Keep Us Strong WikiLeaks logo

Currently released so far... 143912 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AORC AS AF AM AJ ASEC AU AMGT APER ACOA ASEAN AG AFFAIRS AR AFIN ABUD AO AEMR ADANA AMED AADP AINF ARF ADB ACS AE AID AL AC AGR ABLD AMCHAMS AECL AINT AND ASIG AUC APECO AFGHANISTAN AY ARABL ACAO ANET AFSN AZ AFLU ALOW ASSK AFSI ACABQ AMB APEC AIDS AA ATRN AMTC AVIATION AESC ASSEMBLY ADPM ASECKFRDCVISKIRFPHUMSMIGEG AGOA ASUP AFPREL ARNOLD ADCO AN ACOTA AODE AROC AMCHAM AT ACKM ASCH AORCUNGA AVIANFLU AVIAN AIT ASECPHUM ATRA AGENDA AIN AFINM APCS AGENGA ABDALLAH ALOWAR AFL AMBASSADOR ARSO AGMT ASPA AOREC AGAO ARR AOMS ASC ALIREZA AORD AORG ASECVE ABER ARABBL ADM AMER ALVAREZ AORCO ARM APERTH AINR AGRI ALZUGUREN ANGEL ACDA AEMED ARC AMGMT AEMRASECCASCKFLOMARRPRELPINRAMGTJMXL ASECAFINGMGRIZOREPTU ABMC AIAG ALJAZEERA ASR ASECARP ALAMI APRM ASECM AMPR AEGR AUSTRALIAGROUP ASE AMGTHA ARNOLDFREDERICK AIDAC AOPC ANTITERRORISM ASEG AMIA ASEX AEMRBC AFOR ABT AMERICA AGENCIES AGS ADRC ASJA AEAID ANARCHISTS AME AEC ALNEA AMGE AMEDCASCKFLO AK ANTONIO ASO AFINIZ ASEDC AOWC ACCOUNT ACTION AMG AFPK AOCR AMEDI AGIT ASOC ACOAAMGT AMLB AZE AORCYM AORL AGRICULTURE ACEC AGUILAR ASCC AFSA ASES ADIP ASED ASCE ASFC ASECTH AFGHAN ANTXON APRC AFAF AFARI ASECEFINKCRMKPAOPTERKHLSAEMRNS AX ALAB ASECAF ASA ASECAFIN ASIC AFZAL AMGTATK ALBE AMT AORCEUNPREFPRELSMIGBN AGUIRRE AAA ABLG ARCH AGRIC AIHRC ADEL AMEX ALI AQ ATFN AORCD ARAS AINFCY AFDB ACBAQ AFDIN AOPR AREP ALEXANDER ALANAZI ABDULRAHMEN ABDULHADI ATRD AEIR AOIC ABLDG AFR ASEK AER ALOUNI AMCT AVERY ASECCASC ARG APR AMAT AEMRS AFU ATPDEA ALL ASECE ANDREW
EAIR ECON ETRD EAGR EAID EFIN ETTC ENRG EMIN ECPS EG EPET EINV ELAB EU ECONOMICS EC EZ EUN EN ECIN EWWT EXTERNAL ENIV ES ESA ELN EFIS EIND EPA ELTN EXIM ET EINT EI ER EAIDAF ETRO ETRDECONWTOCS ECTRD EUR ECOWAS ECUN EBRD ECONOMIC ENGR ECONOMY EFND ELECTIONS EPECO EUMEM ETMIN EXBS EAIRECONRP ERTD EAP ERGR EUREM EFI EIB ENGY ELNTECON EAIDXMXAXBXFFR ECOSOC EEB EINF ETRN ENGRD ESTH ENRC EXPORT EK ENRGMO ECO EGAD EXIMOPIC ETRDPGOV EURM ETRA ENERG ECLAC EINO ENVIRONMENT EFIC ECIP ETRDAORC ENRD