Offering bribes to obtain business licenses may seem like a shortcut, but could it expose your company to serious legal consequences in Vietnam? What risks might arise if authorities investigate—and how should foreign individuals and businesses respond?
Bribery in Licensing: Understanding the Legal Nature and Hidden Risks
In Vietnam, particularly for foreign-invested companies, the process of obtaining business licenses can sometimes be time-consuming and complex. In practice, some businesses may resort to “unofficial payments” to expedite approvals.
At first glance, this may appear to be a practical business decision. However, under Vietnamese law, such actions can be classified as bribery, a criminal offense with significant legal consequences.
Many clients only realize the seriousness of the issue after being summoned by the police or investigation authorities. At that point, the key concern becomes: could this lead to criminal liability, and how severe could the consequences be?
How is bribery defined under Vietnamese law?
Under Article 364 of the 2015 Criminal Code (as amended in 2017), bribery involves:
- Giving money, assets, or other material or non-material benefits
- Directly or through intermediaries
- To a person holding an official position or authority
- In order to obtain unlawful advantages
Importantly, the law does not require the bribe to have successfully achieved its intended outcome (e.g., obtaining a license). In many cases, the act of offering or promising a bribe alone may be sufficient to trigger legal liability.
Legal risks businesses and individuals may face
This is often the most concerning part for clients, especially foreign individuals unfamiliar with Vietnam’s legal system.
1. Criminal liability for individuals
Individuals directly involved in offering bribes (such as directors, managers, or employees) may face:
- Monetary fines
- Prohibition from holding certain positions or practicing certain professions
- Imprisonment in serious cases
For foreign nationals, additional consequences may include:
- Deportation from Vietnam
- Restrictions on future entry into the country
It is important to note that the outcome of each case depends on various factors, including the value of the bribe, the individual’s role, level of cooperation, and other mitigating or aggravating circumstances. Therefore, no definitive conclusion can be made without reviewing the specific case.
2. Corporate liability
If the bribery act is carried out:
- In the name of the company
- For the benefit of the company
- With approval or direction from management
Then the company itself (as a legal entity) may also be subject to penalties.
Potential consequences include:
- Significant financial penalties
- Temporary suspension of business operations
- Prohibition from operating in certain sectors
- Revocation of business or investment licenses
These sanctions can directly impact the company’s ability to continue operating in Vietnam.
3. Broader legal exposure
In practice, bribery rarely exists in isolation. Once an investigation begins, authorities may expand their review to related issues such as:
- The legality of licensing documents
- Financial transactions connected to the case
- Tax and accounting compliance
This can significantly increase the complexity and severity of the situation.
4. Reputational and cross-border risks
For foreign businesses and individuals, the risks may extend beyond Vietnam.
Depending on the jurisdiction, bribery committed abroad may still be prosecuted under home country laws (such as anti-corruption regulations).
In addition, being involved in a criminal investigation can negatively affect:
- Personal and corporate reputation
- Relationships with partners and investors
- The ability to operate in other markets
Being Investigated or Summoned: Practical Guidance for Foreign Individuals
If you or someone close to you has been invited to work with Vietnamese authorities regarding a bribery-related matter, the most important step is not to panic—but to act strategically and carefully.
Common mistakes to avoid
Based on practical experience, many clients unintentionally put themselves at a disadvantage by:
- Providing statements without fully understanding their legal rights
- Signing documents without proper legal review
- Attempting to resolve the issue informally
These actions can negatively affect how the case is assessed by authorities.
Recommended approach in the early stages
To reduce legal risks, consider the following:
1. Cooperate, but with legal awareness
While cooperation with authorities is important, individuals should:
- Clearly understand their rights and obligations
- Avoid providing unverified or inconsistent information
2. Review all relevant documents
Documents such as:
- Licensing application files
- Emails and communications
- Financial records
can play a critical role in clarifying the nature of the case.
3. Engage a lawyer as early as possible
Early legal support can significantly influence the direction of the case. A lawyer can help:
- Assess actual legal risks
- Guide interactions with investigation authorities
- Protect your legal rights throughout the process
For foreign clients, it is particularly important to work with lawyers who understand both Vietnamese law and international legal contexts.
DEDICA Law: Legal Support for Foreign Clients in Criminal Matters in Vietnam
DEDICA is a law firm based in Ho Chi Minh City, providing legal services to clients involved in criminal matters in Vietnam, with a strong focus on foreign individuals and businesses.
We have supported clients in situations such as:
- Being summoned for questioning in bribery-related matters
- Being investigated in economic or corruption cases
- Being involved in criminal cases as suspects, defendants, or related parties
Our approach focuses on:
- Providing clear and practical legal explanations
- Developing tailored legal strategies for each case
- Supporting clients throughout the entire process of working with authorities
Please note that each case is unique. This article is for general informational purposes only and should not be considered legal advice.
Contact DEDICA Law Firm for Professional Legal Support
📞 Hotline: (+84) 39 969 0012 (Available via WhatsApp, WeChat, Zalo)
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