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VN News June 1-2




Headlines:

Vietnam gives state firms two years to shape up
Murder not ruled out in Vietnam Minh Phung scandal
Vietnam protests war memorial attack in Cambodia
Child kidnappers sentenced to jail in northern Vietnam
Vietnam praises anti-vice drive in former Saigon
Executive Director of troubled Vietnamese company found dead                 
Crime jumps in Vietnam's capital                 
Doing drugs is becoming a troubling way of life             
Soccer-Tajikistan beat Vietnam 4-0 in World Cup qualifier


Vietnam gives state firms two years to shape up 

 HANOI, June 2 (Reuter) - Vietnam's communist government 
 announced new rules on Monday which it said gave loss-making 
 state-owned firms two years to shape up or risk being 
 dissolved. 
 A finance ministry official told Reuters the two-year limit 
 was one of several criteria which officials could use to close 
 a state firm, but gave no other details. 
 State media reported the axe would also fall on firms where 
 registered capital was lower than the prescribed legal capital. 
 Companies whose business licences expire and are not extended 
 would also be chopped. 
 The new rules follow a decree announced last August which 
 aimed at making Vietnam's massive and lumbering state sector 
 more profitable by setting out steps allowing for loss-making 
 companies to be declared bankrupt and dissolved. 
 The official Vietnam News Agency reported earlier this year 
 that "the majority of state trading companies are operating 
 with difficulties and running disappointing losses". 
 It said only 30 percent had returned profits during the 
 past five years, but did not define precisely what "state 
 trading companies" were. 
 Under communist party policy Vietnam's state sector is the 
 backbone of the country's economy. 
 However, economists say the sector is grossly inefficient 
 and unfit to compete with foreign and some private sector 
 firms. 
 


 Murder not ruled out in Vietnam Minh Phung scandal 

 HANOI, June 2 (Reuter) - Police in southern Vietnam said on 
 Monday they were not ruling out the possibility of murder 
 following the grisly death of a senior executive at 
 scandal-plagued conglomerate Minh Phung. 
 Nguyen Van Ha, the company's vice-director, was found dead 
 on Saturday in a lift engine room at the top of a high-rise 
 building in Ho Chi Minh City. His head was strapped by a metal 
 cord holding his face against an electrical circuit board. 
 Newspapers in the southern city said that other than burns 
 to his face there were no signs of a struggle. 
 Ha had been in charge of finance at Minh Phung. He was a 
 former official at the Ho Chi Minh City branch of Vietnam's 
 biggest state-owned commercial bank, Vietcombank. 
 Police in Ho Chi Minh City told Reuters on Monday they were 
 "examining all possibilities" surrounding Ha's death, including 
 murder. 
 Minh Phung is one of several major Vietnamese companies 
 which has been at the centre of a fraud scandal surrounding 
 efforts by a handful of players to compete for control of the 
 booming Saigon property market during the early 1990s. 
 The companies involved are said to have used power and 
 influence to secure vast loans from both private and 
 state-owned banks, which took dubious security collateral. 
 The firm's director, Tang Minh Phung, was arrested on fraud 
 charges in March. More than a dozen others have been arrested 
 since then. 
 The garments-to-property giant is one of Vietnam's largest 
 private sector companies and employs around 8,000 people. 



