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### Viewing cable 00HOCHIMINHCITY1121, SCIENCE, DETERMINATION, AND CHARITY IMPROVE LIVES IN VIETNAM'S MEKONG DELTA IN BIG AND SMALL WAYS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
00HOCHIMINHCITY1121 | 2000-07-11 04:04 | 2011-08-25 00:00 | UNCLASSIFIED | Consulate Ho Chi Minh City

`

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

    110404Z Jul 00

    2000HOCHI01121 - UNCLASSIFIED

                               UNCLASSIFIED     PTQ4953

    PAGE 01        HO CHI  01121  01 OF 07  110409Z
    ACTION EAP-00

    INFO  LOG-00   NP-00    AID-00   CEA-01   CG-00    CIAE-00  CTME-00
          DINT-00  DOEE-00  SRPP-00  DS-00    EB-00    ED-01    EXME-00
          EUR-00   E-00     UTED-00  FMC-02   VC-00    FRB-00   HHS-01
          H-01     SSA-01   TEDE-00  INR-00   LOC-01   L-00     VCE-00
          AC-01    NSAE-00  OES-01   OMB-01   OPIC-01  PA-00    PM-00
          PRS-00   ACE-00   P-00     SP-00    SSO-00   STR-00   USIE-00
          EPAE-00  SNIS-00  NISC-00  PMB-00   DSCC-00  DRL-02   G-00
          NFAT-00  SAS-00     /014W
                      ------------------6C740A  110410Z /38
    FM AMCONSUL HO CHI MINH CITY
    TO SECSTATE WASHDC 3371
    INFO AMEMBASSY HANOI
    NSC WASHDC
    USDOC WASHDC
    DEPTTREAS WASHDC
    AMCONSUL HONG KONG
    AMEMBASSY BEIJING
    ASEAN COLLECTIVE
    USCINCPAC HONOLULU HI//FPA//
    SECDEF WASHDC
    DIA WASHDC
    USDA FAS WASHDC

` `

    UNCLAS SECTION 01 OF 07 HO CHI MINH CITY 001121

    SIPDIS

    STATE ALSO FOR EAP/BCLTV AND EAP/PD
                           UNCLASSIFIED

    PAGE 02        HO CHI  01121  01 OF 07  110409Z
    STATE ALSO FOR EB/IFD/ODF AND EB/TPP/BTA
    STATE ALSO PASS AID/ANE - SOULES, ANDERSON
    STATE ALSO PASS USTR/DAMOND/BALASSA/KLEIN
    STATE ALSO PASS OPIC, EXIM BANK AND TDA
    NSC ALSO FOR RAVIC HUSO
    SECDEF ALSO FOR ISA/EA/LSTERN
    DEPTTREAS ALSO FOR OASIA/AJEWELL
    USDOC ALSO FOR 4431/MAC/AP/OKSA/HPPHO
    USDA FAS FOR FAA/AO/SSAP/HUETE; ITP/ODA/SHEIKH;
    AS/ITP/AAD/DEATON/HUYNH

    E.O. 12958: N/A
    TAGS: EAGR TBIO PGOV SOCI ENRG EWWT EAID KIPR ETRD VM KDTB
    SUBJECT:  SCIENCE, DETERMINATION, AND CHARITY IMPROVE LIVES IN VIETNAM'S MEKONG DELTA IN BIG AND SMALL WAYS

    REF:  98 HANOI 3498 (98 HCMC 242)

    ¶1. SUMMARY.  IN POOR POCKETS OF THE MEKONG DELTA, AWAY
    FROM THE LIMELIGHT, THERE ARE PEOPLE AND ORGANIZATIONS,
    VIETNAMESE AND FOREIGN, WHO ARE DEDICATED TO IMPROVING
    THEIR OWN AND OTHER'S LIVES.  CONGEN STAFF VISITED
    VIETNAM'S MAIN RICE RESEARCH INSTITUTE, PRIVATE
    ELECTRICITY AND WATER SUPPLIERS, A COCONUT CANDY MAKER WHO
    ENFORCED HER TRADEMARK IN CHINA, SUCCESSFUL COCONUT AND
    DURIAN GROWERS, AND A SPARKLING NEW HOME FOR ORPHANS,
    ABANDONED AND ABUSED CHILDREN IN CAN THO AND BEN TRE
    PROVINCES.  POST OFFERS THE SMALL ECONOMIC AND HUMAN
    INTEREST STORIES IN THIS MESSAGE AS GLIMPSES OF THE SPIRIT
    OF THE VIETNAMESE PEOPLE, WHO WILL WORK WITH THEIR
                           UNCLASSIFIED

    PAGE 03        HO CHI  01121  01 OF 07  110409Z
    GOVERNMENT OR ANYONE ELSE WHO CAN HELP, AND GO AROUND,
    IGNORE, OR CRITICIZE ANYONE WHO CAN'T OR WON'T.  END
    SUMMARY.

