Lao and Chinese security forces raid call centers in the Golden Triangle

All centers in the Chinese-run special economic zone face a Sunday deadline to shut down their operations.

Lao and Chinese security forces detained 771 people in the Golden Triangle Special Economic Zone during a joint operation conducted ahead of a deadline for illegal call centers in the notorious zone to close.

Authorities in northern Laos have notified call centers in the Chinese-run special economic zone, or SEZ, that they have until Sunday to shut down their operations.

Scamming operations run by Chinese nationals who try to trick people into fake investments are rife in the zone. Many of the workers are mistreated and prevented from leaving the premises.

The Golden Triangle SEZ along the Mekong River in Bokeo province in northern Laos has been a gambling and tourism hub catering to Chinese visitors, as well as a haven for online fraud, human trafficking, prostitution and illegal drug activities.

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The Golden Triangle Special Economic Zone Command dismantles a gang of telecommunication fraudsters in a video posted to their Facebook page in Bokeo Province, Laos, Aug. 20, 2024. (Mass Media of Public Security via Facebook)

The Lao government's closure order came after an Aug. 9 meeting between the Bokeo provincial governor, high-ranking officials from the Lao Ministry of Public Security, and Zhao Wei, the chairman of the Golden Triangle SEZ.

The joint raids with Chinese authorities began on Aug. 12, according to the Lao Ministry of Public Security website.

Among the 771 people detained were 275 Laotians, 231 Burmese and 108 Chinese, the ministry said. Other nationalities included people from the Philippines, India, Indonesia, Ethiopia and Vietnam.

“Most of them are just workers who were hired to work at the centers,” a ministry official told Radio Free Asia. “It’s a form of human trafficking because they were lured to come to the SEZ to work at stores or restaurants, but later they were forced to work as scammers.”

Computers and cellphones

A Bokeo provincial official, who like other sources in this report requested anonymity for security reasons, said many of the Chinese citizens who were arrested were in leadership roles at the call centers.

“We handed over all the Chinese to Chinese authorities at the border gate in Luang Namtha province several days ago,” she said. “Other foreigners, such as Indians and Filipinos, are waiting for their respective embassies to pick them up.”

Most of the arrested Lao nationals were booked, reeducated and handed over to family members, she said.

Authorities have also seized more than 2,000 pieces of electronic equipment, including 709 computers and 1,896 mobile phones, according to the ministry.

“All Chinese people and equipment seized from the raid have been sent back to China to comply with the agreement between the Lao Ministry of Public Security and the Chinese counterparts,” a Luang Namtha province official told RFA.

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In the first half of 2024, as many as 400 call centers were operating in the Golden Triangle SEZ. The centers mostly targeted Chinese, which eventually prompted authorities in China to team up with their counterparts in Laos.

The owner of a Vientiane employment agency that hires workers for Chinese companies in the SEZ said they have paused recruitment activities and are waiting to see what happens after Sunday’s deadline.

“If the police stop raiding the places, we’ll be back in business,” he said.

Translated by Max Avary. Edited by Matt Reed.