EMED EIAR ECPN ELAP ETCC EAC ENEG ESCAP EWWC ELTD ELA EIVN ELF ETR EFTA EMAIL EL EMS EID ELNT ECPSN ERIN ETT EETC ELAN ECHEVARRIA EPWR EVIN ENVR ENRGJM ELBR EUC EARG EAPC EICN EEC EREL EAIS ELBA EPETUN EWWY ETRDGK EV EDU EFN EVN EAIDETRD ENRGTRGYETRDBEXPBTIOSZ ETEX ESCI EAIDHO EENV ETRC ESOC EINDQTRD EINVA EFLU EGEN ECE EAGRBN EON EFINECONCS EIAD ECPC ENV ETDR EAGER ETRDKIPR EWT EDEV ECCP ECCT EARI EINVECON ED ETRDEC EMINETRD EADM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID ETAD ECOM ECONETRDEAGRJA EMINECINECONSENVTBIONS ESSO ETRG ELAM ECA EENG EITC ENG ERA EPSC ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EIPR ELABPGOVBN EURFOR ETRAD EUE EISNLN ECONETRDBESPAR ELAINE EGOVSY EAUD EAGRECONEINVPGOVBN EINVETRD EPIN ECONENRG EDRC ESENV EB ENER ELTNSNAR EURN ECONPGOVBN ETTF ENVT EPIT ESOCI EFINOECD ERD EDUC EUM ETEL EUEAID ENRGY ETD EAGRE EAR EAIDMG EE EET ETER ERICKSON EIAID EX EAG EBEXP ESTN EAIDAORC EING EGOV EEOC EAGRRP EVENTS ENRGKNNPMNUCPARMPRELNPTIAEAJMXL ETRDEMIN EPETEIND EAIDRW ENVI ETRDEINVECINPGOVCS EPEC EDUARDO EGAR EPCS EPRT EAIDPHUMPRELUG EPTED ETRB EPETPGOV ECONQH EAIDS EFINECONEAIDUNGAGM EAIDAR EAGRBTIOBEXPETRDBN ESF EINR ELABPHUMSMIGKCRMBN EIDN ETRK ESTRADA EXEC EAIO EGHG ECN EDA ECOS EPREL EINVKSCA ENNP ELABV ETA EWWTPRELPGOVMASSMARRBN EUCOM EAIDASEC ENR END EP ERNG ESPS EITI EINTECPS EAVI ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID ELTRN EADI ELDIN ELND ECRM EINVEFIN EAOD EFINTS EINDIR ENRGKNNP ETRDEIQ ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD EAIT ECONEINVEFINPGOVIZ EWWI ENERGY ELB EINDETRD EMI ECONEAIR ECONEFIN EHUM EFNI EOXC EISNAR ETRDEINVTINTCS EIN EFIM EMW ETIO ETRDGR EMN EXO EATO EWTR ELIN EAGREAIDPGOVPRELBN EINVETC ETTD EIQ ECONCS EPPD ESS EUEAGR ENRGIZ EISL EUNJ EIDE ENRGSD ELAD ESPINOSA ELEC EAIG ESLCO ENTG ETRDECD EINVECONSENVCSJA EEPET EUNCH ECINECONCS