    RICE RESEARCHERS HELP SKEPTICAL FARMERS, BENEFIT EXPORTERS
    --------------------------------------------- -------------

    ¶2. CONGEN STAFF MET WITH DR. BUI CHI BUU OF THE CUU LONG
    RICE RESEARCH INSTITUTE (CLRRI), STARTED IN 1977 WITH
    BILATERAL AID FROM INDIA.  37 OUT OF 110 STAFF SCIENTISTS
    HAVE ADVANCED DEGREES; CURRENTLY, THREE POSTDOCTORAL
    STUDENTS ARE AT PURDUE, TEXAS TECH, AND TEXAS A&M.  CLRRI
    MISSION OBJECTIVES ARE: 1) TO STUDY RICE AND RICE-BASED
    AGRICULTURAL SYSTEMS IN THE DELTA, WHICH PRODUCES 60
    PERCENT OF VIETNAM'S RICE AND 80 PERCENT OF ITS RICE
    EXPORTS; 2) TO TRAIN EXTENSION WORKERS AND OTHER SKILLED
    WORKERS FOR THE DELTA; AND 3) TO FOSTER INTERNATIONAL
    COLLABORATION.  ADMINISTRATIVELY, CLRRI IS UNDER THE
    MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT (MARD).
    CLRRI'S ANNUAL BUDGET IS APPROXIMATELY USD 500,000,
    SUPPLEMENTED BY CONTRACT RESEARCH.  ACCORDING TO THE
    MEDIA, PROFITS MADE PRODUCING RICE SEEDLINGS ON CLRRI LAND
    ARE USED TO AUGMENT STAFF SALARIES.

    ¶3. IN 1999 THE MEKONG DELTA PRODUCED 16.5 MILLION METRIC
    TONS OF RICE AND HAD AN AVERAGE YIELD OF 4.8 TONS PER
    HECTACRE.  RICE IS GROWN ON 1.7 MILLION HECTARES OF DELTA
    LAND, SOMEWHAT LESS THAN 15 YEARS AGO.  HOWEVER,
    PRODUCTION HAS MORE THAN DOUBLED SINCE THE LATE 1970'S DUE
    TO IMPROVED MULTIPLE CROPPING AND MORE SUITABLE RICE
    VARIETIES, WITH CLRRI PLAYING A KEY ROLE CREATING NEW
                           UNCLASSIFIED

    PAGE 04        HO CHI  01121  01 OF 07  110409Z
    VARIETIES AND TESTING OTHERS.  MOST FARMERS IN THE DELTA
    GROW TWO RICE CROPS, THE MAIN SUMMER-AUTUMN CROP (JUNE TO
    SEPTEMBER) AND THE WINTER-SPRING CROP (NOVEMBER TO
    FEBRUARY).  SOME GROW A THIRD, SPRING-SUMMER CROP (MARCH
    TO JUNE), IF THERE IS SUFFICIENT IRRIGATION.  IN FACT,
    GROWING SEASONS ARE ACUTALLY MORE COMPLICATED, ACCORDING
    TO BUI, AND IT IS SOMETIMES POSSIBLE TO SEE PADDY IN ALL
    GROWTH STAGES AT THE SAME TIME IN THE SAME AREA.  THE
    INPUT COST PER KILOGRAM OF PADDY FOR THE WINTER/SPRING AND
    SPRING/SUMMER CROPS IS VND 800-1,000 (USD 0.06-0.07).
    INPUT COSTS FOR THE SUMMER/AUTUMN CROP OF VND 1,600-1,700
    (USD 0.11-0.12) ARE MUCH HIGHER, BUT SO ARE THE YIELDS.
    BUI SAID CLRRI IN FACT RECOMMENDS PLANTING SOYBEANS
    INSTEAD OF A THIRD RICE CROP TO MAINTAIN SOIL QUALITY, BUT
    FARMERS DON'T FOLLOW ITS ADVICE BECAUSE RICE PRICES ARE
    NORMALLY MUCH HIGHER.

    ¶4. CLRRI HAS SUCCESSFULLY PRODUCED HIGH-YIELD VARIETIES.
    HOWEVER, FARMERS TYPICALLY USE SEED FROM THE PREVIOUS CROP
    FOR THE NEXT ONE, AT NO COST, WHICH RESULTS IN SEED
    DEGENERATION.  CLRRI HAS ALSO FOCUSED ON LOWERING INPUT
    COSTS, WHICH IN NOMINAL DONG TERMS HAVE DOUBLED OVER THE
    LAST TEN YEARS.  IN 1999, IT ADAPTED LEAF CHARTS TO REDUCE
    THE USE OF NITROGENOUS FERTILIZERS AND DEVELOPED A RICE
    SEEDER TO CUT SEED COSTS IN HALF OVER THE TRADITIONAL
    BROADCASTING METHOD.  DESPITE CLRRI'S SUCCESSES, BUI SAID
    DELTA RICE FARMERS TREAT ITS RECOMMENDATIONS SKEPTICALLY,
    AND IT WOULD TAKE TWO YEARS FOR THE LEAF CHARTS AND
    SEEDERS TO CATCH ON.  BUI ALSO HOPED FOR THE SUCCESS OF A
    DANISH-FUNDED PROJECT WHICH HAS HELPED INSTALL OVER 5,000
    SMALL RICE DRYERS IN CAN THO AND SOC TRANG PROVINCES.
    ONLY FIVE PERCENT OF DELTA RICE FARMERS USE RICE DRIERS,
    SINCE THE COSTS OF DRYERS ARE NOT SEEN TO BE WORTH THE
    REDUCTION IN SPOILAGE AND INCREASED PRICE FOR HIGHER
    QUALITY.   DELTA RICE FARMERS ONLY EARNED AN AVERAGE OF
    USD 700 PER HOUSEHOLD IN 1999.  THE REAL BENEFICIARIES OF
    CLRRI'S WORK, SAID BUI, HAVE BEEN RICE EXPORTERS, WHO "DO
    NOT INVEST IN ANYTHING."

