How Are Foreigners Investigated for Suspected Investment Fraud in Vietnam?

Foreigners suspected of fraud in investment activities in Vietnam may face verification procedures, police summons, or procedural measures under Vietnamese law. This situation often causes concern when a person is invited to work with the police, has their passport temporarily held, or does not clearly understand their rights during the investigation.

So when facing such a situation, how does the investigation process in Vietnam work, and what should foreigners do to protect their legal rights?

When Can Investment Activities Be Suspected of Fraud?

In reality, not every failed investment project is considered fraud. However, when there are signs that fundraising or investment transactions are intended to appropriate assets, authorities may consider the crime of fraudulent appropriation of property under Article 174 of the 2015 Criminal Code (amended in 2017).

This provision states that a person who uses deceitful means to appropriate another person’s property may be subject to criminal liability depending on the value of the property and the seriousness of the conduct.

In international investment environments, some situations that may raise suspicion include:

• Raising funds for a project that does not exist or cannot be implemented

• Providing misleading information about licenses, ownership, or project profitability

• Using investment funds for purposes different from those agreed upon

• Investment contract disputes showing signs of appropriating money from multiple investors

It is important to understand that investigators must verify the element of “deception for the purpose of appropriating property.” If the issue is merely a commercial dispute or normal business risk, the case may be handled under civil or commercial law instead of criminal law.

However, the line between a civil dispute and a criminal act can sometimes be complex. This is why many foreign investors seek advice from criminal defense lawyers in Vietnam at an early stage.

Signs That May Trigger an Investigation

A case often begins when a criminal complaint or report is filed by an investor, business partner, or regulatory authority.

After receiving the information, the police will verify the crime report according to Articles 145 and 147 of the 2015 Criminal Procedure Code.

Verification activities may include:

• Inviting related individuals to work with investigators

• Collecting investment contracts and transfer documents

• Reviewing business or project operations

• Working with banks or investment authorities

At this stage, the case has not yet been formally prosecuted, but verification results may lead to a formal criminal investigation if signs of crime are found.

Investigation Process When Foreigners Are Suspected of Investment Fraud

If authorities find signs of criminal conduct, the case may move into the stage of criminal prosecution and investigation, mainly governed by the 2015 Criminal Procedure Code.

Understanding these steps can help foreigners and their families reduce anxiety and prepare better legally.

Verification and Case Initiation Stage

After verifying information, the investigation authority may decide to:

• Not initiate a criminal case

• Temporarily suspend the handling of the report

• Initiate a criminal case

If there are grounds to believe that fraudulent appropriation of property has occurred, a decision to initiate a criminal case will be issued.

At this stage, authorities may:

• Summon related individuals

• Request documents and materials

• Conduct searches or seize evidence (when legally authorized)

For foreigners, preventive measures may include:

• Temporary exit ban

• Temporary detention or custody

• Bail or financial guarantee

The measure applied depends on the seriousness of the case and the evaluation of the authorities.

Investigation Stage and Rights of Foreigners

Once a criminal case has been initiated, investigators may conduct activities such as:

• Taking statements

• Confrontations between involved parties

• Examination of documents and financial flows

• Collecting evidence from banks or companies

During this process, foreigners have important rights, including:

• The right to a defense lawyer

• The right to an interpreter if they do not understand Vietnamese

• The right to be informed of procedural rights and obligations

• The right to present opinions and provide evidence

According to Article 75 of the Criminal Procedure Code, lawyers may participate from the investigation stage to support the accused or related persons.

Early legal assistance can help:

• Ensure procedures comply with the law

• Prepare supporting documentation

• Reduce unnecessary legal risks

Legal Risks Foreign Investors Often Face

In international investment cases, many foreign investors encounter difficulties because they are not familiar with the Vietnamese legal system.

Common risks include:

• Signing investment contracts without thoroughly checking project legality

• Authorizing third parties to manage investment funds

• Using complex corporate structures without proper financial control

• Misunderstanding Vietnamese regulations on capital mobilization

These factors may sometimes cause a business dispute to be viewed as a sign of asset appropriation, especially when multiple investors file complaints.

Therefore, preparing documents proving legitimate investment intentions, transparent use of funds, and clear transactions is extremely important.

How Lawyers Can Help

In cases involving foreigners in Vietnam, lawyers often act not only as defense counsel but also as a legal bridge between the client and authorities.

Lawyers may assist with:

• Explaining Vietnam’s criminal procedure process

• Attending meetings with investigators

• Preparing legal documents and evidence

• Assessing whether the matter is civil or criminal

• Protecting clients’ rights during investigation and trial

Depending on the situation, lawyers may also assist with negotiation, dispute resolution, or remedying financial consequences.

Each case has different facts and evidence, so legal outcomes must always be evaluated based on specific case files.

If you or your family member is being investigated, invited to work with the police, or involved in a criminal case in Vietnam, timely legal advice can help you better understand the situation and prepare for the next steps.

Facing a similar situation?

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