Matt Campbell, an editor at Bloomberg Businessweek, delves into the sinister rise of the Golden Triangle Special Economic Zone in Laos. He discusses how a seemingly innocent economic initiative attracted gamblers, drug runners, and human traffickers. Campbell shares harrowing stories of human trafficking and the brutal conditions workers endure in scam centers. He also explores ongoing efforts to transform the area from a criminal haven into a tourist-friendly destination, highlighting the complexities of governance and crime in this notorious region.
The Golden Triangle Special Economic Zone has become a hub for human trafficking, exploiting individuals in scam centers under severe coercion.
Despite ongoing criminal activities, the Lao government shows little interest in enforcement due to ties with influential businessmen like Zhao Wei.
Deep dives
The Exploitation of Trafficked Workers
Many individuals in the Golden Triangle Special Economic Zone are trafficked and forced to work in scam centers where they are exploited for fraudulent activities. A notable case is that of a woman named Siti, who believed she was traveling for a job in Thailand but ended up in a coercive environment in Laos. Once there, she had her passport confiscated and was locked inside a building while being trained to run scams. This situation highlights the grave human rights violations taking place in the area, where trafficked workers face severe consequences if they fail to meet their targets, including physical punishment.
The Scale and Mechanics of Scamming
Scam centers in the Golden Triangle Special Economic Zone have evolved into a significant criminal enterprise, reportedly stealing over $43 billion annually across Mekong countries. The method used, known as 'pig butchering', involves building trust with victims online before luring them into making investments that ultimately lead to devastating financial losses. Scammers often pose as individuals in need of companionship or assistance on dating sites, leading unsuspecting victims to invest their savings. The success of this scheme relies on initial payouts to victims to create a façade of legitimacy before the scammers completely abscond with their money.
The Involvement of Local Authorities
Despite significant evidence of criminal activities within the Golden Triangle Special Economic Zone, local authorities in Laos have shown little interest in curbing these operations. Zhao Wei, the Chinese businessman behind the zone, has strong ties with Lao leaders, which may influence the lack of enforcement against illegal activities. Although the U.S. Treasury has imposed sanctions and identified the area as a hub for various crimes, including drug trafficking and money laundering, the Lao government, which holds a stake in the zone, has not acted significantly against Zhao or his enterprises. Recent statements from Lao officials indicate a desire to remove scam centers, but enforcement remains uncertain given the zone's enduring expansion and the lack of robust oversight.
A Chinese businessman persuaded officials to establish a special economic zone in a remote part of Laos. The gamblers arrived first. Then came the drug runners, human traffickers and scammers.
On today’s Big Take Asia podcast, host K. Oanh Ha speaks with Bloomberg Businessweek editor Matt Campbell about his investigation into the Golden Triangle Special Economic Zone and how it became a criminal’s paradise.