                           UNCLASSIFIED

    PAGE 03        HO CHI  01121  02 OF 07  110410Z
    ELECTRICITY RE-SELLERS CHARGE ABOVE THE LEGAL LIMIT
    --------------------------------------------- ------

    ¶5. THE GVN HAS SET RURAL HOUSEHOLD ELECTRICITY PRICES
    CHARGED BY ELECTRICITY OF VIETNAM (EVN) AT VND 500 (3.6
    CENTS) PER KILOWATT-HOUR (KWH) FOR THE FIRST 100 KWH PER
    MONTH, RISING TO VND 1,397 (10.0 CENTS) FOR CONSUMPTION
    OVER 300 KWH.  IN SEPTEMBER 1999 ONLY 77 PERCENT OF
    VIETNAM'S RURAL DISTRICTS HAD ELECTRICITY.  ALTHOUGH EACH
    OF CAN THO PROVINCE'S SIX DISTRICTS AND CAN THO CITY HAVE
    ELECTRICITY, AT THE END OF 1999 ONLY 68 PERCENT OF
    HOUSEHOLDS WERE HOOKED UP.  CONGEN STAFF MET WITH DO HUU
    TRONG, DIRECTOR OF THE TAN PHU COMMUNE EVN STATION IN
    RURAL CHAU THANH DISTRICT.  EVN'S GRID EXTENDS TO THE MAIN
    VILLAGE IN ALL CHAU THANH'S 13 COMMUNES, BUT NOT TO THE
    NUMEROUS HAMLETS.  IN TAN PHU, CHAU THANH'S MOST WELL-OFF
    COMMUNE, THE PEOPLE'S COMMITTEE INVESTED IN TRANSFORMERS
    AND DISTRIBUTION LINES, AND RE-SELLS ELECTRICITY BOUGHT
    FROM EVN TO 3,000 HOUSEHOLDS AT AN AVERAGE OF VND 1,000
    (7.1 CENTS) PER KWH.  AN AUSTRALIAN INVESTOR HAS DONE A
    FEASIBILITY STUDY TO SUPPLY FIVE TO SEVEN THOUSAND
    HOUSEHOLDS IN ANOTHER COMMUNE IN CHAU THANH AT VND 1,100-
    1,400 (7.9 CENTS TO 10 CENTS) PER KWH.

    ¶6. RURAL EVN CUSTOMERS PAY A HOOK-UP CHARGE FROM VND
    800,000 TO 1,200,000 (USD 57 TO USD 86) AND AN AVERAGE
    RATE OF VND 360 (2.6 CENTS) PER KWH.  THE GVN HAS SET A
    CEILING PRICE OF VND 700 (5.0 CENTS) PER KWH FOR RE-
    SELLERS, WHOSE CUSTOMERS DO NOT PAY A HOOK-UP CHARGE.  IN
    PRACTICE, HOWEVER, PRIVATE RE-SELLERS STRIKE AGREEMENTS
    WITH LOCAL GOVERNMENTS TO SELL AT HIGHER THAN THE LEGAL
                           UNCLASSIFIED

    PAGE 04        HO CHI  01121  02 OF 07  110410Z
    RATE, AND SOME LOCAL GOVERNMENTS THEMSELVES, SUCH AS IN
    TAN PHU, ALSO SELL AT A HIGHER RATE.  A GVN SURVEY IN 1998
    SHOWED 39 PERCENT OF RURAL HOUSEHOLDS PAID MORE THAN THE
    LEGAL RATE, WITH PRICES IN SOME LOCALITIES AS HIGH AS 15
    CENTS PER KWH.  TRONG ATTRIBUTED ALLOWING A HIGHER PRICE
    TO "BAD MANAGEMENT."   IN FACT, EVN WAS TRYING TO GET TAN
    PHU TO CUT ITS PRICE, HE SAID, BUT THE RISK WAS THAT THE
    CABLES WOULD BE CUT INSTEAD.  TRONG ALSO SAID THE
    AUSTRALIAN INVESTOR HAD THE SUPPORT OF THE CAN THO
    PEOPLE'S COMMITTEE.  AS ONE ARTICLE ON ELECTRICITY
    DISTRIBUTION IN VIETNAM HAS PUT IT, "THE GOVERNMENT IS
    CAUGHT IN THE USUAL SPOT BETWEEN THE ROCK OF NEEDING TO
    IMPROVE INFRASTRUCTURE AND THE HARD PLACE OF HAVING NO
    MONEY TO DO THE JOB."

    ¶7. CONGEN STAFF SPOKE TO A TAN PHU CUSTOMER, WHO SAID
    AFTER SHE STARTED RECEIVING ELECTRICITY IN 1990, BUSINESS
    GOT BETTER AND LIFE BECAME MORE COMFORTABLE.  NOW, SHE CAN
    PRODUCE TWO SETS OF CLOTHES PER DAY IN HER TAILOR SHOP,
    OPENED A KARAOKE ROOM FOR CUSTOMERS, AND HAS ELECTRICAL
    APPLIANCES SUCH AS A WASHING MACHINE, TELEVISION,
    REFRIGERATOR, AND A RICE COOKER.  SHE SAID IN FACT, SHE
    PAID THE RESELLER VND 800 (5.7 CENTS) PER KHW FOR
    ELECTRICITY AND ANOTHER VND 600 (4.3 CENTS) PER KHW FOR
    "MAINTENANCE."  SHE SAID SHE CAREFULLY MONITORED HER
    ELECTRICITY CONSUMPTION; IF THE PRICE OF ELECTRICITY WENT
    UP, SHE'D USE LESS, AND IF IT WENT DOWN, SHE'D USE MORE.