KPKO KIPR KWBG KPAL KDEM KTFN KNNP KGIC KTIA KCRM KDRG KWMN KJUS KIDE KSUM KTIP KFRD KMCA KMDR KCIP KTDB KPAO KPWR KOMC KU KIRF KCOR KHLS KISL KSCA KGHG KS KSTH KSEP KE KPAI KWAC KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KPRP KVPR KAWC KUNR KZ KPLS KN KSTC KMFO KID KNAR KCFE KRIM KFLO KCSA KG KFSC KSCI KFLU KMIG KRVC KV KVRP KMPI KNEI KAPO KOLY KGIT KSAF KIRC KNSD KBIO KHIV KHDP KBTR KHUM KSAC KACT KRAD KPRV KTEX KPIR KDMR KMPF KPFO KICA KWMM KICC KR KCOM KAID KINR KBCT KOCI KCRS KTER KSPR KDP KFIN KCMR KMOC KUWAIT KIPRZ KSEO KLIG KWIR KISM KLEG KTBD KCUM KMSG KMWN KREL KPREL KAWK KIMT KCSY KESS KWPA KNPT KTBT KCROM KPOW KFTN KPKP KICR KGHA KOMS KJUST KREC KOC KFPC KGLB KMRS KTFIN KCRCM KWNM KHGH KRFD KY KGCC KFEM KVIR KRCM KEMR KIIP KPOA KREF KJRE KRKO KOGL KSCS KGOV KCRIM KEM KCUL KRIF KCEM KITA KCRN KCIS KSEAO KWMEN KEANE KNNC KNAP KEDEM KNEP KHPD KPSC KIRP KUNC KALM KCCP KDEN KSEC KAYLA KIMMITT KO KNUC KSIA KLFU KLAB KTDD KIRCOEXC KECF KIPRETRDKCRM KNDP KIRCHOFF KJAN KFRDSOCIRO KWMNSMIG KEAI KKPO KPOL KRD KWMNPREL KATRINA KBWG KW KPPD KTIAEUN KDHS KRV KBTS KWCI KICT KPALAOIS KPMI KWN KTDM KWM KLHS KLBO KDEMK KT KIDS KWWW KLIP KPRM KSKN KTTB KTRD KNPP KOR KGKG KNN KTIAIC KSRE KDRL KVCORR KDEMGT KOMO KSTCC KMAC KSOC KMCC KCHG KSEPCVIS KGIV KPO KSEI KSTCPL KSI KRMS KFLOA KIND KPPAO KCM KRFR KICCPUR KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KFAM KWWMN KENV KGH KPOP KFCE KNAO KTIAPARM KWMNKDEM KDRM KNNNP KEVIN KEMPI KWIM KGCN KUM KMGT KKOR KSMT KISLSCUL KNRV KPRO KOMCSG KLPM KDTB KFGM KCRP KAUST KNNPPARM KUNH KWAWC KSPA KTSC KUS KSOCI KCMA KTFR KPAOPREL KNNPCH KWGB KSTT KNUP KPGOV KUK KMNP KPAS KHMN KPAD KSTS KCORR KI KLSO KWNN KNP KPTD KESO KMPP KEMS KPAONZ KPOV KTLA KPAOKMDRKE KNMP KWMNCI KWUN KRDP KWKN KPAOY KEIM KGICKS KIPT KREISLER KTAO KJU KLTN KWMNPHUMPRELKPAOZW KEN KQ KWPR KSCT KGHGHIV KEDU KRCIM KFIU KWIC KNNO KILS KTIALG KNNA KMCAJO KINP KRM KLFLO KPA KOMCCO KKIV KHSA KDM KRCS KWBGSY KISLAO KNPPIS KNNPMNUC KCRI KX KWWT KPAM KVRC KERG KK KSUMPHUM KACP KSLG KIF KIVP KHOURY KNPR KUNRAORC KCOG KCFC KWMJN KFTFN KTFM KPDD KMPIO KCERS KDUM KDEMAF KMEPI KHSL KEPREL KAWX KIRL KNNR KOMH KMPT KISLPINR KADM KPER KTPN KSCAECON KA KJUSTH KPIN KDEV KCSI KNRG KAKA KFRP KTSD KINL KJUSKUNR KQM KQRDQ KWBC KMRD KVBL KOM KMPL KEDM KFLD KPRD KRGY KNNF KPROG KIFR KPOKO KM KWMNCS KAWS KLAP KPAK KHIB KOEM KDDG KCGC
