As a participant in the USs new Indo-Pacific Economic Framework, Vietnam also has an opportunity to increase its links to its former wartime foe -- its largest export market. While the countrys position has improved by more than 30 spots over the past decade on a global corruption perception index, it was still at 87th place last year out of 180 ranked. Trong also ordered trial proceedings in some major cases to move faster. Administrators have been reluctant to approve projects and procurement that may subsequently be investigated for irregularities, leaving them vulnerable to dismissal or prosecution. Written in English by Eugene Whong. The men have not been arrested and no charges have been filed against them. While caution remains the order of the day for foreign investors, the Vietnamese leadership likely appreciates that it cannot allow its anti-graft campaign to undermine their confidence in the business environment. It shows a concerted effort to rein in large-scale corruption through which some officials had secured massive personal wealth and tarnished the ruling partys image. HANOI (Reuters) - Vietnam brought 22 executives to court over losses at the state oil firm on Monday, in the most important trial of a widening crackdown on corruption. Last month, the party disciplined Minister of Foreign Affairs Bui Thanh Son over the alleged involvement of several ministry officials and diplomats in the scandal over repatriation flights. But many people who have been punished were found guilty even if the information was true. is to encourage them to quit if they are disciplined and see their reputation decline. Theyd rather do it earlier than later to avoid an even more damaging collapse, he said. If the dismissals are linked to the anti-corruption drive, they would be the most senior officials targeted so far. On Wednesday, Deputy Head of the Central Committee for Internal Affairs Nguyen Thai Hoc told the Tuoi Tre Newspaper the party had met its goals in 2022 and would tackle more long-standing cases in 2023. Explainer: What's behind Vietnam's corruption crackdown? The lenders former chief executive - a previous PetroVietnam chairman - was sentenced to death. Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century. Former politburo member Dinh La Thang, another former PetroVietnam chairman, was sentenced in 2018 to 18 years for violating state regulations. Was there a lot of public pressure to do something? Many similar incidents have been discovered. Trinh Van Quyet, founder and now-former chairman of real estate developer FLC, was arrested late last month on charges of stock manipulation and hiding information on stock transactions after selling a portion of his stake in the company. That chill has disrupted imports of drugs and petrol and investments in crucial energy and manufacturing projects, politicians, diplomats and executives said, in an economy that has become an increasingly important part of the global supply chain. Vietnamese president resigns, criticized for major scandals RFA is not responsible for the content of the postings. Bill Hayton is following all this. Businesses say that could delay crucial foreign investment in a country that relies on external funding to sustain its export-oriented economy and is expected to be among the top beneficiaries of multinationals' plans to reduce their exposure to China. The delays could act as an economic break on an export-reliant country looking to persuade more Western manufacturing companies to switch some or all of their Chinese production to Vietnam amid rising tensions between Washington and Beijing and Chinas uncertain recovery from its zero-Covid policy. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Anti-corruption steering committees have been formed and operate in every city and province, and the Party chief in an August speech urged officials to be persistent and determined, given the serious corruption in some sectors and localities, according to the goverments website. Despite the countrys relative success at keeping the number of cases down for 2020 and early 2021, the pandemic still had a major impact on the economy. Vietnam dismissed two deputy prime ministers the most senior officials to be relieved of duties since 2017 amid lengthy investigations driven by a campaign to clean up corruption and . Aside from that, Vietnam, a country of roughly 100 million people, has much to gain economically if it can bolster its image as place to do business. Scores have been arrested across PetroVietnam and the banking sector. Germany is the second-largest exporter of drugs to Vietnam after France, according to 2020 data. Among those being. Among the executives detained are the former chairman of Bamboo Airways and its parent FLC Group JSC, Trinh Van Quyet; Tri Viet Securities former chief executive officer Do Duc Nam and Louis Holdings former chairman Do Thanh Nhan. The investigation has