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Fraud in commercial contracts in Vietnam may sometimes be treated merely as a civil dispute, but in certain situations it can also become a criminal offense. When does this boundary get crossed? Foreign individuals and businesses should clearly understand this distinction to avoid serious legal risks.
In Vietnam’s business environment, signing commercial contracts is a normal and essential activity. However, in some cases, one party may believe that they have been defrauded in a commercial contract and may file a complaint with the police instead of initiating a civil lawsuit.
For many foreign investors or entrepreneurs, this situation can be deeply concerning. What initially appears to be a business dispute may lead to a criminal investigation, and in some cases even temporary detention or travel restrictions.
Therefore, it is important to understand that not every act of fraud in a contract constitutes a criminal offense. In many situations, such matters are considered civil or commercial disputes, which should be resolved through courts or arbitration.
Under the Vietnamese Civil Code 2015 (as amended), a contract may be declared invalid if one party was deceived during the process of entering into the contract.
Acts of deception typically include:
In such situations, the legal consequences usually include:
The key point is that civil law primarily aims to restore rights and interests rather than impose criminal punishment.
Many common situations may not meet the legal elements of a criminal offense, for example:
Such cases are usually resolved through:
However, the boundary between contractual breach and criminal conduct can sometimes be very thin. When there are indications of property appropriation, the matter may shift toward criminal proceedings.
Under the Vietnamese Criminal Code 2015 (as amended in 2017), certain fraudulent acts in commercial contracts may be considered criminal offenses, particularly when they involve the appropriation of property.
Two criminal charges are most commonly associated with such situations:
Foreign individuals involved in business transactions in Vietnam may not always anticipate these legal risks.
Fraud in a contract may be considered fraudulent appropriation of property when the following elements are present:
Examples include:
At the time of entering into the contract, the person already intends to obtain money or property from the partner unlawfully.
Under current regulations, criminal liability may arise when the value of the appropriated property is from 2 million VND or more, or lower amounts if serious consequences occur.
The severity of penalties may increase depending on the value involved and the circumstances of the case.
Unlike fraud, the offense of abuse of trust to appropriate property usually occurs when:
Examples include:
In international business contexts, these situations may arise in:
If investigators believe that there are indications of property appropriation, the matter may shift from a commercial dispute to a criminal case.
For foreigners, being invited by the police to work or being subject to a criminal investigation in Vietnam can be highly stressful.
Common concerns include:
However, the most important step is to remain calm and understand your rights under Vietnamese law.
If you or your family members are involved in such a situation, consider the following steps:
A lawyer can:
For example:
These documents may help clarify the true nature of the transaction.
In many cases, unclear explanations or language barriers may lead to misunderstandings.
Having legal assistance from an early stage can significantly reduce these risks.
In cases related to fraud in commercial contracts, lawyers often play an essential role in:
This is particularly important for foreign clients, as the Vietnamese legal system and criminal procedures may differ significantly from those in other countries.
At DEDICA, our lawyers have participated in:
Experience with international clients enables our lawyers to explain legal procedures clearly and practically, helping clients understand the next steps.
It should be noted that each case has its own specific circumstances, and legal responsibility must always be assessed based on the actual case file and conclusions of competent authorities.
Fraud in commercial contracts in Vietnam may sometimes be treated merely as a civil dispute, but in certain situations it can also become a criminal offense. When does this boundary get crossed? Foreign individuals and businesses should clearly understand this distinction to avoid serious legal risks.
In Vietnam’s business environment, signing commercial contracts is a normal and essential activity. However, in some cases, one party may believe that they have been defrauded in a commercial contract and may file a complaint with the police instead of initiating a civil lawsuit.
For many foreign investors or entrepreneurs, this situation can be deeply concerning. What initially appears to be a business dispute may lead to a criminal investigation, and in some cases even temporary detention or travel restrictions.
Therefore, it is important to understand that not every act of fraud in a contract constitutes a criminal offense. In many situations, such matters are considered civil or commercial disputes, which should be resolved through courts or arbitration.
Under the Vietnamese Civil Code 2015 (as amended), a contract may be declared invalid if one party was deceived during the process of entering into the contract.
Acts of deception typically include:
In such situations, the legal consequences usually include:
The key point is that civil law primarily aims to restore rights and interests rather than impose criminal punishment.
Many common situations may not meet the legal elements of a criminal offense, for example:
Such cases are usually resolved through:
However, the boundary between contractual breach and criminal conduct can sometimes be very thin. When there are indications of property appropriation, the matter may shift toward criminal proceedings.
Under the Vietnamese Criminal Code 2015 (as amended in 2017), certain fraudulent acts in commercial contracts may be considered criminal offenses, particularly when they involve the appropriation of property.
Two criminal charges are most commonly associated with such situations:
Foreign individuals involved in business transactions in Vietnam may not always anticipate these legal risks.
Fraud in a contract may be considered fraudulent appropriation of property when the following elements are present:
Examples include:
At the time of entering into the contract, the person already intends to obtain money or property from the partner unlawfully.
Under current regulations, criminal liability may arise when the value of the appropriated property is from 2 million VND or more, or lower amounts if serious consequences occur.
The severity of penalties may increase depending on the value involved and the circumstances of the case.
Unlike fraud, the offense of abuse of trust to appropriate property usually occurs when:
Examples include:
In international business contexts, these situations may arise in:
If investigators believe that there are indications of property appropriation, the matter may shift from a commercial dispute to a criminal case.
For foreigners, being invited by the police to work or being subject to a criminal investigation in Vietnam can be highly stressful.
Common concerns include:
However, the most important step is to remain calm and understand your rights under Vietnamese law.
If you or your family members are involved in such a situation, consider the following steps:
A lawyer can:
For example:
These documents may help clarify the true nature of the transaction.
In many cases, unclear explanations or language barriers may lead to misunderstandings.
Having legal assistance from an early stage can significantly reduce these risks.
In cases related to fraud in commercial contracts, lawyers often play an essential role in:
This is particularly important for foreign clients, as the Vietnamese legal system and criminal procedures may differ significantly from those in other countries.
At DEDICA, our lawyers have participated in:
Experience with international clients enables our lawyers to explain legal procedures clearly and practically, helping clients understand the next steps.
It should be noted that each case has its own specific circumstances, and legal responsibility must always be assessed based on the actual case file and conclusions of competent authorities.
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