The United Nations, World Bank, and ‘Western donors’ have sent a letter to the Prime Minister of Vietnam that says the country has lost US$2.5 billion in aid funding over the last three years due to approval delays. It also says a further US$1 billion is awaiting project approval, according to Reuters. Reuters goes on to extrapolate that this is due to the ongoing ‘blazing furnace’ corruption crackdown.
Of note, these delays in project approvals seem to be mostly in infrastructure projects and aid programs. New projects in the manufacturing and processing industry have continued to move forward without any more delays than is typical–critical to Vietnam’s economic development, investigating corruption in the industry could discourage further foreign direct investment.
That said, foreign firms from most developed countries are prohibited from engaging in corruption outside of their home countries by laws in their home countries anyway–the US has the Foreign Corrupt Practices Act, for example.
It’s worth keeping this in mind when discussing delays in project approvals as a result of the ‘blazing furnace’ corruption crackdown in that they do not look to be impacting all sectors evenly. That’s not to say that foreign investors should not be wary of the current political turmoil facing Vietnam, just that they should not be so concerned in this particular area.
See also: How to Open a Factory in Vietnam: Ultimate Guide 2024