resulted in 120 people being investigated for offenses including giving and taking bribes . Before Hanoi, Francesco worked in Brussels on EU affairs. And again, tens, maybe even hundreds of millions of dollars involved in there. The arrests are part of a nationwide crackdown on corrupt staff at Vietnam Register. Officials have initiated criminal proceedings against 89 individuals tied to the case, according to the public security ministry. A violent crackdown by Assad on peaceful pro-democracy protesters in 2011 led to a civil war, with Moscow backing Assad and Washington supporting the opposition. Vietnams National Assembly has voted to dismiss two deputy prime ministers from their posts, a government statement said, in what analysts believe is a new escalation in an anti-corruption crackdown. International and local media called these arrests a signal that Vietnams largest companies were now a target of the Vietnamese Communist Partys anti-corruption efforts. Similar to the anti-corruption campaign in China, the corruption crackdown in Vietnam centers on the top strategic sectors of the economy. "The corruption campaign is causing increasing uncertainty and anxiety among the ranks and files in everyday business dealing and approvals in Vietnam," said John Rockhold, chairman of environmental consulting and investment firm Pacific Rim Investment and Management. The campaign is showing no signs of slowing. Vietnam names new president as corruption crackdown shakes up top - CNN The Unintended Consequence of Vietnam's Anti-Corruption Drive Arrests of high-profile executives may cause market jitters, but help the economic recovery after COVID. Projects involving medium-sized investors were said to be repeatedly delayed because of missing signatures from officials, and delays in approving long-awaited energy projects were reportedly contributing to power shortages. The Central Committee also dismissed two deputy prime ministers, three ministers and many other senior officials in connection with COVD-19 scandals such as Viet A and the rescue flights affair. Al Jazeera Centre for Public Liberties & Human Rights. An executive at an industrial developer, who declined to be named, said projects involving medium-sized investors were repeatedly delayed because of missing signatures from officials. In a separate trial in Ho Chi Minh City, a banking fraud case began with 46 defendants. Give your business an edge with our leading industry insights. Households still experienced lower incomes, job loss, and hardships. More than 700 cases involving more than 1,500 defendants have been brought to the court, Vietnam+ said. Nhan Hu Sng/VNA/AP Hanoi, Vietnam CNN Vietnam's National. There is good reason for such concern. But because a lot of the people affected, you know, were connected to each other and to the world, the stories began to spread and to grow. Global manufacturers have been exploring ways to diversify their supply chains away from China, which has been caught up in pandemic lockdowns and a trade war with the US, and Vietnam has benefited. This content was commissioned by Nikkei's Global Business Bureau. What's Behind Vietnam's Unprecedented Crackdown on Corruption? At least you'd be down there in the shit. There was one about repatriating Vietnamese flying back from foreign countries during the pandemic. The Chinese-style campaign against graft has been under way since 2016, but a series of recent scandals have sparked new wide-ranging investigations, unnerving government officials who now fear being accused of corruption and are reluctant to greenlight procurement and investment. See here for a complete list of exchanges and delays. Another reason for Phucs resignation could be the social media rumors that his family and friends were involved in the Viet A scandal. Last year a large number of officials and businesspeople were prosecuted for corruption charges. Business intelligence for leaders in foreign direct investment, I consent to Verdict Media Limited collecting my details provided via this form in accordance with, Namibian Investment Promotion and Development Board, How to solve the supply chain problems created by ESG legislation, The emerging industry in Missouri that spans agriculture and geospatial tech, Costa Rica eyes up growth potential of health and wellness travel, Georgia achieves two years of double-digitgrowth amid global economic turbulence. