Scheme to smuggle hundreds of tons of dried betel nuts into China

Soaring dried betel nut prices, exceeding 100,000 dong per kilogram, have exposed a transnational smuggling ring responsible for illegally moving over 400 tons of goods worth 44 billion dong across the border.

The Supreme People's Procuracy recently issued an indictment, prosecuting 17 defendants involved in a large-scale dried betel nut smuggling case that occurred in Tra Linh town, Trung Khanh district, Cao Bang province.

According to the indictment, dried betel nut prices on the market reached approximately 103,750 dong per kilogram in late 2024. Recognizing substantial profits from exporting this product to China, Phung Van Luong, a dried betel nut trader from Vinh Phuc province (now Phu Tho), sought methods to transport the goods across the border.

Given that the goods lacked proper documentation of origin and did not meet official export requirements, Luong opted for illegal export channels.

In December 2024, Luong met Ly Thien Xa (also known as A Sieu), a Chinese national specializing in agricultural product procurement, in Bac Ninh.

The two agreed that Luong would purchase betel nuts in Vietnam and transport them to Hunan, China, to be delivered to A Sieu for 33,000 yuan per ton (approximately 115,5 million dong).

To secure the supply, A Sieu advanced Luong 10,5 billion dong.

Each container incurred 160 million dong in 'facilitation fees'

To move hundreds of tons of dried betel nuts across the border, Luong collaborated with groups specializing in illegal cargo export services. These included groups led by Nguyen Van Ngoc, Nguyen Van Ha, and Tran Minh Tiep.

According to the indictment, this group operated systematically with clear roles. Ngoc was responsible for making connections to ensure goods were not inspected during transit; Ha managed the export operations and sought customers; and Tiep handled warehousing near the border in Tra Linh town and coordinated with "border handler" groups.

"Border handlers" is a term for locals familiar with the terrain who transport smuggled goods via trails and unofficial crossings along the border.

To maintain operations, Ngoc, Ha, and Tiep's group required "border handlers" to pay back 160 million dong per container of goods as "facilitation fees."

The indictment states that this money was collected to evade control by authorities.

However, the investigation found no evidence that Ngoc and Ha paid money to officials to facilitate the smuggling, so there is no basis to prosecute them for this specific act.

Defendants Tran Minh Tiep (left) and Phung Van Luong. Photo: Ministry of Public Security

Porters, border handlers, and logistics providers

When dried betel nuts were transported from inland areas to Cao Bang or Lang Son, Tiep received them and moved them to warehouses near the border in Tra Linh town.

From there, "border handler" groups took over transportation.

To take on a container weighing approximately 24 tons, "border handlers" had to deposit 2 to 2,5 billion dong with Tiep's group.

If the goods were lost or seized, they had to compensate 140 million dong per ton. Conversely, successful transportation earned them 63 to 75 million dong per ton.

When conditions were favorable, "border handlers" mobilized local porters to carry dried betel nuts across trails and unofficial crossings along the border fence in areas around border markers 724, 730, 738, 746, 752, and others.

Once across the border, Chinese counterparts received the goods and transported them further inland for delivery to A Sieu.

The smuggling operation was uncovered on the night of 23/4/2025, when authorities caught the smuggling group red-handed transporting hundreds of bags of dried betel nuts near border marker 746.

Investigators determined that from February 2025 until the time of arrest, the ring successfully smuggled 14,5 containers of dried betel nuts, equivalent to over 350 tons of goods.

The 17 containers linked to Tiep's group alone had a total weight of over 406 tons, valued at over 42,1 billion dong.

Investigation results confirmed that Luong, Ngoc, Ha, Tiep, and 13 other defendants, who were "border handlers" involved in the ring, have been prosecuted for smuggling.

Regarding the ethnic minority individuals who participated in transporting goods as porters, investigators determined they were seasonal laborers with limited legal awareness and had not benefited financially, thus their criminal liability was not considered.

As for Ly Thien Xa and other Chinese individuals involved, despite Vietnam's request for judicial assistance, their identities and places of residence have not yet been determined, preventing prosecution.

The Cao Bang Provincial People's Court will bring the case to trial in the near future.