    ¶8. IN ANOTHER MODEL FOR RURAL ELECTRIFICATION BEYOND EVN'S
    GRID, 135 HOUSEHOLDS IN TAN PHU ORGANIZED AN ELECTRICITY
    BUYING COOPERATIVE.  THEY BOUGHT THEIR OWN TRANSFORMER AND
    EACH PAID VARYING AMOUNTS TO HOOK-UP DEPENDING ON THEIR
    LOCATION.  INDIVIDUALS PAY AN AVERAGE OF VND 580 (4.1
    CENTS) PER KILOWATT HOUR.  THEIR ACTUAL BILL IS BASED ON
    DISTANCE FROM THE GRID, NOT CONSUMPTION, SINCE THE
    COOPERATIVE'S CONSUMPTION IS METERED AS A GROUP.  IN A
    VARIATION ON THIS MODEL, THE GROUP LEADER INVESTS TO HOOK
    UP PRIVATE CUSTOMERS OUTSIDE THE COOPERATIVE.  THE
    COOPERATIVE LEADER IN TAN PHU BELIEVED THAT PEOPLE IN CHAU
                           UNCLASSIFIED

    PAGE 03        HO CHI  01121  03 OF 07  110730Z
    THANH DISTRICT WHO DO NOT HAVE ELECTRICITY YET WOULD BE
    WILLING TO PAY EVEN TWICE WHAT HIS MEMBERS PAY FOR
    ELECTRICITY OR EVEN HIGHER, "UP TO A CERTAIN PRICE."

    PRIVATE WATER SUPPLIER BUMPS UP AGAINST OWN SUCCESS
    --------------------------------------------- ------

    ¶9. EVEN FEWER RURAL VIETNAMESE HOUSEHOLDS HAVE ACCESS TO
    "CLEAN" WATER -- JUST 32 PERCENT ACCORDING TO MARD -- THAN
    TO ELECTRICITY.  AS WITH ELECTRICITY, A LACK OF CAPITAL
    HAS FORCED THE GVN TO ENCOURAGE COOPERATIVES AND PRIVATE
    INVESTMENT.  PRIVATE COMPANIES SUPPLIED WATER TO 4,000
    HOUSEHOLDS IN BEN TRE PROVINCE IN 1999 AND HAD INVESTED
    USD 1.4 MILLION, MORE THAN STATE INVESTMENT IN WATER
    SUPPLY.  VO VAN THUY'S TAN AN PRIVATE COMPANY HAS FOUR
    WATER FILTERING PLANTS IN RURAL BEN TRE AND NEIGHBORING
    VINH LONG PROVINCE.  THUY, WHO HAD MONEY TO INVEST EARNED
    FROM BUYING AND TRANSPORTING LOGS IN CENTRAL VIETNAM,
    FIRST SAW DEMAND FOR WATER AS A BUSINESS OPPORTUNITY IN
    HIS NATIVE VINH LONG IN 1996.  FRIENDS FROM VINH LONG'S
    WATER SUPPLY COMPANY HELPED WITH THE DESIGN.

    ¶10. TAN AN'S CUSTOMERS IN TINH THANH COMMUNE OF CHO LACH
    DISTRICT PAY VND 2,500 (18 CENTS) PER CUBIC METER OF WATER
    IF THEY PAY FOR THE CONNECTING PIPELINES TO THEIR HOMES,
    OF VND 3,500 (25 CENTS) PER CUBIC METER IF TAN AN PAYS FOR
    HOOK-UP.  THE BEN TRE WATER SUPPLY COMPANIES CHARGES
    INDIVIDUAL CUSTOMERS VND 2,200 (16 CENTS), BUT CHARGES
    OTHER CUSTOMERS TWO HIGHER PRICES.  TAN AN'S PRICE AND ANY
    CHANGES ARE SUBJECT TO THE APPROVAL OF BEN TRE'S
    DEPARTMENT OF FINANCE.  THE DEPARTMENT AGREED TO TAN AN'S
                           UNCLASSIFIED

    PAGE 04        HO CHI  01121  03 OF 07  110730Z
    HIGHER PRICE FOR INDIVIDUAL CUSTOMERS OVER THE PROTESTS OF
    THE TINH THANH PEOPLE'S COMMITTEE BECAUSE TAN AN HAS TO
    COVER A CORPORATE PROFIT TAX OF 32 PERCENT.

    ¶11. THUY SAID HE IS NOT WORRIED ABOUT THE BEN TRE
    GOVERNMENT TAKING OVER HIS CUSTOMERS AS PUBLIC WATER
    SUPPLY EVENTUALLY EXPANDS, BECAUSE IT IS INEFFICIENT.  THE
    TWO 100 CUBIC METER-PER-DAY WATER PLANTS IN CHO LACH
    DISTRICT BUILT BY THE BEN TRE GOVERNMENT COST BETWEEN USD
    14,300 AND USD 17,900 TO BUILD AND WOULD ONLY HAVE COST
    THUY USD 10,700.  (IN FEBRUARY 2000 THE BEN TRE PEOPLE'S
    COMMITTEE SUSPENDED THE BEN TRE WATER SUPPPLY COMPANY'S
    DIRECTOR AND CHIEF ACCOUNTANT FOR, AMONG OTHER THINGS,
    "ILLEGAL COLLECTION AND SPENDING OF USD 100,000.)  THUY'S
    PLANTS, WHICH ONLY REQUIRE ONE WORKER FOUR HOURS PER DAY
    TO OPERATE, BREAK EVEN AFTER 4-5 YEARS AND WILL LAST 30
    YEARS.