 Vietnam protests war memorial attack in Cambodia 

 HANOI, June 2 (Reuter) - Vietnam has condemned a bomb 
 explosion at a memorial for its war dead in Cambodia's southern 
 port town of Sihanoukville. 
 Government officials in Phnom Penh said the memorial was 
 slightly damaged by what appeared to have been a mine or a 
 grenade blast on Saturday evening. 
 The official Vietnam News Agency quoted a foreign ministry 
 statement in a late Sunday dispatch describing the event as an 
 act of sabotage aimed at destroying stability in Cambodia and 
 friendship between the two countries. 
 "This is an act of provocation aimed at sabotaging the 
 traditional friendship and cooperation between the peoples of 
 Vietnam and Cambodia," a foreign ministry spokesman was quoted 
 as saying. 
 The memorial was built to commemorate Vietnam's late 1978 
 invasion of Cambodia when Vietnamese troops and members of the 
 Cambodian opposition defeated Pol Pot's Khmer Rouge regime, 
 officials said. 
 The statement added that Vietnam wanted the Cambodian 
 Government to take urgent measures to stop such actions, and to 
 repair the monument as soon as possible. 
 Cambodia played down the incident. 
 "This is not a big problem. It's only damaged a little. The 
 local police are investigating," interior ministry spokesman 
 Sok Phal told Reuters. 
 The reasons behind the latest incident were not immediately 
 clear. 
 Attacks on ethnic Vietnamese citizens and property have 
 been a recurrent problem in Cambodia. 
 In early 1996 both sides protested after gunfire was 
 exchanged on the border between the two neighbours. 
 Vietnam invaded Cambodia in late 1978 toppling the 
 ultra-Maoist Khmer Rouge government and installing a 
 sympathetic administration. It withdrew its forces in 1989. 

                 Child kidnappers sentenced to
                 jail in northern Vietnam 

                 Hanoi Vietnam (AP) -- A woman convicted
                 of drugging and kidnapping a 5-year-old boy
                 in northern Vietnam was sentenced to nine
                 years in prison, state-controlled media
                 reported Monday.

                 The woman, Luong Que Tien, and two of
                 her sons nabbed the child with the intention
                 of giving him to Tien's eldest daughter, who
                 lives in neighboring China, the report said.

                 Tien's two sons were sentenced to seven and
                 two years in prison on related charges, the
                 Communist Party newspaper, The People,
                 reported.

                 The court in northern Lang Son province, on
                 the border with China, was told Tien
                 kidnapped the boy for her daughter, who has
                 not been able to have a child of her own.

                 Married women in Vietnam and China often
                 come under enormous pressure to bear baby
                 boys.

                 Tien initially tried to adopt the child, but
                 when his father refused she drugged the man
                 and his son with sleeping pills.

                 Police arrested Tien with the child as she
                 prepared to send him across the border to
                 China, The People reported. 


                     Vietnam praises anti-vice
                 drive in former Saigon 

                 Hanoi (Reuter) - Vietnam on Monday
                 catalogued the results of 15 months of efforts
                 to root out vice in Ho Chi Minh City and said
                 the streets were 70 to 80 percent cleaner of
                 ``poisonous cultural activities.'' 

                 The Saigon Times Daily quoted a report
                 issued by the city's Culture and Information
                 Department as saying 48 brothels had since
                 been closed in the former Saigon and 40
                 brothel owners arrested. It said 120
                 prostitutes were undergoing re-education
                 and 62 ``pleasure seekers'' had been fined. 

                 It went on to catalogue 32,803 investigations
                 which it said had resulted in nearly half a
                 million videos being confiscated along with
                 73,724 illicit books or periodicals, 483 video
                 recorders and 14 television sets. 

                 ``The investigation has been very efficient
                 and has stopped 70-80 percent of poisonous
                 cultural activities here,'' a culture
                 department official told Reuters. ``This
                 should and will continue.'' 

                 Ho Chi Minh City was known as Saigon until
                 the end of the Vietnam war in 1975, when it
                 was renamed after the late president of North
                 Vietnam. 

                 It has retained a freewheeling reputation and
                 is still commonly referred by its former name.


		 Executive Director of
                 troubled Vietnamese company
                 found dead 

                 Hanoi (AP) -- The vice director of
                 Vietnam's troubled Minh Phung textile
                 company was found dead on the top floor
                 balcony of a bank building in Ho Chi Minh
                 City, police said Monday.

                 Nguyen Van Ha's body was discovered
                 Saturday by Industry and Commerce Bank
                 employees who went to investigate a foul
                 smell in the building, a police spokesman
                 said on condition of anonymity.

                 Police are investigating the death, which
                 came amid an expanding fraud inquiry into
                 garment and textile manufacturer Minh
                 Phung. At least 23 executives from Minh
                 Phung and subsidiary companies have been
                 arrested, police say.

