Ms. Hoa, an overseas Vietnamese living in the US, asked DEDICA:
"Last year I transferred more than one billion VND to Vietnam to a long-time acquaintance. He said he needed capital for a business and promised to repay both principal and interest within six months, and he even signed a receipt for the money. It is now almost a year overdue, but he has switched off his phone and avoids me, and there is no sign of any business. My family in Vietnam tells me to just report him to the police and that will be the end of it, but I am not sure whether this is fraud or abuse of trust, and I am living in the US and can rarely return."
DEDICA ADVISES Fraud and abuse of trust to appropriate property sound almost the same, but they differ on one decisive point: when the dishonest intent appears. If the other person invented a reason to make you hand over the money from the very start, that points to the crime of fraud. If you genuinely lent the money at first, but the person later resorted to deception, absconded, or refused to pay despite being able to, that points instead to abuse of trust. Identifying the true nature of the case determines whether you should file a criminal complaint or a civil lawsuit, and even from abroad you can authorize a lawyer to act on your behalf.
The dividing line between fraud and abuse of trust to appropriate property
Both offenses end with one person appropriating another's property, yet they differ from the very moment the property changes hands.
In the crime of fraud (lừa đảo chiếm đoạt tài sản), the deception comes first and is the very tool used to obtain the property. The offender fabricates false information, such as a non-existent project or forged documents, leading the victim to trust them and voluntarily hand over the property. The intent to appropriate exists from the outset.
In the crime of abuse of trust (lạm dụng tín nhiệm chiếm đoạt tài sản), the property is initially handed over lawfully and voluntarily, usually through a contract of loan, borrowing, or lease, so the transfer at that time is genuine. The criminal conduct appears only afterwards: the recipient uses deception or absconds to avoid repaying, deliberately fails to return the property when due despite being able to, or uses the property for unlawful purposes to the point of being unable to return it.
The word "then" (rồi) in the statute is the dividing line. Applied to your situation: if the "business" never existed and was merely a pretext to take the money, the case leans toward signs of fraud; but if the loan was real and the person later avoids you, switches off the phone, or has the money yet deliberately refuses to pay, it leans toward abuse of trust.
It is also worth saying plainly something many people misunderstand: not every unpaid loan amounts to a crime. If the borrower did not deceive, did not abscond, and simply suffered business losses and cannot pay yet, this is usually a civil debt dispute that must be pursued through a lawsuit to recover the debt, not through a criminal complaint.
What a victim should do while living abroad
Whatever offense the case may fall under, a victim should begin by preserving and gathering evidence. Receipts for the money, bank transfer statements, and messages or recordings showing the stated purpose of the loan, the promise to repay, and the later evasive behavior are all important materials, because they determine whether the investigating authority has sufficient grounds to establish criminal signs.
The next step is to choose the right path according to the true nature of the case. If there are signs of deception or of absconding to appropriate property, you file a criminal complaint (to giac toi pham) with the investigating authority or the police where the events took place; if it is merely a civil loan relationship, you file a lawsuit in court to recover the property. Choosing the wrong path may result in the petition being returned.
The fact that you are in the US is not an obstacle. A victim can authorize a lawyer in Vietnam to file the criminal complaint, submit the file, work with the investigating authority, and follow the process on their behalf, without having to fly back. A power of attorney executed abroad must be consularly legalized and translated through a notarized translation before it can be used in Vietnam.
Conclusion
In short, the core distinction is the moment the dishonest intent appears. Being deceived from the very start into handing over the money is close to the crime of fraud (Article 174); handing over the money lawfully and only then having it appropriated through deception, absconding, or deliberate refusal to pay is close to abuse of trust (Article 175); and if none of these signs is present, it is most likely a civil dispute. What you should do is gather evidence, identify the true nature of the case, and then file either a criminal complaint or a lawsuit accordingly; if you cannot return to Vietnam, you can authorize a lawyer to handle everything.
If you are unsure whether your case is criminal or civil, or you need someone to work with the investigating authority while you are far away, DEDICA can assess your file and evidence, identify the offense whose elements are met, draft the criminal complaint, and act under a power of attorney to protect the victim's interests right here in Vietnam. Contact DEDICA for legal advice tailored to your specific situation.
The content above is for reference only; each case depends on its specific facts, file, and evidence. Please consult a DEDICA lawyer for accurate advice.