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. In the first ten months of2022, foreign direct investment in the country rose by 82%, the second-highest growth rate in Asia-Pacific, according to Investment Monitor figures. The country appears to be recovering well from the Covid-19 pandemic, with the prospect of cementing itself as a leading supply chain hub in Asia,especially if more Western companies relocate from China. Vietnam is a tightly controlled, authoritarian state, where arbitrary arrest, detention and prosecution occur. It marks a change of style from the leadership under Dung and his allies, some of whom emerged as personalities in their own right and shown signs of readiness for greater political openness. Vietnam names new president as corruption crackdown shakes up top Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Vietnam is ranked 87th in the latest corruption perception list of 180 nations compiled by Transparency International, a watchdog, around the same level as Ethiopia and Colombia. See here for a complete list of exchanges and delays. 6:34. The Asia Society magazine in November 2022 commented that experts believe the campaign has thrown a wrench in the functioning of government, characterised, it said, by an ongoing failure to disburse public funding. I think thats a positive sign for Vietnams business environment, Doanh said. Clamp-down on widespread corruption causes panic among officials, Vietnam faces drug shortages, project delays, power cuts, Executives, diplomats, officials warn of economic risks. And he's an expert on this country that has become a big trading partner of the United States. I consent to Verdict Media Limited collecting my details provided via this form in accordance with Privacy Policy. So in some ways, it's a bit like what's been happening in China, where Xi Jinping has been using corruption scandals to get rid of his enemies. Thai, who was appointed ambassador to Malaysia in 2020, is accused of abusing power in performance of official duties, the Ministry of Public Security said in a statement. Credit: Jack Taylor/Pool Photo via AP, File Advertisement In an. "State cadres and civil servants, including leaders, do not dare to work because if they do, they are afraid of making mistakes," lawmaker Nguyen Huu Thong warned the National Assembly late in October. PetroVietnam is a tangled enterprise of 15 direct units, 18 subsidiaries and 46 affiliates in which it owns smaller stakes. To become effective, Phucs resignation requires approval from the National Assembly. Vietnam received a Corruption Perceptions Index score of 42 in 2022, ranking 77 among 180 . HANOI, Nov 28 (Reuters) - An anti-corruption drive in Vietnam has paralysed many routine transactions in the country, causing shortages of essential goods and dampening investor confidence in one of Asia's fastest growing economies. Vietnam's Corruption Crackdown Is All About Protecting Its Economic Miracle From Its SOEs Ralph Jennings Contributor Dec 19, 2017,04:00am EST This article is more than 5 years old. Nikkei Inc. No reproduction without permission. On Monday, Reuters news agency reported the legislature would meet this week. Many businesses have invested tens of thousands of billions of dong [hundreds of millions of U.S. dollars] in a resort development project, but purchasing power hasnt been able to catch up, he said. The most senior figure arrested is former PetroVietnam Chairman Dinh La Thang, among those whose trial started on Monday. Add your comment by filling out the form below in plain text. Vietnam's benchmark stock index (.VNI) is among the world's worst performers this year amid a credit freeze sparked by a series of arrests of real estate developers for alleged wrongdoing. Prime Minister Pham Minh Chinh in April ordered ministries to increase scrutiny over the corporate bonds market amid the detention of Tan Hoang Minh Group chairman Do Anh Dung and six other company executives for investigation of alleged fraud. Talking to the Tuoi Tre newspaper, Nguyen Thai Hoc said that the new thrust of the, blazing furnace crackdown on corrupt cadres. You got my vote. HAYTON: There was. The procurement and licensing problems currently in the pharmaceutical sector follow arrests of high-ranking officials last year for the purchase of COVID-19 treatments at inflated prices and for graft in the organisation of repatriation flights for Vietnamese citizens stranded abroad during the pandemic. The market had been steadily trending upward since hitting a low in March 2020 at the beginning of the COVID-19 pandemic. In meetings with voters in Hanoi in October, he affirmed that the fight was ongoing, with more cases coming, state-owned broadcaster VTV reported. The president of Vietnam had to resign this week. Its exports are equivalent to more than 100% of GDP, according to World Bank data, making it one of the most trade dependent countries in the world. Phucs resignation follows the dismissal of two deputy prime ministers this month in an anti-corruption purge that has led to the arrest of dozens of officials. Allegations have included accusations that officials have extorted about $200 million from expatriate Vietnamese trying to return home during the pandemic and proceedings have been launched against. Germany has accused Vietnam of kidnapping one PetroVietnam suspect, Trinh Xuan Thanh, who was also among the 22 in court. A former deputy health