Search

Editors

Harry Cassin Publisher and Editor

Andy Spalding Senior Editor

Jessica Tillipman Senior Editor

Richard L. Cassin Editor at Large

Elizabeth K. Spahn Editor Emeritus 

Cody Worthington Contributing Editor

Julie DiMauro Contributing Editor

Thomas Fox Contributing Editor

Marc Alain Bohn Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

Russell A. Stamets Contributing Editor

Richard Bistrong Contributing Editor 

Eric Carlson Contributing Editor

Bill Steinman Contributing Editor

FCPA Blog Daily News

« China’s Overseas Bribery Law One Year On | Main | Financial Disclosure Debate Rocks Chinese Media »
Tuesday
May292012

Survey Highlights Vietnam Risks

Nearly half of Vietnam’s companies said they have had to bribe officials in order to do business, according to a survey released last month by the Vietnam Chamber of Commerce and Industry.

The survey results, reported by the VOA, showed big compliance risks for companies operating in Vietnam.

Of the 270 businesses, entrepreneurs, and business associations interviewed, about half said they had to pay bribes to officials in return for the right to bid on contracts for public sector work. The bribes consisted of cash, luxury items, or holiday packages, they said.

Here are some of the numbers:

  • 80% of the businesses reported their operations had been negatively affected by corruption.

  • 63% of the respondents said that the system of licensing a business was too confusing and was a leading reason for the graft.

  • 40% of the businesses polled said 'unofficial' expenses account for 1% of their annual operating costs, while 13% of respondents said the rate was as high as 5% of costs.

  • 50% said they couldn't obtain a loan without paying a 'tip' to officers at the bank.
  • 87% of the businesses surveyed said corruption in Vietnam was a result of legal loopholes exploited by corrupt state officials, while 75% said ineffective law enforcement had allowed the spread of corruption.

  • 66% of the respondents said low salaries for civil servants are among the main causes of corruption.

Vietnam has been named in modern-era FCPA enforcement actions involving Nexus Technologies, Aon, Daimler, Veraz Networks, and Siemens.

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.