You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

November 5, 2015

The Asia-Pacific Investigations Review 2016 – Vietnam Chapter

Global Investigations Review

The Asia-Pacific Investigations Review 2016  (1st Edition), a guide that provides analysis of the important issues in internal and government investigations across the Asia-Pacific, has been published by Global Investigations Review. Michael K. Lee, partner and head of Tilleke & Gibbins’ corporate and commercial team in Vietnam, and John Frangos, consultant in the firm, coauthored the Vietnam chapter of the guide.

The Vietnam chapter provides an overview of compliance risks, covering corruption; FCPA and U.K. Bribery Act risks; Vietnamese anti-corruption legislation including Penal Code No. 15/1999QH10, Law on Anti-Corruption No. 55/2005/QH11, Decree No. 59/2013/ND-CP Guiding the Implementation of Some Articles of the Law on Anti-Corruption, and Decision No. 64/2007/QD-TTg; regulatory compliance; and employee fraud and crime including misappropriation of company funds, embezzlement, kickbacks, using conflicts of interest to gain an advantage, and collusion with third parties.

RELATED INSIGHTS​ 

February 13, 2023
Thailand’s Office of the Prime Minister has issued a new regulation titled Giving or Receiving Gifts of State Officials B.E. 2565 (2022). This regulation, which took effect on January 13, 2023, repeals the previous 2001 version and updates certain provisions to be in sync with Thailand’s primary anticorruption law, the Organic Act on Anti-Corruption B.E. 2561 (2018). The regulation prohibits state officials’ family members from receiving gifts from people who are dealing with the officials’ respective agencies. It also prohibits state officials from giving gifts to their supervisors and their supervisors’ family members. An exception, carried over from the previous version of the regulation, is provided for gifts on limited “customary occasions” valued at THB 3,000 or less. There are some notable revisions in the definitions of the new regulation. The term “gift” is now clearly defined to include “training” or “seminars.” In addition, the term “family members” now includes spouses living together “as husband and wife,” even if not legally married. For example, the common-law spouse of an officer considering a license application is not allowed to receive a gift from or attend an overseas seminar organized by the applicant. The regulation also provides: Guidelines for state officials to self-report in case of violation by a family member; Instructions on how to deal with the gifts received in violation; and Disciplinary actions for violation. Importantly, the regulation continues to prohibit the receipt of gifts by state officials’ family members but does not expressly criminalize the giving of gifts by private parties. However, all who deal with government officials should take note of the updated regulation to avoid creating a situation that might violate the rules.
December 19, 2022
On November 22, 2022, the Thai cabinet approved in principle the draft Liability for Defective Goods Act (the “Bill”) proposed by the Office of the Consumer Protection Board. While Thailand’s Product Liability Act B.E. 2551 (2008) deals with liability to consumers arising from unsafe products, the draft Liability for Defective Goods Act aims to ensure that consumers are well protected from defects in appliances and vehicles that might not initially be easily visible or noticed. Key Definitions The Bill applies most notably to business operators and consumers. In the Bill, a “business operator” who may potentially be liable is: a manufacturer (or its hirer) of goods for sale; or a consignee or importer who brings goods into Thailand for sale; or a seller or a hire purchase provider who cannot identify the manufacturer (or its hirer) or the importer. As opposed to the Product Liability Act, which clearly provides that all business operators in the supply chain must be jointly liable, the Bill lacks such clear guidance. This could be interpreted as meaning that under the current Bill only the business operator at the top of the supply chain who is sued in the same case as other business operators is responsible. A “consumer” is defined as a purchaser or hirer of goods from a manufacturer, including an assignee or successor of the goods from the purchaser or hirer. Scope and Application The Bill is intended to govern purchase or hire-purchase contracts for: electric appliances; electronic devices; personal cars and motorcycles; other goods that may be set out in a future royal decree issued under the act. The Bill will not apply to any purchase or hire purchase of used products or as-is products when this is clearly stated by the seller or hire-purchase provider or the auctioneer in
November 24, 2022
On November 24, 2022, Secretary-General of the Permanent Court of Arbitration (PCA) Marcin Czepelak and leaders of Vietnam’s Ministry of Foreign Affairs chaired the opening ceremony of the PCA’s Representative Office in Hanoi. Beyond its headquarters in The Hague, the PCA has opened offices in other cities to make its services more accessible in different regions. The Hanoi office will be the PCA’s fourth office outside its headquarters. The PCA, established in 1899, is an intergovernmental organization which provides resolution services for disputes involving states, state entities, international organizations, as well as private entities. It provides and administers arbitration, mediation, conciliation, and fact-finding commissions of inquiry. The PCA’s services are primarily used in Europe and Asia. In cases administered in 2021, approximately 47% of the disputing parties were from the Western European and Others Group of the United Nations Regional Groups, and 40% from the Asia Pacific Group. The majority of disputes resolved by PCA are state-related disputes; however, the PCA’s scope of settlement is also extended to the private sector. The PCA’s Hanoi office is staffed to administer PCA hearings and meetings and will provide administrative services in support of parties and arbitrators conducting arbitral proceedings under the PCA’s auspices, serving as the official channel of communications and ensuring safe custody of documents. The PCA can also provide such services as financial administration, logistical and technical support for meetings and hearings, travel arrangements, and general secretarial and linguistic support. Currently, Vietnam has some active members of the PCA. The opening of the PCA representative office is a step toward realizing commitments between Vietnam and the PCA in their protocol signed in 2021, and serving the evolving dispute resolution needs of states and other entities in the coming years. With the new office in Hanoi, it is expected that
November 3, 2022
On October 31, 2022, the Department of Trade in Myanmar’s Ministry of Commerce announced that payments for importation at the border are to be made via bank transaction. This announcement comes into force with Import/Export Newsletter No. 10/2022, dated October 31, 2022, issued by the Department of Trade, with the purpose of implementing a systematic payment system for import and export at the border, in accordance with a suggestion made by the Financial Action Task Force (FATF), an international financial watchdog. (This follows the recent news that the FATF has blacklisted Myanmar.) This requirement means that only bank transactions will be accepted for import payments in the border trade. Initially, this system will be applied to trade at the Myanmar-Thailand border only. The new requirement to pay for imports only via bank transaction states that export earnings and other types of foreign currency earnings (including salary and income remitted by Myanmar workers overseas) will be allowed to be used for imports. Importers are required to make the payments for import goods—using these earnings—via their banks. That is, Importers operating in the border trade must have foreign currency earnings received through official banking channels and must make import payments abroad through official banking channels using those earnings. In contrast to previous practices, they are unable to use other sources of income and are not able to make other payment arrangements that do not involve bank transactions. The procedures for importation at the Myanmar-Thailand border are as follows: Companies applying to the Department of Trade for an import license must produce credit advice and original bank statements that prove the receipt of export earnings or other earnings into their bank account. The Department of Trade will scrutinize the reported export earnings or other earnings, and approve the import license for an