VZCZCXRO5252
RR RUEHC
DE RUEHBK #5782/01 3172351
ZNR UUUUU ZZH
R 132351Z NOV 07
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC 0633
RHMFIUU/US CUSTOMS AND BORDER PROTECTION WASHINGTON DC
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RULSJGA/COMDT COGARD WASHDC
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHHM/AMCONSUL HO CHI MINH CITY 0675
RUEKJCS/SECDEF WASHINGTON DC
RUEKJCS/JOINT STAFF WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCNEXC/EXPORT CONTROL AND RELATED BORDER SECURITY

UNCLAS SECTION 01 OF 03 BANGKOK 005782 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR ISN/ECC KCROUCH, EAP/MLS BBLACKSHAW 
CUSTOMS AND BORDER PROTECTION FOR INA RWATT 
DEPT OF ENERGY FOR NNSA TPERRY 
AMEMBASSY HANOI FOR PECKSTROM 
 
E.O. 12958: N/A 
TAGS: ETTC KNNP KSTC MNUC PARM PREL VN
SUBJECT: EXBS VIETNAM: MEETINGS WITH BORDER SECURITY 
OFFICIALS 
 
 
BANGKOK 00005782  001.3 OF 003 
 
 
SUMMARY 
 
¶1. (SBU) EXBS Advisor and POL Officer met with Vietnamese 
border and port control officials in Hanoi, Lang Son, and 
Haiphong between October 30 and November 2, 2007.  Rapid 
growth in industrial development and international trade is 
stretching the government's ability to monitor activities at 
land and sea ports of entry.  Additionally, remote and often 
difficult border terrain provides smugglers ample opportunity 
to avoid official scrutiny.  Although significant 
international assistance is being provided to Vietnam to 
enhance its customs organization and practices, the scale of 
the challenge suggests that additional targeted assistance 
would be useful. 
 
LANG SON PROVINCE 
 
¶2.  (U) Lang Son province is located in northeastern Vietnam. 
 It shares a 253 kilometer border with China, and has the 
busiest land border crossing point into that country, with 
both road and rail links.  EXBS Advisor and POL Officer, 
accompanied by DEA Country attaches, visited with provincial 
officials in Lang Son city and Customs and Border Army 
officials at the Friendship Border Gate. 
 
¶3.  (U) Terrain along the border is mountainous, and 
difficult to patrol.  The province is sparsely populated, 
with only 740,000 people from seven main ethnic groups 
occupying 8300 square kilometers.  In spite of this, local 
officials are focused on development and economic growth.  In 
addition to being a gateway to Vietnam, Lang Son is also 
being developed as the main land artery from China to the 
rest of mainland Southeast Asia.  In addition to the 
international rail link, four national highways cross the 
province.  There are 693 registered businesses, and fourteen 
development projects being implemented by various NGOs.  Most 
investment in the province is Chinese, but local officials 
hope to encourage other sources, including from the U.S.  The 
average economic growth rate in the province from 2001 to 
2005 was 10.4 percent. 
 
¶4.  (SBU) Local Customs officials told us that it has been 
difficult to keep pace with this growth.  There has been an 
80 percent increase in trade since 2006, but no increase in 
staff.  Since January 2007, approximately $530 million USD in 
imports, $220 million USD in exports, and 330,000 visitors 
have passed through the border crossing.  Between 50 to 70 
trucks, 2 to 4 freight trains, and up to 2000 visitors per 
day are processed through the crossing.  Visitors are of 
approximately 80 different nationalities.  Fraudulent 
documents are a major problem.  Besides legitimate traffic, 
officials told us trafficking in persons and illegal drugs 
are also issues of concern (although the drugs are reportedly 
smuggled through more remote border areas - there have been 
virtually no significant drug seizures at the crossing 
point).  They acknowledged their WTO obligations with respect 
to intellectual property rights, but the abundance of pirated 
goods in the local markets indicated a need for significant 
improvement in barring this type of trade. 
 