PGOV PREL PK PTER PINR PO PHUM PARM PREF PINF PRL PM PINS PROP PALESTINIAN PE PBTS PNAT PHSA PL PA PSEPC POSTS POLITICS POLICY POL PU PAHO PHUMPGOV PGOG PARALYMPIC PGOC PNR PREFA PMIL POLITICAL PROV PRUM PBIO PAK POV POLG PAR POLM PHUMPREL PKO PUNE PROG PEL PROPERTY PKAO PRE PSOE PHAS PNUM PGOVE PY PIRF PRES POWELL PP PREM PCON PGOVPTER PGOVPREL PODC PTBS PTEL PGOVTI PHSAPREL PD PG PRC PVOV PLO PRELL PEPFAR PREK PEREZ PINT POLI PPOL PARTIES PT PRELUN PH PENA PIN PGPV PKST PROTESTS PHSAK PRM PROLIFERATION PGOVBL PAS PUM PMIG PGIC PTERPGOV PSHA PHM PHARM PRELHA PELOSI PGOVKCMABN PQM PETER PJUS PKK POUS PTE PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PERM PRELGOV PAO PNIR PARMP PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PHYTRP PHUML PFOV PDEM PUOS PN PRESIDENT PERURENA PRIVATIZATION PHUH PIF POG PERL PKPA PREI PTERKU PSEC PRELKSUMXABN PETROL PRIL POLUN PPD PRELUNSC PREZ PCUL PREO PGOVZI POLMIL PERSONS PREFL PASS PV PETERS PING PQL PETR PARMS PNUC PS PARLIAMENT PINSCE PROTECTION PLAB PGV PBS PGOVENRGCVISMASSEAIDOPRCEWWTBN PKNP PSOCI PSI PTERM PLUM PF PVIP PARP PHUMQHA PRELNP PHIM PRELBR PUBLIC PHUMKPAL PHAM PUAS PBOV PRELTBIOBA PGOVU PHUMPINS PICES PGOVENRG PRELKPKO PHU PHUMKCRS POGV PATTY PSOC PRELSP PREC PSO PAIGH PKPO PARK PRELPLS PRELPK PHUS PPREL PTERPREL PROL PDA PRELPGOV PRELAF PAGE PGOVGM PGOVECON PHUMIZNL PMAR PGOVAF PMDL PKBL PARN PARMIR PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PDD PRELKPAO PKMN PRELEZ PHUMPRELPGOV PARTM PGOVEAGRKMCAKNARBN PPEL PGOVPRELPINRBN PGOVSOCI PWBG PGOVEAID PGOVPM PBST PKEAID PRAM PRELEVU PHUMA PGOR PPA PINSO PROVE PRELKPAOIZ PPAO PHUMPRELBN PGVO PHUMPTER PAGR PMIN PBTSEWWT PHUMR PDOV PINO PARAGRAPH PACE PINL PKPAL PTERE PGOVAU PGOF PBTSRU PRGOV PRHUM PCI PGO PRELEUN PAC PRESL PORG PKFK PEPR PRELP PMR PRTER PNG PGOVPHUMKPAO PRELECON PRELNL PINOCHET PAARM PKPAO PFOR PGOVLO PHUMBA POPDC PRELC PHUME PER PHJM POLINT PGOVPZ PGOVKCRM PAUL PHALANAGE PARTY PPEF PECON PEACE PROCESS PPGOV PLN PRELSW PHUMS PRF PEDRO PHUMKDEM PUNR PVPR PATRICK PGOVKMCAPHUMBN PRELA PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PBT PAMQ

