When Is Embezzlement Charged in Vietnam? Legal Guide

Are you or a loved one being investigated in Vietnam for handling company assets? When does an act become “embezzlement”? Does every case of taking company property lead to serious criminal liability?

When Is Misappropriation of Property Considered Embezzlement Under Vietnamese Law?

Many foreigners working in Vietnam find themselves unexpectedly invited by authorities for questioning regarding financial matters, asset management, or their role within a company. One of the biggest concerns is whether their actions could be classified as embezzlement—a serious offense under Vietnamese criminal law.

In reality, not every act of “taking company property” is considered embezzlement. Vietnamese law sets out specific legal elements that must be satisfied. Understanding these criteria early can help reduce unnecessary panic and guide you toward the right legal approach.

Definition of Embezzlement Under Current Law

According to Article 353 of the 2015 Criminal Code of Vietnam (amended in 2017), embezzlement is defined as an act where a person with position and authority abuses that position to appropriate property that they are responsible for managing.

In simpler terms, not everyone can be charged with embezzlement. This offense applies only to individuals who:

• Have authority over certain assets
• And use that authority to misappropriate those assets

This distinction is especially important for foreigners working in Vietnam, as misunderstandings about legal definitions can lead to unnecessary fear.

Key Elements Required to Constitute Embezzlement

For an act to be legally considered embezzlement, all of the following elements must be present:

1. The Subject Must Be a Person with Position and Authority

The individual must:

• Be assigned to manage assets of an organization or company
• Have decision-making power or influence over those assets

If you are a regular employee without asset management authority, the likelihood of being charged with embezzlement is significantly lower. In such cases, if any violation exists, it may fall under a different legal classification.

2. Abuse of Position to Appropriate Property

This is the core element.

The act must involve:

• Abuse of entrusted authority
• Intent to appropriate property

Common examples include:

• Transferring company funds into a personal account
• Misusing company budgets for personal gain

Without the element of “abuse of authority,” the act may not qualify as embezzlement.

3. The Property Must Be Under the Person’s Management

The law requires that:

• The property belongs to an organization, company, or the State
• And is under the direct management responsibility of that individual

If you were not assigned to manage that property, it is difficult to establish embezzlement—even if you were involved in its use.

4. Value of Property and Legal Consequences

Under current law:

• Property valued from VND 2 million (approx. USD 80) may trigger criminal liability
• Or lower amounts may still apply if serious consequences occur

However, penalties depend on:

• The value of the property
• The severity of the act
• Aggravating or mitigating circumstances

It is important to understand that being investigated does not automatically mean you will be convicted. Each case must be assessed based on evidence and context.

Common Legal Risks for Foreigners and How to Handle Them Properly

Foreigners working in Vietnam may unintentionally encounter sensitive legal situations due to differences in legal systems and business practices.

Recognizing these risks early can help you stay calm and make informed decisions.

Situations Commonly Misinterpreted as Embezzlement

Below are typical scenarios that many clients have faced:

1. Financial Decisions Not Following Internal Procedures

Some foreign managers have authority to approve expenses but:

• Do not fully understand internal compliance procedures in Vietnam
• Or apply practices from their home country

This can lead to suspicion of abuse of authority, even without intent to appropriate assets.

2. Using Company Assets for Personal Purposes

Examples include:

• Using company accounts for personal expenses
• Temporarily using company funds without proper documentation

In some countries, this may be handled internally. However, in Vietnam, lack of transparency can lead to criminal scrutiny.

3. Unclear Scope of Authority and Responsibility

In some companies:

• Asset management responsibilities are not clearly defined
• Internal control systems are weak

When issues arise:

• Foreign employees may be held accountable beyond their actual role
• Or misunderstood within the organizational structure

What Should You Do If You Are Being Investigated?

If you or your loved ones are in this situation, the most important thing is not panic—but proper action.

1. Do Not Jump to Conclusions About Charges

Many people immediately assume the worst. However:

• Legal classification is determined by authorities
• And depends on a full investigation process

2. Cooperate—but Understand Your Rights

You should cooperate with authorities, but also:

• Be aware of your legal rights and obligations
• Avoid making statements without understanding their legal implications

For foreigners, language barriers and legal differences can easily lead to misunderstandings during questioning.

3. Engage a Lawyer as Early as Possible

Having a lawyer from the beginning can help:

• Properly assess whether your conduct constitutes embezzlement
• Clarify your legal position
• Develop an appropriate legal strategy

A lawyer also ensures your rights are protected throughout the investigation process.

Legal Solutions from DEDICA Law for Foreign Clients in Criminal Cases

In cases involving embezzlement or other offenses related to position and authority, understanding Vietnamese law is critical—especially for foreign individuals.

DEDICA Law has extensive experience supporting foreign clients in criminal matters in Vietnam, with a careful and strategic approach.

How DEDICA Supports Clients

DEDICA does not guarantee case outcomes. Instead, we focus on protecting clients’ lawful rights through:

1. Comprehensive Case Assessment

• Analyzing whether the conduct meets legal elements of embezzlement
• Clarifying the client’s actual role
• Reviewing the legality of evidence

2. Tailored Legal Strategy

Depending on the case:

• Demonstrating that the conduct does not constitute a crime
• Proposing solutions to minimize legal liability
• Applying mitigating factors under Vietnamese law

3. Full Support Throughout Proceedings

• Representing clients in meetings with authorities
• Providing legal interpretation and guidance
• Defending clients’ rights in court if necessary

Why Foreigners Need a Lawyer in Vietnam

Vietnam’s legal system differs significantly from many other jurisdictions. Without proper support:

• You may misunderstand procedures
• Or unintentionally make decisions that harm your case

With experience working with foreign clients and FDI enterprises, DEDICA can help you:

• Understand your legal situation clearly
• Minimize risks
• Make the right decisions at the right time 

Contact DEDICA Law Firm for Professional Legal Support

📞 Hotline: (+84) 39 969 0012 (Available via WhatsApp, WeChat, Zalo)

🕒 Working Hours: Monday – Friday (8:30 – 18:00)

Contact us today for a free initial consultation with our experienced lawyers!