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When a foreigner is accused of misappropriating business funds in Vietnam, a dispute that initially appears to be a commercial matter can quickly escalate into a criminal investigation. Many foreign entrepreneurs encounter this situation when a business partner files a complaint with the police.
At the same time, a significant number of foreigners are unfamiliar with the Vietnamese legal system and may not fully understand their rights when working with investigative authorities. In such circumstances, an important question arises: how will Vietnamese law address these allegations, and what should the person involved do to protect their legitimate rights?
Under the Vietnamese Criminal Code 2015 (amended and supplemented in 2017), certain acts involving the use or retention of a partner’s funds may be considered criminal offenses, including:
Abuse of trust to appropriate property (Article 175)
Fraudulent appropriation of property (Article 174)
However, criminal liability only arises when the investigating authorities can establish the legal elements of a crime. For example:
The individual had the intent to appropriate property, either from the beginning or after receiving the assets
Deceptive methods were used in the transaction
The person deliberately fails to return the property despite having the ability to do so
A foreign entrepreneur receives investment capital from a Vietnamese partner to implement a business project. If the project later fails due to market conditions, this situation does not automatically constitute a criminal offense.
However, if the person:
Receives the funds and then disappears,
Uses the money for personal purposes unrelated to the project, or
Intentionally refuses to repay despite having the ability,
the authorities may consider whether there are signs of criminal misappropriation of property.
It is important to understand that:
The boundary between a civil dispute and a criminal offense can sometimes be very thin.
Once a complaint has been filed, Vietnamese investigative authorities may apply criminal procedural measures under the Criminal Procedure Code 2015, including the following:
This is usually the first step in the process. A foreigner may receive a notice inviting them to work with investigators or a formal summons to:
explain the business transaction
provide documents, contracts, and financial records.
In certain situations, if investigators believe there are signs of a crime or a risk of flight, they may apply preventive measures such as:
Exit bans from Vietnam
Temporary detention or custody
Bail or financial guarantees
The type of measure applied will depend on several factors, including:
the nature of the case
the amount of money involved
the level of cooperation from the person concerned.
If the authorities determine that there are initial grounds suggesting criminal conduct, they may issue a decision to initiate a criminal case, and subsequently initiate criminal charges against a suspect.
However, the initiation of a case does not mean the person is automatically guilty. During the investigation, lawyers may still present evidence demonstrating that:
the matter is a civil or commercial dispute, or
there was no intent to appropriate property.
When foreigners learn that they have been accused or invited to work with the police, the first reaction is often panic or an attempt to leave Vietnam quickly.
In practice, such actions can sometimes make the situation more legally complicated or unfavorable.
Instead, the most important step is to approach the matter strategically and in accordance with Vietnamese law.
In cases involving alleged misappropriation of business funds, foreigners often make several common mistakes.
Many people believe that simply telling the truth is sufficient. However, in a criminal investigation environment, the way statements are presented — or misunderstandings of legal terminology — may lead to explanations being misinterpreted or viewed unfavorably.
Important evidence often includes:
cooperation or investment agreements
email communications
bank transfer records
business plans or project documentation.
Without proper documentation, the case may be viewed primarily from the perspective of the complainant.
This is a common mistake among foreigners.
Under Vietnamese law, a person who has been reported or investigated has the right to retain a lawyer who can:
attend meetings with investigators
advise on legal strategy
protect the client’s lawful rights.
Having legal representation from an early stage often helps reduce unnecessary legal risks.
For foreign nationals, a lawyer is not only someone who represents them in court. A lawyer can also play a crucial role from the earliest stage of the case.
An experienced criminal lawyer dealing with cases involving foreigners can assist with:
The lawyer may review:
business contracts
financial flows
the purpose of the transaction
to assess whether the matter is a civil dispute or potentially a criminal matter.
In many cases, an appropriate legal strategy from the beginning can help:
clarify misunderstandings between business partners
present evidence promptly
reduce the likelihood of strict preventive measures.
Under Vietnamese law, foreigners involved in criminal proceedings have fundamental rights such as:
the right to legal defense
the right to an interpreter
the right to present opinions and evidence.
A lawyer helps ensure these rights are fully respected throughout the investigation and trial process.
If you or someone close to you is a foreigner being investigated or accused of misappropriating business funds in Vietnam, understanding your legal rights and having an appropriate legal strategy is extremely important.
The lawyers at DEDICA Law have experience working with international clients involved in criminal cases in Vietnam and are ready to listen and provide guidance tailored to each specific situation.
If you are facing a similar issue, contact DEDICA Law for professional legal advice and strategic support.
Contact DEDICA Law Firm for professional legal consultation
📞 Hotline: (+84) 39 969 0012 (Available on WhatsApp, WeChat, and Zalo)
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