    ¶12. THUY WANTS TO (###)
    PLANTS.  HE MADE PROPOSALS TO VINH LONG AND TRA VINH
    PROVINCES, BUT BOTH PREFERRED TO WAIT FOR FOREIGN DONORS
    TO FUND MORE EXPENSIVE WATER PLANTS.  (COMMENT:  FOR
    EXAMPLE, A DUTCH-FUNDED WATER SUPPLY AND DRAINAGE SYSTEM
    IN DONG THAP PROVINCE SUPPLYING 10,200 CUBIC METERS OF
    WATER PER DAY COST USD 5.5 MILLION.  END COMMENT.)  THUY
    DOES NOT WANT TO BUILD MORE COMMUNE-LEVEL WATER PLANTS IN
    BEN TRE PROVINCE BECAUSE HE IS ALREADY SERVING THE THREE
    COMMUNES WITH THE STRONGEST DEMAND, AND HE IS CONCERNED
    THAT HIS KNOWN SUCCESS WOULD RESULT IN UNACCEPTABLY HIGH
    LAND LEASE COSTS.
    NOTE:  (##)OMISSION IN PARA 12.  CORRECTION WILL FOLLOW.

    COCONUT AND DURIAN DREAMS
    -------------------------

    ¶13. RIVERINE BEN TRE PROVINCE IS VIETNAM'S COCONUT
    CAPITAL, WITH 30,000 HECTARES AND ANNUAL PRODUCTION OF 200-
    220 MILLION COCONUTS.  TRADERS FROM HCMC AND HANOI
    CONVERGED ON BEN TRE IN 1995 TO BUY UP HAND-MADE COCONUT
    CANDY FOR EXPORT TO CHINA, STIMULATING THE CREATION OF
                           UNCLASSIFIED

    PAGE 03        HO CHI  01121  04 OF 07  110410Z
    MORE THAN 100 SMALL COMPANIES.  PRODUCTION ROSE TO 7 TONS
    PER DAY, THOUSANDS OF WORKERS WERE EMPLOYED, AND THE
    PROVINCE EARNED USD 10 MILLION.  BY 1997, CHINESE
    BUSINESSES IN HAINAN HAD HIRED AWAY SKILLED WORKERS FROM
    BEN TRE AND STARTED MAKING THEIR OWN COCONUT CANDY.  BEN
    TRE'S CANDY EXPORT REVENUES FELL TO USD 300,000.  IN 1999,
    DEMAND FROM CHINA (MOSTLY FOR COCONUT JUICE BUT ALSO FOR
    CANDY) AND THAILAND RAISED THE PRICE OF COCONUTS IN BEN
    TRE TO VND 29,000 (USD 2.07) PER DOZEN.  ALTHOUGH THIS WAS
    GOOD FOR EXPORTERS OF UNPROCESSED AND SEMI-PROCESSED
    COCONUT PRODUCTS -- COCONUT EXPORTS WERE OVER USD 10
    MILLION IN 1999 -- IT FURTHER HARMED THE COCONUT CANDY AND
    OTHER COCONUT PROCESSING INDUSTRIES.  THESE INCLUDE
    COCONUT OIL, CHARCOAL, JUICE, HANDICRAFTS, AND
    CONSTRUCTION MATERIALS.  BY LATE 1999, ONLY 27 CANDY
    MAKERS, 6 OF 33 OIL PRODUCERS, AND 30 OF 55 CHARCOAL
    PRODUCERS WERE STILL OPERATING.

    ¶14. CONGEN STAFF CALLED ON MS. PHAM THI TO, WHOSE
    BESPECTACLED IMAGE ADORNS HER BRANDED "BEN TRE COCONUT
    CANDY," FOR WHICH SHE REGISTERED HER TRADEMARK IN 1988.
    ABANDONED BY HER HUSBAND AND LEFT WITH EIGHT YOUNG
    CHILDREN, MS. TO'S FORTUNES BEGAN TO CHANGE IN 1976 WHEN
    SHE LEARNED HOW TO MAKE COCONUT CANDY, IMPROVED THE
    RECIPE, AND MUCH LATER MECHANIZED PRODUCTION.  SINCE THE
    GOVERNMENT STRICTLY CONTROLLED RICE, SUGAR, AND COCONUTS,
    HER MAIN INGREDIENTS, SHE CONDUCTED BUSINESS UNDERGROUND
    AND INTERMITTENTLY FOR 12 YEARS.  BY 1988, WHEN THE GVN
    BEGAN TO IMPLEMENT THE DOI MOI POLICY, MS. TO RECEIVED A
    LOAN FROM THE LOCAL WOMEN'S UNION AND EXPANDED HER
    BUSINESS.  (SHE HAS MOSTLY SELF-FINANCED AND HAS NEVER HAD
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    PAGE 04        HO CHI  01121  04 OF 07  110410Z
    A BANK LOAN.)  OTHER FACTORIES IN BEN TRE AND HAININ ARE
    HER IMITATORS.

