Chuck Kuhn's Asia in Photos: Rampant cigarette smuggling costs Vietnam $186 mln annually

Saturday, April 5, 2008

Rampant cigarette smuggling costs Vietnam $186 mln annually

Tobacco smuggling is on the increase and costs Vietnam between US$155 million and $186 million a year in tax, a meeting on Friday in Ho Chi Minh City heard.
At the meeting, the Vietnam Tobacco Association and relevant agencies reviewed the fight against cigarette smuggling and discussed measures to intensify crackdowns.
Illegal imports of tobacco and cigarettes mainly through land borders with Laos and Cambodia were steadily increasing, according to figures from market research firm ACNielsen and the central steering committee responsible for combating contraband, fake goods, and trade fraud.
Authorities estimate around 730 million packets of cigarettes will be seized this year.
In 2007 there were 5,800 cases of tobacco trafficking and authorities confiscated 636 million packets of cigarettes, a jump from 600 million seized in 2006.
Contraband tobacco accounts for nearly 40 percent of the market share.
The association chairman Nguyen Thai Sinh said Jet and Hero brands, from the Indonesia-based Sumatra Tobacco Trading Company, accounted for more than 90 percent of the smuggled tobacco products.
Both brands are heavily consumed in HCMC and southern provinces.
Sinh said the increase in tobacco smuggling could push about 13,000 Vietnamese tobacco farmers to the brink of unemployment this year.
Last year, the association allotted VND14 billion ($868,000) to combat tobacco smuggling, but only spent VND5 billion ($310,000).
Sinh said the Ministry of Finance should give clear instructions to finance departments in all the provinces and cities to spend the budget more effectively.
A new tobacco smuggling telephone hotline run by the Vietnam Tobacco Association and contraband central steering committee started this month

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They say "

“I can’t say what made me fall in love with Vietnam - that a woman’s voice can drug you; that everything is so intense. The colors, the taste, even the rain. Nothing like the filthy rain in London. They say whatever you’re looking for, you will find here. They say you come to Vietnam and you understand a lot in a few minutes, but the rest has got to be lived. The smell: that’s the first thing that hits you, promising everything in exchange for your soul. And the heat. Your shirt is straightaway a rag. You can hardly remember your name, or what you came to escape from. But at night, there’s a breeze. The river is beautiful. You could be forgiven for thinking there was no war; that the gunshots were fireworks; that only pleasure matters. A pipe of opium, or the touch of a girl who might tell you she loves you. And then, something happens, as you knew it would. And nothing can ever be the same again.”
― Graham Greene, The Quiet American

Tips on Travel to Vietnam

It's always warm in Southeast Asia apart from high mountains, so leave the heavy clothing at home. Cotton and breathable fabrics are always better than synthetics -- although cotton does wrinkle a lot when traveling! December through April is roughly the dry season in that region, although it can still rain a little. December is a good time to go in terms of temperature -- cooler than in the humid summertime. Either way, wearing more clothing (shirt sleeves and long pants) is always more respectful towards the Asian culture, especially when visiting temples and rural areas.