From July 1, 2025, the crimes of embezzlement and bribery in Vietnam will no longer carry the death penalty, but in exchange comes an unprecedented condition: those sentenced to life imprisonment can only be considered for a sentence reduction if they return at least three-quarters of the appropriated property. For those under investigation, prosecution, or families with involved relatives, properly understanding the new penalty framework is the first step to devising an appropriate response strategy.
What are the current prison terms for embezzlement and bribery? Is the 2025 amended law truly "more lenient" as many believe when abolishing the death penalty? And if the act occurred before July 1, 2025, but is only discovered now or is under investigation, will the old or new regulations apply? These are the questions DEDICA receives the most since the National Assembly passed the Law Amending and Supplementing a Number of Articles of the Penal Code in 2025. The article below analyzes the current penalty framework, how to determine the effective time of the old or new law, and the most common misunderstandings surrounding this change.
Current penalty framework for embezzlement and bribery
The Penal Code divides the crime of embezzlement of property (Article 353) and the crime of receiving bribes (Article 354) into four penalty brackets escalating according to the value of the appropriated property or the damage caused. The lightest bracket, from 02 to 07 years in prison, applies when the appropriated value is from 2 million VND to under 100 million VND. The heaviest bracket is prescribed as follows.
The crime of receiving bribes has a similar penalty bracket structure, differing only in using "bribes" instead of "appropriated property".
A point many foreigners working in foreign direct investment (FDI) enterprises in Vietnam do not clearly grasp: these two charges apply not only to state officials and public employees. Persons holding positions and powers in non-state enterprises and organizations who embezzle property or receive bribes will also be handled according to the exact same penalty framework above. For boards of directors, chief accountants, or senior managers who are foreigners at FDI companies, this is a practical legal risk to note, not a distant issue.
The biggest change: abolishing the death penalty, replacing it with stricter conditional life imprisonment
The Law Amending and Supplementing a Number of Articles of the Penal Code in 2025 (Law No. 86/2025/QH15) abolishes the death penalty for 8 offenses, including embezzlement of property and receiving bribes. The maximum penalty bracket for these two crimes is now only "20 years in prison or life imprisonment". However, this is not merely a "relaxation". Simultaneous with the abolition of the death penalty, the law adds an unprecedentedly strict condition for considering a life sentence reduction specifically for these two offenses.
In other words, a person sentenced to life for these two crimes who does not satisfy both conditions above (returning at least 3/4 of the appropriated property and actively cooperating or making a major contribution) will never be considered for a sentence reduction, meaning they will serve life in prison in practice. If qualified, the life sentence reduction process still follows the general framework of Article 63: the first reduction down to 30 years in prison after serving 12 years, and despite multiple reductions, the actual minimum serving time of 20 years must be ensured.
Determining whether the old or new law applies based on the time of the criminal act
This is the most confusing part, even for industry insiders. Law No. 86/2025/QH15 does not apply uniformly in a "new law, use new law" manner for all cases. The transition principle separates favorable and unfavorable parts for the offender, applying differently depending on the group.
For those who were sentenced to death before July 1, 2025, but have not had the sentence executed, the penalty will be commuted to life imprisonment by the Chief Justice of the Supreme People's Court.
This group commuted from death to life must still satisfy the condition of returning 3/4 of the property to be considered for a sentence reduction, just like a person sentenced to life under the new law from the beginning. Conversely, a person who was sentenced to life for embezzlement or bribery before July 1, 2025 (not due to commutation from death) will still have the old regulations applied when considered for a sentence reduction, without being bound by the new 3/4 property condition.
Regarding criminal acts occurring before July 1, 2025, but only discovered now or currently in the process of investigation, prosecution, or trial, the general principle is: regulations favorable to the offender (such as abolishing the death penalty) are applied retroactively; more unfavorable regulations (such as the 3/4 property condition to reduce a life sentence) are not applied retroactively, continuing to use the old regulations. Simply put, a person discovered committing embezzlement in 2023 but only prosecuted in 2026 cannot be sentenced to death, but if sentenced to life, the sentence reduction consideration still follows the old, easier conditions compared to an offender after July 1, 2025.
Risks and common misunderstandings in practice
The most common misunderstanding is assuming the 2025 amended law is "more lenient" with embezzlement and bribery because it abolished the death penalty. The reality is quite the opposite in an important aspect: for offenders in the heaviest bracket who do not proactively remedy the consequences, a life sentence under the new law can become a permanent prison term without a chance for reduction, a deterrence level no lighter than the death penalty in long-term execution practice.
The second misunderstanding relates to retroactive application. Many assume the new law either applies entirely to all ongoing cases or does not apply at all to acts occurring before July 1, 2025. As analyzed above, the reality is much more complex: each specific regulation is evaluated individually as favorable or unfavorable and applied differently case by case. Incorrectly determining this can lead the accused to misjudge the maximum sentence or the possibility of a sentence reduction, directly affecting their defense strategy.
The third misunderstanding, especially among the FDI business community, is assuming embezzlement and bribery crimes are solely for state officials and public employees. As stated, individuals holding management positions in private enterprises, including foreign-invested enterprises, can absolutely be prosecuted under these two charges if they abuse their position to appropriate enterprise property or receive benefits to act against their assigned duties.
The role of DEDICA in embezzlement and bribery cases involving foreign elements
For foreigners invited to work by the police, prosecuted, or under temporary detention related to embezzlement and bribery, DEDICA participates in the defense throughout from the investigation phase: registering early for defense, attending interrogations to ensure the client's rights, while serving as an information bridge for families residing abroad. During this process, DEDICA accurately determines the legal regulations (old or new) applicable to the time of the alleged act, while advising on a strategy to remedy consequences at the right time to optimize extenuating circumstances. For enterprises that are victims of embezzlement and bribery acts caused by their own management personnel, DEDICA also represents and protects their interests in the criminal case.
Conclusion
From July 1, 2025, the crimes of embezzlement of property and receiving bribes in Vietnam have a maximum penalty bracket of 20 years in prison or life imprisonment, with the death penalty eliminated. But accompanying this is a condition for life sentence reduction that is significantly stricter than before: one must return at least 3/4 of the appropriated property and actively cooperate with authorities or make a major contribution to have a chance for a sentence reduction. Determining whether the old or new law applies to a specific case depends on when the criminal act occurred, the procedural stage, and whether the judgment has taken effect, in which the favorable regulations are applied retroactively while unfavorable ones are not, except for some exceptions. If you or a relative are involved in a case falling under these two charges, whether as the accused or the victim, the most crucial step is to contact a lawyer early to accurately determine the applicable legal framework and build an appropriate response plan from the very initial stage.
DEDICA Law Firm is ready to support you with embezzlement and bribery cases involving foreign elements, from the investigation phase to first-instance and appellate trials, even when the family cannot be present in Vietnam. Contact DEDICA for in-depth legal consultation.
The content of this article is for reference purposes based on legal regulations at the time of drafting. Each case depends on the specific dossier, evidence, and procedural stage; please consult a DEDICA lawyer for an accurate assessment of your case.