¶5.  (SBU) To deal with these challenges, Vietnamese border 
forces are organized into three main agencies.  Customs is 
responsible for inspecting cargo, the Border Army is 
responsible for immigration functions, and the Quarantine 
Force checks for diseases.  Officials assured us there were 
effective joint working mechanisms, but institutional issues 
such as a lack of law enforcement authority by Customs 
officials, the inability of Chinese trucks to proceed beyond 
the crossing station, and the lack of interaction with 
counter drug officials in the crossing area seemed to 
compound the challenges.  Customs officials had some 
computers, but Border Army officials complained of a lack of 
adequate equipment.  The single baggage x-ray machine at the 
border gate was broken, and no manual inspection of baggage 
was observed.  (Note: EXBS has provided night vision 
 
BANGKOK 00005782  002.3 OF 003 
 
 
binoculars and anticipates providing some rough terrain 
vehicles for use in more remote areas.  Other ideas are being 
developed.)  Customs officials told us they apply risk 
management techniques to compensate for the lack of manpower. 
 Officials also told us that Vietnam and China are 
negotiating a Transport Agreement that will allow vehicles to 
proceed further inland beyond the checkpoint. 
 
HAIPHONG PORT 
 
¶6.  (U) Haiphong is the third largest city in Vietnam, with 
approximately 1.9 million inhabitants.  Its port is the 
largest in Vietnam's northern region.  Approximately 16 
million tons of cargo pass through Haiphong per year, 70 
percent of it containerized.  As in Lang Son, Customs shares 
border security responsibilities with the Border Army. 
Customs is responsible for all imports and exports, and is 
organized into three divisions.  Division 1 handles bulk 
cargo, Division 2 handles containerized cargo, and Division 3 
handles a mix of bulk and containers, as well as "special 
items."  The Vice Director of Haiphong Customs proudly 
reported that Haiphong has one of the best safety records in 
Vietnam. 
 
¶7.  (U) Customs has used risk management techniques for the 
past two years to manage their inspection workload.  Prior to 
using risk management, 80-90 percent of cargo was subject to 
inspection.  Using risk management, approximately 36-39 
percent of imports and 27 percent of exports are identified 
for closer inspection.  Approximately one percent of imports 
and exports (roughly 1000 cases a year) have violations, 
which are mostly trade fraud (avoiding customs duties). 
There have not been any cases of weapons or drugs being 
smuggled.  Most of the inspections are done manually, 
although there are some x-ray machines for checking luggage. 
Customs is planning on buying container x-ray screening 
machines for Haiphong and Ho Chi Minh City in FY08, and the 
port has already designated the site for this equipment. 
 
HANOI 
 
¶8.  (U) The General Department of Vietnamese Customs is 
receiving significant international assistance.  The European 
Technical Assistance for Vietnam (ETV) program is a 
wide-ranging project providing assistance in the areas of 
legal policy, taxation, accounting/audits/insurance, 
statistical analysis, quality assurance/standardization, and 
customs.  Its assistance is mostly in the form of technical 
advice and strategies, rather than equipment.  It interacts 
with the Ministries of Planning and Investment, Finance, and 
Science and Technology.  Its work with Customs is focused on 
strengthening capacity in drafting policies and laws to 
facilitate trade, implementing World Customs Organization 
standards, enforcing WTO intellectual property protections, 
anti-smuggling training, enhancing Customs lab capabilities, 
and integration with the ASEAN Single Window network by 2012. 
 Support for the ASEAN Single Window program includes a team 
of expert advisors, overseas study trips, strategy and action 
plan development, and outreach to both public and private 
organizations to improve awareness, integration, and 
ultimately, economic growth.  In addition to the ETV program, 
we were also told that Vietnam has received a $70 million USD 
World Bank loan to modernize its Customs operations. 
 
COMMENTS 
 
¶9.  (SBU) Vietnam's rapid increase in industrial development 
and trade suggest that corresponding programs to improve 
strategic trade and border controls are timely and necessary. 
 Integration of international concerns and best practices can 
help balance host nation focus on economic objectives.  GVN 
officials are aware of the challenges posed by implementing 
higher export control standards in the face of an increasing 
volume of cargo and appear to genuinely welcome cooperation 
with the U.S.  Although significant assistance is currently 
 
BANGKOK 00005782  003.7 OF 003 
 
 
being provided, the scale of the challenge and pace of 
development suggest that additional targeted assistance would 
be useful and well-justified. 
BOYCE