) PER MONTH FROM THE STAND,
    BUT ALSO EARNS ABOUT VND ONE MILLION (USD 71) PER MONTH
    FROM A SIDE JOB AS A MOTOR SCOOTER REPAIRMAN.  HE SAID
    THE LOCAL ECONOMY IS DOING WELL, BUT HIS STAND IS
    SUFFERING.  IT USED TO BE THE ONLY ONE IN THE AREA, BUT
    WITH SO MANY OUTSIDERS MOVING IN FOR JOBS, ESPECIALLY
    FROM THAI NGUYEN, OTHER SOUP STANDS HAVE OPENED UP TO
    COMPETE WITH HIS.

    ¶14.  (SBU) HE SAID THAT DOING BUSINESS IS EASIER IN
    VIETNAM TODAY THAN EVER BEFORE, WITH FEWER RESTRICTIONS
    ON BUYING AND SELLING.  BUT THE BIG PROBLEM IS
    UNEMPLOYMENT, ESPECIALLY AMONG YOUTH.  HE OFFERED HIS
    SON AS AN EXAMPLE.  HIS SON IS CURRENTLY STUDYING
    EDUCATION AT THE UNIVERSITY IN HANOI (MR. DUY HIMSELF
    IS NOT COLLEGE-EDUCATED). BUT HE BELIEVES JOBS ARE
    SCARCE IN EDUCATION IN THE HANOI AREA.  HE EXPECTS HIS
    SON TO BE UNEMPLOYED WHEN HE GETS HIS DIPLOMA.

    A NOTE ON SOC SON
    -----------------

    ¶15.  (U) SOC SON, LOCATED ABOUT 40 KILOMETERS NORTH OF
    THE CITY OF HANOI, IS CONSIDERED HANOI'S POOREST
                           UNCLASSIFIED

    PAGE 08        HANOI  01615  272040Z
    SUBURBAN DISTRICT.  IT IS BELIEVED TO CONTAIN THE
    HIGHEST NUMBER OF POOR FAMILIES OF ANY HANOI DISTRICT.
    ITS 243,300 RESIDENTS LIVE IN 25 COMMUNES ON A TOTAL
    AREA OF 306 SQUARE KILOMETERS.  JOBS ARE PROVIDED BY
    1,850 PRIVATE INDUSTRIES, AS WELL AS BY THE INDUSTRIAL
    ZONF HANOI'S
    LABORING CLASS.  ACCORDING TO GVN STATISTICS, ANNUAL
    PER CAPITA INCOME IS VND 1,700,000 (USD 121).

    WOULD YOU BUY A "HONG DA" DREAM?
    --------------------------------

    ¶16.  (SBU) PASSING DOWN HIGHWAY 3 TOWARDS SOC SON,
    POLOFF STOPPED OFF AT THE SMALL MOTORSCOOTER SALES LOT
    OF MRS. HUONG.  THE TWENTY OR SO MOTORBIKES ON DISPLAY
    ALL LOOK LIKE HONDA DREAMS AND HONDA WAVES AT FIRST
    GLANCE.  BUT CLOSER INSPECTION REVEALS SHODDY
    WORKMANSHIP, AND TRADEMARKS THAT SAY "HONG DA" OR
    "HUNDA" RATHER THAN "HONDA," "DREAMY" RATHER THAN
    "DREAM," "WAVY" RATHER THAN "WAVE."

    ¶17.  (SBU) MRS. HUONG EXPLAINED THAT THE BIKES WERE
    MADE IN CHINA.  PURCHASED NEW, THEY SELL FOR ABOUT VND
    11,000,000 (USD 785), VERSUS THE VND 33,000,000 (USD
    2,400) NECESSARY TO BUY A NEW HONDA DREAM, THE MOST
    POPULAR MOTORBIKE IN VIETNAM.  SHE OPENED HER LOT ON
    THE FIRST OF THE YEAR, AND, SHE SAID, SALES HAVE BEEN
    BRISK, ABOUT 15-20 BIKES A MONTH, FROM WHICH SHE MAKES
    ABOUT VND 100,000 (USD 7) PROFIT ON EACH ONE. THEY ARE
    SOLD MOSTLY TO THE OUTSIDERS WHO HAVE BEEN MOVING IN
                           UNCLASSIFIED

    PAGE 09        HANOI  01615  272040Z
    FROM POOR RURAL AREAS.  SHE SAID THAT SHE PAYS ABOUT
    VND 300,000-400,000 (USD $21 TO 28) A MONTH IN TAXES.

