Vietnam continues to see a trend of increasing foreign direct investment. In 2016, foreign investment inflows reached US$15.8 billion—a record level. This figure represents a 9 percent increase from 2015, which was another record year for foreign investment. The Economist surmises that Vietnam is mixing the right ingredients for rapid and sustained growth, similar to South Korea, China, and Taiwan before it. The Vietnamese government has also taken steps to improve the investment environment by revising the Enterprise Law (2014), the Investment Law (2014), the Land Law (2013), and the Law on Real Estate Business (2014), among others.
While investing in Vietnam has much to offer, foreign investors should also be cognizant of the compliance risks. Doing business in Vietnam requires proper oversight and controls to be put in place, and it is important for investors to be aware of the risks, and prepared for them, before investing in this dynamic jurisdiction.
John Frangos, a consultant in Tilleke & Gibbins’ dispute resolution team, addresses these risks and more in the Vietnam chapter of The Asia-Pacific Investigations Review 2018, a guide to the important issues in internal and government investigations across the Asia-Pacific, published by Global Investigations Review.
The analysis presents an overview of each of the three primary compliance risks in Vietnam (anti-corruption, regulatory compliance, and employee fraud) and discusses topics such as how foreign investors can minimize their risks, anti-corruption legislation, and bribery risks.