38 percent of Vietnam businesses in VCCI survey paying “informal charges”

That equates to more than one in three businesses and comes despite well-publicised anti-corruption campaigns in recent years.

The Vietnam Chamber of Commerce and Industry (VCCI) President Ho Sy Hung told lawmakers Monday that 38.18 percent of businesses have reported paying “informal charges” in a recent survey (date of survey undisclosed), according to reporting from The Investor.

That equates to more than one in three businesses and comes despite well-publicised anti-corruption campaigns in recent years.

Even just this year, there have been a spate of arrests over corruption-related offences.

Earlier this month, it was reported that police in Quang Tri province had arrested and charged a school principal with accepting bribes.

Investigators alleged he abused his position by asking contract teachers to pay money in exchange for teaching positions and work at the school.

Last month, the chairman and chief executive of construction and energy firm PC1 group and several of its employees were reported to be under investigation over alleged accounting violations and embezzlement.

In March, customs officials were accused of taking bribes to allow nearly 28,000 tonnes of ore to be illegally exported.

Investigators allege more than VND 54 billion (US$2.05 million) was spent on the scheme, with officials receiving over VND 8.5 billion (US$322,000) in bribes.

A few weeks before that, it was reported that a Ho Chi Minh City court was set to try 30 defendants from five driver training and testing centres, alleging the centres falsified training records, allowing 3,854 ineligible candidates to obtain driving licences.

Authorities alleged the scheme generated illicit gains of nearly VND 13 billion (US$493,359) and caused about VND14.6 billion (US$554,079) in financial losses.

Around the same time, also in Ho Chi Minh City, police detained two senior executives of construction firm Vinaconex on allegations they paid bribes to project owners to secure construction contracts.

And then in January, it was reported that employees of the Food Safety Authority under the Ministry of Health had taken nearly VND 94 billion (US$3.57 million) in bribes.

At a trial involving more than 50 defendants, former leaders and specialists testified that businesses routinely paid cash after food and health-product dossiers were approved.

Of course, whether these arrests represent a system being cleaned up or simply one in which corruption remains stubbornly entrenched is open to debate.

What is harder to ignore is that more than one in three businesses surveyed reported paying informal charges, suggesting corruption remains a significant challenge despite years of reform and increasingly aggressive enforcement.

Direct your comments / queries to mark.barnes@the-shiv.com

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