How Are Foreigners Accused of “Abuse of Trust to Appropriate Property” Handled in Vietnam?

Foreigners accused of abuse of trust to appropriate property in Vietnam often worry about the possibility of arrest, criminal prosecution, or even deportation. How does Vietnamese law regulate this situation? And what legal options are available if such allegations arise?

Foreigners Accused of Abuse of Trust to Appropriate Property in Vietnam

While living, working, or doing business in Vietnam, many foreigners participate in financial transactions such as loans, business partnerships, or managing property on behalf of others. In some cases, however, these civil transactions may later be reported by the other party as a criminal act of misappropriating property through abuse of trust.

Many foreign clients contact lawyers in a state of confusion and anxiety:

• “I only borrowed money for business purposes, but now I’m being accused of a criminal offense.”
• “The police invited me for questioning. Can I be arrested?”
• “As a foreigner, could I be deported from Vietnam?”

These concerns are understandable. Once a matter is handled as a criminal investigation, the legal consequences can be serious. However, an important point to understand is that not every financial dispute constitutes a criminal offense, and each case must be assessed based on specific evidence.

When Is an Act Considered “Abuse of Trust to Appropriate Property”?

Under Article 175 of the 2015 Criminal Code of Vietnam (amended in 2017), the crime of abuse of trust to appropriate property may arise when a person:

• Borrows, rents, or receives property through a contract and then uses deceptive methods to appropriate it;
• Intentionally fails to return the property when it becomes due despite having the ability to do so;
• Uses the property for illegal purposes leading to the inability to return it.

Typically, the value of the appropriated property must be from VND 4 million or more, or lower in certain legally specified circumstances.

In practice, however, the line between a civil dispute and a criminal offense is not always clear. For example:

• A business loan that fails due to financial losses
• An investment partnership that later results in profit disputes
• A deposit paid for a contract that ultimately cannot be performed

In such situations, the investigation authorities will need to determine whether there was an intent to misappropriate the property from the beginning, as well as examine the relevant transaction evidence.

Are Foreigners Treated Differently from Vietnamese Citizens?

According to Article 5 of the Vietnamese Criminal Code, foreigners who commit crimes within Vietnamese territory are generally subject to criminal liability under Vietnamese law, except for certain individuals who may enjoy diplomatic immunity.

This means that if a foreigner is accused of abuse of trust to appropriate property in Vietnam, they may still face:

• Invitations to work with investigation authorities
• Preventive measures such as exit bans or temporary detention
• Criminal prosecution and trial under Vietnamese law

Depending on the value of the property and the seriousness of the case, penalties may range from non-custodial reform to several years of imprisonment.

Additionally, in some cases involving foreigners, Vietnamese courts may consider deportation as an additional penalty.

However, it should be emphasized that whether criminal liability will actually be imposed depends on the results of the investigation and the evaluation of evidence by competent authorities.

What Should Foreigners Do If They Are Investigated for Abuse of Trust to Appropriate Property?

When receiving an invitation for questioning or learning that they have been accused of abuse of trust to appropriate property, many foreigners initially react with panic or consider leaving Vietnam immediately. Such decisions, however, may complicate the situation further.

Instead, understanding your legal rights and available options can help you respond more effectively.

Common Legal Risks in These Situations

Based on practical experience, cases involving foreigners often face the following challenges:

Language and legal barriers
 Not all foreigners fully understand Vietnam’s legal system or criminal procedures. This may lead to inaccurate or disadvantageous statements during questioning.

Transactions without clear contracts
 Many financial dealings between foreigners and local partners rely on verbal agreements, messages, or bank transfers. When disputes arise, it becomes more complicated to determine whether the issue is civil or criminal.

Risk of preventive measures
 In certain cases, investigation authorities may impose measures such as:

• Exit bans
• Temporary detention
• Seizure of documents or electronic devices

For foreigners living or working in Vietnam, such measures can significantly impact both professional and personal life.

The Role of Lawyers in Criminal Cases Involving Foreigners

In criminal cases with foreign elements, early legal assistance from a lawyer can provide several important benefits:

• Explaining legal rights and obligations clearly
• Assisting clients in working with investigation authorities
• Analyzing evidence and developing an appropriate legal strategy
• Protecting legitimate rights throughout the criminal proceedings

Under the 2015 Criminal Procedure Code of Vietnam, lawyers may participate in defending or protecting the lawful rights of individuals who are reported, detained, charged, or prosecuted.

In practice, some cases initially considered criminal matters may later be determined to be civil or commercial disputes after a full review of evidence. However, each case depends on its specific facts and documentation.

When Should a Foreigner Seek Legal Assistance?

You should consider consulting a lawyer if:

• You receive an invitation from the police regarding financial transactions
• You are accused of misappropriating money or property
• You face the risk of an exit ban or detention
• A family member in Vietnam has been arrested or is under investigation

Seeking legal advice early can help you:

• Understand your legal situation clearly
• Prepare appropriate documents and evidence
• Avoid mistakes during interactions with authorities

DEDICA Law – Supporting Foreigners in Criminal Matters in Vietnam

Over the years, DEDICA Law has assisted and represented many foreign clients involved in criminal matters in Vietnam, including:

• Clients accused of abuse of trust to appropriate property
• Clients investigated in business-related disputes
• Foreign nationals who are victims in criminal cases

DEDICA’s lawyers have extensive experience working with international clients and understand the particular challenges foreigners may face when dealing with Vietnam’s legal system.

Our approach focuses on:

• Careful legal analysis
• Protecting clients’ legitimate rights
• Developing practical legal solutions tailored to each case

Disclaimer: The information in this article is for reference purposes only and does not constitute specific legal advice. Each case should be evaluated based on its actual facts and evidence.

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