Browse by classification

Community resources

courage is contagious

Viewing cable 09HOCHIMINHCITY11, FALLING U.S. CONSUMER DEMAND PROMPTS FACTORY

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09HOCHIMINHCITY11.
Reference ID Created Released Classification Origin
09HOCHIMINHCITY11 2009-01-07 10:36 2011-08-26 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Ho Chi Minh City
VZCZCXRO1250
OO RUEHDT RUEHPB
DE RUEHHM #0011/01 0071036
ZNR UUUUU ZZH ZDK
O P 071036Z JAN 09
FM AMCONSUL HO CHI MINH CITY
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5277
INFO RUEHHI/AMEMBASSY HANOI PRIORITY 3507
RUEHHM/AMCONSUL HO CHI MINH CITY PRIORITY 5507
RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE
RUCPDOC/USDOC WASHDC PRIORITY 0106
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC
UNCLAS SECTION 01 OF 02 HO CHI MINH CITY 000011 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS, USAID/ANE, EEB/TPP/BTA/ANA 
USDOC FOR 4431/MAC/AP/OPB/VLC/HPPHO 
USTR FOR BISBEE 
TREASURY FOR CHUN 
 
E.O. 12958: N/A 
TAGS: ECON ELAB ETRD SOCI PGOV VM
SUBJECT: FALLING U.S. CONSUMER DEMAND PROMPTS FACTORY 
CLOSINGS IN THE SOUTH 
 
REF: A) HCMC 972 "EXPORTS WILL GROW, BUT MORE SLOWLY" (10/28); 
B) HANOI 1316 "VN SHIFTS FOCUS TO MAINTAINING GROWTH" (12/02); 
C) HANOI 1391 "FURTHER EFFECTS OF THE U.S. FINANCIAL CRISIS" (12/22) 
 
HO CHI MIN 00000011  001.2 OF 002 
 
 
1. (SBU) Summary:  Over 100 garment factories in southern 
Vietnam have closed in recent months, leaving an estimated 
60,000 workers jobless.  The garment industry will be just a 
drop in the bucket, according to the Taiwan Business 
Association, which believes 800 to 1,000 companies are unlikely 
to reopen after the Tet New Year holiday (January 26-29), 
putting up to half a million laborers out of work.  This could 
increase the possibility of social unrest, even in unlikely 
areas such as the Mekong Delta and central coast provinces, 
because they are the source of much of Vietnam's migrant labor. 
Many newspapers have quoted Prime Minister Nguyen Tan Dung's 
December 22 public warning to Vietnam's public security services 
to be vigilant in preventing demonstrations in the coming year. 
End summary. 
 
Exporting Companies Going out of Business 
----------------------------------------- 
2. (SBU) Taiwan and Korea are two of the leading sources of 
investment in low-value light industrial manufacturing for 
export in Vietnam.  According to the Ministry of Planning and 
Investment, Taiwanese FDI from 1988 to December 2008 totals 
1,940 projects worth $19.6 billion while Korean FDI accounts for 
2,058 projects valued at $16.5 billion.  Taiwanese and Korean 
business associations report that a sharp downturn in demand for 
Vietnamese exports is beginning to put their companies out of 
business (reftel A).  The Korean Consulate in HCMC confirms this 
trend, adding that foundering Korean companies are being pushed 
under by a sharp drop in orders from U.S. buyers, down anywhere 
from 20 to 50 percent.  The Taiwan Business Association in Ho 
Chi Minh City (HCMC) estimates that 800 to 1,000 factories are 
in danger of bankruptcy in the month leading up to the Tet 
(Lunar New Year) holiday.  Vietnamese newspapers have widely 
quoted Nguyen Dai Dong, Head of the Employment Department of the 
Ministry of Labor, War Invalids and Social Affairs (MOLISA) as 
forecasting that some 300,000 laborers (0.65 percent of 
Vietnam's current work force) will lose their jobs next year if 
Vietnam's GDP growth rate falls to 6.5 percent in 2009 (reftel 
B).  The IMF expects GDP growth will be closer to 5 percent 
(reftel C). 
 
Garment and Footwear Exporters Lead the Way 
------------------------------------------- 
3. (SBU) Vietnam's garment and footwear industries are dependent 
on export markets, especially the U.S. market, for their 
survival.  According to Mr. Diep Thanh Kiet, Vice Chairman of 
the HCMC Textile, Apparel and Embroidery Association, there are 
2,000 garment enterprises in Vietnam employing nearly two 
million workers and 500 footwear companies employing 600,000 
workers.  70 percent of these enterprises are in Vietnam's 
southern provinces, including HCMC.  Nguyen Duc Hoan, Chairman 
of the HCMC Garment, Textile, Embroidery and Knitting 
Association estimated that a 20 percent drop in orders would 
leave 400,000 Vietnamese garment workers unemployed. 
 