                 State-run Voice of Vietnam radio said
                 Monday that Ha's body was found seated
                 next to a wall with his face pressed against an
                 electric socket. A thin steel wire was wrapped
                 several times around his neck.

                 Ha, a former executive at the state-run
                 Vietcombank, joined Minh Phung as the
                 company's vice director in charge of financial
                 affairs. He used his banking connections to
                 help Minh Phung secure various loans, the
                 official Labor newspaper reported.

                 The focus of police investigations into Minh
                 Phung have centered on potentially forged
                 loan documents, misuse of loan money and
                 misappropriation of funds.

                 Days before his body was discovered, Ha had
                 gone to the Industry and Commerce Bank
                 with two colleagues for a business meeting.
                 After the meeting, the two colleagues left but
                 Ha stayed behind. Later he was discovered
                 dead on the top floor.

                 In recent weeks, authorities in Ho Chi Minh
                 City have arrested top Minh Phung
                 executives, charging them with a variety of
                 fraud-related crimes.

                 Ming Phung's chief executive, Tang Minh
                 Phung, was arrested in March and has been
                 accused of illegally using loans to make bad
                 property deals.

                 Debts from the loans have topped dlrs 26
                 million in recent months. Minh Phung is
                 under investigation to determine if company
                 directors falsified documents to take out
                 additional loans to pay off debts.

                 Although company founder Tang Minh
                 Phung was considered one of Vietnam's new
                 generation of enterprising business leaders,
                 his empire began to collapse late last year
                 under the weight of massive loan debts.

                 In the face of growing corruption and
                 business fraud, Vietnam's ruling Communist
                 Party has been eager to levy heavy penalties
                 on offenders. A growing number of
                 businesses are coming under closer scrutiny.

                 Courts in southern Vietnam have invoked the
                 death penalty in three separate cases of
                 corruption involving public funds and state
                 property since late last year. 





                     Crime jumps in Vietnam's
                 capital 

                 Hanoi (AP) -- Crime is on the rise in
                 Vietnam's capital, Hanoi, a city known for its
                 safe streets and law abiding residents.

                 During the first five months of the year,
                 serious crimes, including murder and armed
                 robbery, jumped 10 percent compared to
                 1996, state-controlled media reported
                 Monday.

                 Police recorded five murders during a two
                 week stretch in May -- an unprecedented
                 number of peacetime killings in Vietnam
                 under communist rule.

                 Petty crime, including pick-pocketing, is
                 also increasing with a 7.5 percent rise over
                 last year.

                 About 70 percent of the criminals arrested in
                 Hanoi are drug addicts, said a Hanoi Police
                 report published in the Communist Party
                 newspaper, The People.

                 Despite large-scale crackdowns on drug
                 trafficking in Vietnam, the number of drug
                 users increased between January and May,
                 the report said. There are as many as 6,000
                 habitual heroin and opium users in Hanoi,
                 The People reported. 





                     Doing drugs is becoming a
                 troubling way of life 

                 By Sangwon Suh and Ken Stier / Hanoi 
                 Asiaweek 

                 CALL IT A COMING of age if you like.
                 After years in the socialist wilderness,
                 Vietnam has finally joined the ranks of many
                 developed nations -- in having a serious
                 drug problem. Until recently, drug addiction
                 in Vietnam was usually associated with
                 ethnic minorities in the highlands, who have
                 been traditional smokers of opium and have
                 long cultivated it as an important cash crop.
                 Among the kinh (lowland majority), the
                 problem was confined to the marginalized
                 and the unemployed. Many have been former
                 South Vietnamese soldiers whose lives were
                 blighted by war injuries, years of
                 re-education and job discrimination. But
                 lately, drug abuse has shown disturbing signs
                 of breaking into the wider society.