    ¶15. IT WAS ONE OF MS. TO'S AGENTS WHO INTRODUCED HER CANDY
    TO THE CHINESE MARKET.  WHEN HER SALES TO CHINA DROPPED
    OFF FROM A PEAK OF 400 TONS PER MONTH, MS. TO TRAVELLED TO
    CHINA IN 1998 AND A DISCOVERED ONE HAINAN COMPANY
    IMITATING HER TRADEMARK AND PACKAGING.  (THE CHINESE
    COMPANY DIRECTOR WAS MARRIED TO A VIETNAMESE WOMAN FROM
    BEN TRE, AND THEY HAD HIRED AWAY A TECHNICIAN FROM MS.
    TO.)  TRAVELLING TO CHINA AGAIN, SHE FILED PETITIONS TO
    REGISTER HER TRADEMARK THERE AND TO PROHIBIT ITS MISUSE BY
    HER CHINESE COMPETITOR, CULMINATING IN A SUCCESSFUL
    ENFORCEMENT ACTION AGAINST THE INFRINGER IN 1999.
    ALTHOUGH HER SALES WERE STILL DOWN 80 TONS PER MONTH AND
    HER WORKFORCE DOWN TO 400 FROM A HIGH OF 1,000 WORKERS,
    MS. TO WAS OPTIMISTIC SHE THEY WOULD SOON BE BACK AT THEIR
    1995-1997 LEVELS.

    ¶16. MOST COCONUT FARMERS PRODUCE A LOW-YIELD VARIETY
    DESPITE THE AVAILABILITY OF HIGH-YIELD HYBRIDS.  MOST
    SURVIVE ON INCOMES OF LITTLE MORE THAN VND 1.0 MILLION
    (USD 71) PER YEAR, EXTREME POVERTY EVEN BY VIETNAMESE
    STANDARDS.  CONGEN STAFF VISITED MR. DO THANH THUONG,
    DUBBED VIETNAM'S COCONUT KING AFTER WINNING A PRIZE FROM
    THE ASIA PACIFIC COCONUT COUNCIL (APCC) FOR HIS TECHNIQUES
    FOR TRANSPLANTING HYBRID COCONUT TREES DEVELOPED BY THE
    GVN'S VEGETABLE OIL RESEARCH INSTITUTE.  THE PB-121 HYBRID
    HAS HIGHER YIELDS, GREATER FAT CONTENT, AND BEARS FRUIT
    EARLIER.  THUONG DARED TO REPLACE HIS TREES WITH THE
    HYBRID IN 1995 ON HIS 2.5 HECTARES OF LAND AT A TIME WHEN
    HIS NEIGHBORS WERE CUTTING DOWN THEIR TREES BECAUSE OF LOW
    PROFITS.  A 63-YEAR-OLD GRADUATE IN PHYSICS, THUONG
    COMPLAINED THAT ALTHOUGH HE WAS INVITED TO TRAVEL ABROAD
    TO ACCEPT APCC PRIZE, A STATE COMPANY OFFICIAL WAS SENT TO
    COLLECT IT FOR HIM.  COCONUT PRICES HAD DROPPED WAY DOWN
    AGAIN IN 2000 FROM THEIR 1999 PEAK AND WERE NOW VND 13,000
    (93 CENTS) PER DOZEN.

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    PAGE 03        HO CHI  01121  05 OF 07  110411Z
    ¶17. EVEN AT THE PEAK, THUONG SAID, COCONUT FARMERS COULD
    NOT EARN AS MUCH AS FROM PLANTING FRUIT TREES, ALTHOUGH
    THE LATTER REQUIRED MORE INVESTMENT AND WAS HARDER WORK.
    COCONUT FARMERS WERE AT THE MERCY OF TRADERS, WHO DIVIDED
    UP THE MARKET AND COLLUDED WITH EACH OTHER, AND WOULD BE
    BETTER OFF IF THEY COULD MARKET THEIR OWN OUTPUT OR SELL
    DIRECTLY TO PROCESSING FACTORIES, HE THOUGHT.  THEIR
    BIGGEST PROBLEM WAS NEVER KNOWING THE CURRENT MARKET
    PRICE.  THE GOVERNMENT HAD NOT BEEN OF ANY USE IN
    PROVIDING PRICE INFORMATION, AND EVEN ITS AGRICULTURAL
    EXTENSION WORKERS LEARNED MORE FROM THE FARMERS THAN
    HELPED THE FARMERS.  THE DONG GO COCONUT RESEARCH CENTER
    IN BEN TRE DID NOT SEEM TO BE DOING MUCH, AND THUONG AND
    HIS NEIGHBORS CONDUCTED THEIR OWN SOIL ANALYSIS FOR
    DIVERSIFICATION INTO OTHER FRUIT CROPS.  (COMMENT:  THE
    DONG GO CENTER IS GROWING 47 STRAINS OF COCONUT WITH
    FUNDING FROM FAO AND UNDP.  END COMMENT.)