    ¶18.  (SBU) AREN'T YOU BREAKING THE LAW BY SELLING THESE
    COUNTERFEIT CHINESE-MADE KNOCKOFFS?, ASKED POLOFF.  NOT
    AT ALL, REPLIED MRS. HUONG.  THEY ARE CLEARLY LABELED
    AS "HUNDA" OR "HONG DA", NOT "HONDA," SO NO LAW IS
    BROKEN, SHE ASSERTED.  (NOTE: CUSTOMERS ARE AWARE THAT

    ¶19.  (SBU) FURTHER DOWN THE ROAD IN THE VILLAGE OF PHU
    LO, A "TUC TUC" (THREE-WHEELED MOTOR CAB) DRIVER AT A
    TEA STALL SAID THAT THE KIM ANH TEA PROCESSING PLANT
    OPENED IN 1990 HAD ATTRACTED "A LOT" OF LOCALS TO THE
    AREA, ESPECIALLY FROM NEARBY THAI NGUYEN.  HE SAID THE
    THAI NGUYEN WORKERS SOMETIMES RETURNED TO THEIR
    PROVINCE FOR WORK DURING THE VARIOUS HARVEST SEASONS.
    HE SAID THE LOCAL ECONOMY TOOK A NOSE DIVE SOME YEARS
    AGO FROM WHICH IT IS STILL RECOVERING DUE TO THE
    PRESENCE OF THE TEA PROCESSING INDUSTRY: THE RAPIDLY
    URBANIZING AREA USED TO BE A CENTER FOR TOBACCO
    CULTIVATION.  BUT WITH THE GOVERNMENT'S ANTI-SMOKING
    CAMPAIGN, THE DEMAND FOR TOBACCO DIMINISHED AND LOCAL
    PEASANTS WERE LEFT WITH NO LIVELIHOOD UNTIL THE KIM ANH
    PLANT OPENED.

    PEASANT FAMILY OF EIGHT LIVES ON 17 DOLLARS A YEAR
    --------------------------------------------- -----

    ¶20.  (SBU) ALTHOUGH THE SOC SON AREA, LOCATED CLOSE TO
    NOI BAI INTERNATIONAL AIRPORT, IS RAPIDLY URBANIZING,
    THERE IS STILL CONSIDERABLE AGRICULTURAL ACTFRUIT OFF THE
                           UNCLASSIFIED

    PAGE 10        HANOI  01615  272040Z
    VINES, WHICH HE SAID HAD BEEN ATTACKED BY MICE.
    ALTHOUGH MR. BAO'S MELON PLOT IS 450 SQUARE METERS IN
    AREA, HE SAID HIS EIGHT MEMBER FAMILY HAS BEEN
    ALLOCATED A TOTAL OF 3,500 SQUARE METERS OF
    AGRICULTURAL LAND OVERALL.  MOST OF THE REST IS DEVOTED
    TO PADDY RICE.

    ¶21.  (SBU) MR. BAO SAID THAT IN RETURN FOR THE LAND, HE
    MUST PAY THE LOCAL COMMUNE 30 KILOGRAMS OF RICE PER
    YEAR.  HE GETS A BETTER RETURN FROM HIS MELON PLOT THAN
    FROM HIS RICE PADDIES, ABOUT VND 250,000 (USD 17) PER
    HARVEST.  DURING THE SECOND HARVEST, HE PLANTS
    CUCUMBERS.

    ¶22.  (SBU) MR. BAO SAID THAT THE LAND HE HAS UNDER
    CULTIVATION BRINGS IN ABOUT VND 650,000 (USD 45) PER
    YEAR TOTAL, OF WHICH VND 400,000 (USD 28) MUST BE PAID
    OUT IN TAXES.  (NOTE: WE BELIEVE BAO AND HIS FAMILY
    HAVE ADDITIONAL SOURCES OF INCOME, BEYOND THE USD 17
    PER YEAR WE CALCULATE THIS LEAVES HIM FROM AGRICULTURAL
    SOURCES.  END NOTE).  HE SAID GOOD WEATHER IN RECENT
    YEARS LED TO GOOD HARVESTS AND MORE INCOME.  HE HAS
    ALSO BORROWED ABOUT VND 2-3 MILLION (USD 142-214) IN
    VARIOUS LOANS AT 15-20 PERCENT INTEREST.