minister was sentenced in May to four years in prison for his role in a trading ring for counterfeit medicine. As well as shedding light on graft, mismanagement and nepotism within state firms at a time privatization is accelerating, the arrests show the ascendancy of a more conservative faction within the ruling Communist Party. Vietnam is grappling with the political fallout of a corruption - NPR Hanoi, Vietnam CNN Vietnam's National Assembly on Thursday named Vo Van Thuong as the country's new president, in a reshuffle of the country's top leadership amid a sweeping anti-graft. See here for a complete list of exchanges and delays. Last year, the partys Central Committee, the Politburo and the Secretariat disciplined 47 officials under the supervision of the Politburo and Management Secretariat, 15 more than the previous year. But it has also allowed the current Communist Party leadership to strengthen its hand under General Secretary Nguyen Phu Trong after winning out in a power struggle with former prime minister Nguyen Tan Dung last year. Hoc said this year there needs to be a more coordinated and determined effort from central to the local level to find corrupt officials and deal with them promptly, no matter how small the violations. Welcome to the program, sir. Some have been tried and sentenced already. Al Jazeera Centre for Public Liberties & Human Rights. So there's no doubt that there is corruption and that these guys have taken the fall for it. Foreign investors still seem upbeat about Vietnam, but many will no doubt be hoping the authorities turn down the heat on blazing furnace. Public sector corruption Vietnam 2012-2022. See here for a complete list of exchanges and delays. The government did not respond to a request for comment about the anti-corruption drive, but top officials, including Prime Minister Pham Minh Chinh, have repeatedly urged administrators not to hamper the economic activity by delaying procurement decisions. In January, Vietnam Register Director Dang Viet Ha and former director . Whatever the motivation behind it, blazing furnace has led to many officials sitting on their hands, apparently fearing that any mistake they make may be pounced upon by either those seeking to get them out of the way or overzealous investigators wanting to boost numbers of arrests. "The crackdown won't be able to root out the widespread corruption if implemented without complete transparency and rule of law," said Hop. Fully being aware of his responsibilities before the party and people, he submitted an application to resign from his assigned positions, quit his job and retire, the Vietnam News Agency reported on Tuesday, citing the partys powerful Central Committee. Vietnam's new conglomerates in crosshairs of corruption crackdown Phuc was prime minister between 2016 and 2021, before assuming his role as president. Vietnam's Communist Party is growing alarmed about a new mantra taking hold among bureaucrats: Do a lot, get in trouble for a lot. In June, police detained former Health Minister Nguyen Thanh Long and former Hanoi Mayor Chu Ngoc Anh for alleged ties to bribery and abuse of power investigations involving Viet A Technology JSC, the maker of Covid-19 test kits. For example, there are currently no regulations on bonds issued by enterprises, therefore we have not been able to effectively monitor this issue, he said. It's just certain people get investigated for their corruption scandals and certain people don't. Dam, 59, who was appointed as a deputy prime minister in 2013, is widely known for his efforts to lead the Southeast Asian countrys fight against the COVID pandemic. Pham Binh Minh and Vu Duc Dams dismissal comes at a time when the Communist-ruled country is intensifying its fight against corruption, despite concerns the campaign is paralysing routine transactions as officials fear being entangled in inquiries. The more corruption rises, the higher the number is. Nguyen Xuan Son, former chairman of state-owned PetroVietnam and the ex-chief executive of Ocean Commercial Joint Stock Bank, was sentenced to death after being convicted for embezzlement. Chinese investors, a Samoan high chief plot a cryptocurrency hub in paradise, Facing abuse, teenage Uyghur girls are forced to work in a Xinjiang garment factory, Myanmars central bank revokes licenses of 10 forex companies, Speedy expansion of Ream naval base includes pier that can accommodate warships, US Marine jets fly over South China Sea during Philippine drills, Vietnams crackdown on corruption in private sector seen as potential turning point. In mid-April, authorities arrested Hanoi resident Dang Nhu Quynh for allegedly posting information on Facebook about the arrests of Trinh Ban Quyet and Do Anh Dung, and said that the Ministry of Public Security would continue prosecuting people and companies that are guilty of similar crimes.

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