    ¶18. IN ADDITION TO THE COCONUT KING, BEN TRE IS ALSO HOME
    TO VIETNAM'S DURIAN KING, NGUYEN KHOA CHIEN (NICKNAMED
    CHIN HOA, BEING THE NINTH SON OF HIS PARENTS).  IN 1978, A
    SINGLE DURIAN TREE OF A NEARLY EXTINCT VARIETY REMAINED
    AMONG THE OTHER DURIAN TREES ON THE FAMILY PROPERTY.
    CHIEN SUCCEEDED IN GRAFTING SPRIGS FROM THIS RARE STRAIN
    ONTO OTHER TREES, CREATING THE LOCALLY CHERISHED "FLAT
    SEED DURIAN" OR "CHIN HOA DURIAN," WHICH IS SWEET
    SMELLING, HAS THICK PULP, AND VERY SMALL SEEDS.  HE THEN
    WENT TO WORK ON PLANTING TREES GROWN FROM THIS HYBRID AND
    SELLING SEEDLINGS PRODUCED FROM THE TREES, KEEPING UP TO
    DATE ON CULTIVATION TECHNOLOGY, PROVIDING AFTER-SALES
    TECHNICAL ADVICE, AND OBTAINING GOVERNMENT RECOGNITION OF
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    PAGE 04        HO CHI  01121  05 OF 07  110411Z
    HIS VARIETY.  HIS DURIANS ARE SO POPULAR THAT HE RATIONS
    SALES OF HIS OUTPUT TO FAVORED CUSTOMERS AND COULD GET
    AWAY WITH CHARGING MUCH MORE IF CHOSE.

    ¶19. CHIEN'S AFTER-TAX ANNUAL INCOME FROM THE SALES OF 57
    TONS OF DURIAN AND THOUSANDS OF SEEDLINGS IS OVER VND 1.0
    BILLION (USD 714,000), MAKING HIM ONE OF THE RICHEST MEN
    IN THE MEKONG DELTA (CERTAINLY AMONG THOSE WHO HAVE NEVER
    WORKED FOR THE GOVERNMENT).  HIS HOUSE IN CHO LACH
    DISTRICT, HOWEVER, IS ON A NARROW, MUD TRAIL A KILOMETER
    OFF THE MAIN ROAD AND STILL HAS A THATCHED ROOF AND HARD
    MUD FLOOR.  ACCORDING TO CHIEN, VIETNAM'S DURIANS, LIKE
    THAILAND'S, CAN BE EXPORTED, SINCE THEY RIPEN FOR FOUR
    DAYS AFTER HARVESTING AND REMAIN EDIBLE FOR A WEEK AFTER,
    LONGER IF REFRIGERATED AND LONGER STILL IF FROZEN.
    ALTHOUGH MORE FARMERS ARE PLANTING DURIAN CURRENTLY,
    VOLUMES ARE NOT HIGH ENOUGH TO PRODUCE A STEADY SUPPLY FOR
    EXPORT.  DURIAN PRODUCTION IS EXPANDING IN BINH DUONG AND
    BINH PHUOC PROVINCES, WHERE THE LAND IS BETTER AND THE
    SOIL MORE SUITABLE FOR DURIANS.  A COMPANY IN BUON ME
    THUOT IN DAK LAK PROVINCE HAS PLANTED 4,000 TREES USING
    CHIEN'S SEEDS AND PLANS TO EXPORT.

    NICEST PLACE IN BEN TRE TOWN IS THE ORPHANAGE
    ---------------------------------------------

    ¶20. BEN TRE TOWN, THE CENTER OF BEN TRE PROVINCE, HAS NO
    HOTELS OR RESTAURANTS AT A STANDARD WHICH WOULD APPEAL TO
    FOREIGN VISITORS.  THE PROVINCE, TRULY ONE OF VIETNAM'S
    BACKWATERS, HAS RECEIVED SPECIAL ATTENTION FROM UNDP FOR
    POVERTY ALLEVIATION (REF A).  SO IT SEEMS A BIT ODD THAT
    THE EEM GROUP OF FRANCE, OWNER OF THE SUCCESSFUL VICTORIA
    CHAIN OF HOTELS IN SAPA, CAN THO, CHAU DOC, AND PHAN THIET
    AND UNDER CONSTRUCTION IN HOI AN, HAS BEGUN CONSTRUCTION
    OF A HOTEL IN TOWN.  (THIS IS ONE OF ONLY TWO FOREIGN
    INVESTMENTS IN ALL OF BEN TRE, AND THE OTHER ONE IS NOT
    OPERATING YET, EITHER.  EEM HAS WITHDRAWN FROM PLANS TO
    ALSO BUILD AN ECO-TOURISM ISLAND RESORT IN A MEKONG RIVER
    ESTUARY IN CHAU THANH DISTRICT IN BEN TRE.)  VO VINH BINH,
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    PAGE 03        HO CHI  01121  06 OF 07  110733Z
    DEPUTY DIRECTOR OF EEM'S JOINT VENTURE, EXPLAINED THAT A
    PORTION OF THE HUNDREDS OF FOREIGN TOURISTS WHO TAKE DAY
    TRIPS FROM HCMC TO MY THO IN TIEN GIANG PROVINCE AND CROSS
    INTO BEN TRE PROVINCE WOULD WANT TO STAY OVERNIGHT, SINCE
    THIS IS A TIRING ONE-DAY TRIP.  AS WITH OTHER VICTORIA
    HOTELS, THE LOCAL JOINT VENTURE PARTNER WILL HAVE ITS OWN
    BLOC OF ROOMS IT WILL SELL AT A DISCOUNTED PRICE.