    LOTS OF BUSINESS REPAIRING CARS
    -------------------------------

    ¶23.  (SBU) IN SOC SON, POLOFF VISITED A CAR REPAIR SHOP
    OWNED BY MR. SON.  HE AND HIS STAFF WERE WORKING ON
    PAINTING A 1989 HONDA FROM BLACK TO WHITE.  MR. SON'S
                           UNCLASSIFIED

    PAGE 11        HANOI  01615  272040Z
    SHOP EMPLOYS NINE MEN, MOST OF THEM LOCALS BUT A FEW
    WHO HAVE "IMMIGRATED" HERE FROM NAM DINH.

    ¶24.  (SBU) MR. SON SAID HIS SHOP IS VERY BUSY BECAUSE
    TAXI SERVICES AT NEARBY NOI BAI AIRPORT NEED TO KEEP
    THEIR CARS IN LIKE-NEW CONDITION.  HE SAID HE IS NOT
    AWARE OF MANY PEOPLE MOVING INTO THE AREA BECAUSE
    THERE IS ALREADY CONSIDERABLE UNEMPLOYMENT AMONG AREA
    TAXI DRIVERS.  HE SAID THAT HE PAYS OUT ABOUT VND
    100,000 (USD 7) A MONTH IN TAXES, WHICH, HE SAID, IS
    LOW BECAUSE THE LOCAL TAX AUTHORITY GIVES FAMILY-OWNED
    BUSINESSES SUCH AS HIS PREFERENTIAL TREATMENT.  HE SAID
    THAT MANY HANOI CAR OWNERS, SUCH AS THE OWNER OF THE
    HONDA HE WAS PAINTING, COME OUT HERE FOR REPAIRS
    BECAUSE PRICES ARE CHEAPER THAN IN THE CITY.

    WILL ELECTRICIAN SON LEAVE THE FARM FOR HANOI?
    --------------------------------------------- -

    ¶25.  (SBU) WHILE EATING LUNCH AT A RUSTIC RICE SHOP,
    POLOFF STRUCK UP A CONVERSATION WITH MR. LUONG.  MR.
    LUONG IS A PROVINCE OF NGHE AN RICE FARMER UP FOR A FEW
    DAYS TO ACCOMPANY HIS SON WHILE HE TAKES AN EXAM.  MR.
    LUONG'S SON WANTS TO ENTER ELECTRONIC SCHOOL NUMBER ONE
    IN SOC SON, ONE OF ONLY TWO VOCATIONAL SCHOOLS IN THE
    COUNTRY TO TRAIN ELECTRICIANS. (THE OTHER IS IN HO CHI
    MINH CITY).  TO DO SO, HE MUST PASS AN ALL DAY TEST IN
    MATH AND PHYSICS.

    ¶26.  (SBU) IF HIS SON PASSES THE EXAM, HE WILL ENTER A
    TH~ THE
                           UNCLASSIFIED

    PAGE 12        HANOI  01615  272040Z
    MONEY?  "YES, I'VE BEEN SAVING MONEY ALL MY LIFE FROM
    THE SALE OF CHICKENS AND DUCKS ON THE SIDE OF RICE
    CULTIVATION."  LUONG IS A CATHOLIC, AND IS PROUD THAT
    HIS SON MAY BE GETTING THIS ADVANCED EDUCATION,
    SOMETHING FEW NORTHERN CATHOLICS OF HIS GENERATION
    COULD OBTAIN.

    ¶27.  (SBU) COMMENT.  WHILE THE INCOME AMOUNTS CITED
    ABOVE APPEAR IMPOSSIBLY MEAGER BY U.S. STANDARDS, THEY
    ARE CONSIDERABLY HIGHER THAN WHAT THE MAJORITY OF THE
    VIETNAMESE, A MOSTLY AGRARIAN PEOPLE, EARN.  THIS IS
    WHY AREAS LIKE DONG ANH AND SOC SON ARE FILLING UP WITH
    "IMMIGRANTS."  SOME FOREIGNERS AND VIETNAMESE
    INTELLECTUALS WAX NOSTALGIC FOR THE SMALL, QUIET HANOI
    OF YESTERYEAR.  BUT THAT HANOI HELD LITTLE ATTRACTION
    FOR POOR FARMERS FROM THE HINTERLAND, SINCE THERE WERE
    FEW JOBS.  TODAY, WITH GOVERNMENT CONTROLS ON INTERNAL
    MIGRATION PRACTICALLY A DEAD LETTER, IT IS HARDER FOR
    THE RURAL POOR TO RESIST THE ALLURE OF A HIGHER INCOME
    IN THE BIG CITY.  END COMMENT.

    HARTER

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