                 Alarm bells were triggered last year when
                 more than 40 secondary-school students in
                 Lang Son, a small city near the Chinese
                 border, were found to be "seriously addicted"
                 to heroin, according to an official report.
                 Many were first introduced to the drug by
                 street vendors who offered them cigarettes
                 laced with heroin. Some students got started
                 as early as nine years old. Then, in Ho Chi
                 Minh City, a police raid on a shooting gallery
                 netted 100 young Vietnamese. More than
                 half of them were between 15 and 25 years
                 old, and most relatively well-to-do but
                 disaffected students. Heroin use has even
                 been discovered in primary schools,
                 including those in Hanoi's Ba Dinh district
                 where the presidential palace, the National
                 Assembly and the Communist Party
                 headquarters are located. Students have not
                 been the only ones getting hooked.
                 Investigating a high incidence of traffic
                 accidents involving taxis in Hanoi, police
                 discovered that at one taxi company, more
                 than half of the drivers were using heroin.

                 Experts attribute the rising incidence of drug
                 abuse to the steep increase in the amount of
                 narcotics passing through Vietnam. Because
                 increased police vigilance in countries like
                 Thailand and China has constricted the flow
                 of heroin through traditional routes,
                 traffickers have targeted Vietnam as an
                 alternative transshipment area -- and as a
                 market. "Drug dealers have a strong interest
                 in creating markets along the routes because
                 this facilitates the trafficking," says Jorn
                 Kristensen of the United Nations Drug
                 Control Program (UNDCP) in Hanoi.

                 The situation has clearly unsettled Vietnam's
                 leaders. Both Communist Party chief Do
                 Muoi and Prime Minister Vo Van Kiet have
                 spoken out forcefully against the scourge.
                 "The situation is critical now," warned Kiet
                 recently. "The sharp rise in drug-trafficking
                 is a red alarm for us." While the highest
                 levels of government seem determined to
                 attack the problem, they essentially face an
                 enemy within. On May 14, in a trial given
                 much exposure by state media, the Hanoi
                 People's Court sentenced eight people to
                 death for running a gang that brought an
                 estimated 400 kg of heroin and a slightly
                 larger amount of opium into the country
                 between 1992 and 1995. Another eight got
                 life imprisonment and a further six up to 20
                 years. Shocking fact: several were police and
                 Interior Ministry officials.

                 With bureaucrats themselves in-volved,
                 Hanoi knows it has to do more than just
                 react. And with the UNDCP's help, it has
                 come up with a drug-control master plan
                 focusing on areas such as law enforcement,
                 preventive education and crop substitution.

                 The government's new political will
                 notwithstanding, hidebound attitudes are
                 hard to change. Hanoi's insularity remains a
                 stumbling block in a campaign where close
                 cooperation with international authorities is
                 crucial. "Being more open and sharing
                 information go against the whole mentality of
                 the Interior Ministry," says one diplomat.
                 "They are trained for security and to be
                 suspicious, so getting more cooperation is a
                 slow process."

                 Perhaps the biggest obstacle is the sheer
                 lucrativeness of the drug trade. Most of the
                 offenders in the recent case had official
                 incomes of between $80 and $120 a month.
                 A kilogram of heroin can fetch $50,000 on
                 the street, so the temptation to dabble in
                 drugs is strong. The authorities are forming a
                 new anti-narcotics unit -- but have
                 difficulty finding willing recruits to even staff
                 it. Though the war against drugs has got
                 commitment, it will need a lot more
                 resources to ensure victory. 


 Soccer-Tajikistan beat
                 Vietnam 4-0 in World Cup
                 qualifier 

                 Hanoi (Reuter) - Tajikistan beat Vietnam
                 4-0 (halftime 2-0) in their World Cup Asian
                 zone group 8 qualifying match in Ho Chi
                 Minh City on Sunday. 

                 Scorers: Mouminov 6, La Xuan Thang 24
                 own goal, Avakov 68, Achourmamadov 75. 

                     Standings    P   W   D   L   F   A  Pts
                  Tajikistan      4   3   0   1  10   2   9
                  China           3   3   0   0   8   2   9
                  Turkmenistan    3   1   0   2   4   7   3
                  Vietnam         4   0   0   4   2  13   0
                     Playing later: China v Turkmenistan. 


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