4. (SBU) Roughly 70 garment and apparel export factories, 
including approximately 20 Korean and 40-50 Taiwanese, have 
closed in recent months, leaving approximately 60,000 workers 
jobless, according to the Vietnam Textile and Apparel 
Association (VITAS).  HCMC Department of Labor, War Invalids and 
Social Affairs (DoLISA) data support the VITAS estimates. 
DoLISA says 21 garment, textile and footwear companies in HCMC 
alone shut their doors in 2008, resulting in the loss of 6,000 
jobs.  It estimates that layoffs at another 50 businesses cost 
the city another 4,500 jobs.  Looking forward, DoLISA forecasts 
another 5,000 garment workers will have lost their jobs by the 
end of 2008.  Provincial officials confirm nearby industrial 
provinces have seen similar closures:  10 companies cut 2,600 
jobs in Dong Nai province and 26 companies cut 2,500 jobs in 
Binh Duong province, laying off nearly 1,000 more workers. 
 
5. (SBU) VITAS's Head of External Affairs Pham Gia Hung says the 
industry outlook has deteriorated significantly in recent months 
(reftel A); VITAS now estimates Vietnam's textile export volume 
this year at $9 billion dollars, roughly $800 million dollars 
lower than the targets set by Ministry of Industry and Trade and 
up 1.3 billion from $7.7 billion in 2007.  Hung said the GVN 
should cut taxes and make low-cost financing available to the 
garment industry to help ease the present crunch. 
 
Pressure Points Pushed to the Countryside 
----------------------------------------- 
 
HO CHI MIN 00000011  002.2 OF 002 
 
 
6. (SBU) Migrant laborers from the Mekong Delta and the central 
coast fill many of the unskilled jobs in HCMC and the 
surrounding industrialized provinces.  Provincial officials from 
Dong Nai and Binh Duong both estimate migrant workers account 
for 70 to 80 percent of their workforce.  When these workers are 
laid off and unable to find new jobs in the city, they tend to 
return to their home provinces.  As Tet draws near, many workers 
feel another economic pinch as employers cut back on traditional 
"Tet" bonuses to their employees because of the downturn. 
According to the most recent DoLISA survey of HCMC businesses, 
Tet bonuses (for FDI companies in export processing zones) will 
drop 11 percent this year to an average of $90 dollars. 
Consequently, many, if not all workers, will have less pocket 
money than they expected when they return to their home 
provinces for the Lunar New Year, January 26-29, 2009.  During a 
recent trip to the Mekong Delta, Econoff heard from locals who 
worried privately about what rising unemployment accompanied by 
a swell of disgruntled workers returning to the Can Tho region 
might mean for social stability. 
 
Authorities Look to Head Off Trouble 
------------------------------------ 
7. (SBU) According to Vietnam's media, this concern goes all the 
way to the top in the GVN.  On December 22, Prime Minister 
Nguyen Tan Dung publicly called on Vietnam's public security 
forces to be proactive in preventing protests, riots and 
terrorism in 2009.  Declining economic conditions have also 
caused the GVN to rethink the timing of various reforms, HCMC 
newspapers have written, especially the new personal income tax 
and unemployment insurance decrees taking effect as of January 
1, 2009.  Sources at the Ministry of Finance, however, tell the 
Embassy that these measures will be implemented in a timely 
manner. 
 
8. (SBU) Vietnamese labor authorities are working to find new 
jobs for the unemployed workers.  In mid-December the Ho Chi 
Minh City Labor Confederation reported that they were able to 
find 3,500 jobs for those unemployed.  HCMC DoLISA said it will 
increase scrutiny of social and health insurance premiums by FDI 
enterprises. 
 
Comment: 
-------- 
9. (SBU) Southern Vietnam's export sector had hoped to ride out 
the global economic storm (ref A) but is now facing a starkly 
different reality.  Exporters in the southern provinces of 
Vietnam are seeing a significant drop in orders for exports and 
this is forcing most to cut payrolls and some to close 
altogether.  Since low cost labor has been a significant 
component of Vietnam's competitive advantage, falling overseas 
orders have led directly to increased unemployment.  While most 
export-oriented companies expect to continue to lose orders and 
shed jobs, a few very well-managed companies have found the 
turmoil to be an opportunity to lower costs, increase efficiency 
and build their share of Vietnam's exports as their competitors 
flounder. 
 
10. (U) This cable was coordinated with Embassy Hanoi. 
FAIRFAX