Corporate managers who commit embezzlement face serious legal risks and may be subject to criminal liability in Vietnam. As legal regulations become increasingly strict, understanding the law correctly and responding promptly is crucial to protecting your rights. So, if you or your loved one is under investigation, what is the most appropriate and safest course of action?

Corporate Embezzlement: A Legal Risk That Cannot Be Ignored

When receiving a notice from the police or being accused of “embezzlement,” many people—especially foreigners working in Vietnam—often feel anxious and uncertain: Will I go to prison? Is there any way to reduce liability? How will the process unfold?

In reality, embezzlement is one of the more serious offenses under Vietnam’s criminal law system. However, each case has its own characteristics, and not all cases lead to the same outcome.

Understanding the nature of the conduct, the legal framework, and the appropriate response from the beginning can help you:

• Minimize legal risks
• Avoid mistakes when working with investigative authorities
• Effectively protect your legitimate rights and interests

What Is Embezzlement Under Vietnamese Law?

According to Article 353 of the 2015 Penal Code (amended in 2017):

Embezzlement refers to a person with position and authority abusing their role to appropriate assets that they are responsible for managing.

Key points to note:

• The subject must be a person holding a position or authority (e.g., director, finance manager, department head, etc.)
• The appropriated assets must be under that person’s management responsibility
• The act must be intentional

For foreigners working in companies in Vietnam, if you hold a managerial position (such as manager, director, CFO, etc.), you may still be prosecuted under this provision if the conduct occurs within Vietnam.

Criminal Penalties for Embezzlement

The level of punishment depends on several factors, including:

• The value of the appropriated assets
• The nature and severity of the conduct
• Aggravating or mitigating circumstances

Under current law, penalties may include:

• Imprisonment from 2 to 20 years
• In particularly serious cases:
  • Life imprisonment
  • Or the highest penalty of death (in extremely serious cases)

Additional penalties may also apply:

• Monetary fines
• Prohibition from holding certain positions
• Confiscation of assets

It is important to emphasize:
Being under investigation does not automatically mean conviction, and not all cases result in the most severe penalties. The outcome largely depends on how the case is handled and the legal strategy applied.

Common Mistakes Foreigners Make When Investigated for Embezzlement in Vietnam

If you or your loved one is in this situation, the most important thing is not panic—but taking the right actions from the beginning.

Common Mistakes That Worsen the Situation

Many foreign clients have shared that they:

• Made statements without a lawyer present
• Signed documents without fully understanding the content (due to language barriers)
• Failed to provide sufficient evidence in their favor
• Attempted to “resolve internally” but in an improper way

These actions may lead to:

• Unfavorable statements being officially recorded
• Losing the opportunity to prove innocence or mitigate liability
• Being viewed as uncooperative

For foreigners in particular, differences in legal systems and language can pose significant risks.

Safe Handling Approach and Appropriate Legal Strategy

In cases involving embezzlement, an effective legal strategy often includes:

1. Proper Assessment of the Conduct

Not all financial-related actions constitute embezzlement.

A lawyer can help determine:

• Whether all elements of a criminal offense are met
• Whether the matter can be treated as a civil or commercial dispute
• Whether there is abuse of authority or merely a management error

2. Preparation of Documents and Evidence

This is a critical step, including:

• Employment contracts
• Internal company procedures
• Emails and work communications
• Financial documents

Proper preparation can help:

• Clarify actual responsibilities
• Prove the absence of intent to appropriate assets

3. Strategic Engagement with Investigative Authorities

You have the right to:

• Have a lawyer involved from the early stage
• Be informed of your rights and obligations
• Have an interpreter (for foreigners)

An experienced lawyer can help you:

• Avoid making harmful statements
• Present information clearly and appropriately
• Protect your legitimate rights

4. Consideration of Mitigating Factors

In many cases, factors such as:

• Voluntary compensation
• Cooperation with authorities
• Good personal background

…may be considered to reduce criminal liability.

However, each case is unique.
There is no “one-size-fits-all” solution.