    ¶21. IN 10 DIFFERENT CITIES IN VIETNAM, ONE NOTICES GATED
    SPACIOUS COMPOUNDS WITH MODERN BUILDINGS AND SPACIOUS,
    GREEN GROUNDS THAT LOOK DISTINCTLY UN-VIETNAMESE.  THESE
    ARE SOS VILLAGES FOR ABANDONED, ORPHANED AND DESTITUTE
    CHILDREN, FUNDED BY THE AUSTRIAN-BASED, INTERNATIONAL NGO
    SOS-KINDERDORF INTERNATIONAL (S-K).  IN BEN TRE, THE SOS
    VILLAGE, JUST OPENED IN 1999, STANDS OUT EVEN MORE THAN
    USUAL.  ACCORDING TO ITS DIRECTOR, HUYNH CONG BINH, BEN
    TRE WAS IDENTIFIED IN 1995 AS A LOCATION FOR AN SOS
    VILLAGE BY THE S-K REPRESENTATIVE OFFICE IN HANOI AND THE
    GVN BECAUSE OF THE LARGE NUMBER OF ORPHANED, DISABLED, OR
    ABANDONED CHILDREN IN THE PROVINCE, PUT AT 7-8 PERCENT.
    THE VILLAGE CAN ACCOMMODATE 12 "FAMILIES" OF 9-10 CHILDREN
    EACH OF DIFFERENT AGES AND GENDER LIVING IN IMMACULATE
    HOUSES NAMED AFTER FLOWERS.  AFTER THAY ARE FOURTEEN,
    CHILDREN ARE HOUSED SEPARATELY BY GENDER BUT ARE STILL
    PART OF THEIR INDIVIDUAL FAMILIES.  EACH FAMILY IS HEADED
    BY A SINGLE WOMAN WHO MAKES A LONG-TERM COMMITMENT.  AT
    THE BEGINNING OF THE YEAR 2000, THE BEN TRE SOS VILLAGE
    HAD SET UP 9 FAMILIES AND HAD A TOTAL OF 70 CHILDREN.

    ¶22. BEN TRE PROVINCE PROVIDED THE LARGE, WELL-LOCATED 45
    HECTARE PLOT OF LAND FOR THE VILLAGE AND FREE MEDICAL CARE
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    PAGE 04        HO CHI  01121  06 OF 07  110733Z
    AND ELEMENTARY SCHOOL EDUCATION FOR THE VILLAGE'S
    CHILDREN.  S-K PROVIDED THE DESIGN FOR THE VILLAGE, FUNDED
    ITS CONSTRUCTION, AND WILL PAY FOR HIGH SCHOOL AND
    UNIVERSITY FEES AND BOOKS, AND FOR JOB SEARCHES UPON
    GRADUATION.  IT WILL ALSO FUND CONSTRUCTION OF A NEW
    ELEMENTARY SCHOOL FOR VILLAGE AND LOCAL CHILDREN. TOTAL
    CONSTRUCTION COSTS ARE NEARLY USD 1.5 MILLION.  OPERATING
    COSTS COME OUT TO JUST OVER USD 20 PER CHILD PER MONTH,
    INCLUDING ADMINISTRATIVE COSTS, AND ARE FUNDED BY
    INTERNATIONAL DONORS.  TYPICALLY, HOUSE MOTHERS HAVE TO
    SCRIMP TO MAKE THEIR FOOD BUDGETS STRETCH AND GROW THEIR
    OWN FRUITS AND VEGETABLES.  AT FIRST, LOCAL RESIDENTS
    BELIEVED THE VILLAGE'S CHILDREN WERE BEING GIVEN MORE
    ADVANTAGES THAN THEIR OWN, BUT THE VILLAGE CONDUCTED
    PUBLIC RELATIONS AND RESIDENTS SAW THAT THE LIVING
    STANDARD INSIDE THE VILLAGE WAS NOT HIGHER THAN (#####)
    CHILDREN'S BACKGROUNDS.

    ¶23. THE MOST VULNERABLE CHILDREN IN THE PROVINCE UNDER
    NINE-YEARS-OLD WHO WERE NOT DISABLED OR SICK, WHO WERE
    EITHER ORPHANS, HAD ONE PARENT BUT WERE ABANDONED, OR WHO
    WERE ABUSED, WERE CONSIDERED FOR PLACEMENT IN THE VILLAGE.
    A SURVEY SHOWED 190 CHILDREN MET THESE CONDITIONS, AND
    THOSE WITH THE LEAST ALTERNATIVE SUPPORT WERE SELECTED.
    THE PLACEMENT PROCESS IS ACCORDING TO VIETNAMESE LAW AND

    NOTE:  (##)OMISSION IN PARA 22.  CORRECTION WILL FOLLOW.

    REGULATION AND IS SUBJECT TO JUDICIAL REVIEW IF BLOOD
    RELATIONS DISPUTE THE DECISION.  BINH SAID THE SOS VILLAGE
    WELCOMES VISITS AND DONATIONS, WHICH GO TO THE OPERATING
    BUDGET, FROM ALL GROUPS, AS THE CHILDREN NEED ATTENTION SO
    THEY DO NOT FEEL ABANDONED BY SOCIETY.  CONGEN STAFF FOUND
    THE CHILDREN EXTREMELY POLITE, LOQUACIOUS, AND EAGER TO
    SHOW OFF THEIR NEATLY PUT AWAY TOYS AND ARTWORK AFTER
    BEING INVITED TO DO SO.

    JOHN

                           UNCLASSIFIED

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